ASIC Takes Action To Protect Investor Funds In Unlicensed Schemes

LawFuel – The Law Jobs and Legal NewsWire

LAWFUEL – The Australian Securities and Investments Commission (ASIC) has acted to protect funds in the ‘Super Save Superannuation Fund’ (Super Save scheme) following concerns the scheme is illegal.

On Thursday 13 December 2007, the New South Wales Supreme Court ordered the operator of the Super Save scheme, Idylic Solutions Ltd (incorporated in the British Virgin Islands), to pay investments made in the Super Save scheme which ASIC believes to be AUD$6,997,666.19 to the Court. ASIC believes this is the amount invested in the Super Save scheme by Australian investors. ASIC would like to hear from relevant investors.

Idylic Solutions Ltd was also ordered by the Court to place notices in the Daily Telegraph and The Age newspapers on or before 19 December 2007 (and on one further date a week later) alerting investors to the orders of the Court. (A copy of the advertisement follows).
Yesterday’s orders follow earlier interim orders obtained by ASIC on 5 December 2007 from the Court to freeze a number of bank accounts held in the name of the following companies and individuals involved in the Super Save scheme: P.J.C.B. International Limited, 888 Management Inc, Idylic Solutions Ltd and Mr Brian John Wood (the defendants).
ASIC is of the view that the Super Save scheme has the characteristics of an illegal managed investment scheme, and that representations made about the performance of the Super Save scheme, including returns of 3.5 per cent per month, may be false, misleading or deceptive.
ASIC alleges that investors, who are predominantly based in Sydney and on the South Coast of NSW, have been assisted to set up self-managed superannuation funds by individuals associated with Idylic Solutions Ltd. These individuals, including Jimmy Truong, Brian John Wood, Barry Jennings and Con Koutsoukos, do not hold an AFSL that would allow them to offer investment advice such as setting up self-managed super funds. Investors then transferred money from their self-managed super fund to companies supposedly administering the Super Save scheme.
ASIC believes that approximately 100 of investors may have invested approximately AUD$7million in the Super Save scheme. These funds are now held by the Court.
ASIC informed the Court that information received to date indicates that investors became aware of the Super Save scheme through their subscription to ‘financial educational material’ supplied by Future Trading Corporation, or through contact with Mr David John Hobbs. Mr Hobbs resides in New Zealand but ASIC understands that he has visited Australia in the past. Mr Hobbs is not currently a party to ASIC’s proceedings.
At yesterday’s hearing, the Court also ordered the defendants and Serenity Management Pty Ltd, Mr Jimmy Truong and Mr Barry Jennings to undertake that they will not:
• accept any further contributions to the Super Save scheme;
• promote any other investment scheme that requires registration under Australian law;
• provide financial services advice without holding an AFSL.
Today ASIC also obtained interim orders from the Court to freeze a further number of bank accounts held in the name of the following companies and individuals involved with another investment scheme called the ‘Integrity Plus Unit Trust’ (Integrity Plus): P.J.C.B. International Limited, J&B Financial Group Pty Ltd, Destiny Holdings Ltd (a company registered in Angilla), Idylic Solutions Ltd, Mr Barry Jennings and Mr Brian John Wood.
In addition, Mr Brian John Wood was ordered by the Supreme Court of New South Wales to, amongst other things, deliver up his passport to the registry of the Court and was restrained from leaving Australia until 5pm 19 December 2007.
ASIC is of the view that Integrity Plus has the characteristics of an illegal managed investment scheme in which representations were made about the performance of Integrity Plus, including returns of four per cent per month.
It appears that possibly 250 investors have deposited USD$20.3million this year to Integrity Plus. ASIC alleges that monies deposited in these accounts have been transferred to Idylic Solutions Ltd, J&B Financial Group Pty Ltd and Destiny Holdings Ltd and to others. ASIC is concerned that the monies that have been paid by investors in Integrity Plus are not being invested in legitimate investments and instead are being utilised to make payments to existing investors which investors are led to believe represents interest on their existing investments and to other defendants.
ASIC informed the Court that information received to date indicates that investors became aware of Integrity Plus through their subscription to ‘financial educational material’ supplied by Future Trading Corporation.
The matter returns to Court on 18 December 2007.
Anyone who has invested in the Super Save Superannuation Fund or Integrity Plus should contact ASIC on 1300 300 630 or send an email to [email protected]
ASIC’s investigation is continuing.
Background
A managed investment scheme is a form of collective investment. Generally, in a managed investment scheme:
• people are brought together to contribute money to acquire an interest in the scheme;
• the money is pooled together, or used in a common enterprise; and
• investors do not have day-to-day control of their funds.
The Corporations Act 2001 requires managed investment schemes to be registered with ASIC and for those providing financial advice or products to hold an Australian Financial Services licence (AFSL). The licensing system allows ASIC to monitor the providers of financial services to ensure that they act efficiently, honestly and fairly in accordance with the law.
Page 2 of 3
Attachment to MR 07-326: Article to be placed in The Age and Daily Telegraph newspapers subject to Court order
To: SUPER SAVE SUPERANNUATION FUND INVESTORS
The Australian Securities and Investments Commission (ASIC) commenced legal proceedings on 5 December 2007 alleging the Super Save Superannuation Fund (SUPER SAVE FUND) was an illegal managed investment scheme, that by promoting the SUPER SAVE FUND and giving financial services advice without holding an Australia Financial Services Licence, each of:
Idylic Solutions Ltd
Idylic Solutions Pty Ltd
Serenity Management Pty Ltd (formerly known as 888 Management Australia Pty Ltd)
Jimmy Truong
Brian John Wood
Barry Jennings
Con Koutsoukos
breached the Corporations Act 2001 (C’th) and that each of:
888 Management Inc
P.J.C.B. International Limited
aided, abetted, counselled or procured those breaches of the Corporations Act 2001 (Proceedings).
As a result of ASIC commencing the Proceedings, Idylic Solutions Ltd has agreed to return all monies contributed by investors to the SUPER SAVE FUND (Fund Proceeds). The Fund Proceeds are now held by the New South Wales Supreme Court.
ASIC is currently seeking to confirm the identity of all current investors in the SUPER SAVE FUND together with the total investment made by each investor. IF YOU INVESTED MONEY IN THE SUPER SAVE FUND AND HAVE NOT HAD THAT MONEY RETURNED TO YOU, YOU SHOULD TELEPHONE THE ASIC INFOLINE ON 1300 300 630 BY 31 JANUARY 2008.

Scroll to Top