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ASIC keeps watch on Westpoint top dog

By Madeleine Collins
2 minute read

Westpoint chief Norman Carey's assets will remain frozen until at least June, the Federal Court has ruled.

The Federal Court has ruled that ASIC can continue to freeze Westpoint chief Norman Carey's assets and those of his associates in the failed property group.

ASIC has obtained orders from the Federal Court in Perth extending the orders previously made to appoint receivers to the assets of a number of company directors and companies associated with Westpoint. The orders will extend for six months until June 30 2007.
In a hearing last December 2006, ASIC told the Court it was seeking an extension to the asset-freezing orders while its investigations that began in March continued. The regulator believes there is a real risk that the property spruikers will shift or dispose of money owing to creditors.

The companies involved are Richstar Enterprises, Westpoint Realty, Bowesco, Redchime and Keypoint Development and their directors.

The Federal Court rejected an appeal by Carey for an alternative court-appointed regime of supervision over his personal assets and companies that would have involved expenditure of $25,000 a week reviewed on a monthly basis by a cour-appointed accountant.

Yesterday the Supreme Court of NSW ordered a freeze remain on assets from the Westpoint-linked group Kebbel Investment Bank and its director, Sydney finance spruiker Neil Burnard, who is the first Westpoint director to face criminal charges over his role in financial ruin of the companies.

Westpoint collapsed in 2005 owing $300 million to 4000 investors.