ASIC has obtained orders to close companies associated with a planning firm and tied to unregistered MIS in Melbourne.
The Federal Court of Australia issued the liquidation orders on HLP Financial Planning, Beachmere View, Leaberl and 10 associated companies.
ASIC alleged at least 55 investors invested $5 million in high yield schemes between April 1 2005 and September 15 2005.
In promotional material HLP Financial Planning was described as a group that 'seeks out and develops worthy investment opportunities for its clients.'
Investors were promised returns of 5 per cent in the first year of investment, 11 per cent in the second year, 57 per cent in year three and 67 per cent in year four.
In March 2006, investors' investments were converted to loans to Beachmere View and operator of the schemes, director Peter Berlowitz, with investors offered a return of 10 per cent per annum.
The group was unable to repay investors their money.
ASIC brought legal action citing a failure to provide appropriate information and legal protection as laid out in the Corporations Act.
Berlowitz provided an undertaking to the court not to remove any of his assets from any state of Australia or from Australia, or transact any more than $10,000 per month of any of his property or assets per month.
ASIC also succeeded in joining another Berlowitz company, HLP Mortgage, to the proceeding, although its application to wind up that company was adjourned until the liquidator, George Georges of Ferrier Hodgson, files his report.
