ASIC has obtained interim orders from the Supreme Court of New South Wales, to protect over US$1 million invested in a suspected illegal investment scheme, known as the Secured Bond Master Fund (Master Fund).
The orders effectively freeze offshore securities trading accounts, which contain funds ASIC believes belong to more than 40 Australian investors.
ASIC alleges that five individuals - David John Hobbs, David John Collard, Min Hua Li (Lily), Li Min Zeng (Amy) and Bi Hong Dong - contravened the Corporations Act by operating the Master Fund scheme.
ASIC also alleges that Collard, Li and Zeng were running a financial services business without the required Australian financial services licence (AFSL).
Investors in the scheme, predominantly based in New South Wales, are believed to have paid more than US$4 million to some of the defendants, for investment purposes.
ASIC believes some funds are being used to make payments to existing investors, who are led to believe the payments represent interest returns on existing investments.
The frozen trading accounts were maintained in the US by Secured Bond which ASIC believes was the trustee of the scheme, along with three Vanuatu companies: 888 Management Inc, Barclaywest and North Wave.
The matter returns to court on October 7, 2008.
