ASIC has obtained a permanent injunction against a number of real estate groups associated with a notorious property spruiker.
The regulator announced in a statement that the Federal Court of Australia has permanently restrained the marketing and promotion of a proposed Pilbara property investment by Macro Realty Developments (Macro) and made declarations that Macro, Property Tuition (21st Century Property) and Education Holdings (21st Century Education) breached various provisions of the Corporations Act 2001 by promoting and marketing the investment proposal.
The companies are associated with notorious property spruiker Jamie McIntyre.
The investment proposal was promoted using the tagline 'Do you know how to buy Australian property, no money down?'. The proposed investment involved investors becoming a director and shareholder of a company, acquiring properties from Macro through this company, and receiving a director's fee but having agreed that Macro would be the sole decision maker for the company.
ASIC commenced proceedings in September 2015 against Macro, 21st Century Property and 21st Century Education in relation to the proposed investment and obtained interim injunctions stopping the proposal from continuing to be marketed.
ASIC noted that His Honour Justice Beach made declarations that the marketing and promotion of the investment proposal by the companies was misleading and deceptive, and that investors had been procured into breaching director's duties. The features of the proposal found to have been misleading or deceptive included that the investment proposal was essentially risk free, that it required no money down or capital and that there were no fees involved.
“In relation to 21st Century Property and 21st Century Education, His Honour also declared that financial product advice had been provided in circumstances where neither entity was licensed to provide advice,” ASIC noted.
ASIC commissioner Greg Tanzer said it is another significant outcome in the regulator's ongoing campaign to promote trust and confidence amongst investors.
“We will continue to deter this type of misleading and deceptive conduct,” he said.
ASIC has also issued proceedings in the Federal Court of Australia against 21st Century Property and 21st Century Education in relation to their promotion and sale of interests to investors in five land banking schemes.