The court also ordered that a registered scheme operated by Endeavour and an unregistered scheme operated by Linchpin, both called Investport Income Opportunity Fund, also be placed into liquidation.

Linchpin Capital is the parent company of Beacon Financial Group, a financial advice firm and licensee that provides SMSF services.

ASIC first obtained interim orders against Endeavor and Linchpin in August 2018, appointing receivers and restraining Endeavour and Linchpin from dealing with assets and investor funds.

The case had been brought against Linchpin after ASIC found that it had been operating two investment schemes under its IIOF fund.

In making the orders against the two companies, Justice Derrington stated that given the “length and breadth of the non-compliances with the Act, there [was] more than sufficient justification for the winding up of both companies”.

At the closing of ASIC’s evidence in court, Endeavour and Linchpin agreed to the declarations of contravention and the liquidation of both companies and both funds, ASIC said in a public statement.

The findings of contraventions include that Endeavour in its role as responsible entity:    

• Did not act in the best interests of the members of the registered scheme known as the Investport Income Opportunity Fund;
• Failed to ensure that the financial services it provided were provided efficiently and fairly;
• Failed to exercise reasonable care and skill as a responsible entity;
• Engaged in related party transactions without member approval; and
• Failed to identify to Investport Income Opportunity Fund investors the nature and extent of the related party transactions that were entered into.

The findings of contraventions for Linchpin include:

• Operating an unlawful managed investment scheme;
• Operating without an Australian financial services licence; and
• Engaging in conduct that was likely to mislead or deceive.

Mr Jason Tracy and Mr David Orr from Deloitte have been appointed as liquidators of Endeavour, Linchpin and the two Investport Income Opportunity Funds.