The Australian Securities and Investment Commission has received Federal Court approval to shut down five unregistered property schemes that were used to raise more than $80 million from investors in Australia and New Zealand.
The property schemes were operated by Melbourne businessman Mark Ronald Letten, who ASIC alleges promoted and sold investments in commercial property joint venture projects that should have been registered as managed investment schemes under the Corporations Act.
ASIC, which says Letten has raised more than $80 million from about 1,000 investors in Australia and New Zealand, had already put 11 of his property projects in receivership in February and has now moved on another five.
Three current schemes, which involved property projects in New Zealand, were found by the Federal Court to be unregistered and so were wound up and placed in the hands of receivers from KPMG.
Schemes involving properties in Melbourne’s CBD and the Sydney suburb of Frenchs Forrest were also placed in receivership, although the Court did not make declarations on their status.
According to reports, around 340 investors put more than $20 million into these schemes alone.
The bulk of the 16 property schemes now stopped by ASIC are located in Victoria, including the $25 million Yarra Valley Gold Club resort project and the Heritage Gold and Country Club project outside Melbourne.
KPMG has been asked to secure the assets of the property schemes and companies behind them, identify the investors and establish their current financial position.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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