THE Federal Court has wound up two investment syndicates relating to the proposed Carrington Square Retirement Facility associated with Primelife.
The development also known as
Justice Middleton made the orders to appoint an independent accountant to investigate and report into the past affairs of the scheme to identify assets and the scheme’s investors, and all investors being given an opportunity to consider McLellan’s findings and a proposal about how the scheme should be wound up.
The proposal accepted by His Honour involved the distribution of the assets of the scheme to the investors. Before making the orders, the Court heard that the distribution would involve a return of funds to the investors greater than their initial contributions to the scheme.
Australian Securities and Investments Commission’s executive director of enforcement Jan Redfern said ASICspecifically sought the appointment of an independent accountant to review the schemes so investors and the Court were able to make informed decisions about the method by which the scheme should be wound up and its assets distributed.
“Our guiding concern has been to provide a flexible framework to help maximise returns to investors,” she added.
The latest scheme wound up is part of ASIC investigation which started on September 23 2004. ASIC filed 37 proceedings in the Federal Court of Australia seeking, amongst other things, orders that an investigating accountant be appointed over each of the schemes to report to the Federal Court to ascertain the position of each of the schemes.
ASIC also applied for the schemes to be wound up alleging that the schemes were not registered.
ASIC entered into terms of settlement with Primelife in the proceedings on April 01, 2005 in respect of those 37 proceedings and two further proceedings commenced on June 22 2005.
While ASIC had entered into terms of settlement with Primelife, the proceedings against the other defendants were ongoing.
Australian Property Journal
