ASIC announced on Tue 19.3.2013, that it has obtained further court orders as part of its ongoing investigation into 2 Queensland-based self-managed superannuation fund (SMSF) advice companies.
ASIC has alleged that Royale Capital Pty Ltd (Royale) (now known as ACN 143 832 053) and ActiveSuper Pty Ltd (ACN 125 423 574) (ActiveSuper) raised $4.75m from more than 200 investors by cold calling them and encouraging them to set up SMSFs (and rollover existing superannuation money) to make investments in distressed US real estate via LLC Companies based in the US. In a statement of claim, ASIC has alleged that Royale and ActiveSuper were not authorised to offer shares in the LLC Companies to the SMSFs under the Corporations Act 2001.
ASIC has further alleged that Royale and ActiveSuper offered investments to the SMSFs to purchase shares in 2 companies based in British Virgin Islands (BVI) when a proper disclosure document was not first lodged with ASIC. ASIC is further concerned that the SMSF investors have allegedly been misled and deceived about the true nature of the use of the funds by those companies. ASIC alleges that some prospective investors were told that they could achieve “Safe and Secure” “fantastic returns” of 20-25% per annum with SMSFs. According to ASIC, the money subscribed to the LLC Companies and BVI companies was allegedly provided to MOGS Pty Ltd (ACN 136 499 360) as a loan to meet its day-to-day operating expenses.
In the latest development, ASIC said that the Federal Court made orders on Tue 19.3.2013 appointing provisional liquidators to MOGS Pty Ltd. ASIC said it is continuing to investigate the conduct of the defendants in the proceedings.
The matter returns to the Federal Court on 26 August 2013.
Source: ASIC media release 13-054MR, 19 March 2013
[LTN 53, 19/3/13]