The Federal Court has ordered a Perth property investment scheme to be wound up.
The scheme, which was not registered with ASIC, had been operated by Lake Coogee Estate Management, Citibond Finance and Investments and ALB Developments. ALB Developments was formerly known as Australian Landbank.
The project involved the development of Lake Coogee Estate in the south-west Perth suburb of Munster.
The orders, made on 11 May 2007 by Perth Federal Court judge Robert Nicholson, follow interim orders issued last October preventing the companies from further dealing with the scheme's assets.
In December, investors had a special meeting to consider and vote on the matter.
The court allowed Lake Coogee Estate Management to wind up the scheme in accordance with a compliance plan.
The scheme needs to close down within two years, appoint an independent supervisor and report back to the regulator and the court.
'This is a practical solution, limited to the facts of this case, in that it facilitates a court-approved process to ensure the Lake Coogee project will be completed in an open and fair manner," ASIC Executive Director of Enforcement Jan Redfern said.
"It considers the legal requirements but does not limit opportunities for investors."
ASIC investigated the scheme after receiving a complaint from an investor.
In July 2005, Citibond and ALB issued an information memorandum to the public offering units in the Lake Coogee Estate Trust, which would fund the development of the estate.
