The orders to wind up Askk Investment Group (ASKK) and its managed investment scheme it operated in respect of land at Lot 2, 615 Hume Highway, Beveridge, Victoria, followed an investigation and application brough by ASIC.
The court ruled the scheme was an unregistered managed investment scheme, when it would be required to be registered under the Corporations Act.
From at least October 2017, ASKK raised in excess of $10 million from more than 270 investors in relation to the land.
ASIC obtained interim orders restraining ASKK from dealing with funds in its bank accounts and other assets in relation to the illegal scheme, in December 2018.
In June 2019, ASIC applied to the court for orders to wind up ASKK and the scheme. The proceedings were defended by ASKK.
ASIC deputy chair Daniel Crennan commented: “This conduct put substantial funds at risk for investors who were not afforded the protections of a lawfully registered scheme.
“This action provides an example of ASIC’s enforcement approach when consumers’ funds are put at risk by illegal schemes.”
Timoth Norman and Salvatore Algeri of Deloitte Financial Advisory have been appointed liquidators of ASKK and the scheme.
An April settlement deed reached between ASKK and the vendors of the land, Old Hume, requires that Old Hume repay all monies paid to it by ASKK under the purported contract of sale for the land.
Old Hume has made the first payments of $3.2 million and $63,599.97 as required by the deed.
The money will form part of the pool of assets available to the liquidator for future distribution to creditors of ASKK.
The remaining $9.75 million is due to be paid by 16 October next year.
A group of around 60 investors applied to adjourn the hearing on 10 August for the purposes of considering whether and how to respond to ASIC’s winding up application.
The court refused the adjournment on the basis that it was not supported by any affidavit material explaining why the application had been made at such a late stage and the utility of any proposed adjournment.
