Following an application by ASIC, the Federal Court in Adelaide yesterday froze all assets owned or otherwise held by the founder of the Charterhill group of companies, George Nowak, and his wife, Betty Nowak.
News of Charterhill’s collapse was broken by InvestorDaily’s sister publication SMSF Adviser on January 24.
Subsequent stories revealed at least $6 million in SMSF investor funds had vanished from Nova Real Estate Pty Ltd and that ASIC were investigating Charterhill Group.
In a statement released yesterday, ASIC noted: “The court also ordered the surrender of Mr and Mrs Nowak’s passports and restrained their travel out of Australia, as ASIC investigates the collapse of the Charterhill group, which specialises in assisting clients to invest in property through self-managed superannuation funds (SMSFs).”
“ASIC’s application was brought under section 1323 of the Corporations Act 2001 and followed steps taken by ASIC last week to secure Mr Nowak’s passport by agreement and to obtain an undertaking from him that he would not dispose of or otherwise deal with any assets.”
This, however, is not the first time Mr Nowak’s corporate character has been brought into question.
In 2007 the Supreme Court of South Australia heard a civil dispute in relation to a contract for the sale and purchase of a property known as the Adelaide International Raceway.
The court documents reveal that the Honourable Justice Anderson found Mr Nowak to be “an evasive and unreliable witness”.
“For a chartered accountant, the ignorance which he claimed of the various statutory requirements and procedures relating to the processes within the offices of ASIC defies credibility,” Justice Anderson said.
According to yesterday’s statement from ASIC, the following companies in the Charterhill Group have been placed under external control:
- Lending Solutions International Pty Ltd – liquidators appointed (Andrew Heard and Anthony Phillips of Heard Phillips);
- Nova Real Estate Pty Ltd – external administrators appointed (Andrew Heard and Anthony Phillips of Heard Phillips);
- EJ Property Developments Pty Ltd – receivers and managers appointed (Michael Basedow and Leigh Prior of Pitcher Partners); and
- Financial Wellness Pty Ltd – receivers and managers appointed (Michael Basedow and Leigh Prior of Pitcher Partners).
ASIC stated it will not be making any further comment on its investigation at this time.
