THE Federal Court has appointed a liquidator to a New South Wales central coast property development scheme and its associated companies.
During an ongoing Australian Securities and Investment, the regulator made an application alleging Mega-Money Pty Ltd (trading as Sevelle Financial Services), its related companies and their director, David Dayan Sevelle, of Wyong Creek NSW, operated an unregistered managed investment scheme between February 2004 and August 2006.
ASIC further alleges that these companies and Sevelle carried on a financial services business without holding an Australian Financial Services Licence as required by law.
During the time the scheme was in operation approximately $8 million was raised from retail investors to fund property development projects along NSW coastal and hinterland areas.
The Court ordered, by consent, the appointment Justin Walsh of Ernst & Young as liquidator of the scheme and companies to secure and ensure the orderly distribution of scheme and company assets to investors and creditors.
Approximately 70 investors are owed $13.5 million, including interest.
Sevelle has also been permanently restrained by injunction from providing financial advice, dealing in financial products and/or carrying on a financial services business to members of the public including, without limitation, through the promotion and operation of any managed investment scheme.
ASIC investigations are continuing.
Australian Property Journal
