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ASIC obtains orders against property developers targeting SMSFs
The Federal Court has handed down interim orders against a Perth based property developer following concerns by ASIC that the promoters may be involved in an unregistered managed investment scheme.
In a public statement, ASIC said it has commenced civil proceedings and obtained urgent interim orders in the Federal Court against Ms Monica Kaur, MKS Property Investments/Developments Pty Ltd (MKS Property), Paradise Property Group Pty Ltd (Paradise Property) as well as against Mr Sadu Singh, Mr Melvin Paul Singh and Ms Stephanie Lee.
ASIC raised concerns that Ms Kaur may be allegedly providing unlicensed financial advice services and that she, together with the defendants, are involved in promoting and operating an unregistered managed investment scheme.
On 16 December 2020, ASIC obtained urgent interim orders restraining the defendants from removing their assets from Australia, disposing of their property, and freezing monies in their bank accounts and preventing Ms Kaur, Mr Singh and Mr Melvin Singh from leaving Australia.
ASIC alleges the defendants raised at least $11.3 million from around 300 investors during the period 1 March 2017 to 22 September 2020 through MKS Property.
“It is alleged that investors were encouraged to establish a self-managed superannuation fund (SMSF) and invest part or all of their SMSFs or other funds into property investments and developments set up by MKS Property and/or Paradise Property,” the Corporate Regulator stated.
“These funds would be pooled together to invest in property development.”
ASIC also alleges the defendants used investor funds, at least in part, for their own personal use and to pay returns to investors.
On 17 December 2020, ASIC, with the assistance of the AFP, executed search warrants on a residential premise and business premises.
On 22 December 2020, the parties agreed that the asset and travel restraint orders regarding the defendants should continue with slight variation until further order of the Court. The matter is next in Court on a date to be fixed.
ASIC’s investigation is continuing.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
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