The industry regulator has delivered a double blow to a Melbourne-based managed investment scheme (MIS).
ASIC has wound up an unregistered MIS associated with the Princeton View retirement village in Brighton.
In connection with the proceeding, the regulator also accepted an enforceable undertaking from William Lionel Lewski and three companies which are associated with Lewski and, it is alleged, were connected to the promotion and operation of the scheme.
Justice Middleton of the Federal Court of Melbourne yesterday made orders, by consent, declaring the scheme an unregistered MIS.
The Court also appointed Andrew McLellan, of PPB Chartered Accountants, as an independent accountant to investigate and prepare a report into the scheme, and established a procedure whereby scheme members would be provided with a copy of McLellan's report and, having been provided with that information, given an opportunity to make proposals to the Court as to how the scheme should be wound up.
The matter is due to return to Court on 8 February 2008 for the hearing of further proposals and submissions in relation to the winding up of the scheme.
The enforceable undertaking accepted by ASIC arose from concerns regarding offers made by Lewski and the three companies, Brighton RV Syndication Pty Ltd, Brighton RV Holdings Pty Ltd and Australian Commercial Property Syndication Pty Ltd, (the Lewski parties) to buy back members' interests in the scheme in January 2006.
On 23 September 2004, ASIC filed 37 proceedings in the Federal Court of Australia seeking, among other things, orders that an investigating accountant be appointed over each of the schemes to report to the Federal Court to ascertain the position of each of the schemes. ASIC also applied for the schemes to be wound up.
ASIC has now finalised 27 of the proceedings, involving the winding up of 16 schemes (including proceedings in relation to two alleged schemes which were discontinued). A further two of the four remaining schemes have now, by consent, been ordered by the Federal Court of Australia to be wound up and are awaiting a report from the independent accountant.
