ASIC launch Federal Court proceedings over alleged unlicensed $11.3 million property development scheme
ASIC has commenced civil proceedings in the Federal Court over what the corporate regulator claims is an unregistered Perth based managed investment scheme providing unlicensed financial advice.
The scheme has raised over $11 million for property development purposes.
The proceedings are 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 is concerned that Ms Kaur is providing unlicensed financial advice services and that she, together with the defendants, are involved in promoting and operating an unregistered managed investment scheme,” ASIC advised.
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 including in Singapore; 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 March 2017 to 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.
These funds would be pooled together to invest in property development.
“ASIC alleges the defendants used investor funds, at least in part, for their own personal use and to pay returns to investors,” it claims.
On 17 December 2020, ASIC, with the assistance of the AFP, executed search warrants.
The orders are to remain until February 15.
ASIC’s investigation is continuing.
