A liquidator has been appointed to seven companies within the Sydney Investment House Group (SIH) following action by ASIC.
ASIC applied for the liquidator following allegations by the regulator that the companies within the Sydney Investment House Group and two of its principles, Edwin Goulding and Stephen Geagea, had been involved in a number of contraventions of the corporations act and ASIC act, including the operation of an unregistered managed investment scheme by SIH Equities.
Goulding and Geagea are also alleged to having been involved in making false and misleading statements to investors, encouraging them to invest with SIH Capital.
SIH Capital is an unlisted public company that raised over $8.4 million from the public through the issue of redeemable preference shares between November 2004 and June 2005.
The funds raised from the public were loaned to other companies within the Sydney Investment House Group that were controlled by Goulding.
According to ASIC, many of the investors in SIH Capital were previously investors in SIH Equities and had their investments rolled over into SIH Capital.
Quentin Olde of Taylor Woodings has been appointed as liquidator to Sydney Investment House Equities Pty Ltd (SIH Equities), Sydney Investment House Capital Limited (SIH Capital), Sydney Investment House Pty Ltd, Sydney Investment House (Beaconsfield) Pty Ltd, Melbourne Investment House Pty Ltd, Melbourne Investment House (Hawthorn) Pty Ltd, and Sydney Investment House (Newcastle ) Pty Ltd.
ASIC previously succeeded in having the court appoint Olde as provisional liquidator to the companies, and receiver and manager to the assets comprised in a number of trusts associated with Goulding.
Goulding is a director of the eight companies comprising the Sydney Investment House Group.
In making its decision to place the seven companies into liquidation, the court considered reports it had previously ordered from Olde regarding their financial position. These reports concluded that the companies were insolvent and the court ordered the companies be wound up.
ASIC said it was also concerned that some of the funds raised by SIH Capital through the issue of a prospectus were then loaned to related companies and trusts by the defendants in a manner contrary to statements made in the prospectus.
ASIC is seeking orders and declarations in relation to these and other allegations. These matters will be heard by the court on 12 April 2007.
