Powered by MOMENTUM MEDIA
subscribe to our newsletter

Fed Court appoints liquidators to land banking companies

ASIC has announced that the Federal Court has appointed liquidators to two companies associated with land banking schemes in Victoria.

Following an application by the regulator in the Federal Court in Melbourne, Nicholas Martin and Craig Crosbie of PPB were appointed as joint liquidators of Bilkurra Investments and Foscari Holdings, which operated two schemes known as Hermitage Bendigo and Foscari.

ASIC said promoters of the land banking schemes used the two companies to raise approximately $24 million from investors, adding that its application was based on concerns that Bilkurra Investments and Foscari Holdings were insolvent.

The court found that the two companies were knowing participants in schemes that facilitated misappropriation of investors’ funds, and that Michael Grochowski, who ASIC banned from providing financial services, had day-to-day control of the companies, including their bank accounts which contained investor funds.

According to ASIC, the court found that the winding up orders were necessary to protect investors and to ensure there was some prospect of recovery of the monies lost after a full investigation by a liquidator.

Advertisement
Advertisement

PROMOTED CONTENT


ASIC commissioner Greg Tanzer said the court’s decision is another important outcome for the regulator’s “wider and ongoing” investigation into land banking.

“We will continue to crack down on these investment schemes to deter further misconduct,” he said.

[Related: ASIC muscles in on property investment schemes]

Fed Court appoints liquidators to land banking companies
mortgagebusiness

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

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.