Sixty unwitting investors who poured money into an illegal property scheme are $4 million out of pocket, according to the industry watchdog.
Queensland brothers Kevin and Warren Maxwell of Max Development Group operated an unregistered managed investment scheme (MIS) since 2002, raising cash to buy property in Queensland and Tasmania.
The duo, now clamped by ASIC, helped investors raise capital to plough into the scheme by arranging loans and organising the roll-over of superannuation cash into self managed super funds.
Worried investors contacted ASIC when they did not receive interest payments or returns and could not contact the Maxwells.
The Supreme Court of Queensland heard the pair had contravened the Corporations Act by running an unregistered MIS, carrying on a financial services business and providing financial services without a licence.
On February 28, the court stopped the company operating and appointed receivers.
"Operators of managed investment schemes must ensure that the scheme is registered with ASIC," ASIC executive director of enforcement Jan Redfern said.
"Those individuals who fail to do so are breaking the law and will be pursued by ASIC."
Max Development Group was previously known as The Glen Group.
Its assets under liquidation are companies Jasmine Ink, Max Qld Development Group and Macquarie Longford Estate and the unregistered MIS.
