An illegal managed investment scheme (MIS) operated by an alleged serial scamster has been wound up by the corporate watchdog.
ASIC has clamped Russell John Whitchurch, of Sorrento on the Gold Coast, and wound up his nine companies, including Civic Capital. It obtained orders in the Supreme Court of Queensland.
Whitchurch's companies lent investors' money to construction firms, an ASIC investigation found. Investors were promised returns of between 10 per cent and 20 per cent per annum, payable monthly.
Lifecare Services Australia (LSA) was one of the borrowers. On September 13, ASIC obtained injunctions against LSA and its directors, Colin Francis, David Stoyakovich and Robert Adcock, from dealing with an unregistered MIS known as the Varsity Lodge Scheme.
The court ruled Whitchurch and Civic had operated an unregistered MIS, operated without a financial services licence and breached disclosure rules. The scheme was wound up on May 2.
Whitchurch was formerly financial services manager for Gold Coast construction lending company Sovereign Capital. In January ASIC stripped Sovereign of its financial services licence, alleging breaches of disclosure, conflicts and due diligence. It had $54 million under management for 700 clients.
