ASIC has appointed a provisional liquidator for failed mortgage business John West and Associates Pty Ltd.
The regulator obtained orders in the Supreme Court of Adelaide to allow Austin Taylor of Adelaide-based Meertens Chartered Accountants to wind up the company, which owes investors around $9.5 million.
"The collapse of John West and Associates represents the latest in a series of high profile property related mortgage scheme failures, including Westpoint, Fincorp and ACR," Taylor said in a statement.
ASIC alleges Jonathan Peter West of Athelstone, South Australia, and the company have been operating a managed investment scheme in breach of the Corporations Act since 21 May 2003.
ASIC first took the scheme to court in March.
On 24 July 2007, West placed the company into voluntary administration after resolving that the company was insolvent or likely to become insolvent.
ASIC alleges that West or the company borrowed funds from investors at interest rates of up to three per cent per month.
The regulator said it on-lent the funds to borrowers for commercial purposes.
ASIC is concerned that the majority of these loans are in default.
