Powered by MOMENTUM MEDIA
subscribe to our newsletter

ASIC moves on ‘misleading’ land banking schemes

ASIC has commenced proceedings in the Federal Court to freeze assets and wind up companies associated with two Victorian land banking schemes.

The regulator is seeking to appoint liquidators to development companies Bilkurra Investments and Foscari Holdings for their operation of the two schemes, known as Hermitage Bendigo and Foscari.

ASIC said it is concerned the development companies are insolvent, and that it is “just and equitable that the companies are wound up” to protect the interests of investors.

“ASIC’s investigations suggest investors may have invested in the land banking schemes on the basis of misleading representations, and that option agreements entered into by investors in Hermitage and Foscari purportedly allow for monies invested in the schemes to be used for any purpose whatsoever, and need not be used to progress the two land banking schemes,” the regulator said.

“ASIC is also concerned that Hermitage and Foscari are not close to completion and appear to be incapable of completion due to the financial position of the development companies.”

Advertisement
Advertisement

PROMOTED CONTENT


In addition, ASIC is taking action against Project Management (Aust) Pty Ltd (PMA) and Michael Grochowski, with the regulator alleging that both parties were involved in the operation of the land banking schemes, and that bank accounts relating to the development companies were operated by PMA.

The proceedings are part of ASIC’s wider and ongoing investigation into land banking.

[Related: ATO launches property crackdown]

ASIC moves on ‘misleading’ land banking schemes
mortgagebusiness

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.