The company owned by the brother of Westpoint boss Norm Carey has defeated urgent attempts by ASIC to appoint liquidators and freeze $1 million in assets.
The Federal Court has refused ASIC’s attempt to extend orders freezing the assets of Rold Corporation, which the regulator says received $1 million from funds sourced from the failed Westpoint group.
Rold is owned and controlled by Alan Frank Carey, the brother of Norm Carey.
In August 2006 ASIC successfully applied to the Federal Court to freeze the company’s assets and appoint receivers. In February this year Rold opposed ASIC’s attempt to extend these orders.
ASIC said it wanted to protect about $935,000 in a bank account to protect a potential claim for the money by the liquidator of Westpoint.
Judge Robert French said the court did not have the power under the Corporations Act to make freeze Rold’s property or appoint receivers and that there was not sufficient risk of the money being dissolved.
However, Justice French said an amendment to section 1323 to include a power in the court to freeze property should be considered.
About 4000 investors are owed $320 million after investing in the failed managed investment scheme, which folded at the end of 2005.
