Friday 17 August 2007 LAWFUEL – The Legal Newswire – The Australian Securities and Investments Commission (ASIC) has obtained ex parte injunctions in the Supreme Court in Brisbane against Jim’s Water Tanks Pty Ltd (Jim’s Water Tanks) and its chief executive officer and former director, Mr Alan Bradley Jorgensen.
These orders were obtained on Monday 13 August 2007. ASIC obtained the orders upon commencing a broader investigation into the conduct of Mr Jorgensen and Jim’s Water Tanks following a referral from the Queensland Office of Fair Trading (OFT). The OFT had received complaints from customers of Jim’s Water Tanks who had not received their water tanks within the delivery period quoted in the April and May 2007 advertisements.
ASIC alleges that Jim’s Water Tanks had taken in excess of 5,500 orders for water tanks from consumers, mainly in South East Queensland, following an extensive advertising program. Those advertisements were found to be false and misleading by OFT in relation to the price of the water tanks and when rebates would end. On 29 June 2007, Jim’s Water Tanks entered into an enforceable undertaking with the Commissioner for Fair Trading to rectify their advertisements. ASIC also alleges Jim’s Water Tanks received deposits from consumers ranging from $300 to $500 ($1.65 million – $2.75 million), however to date no water tanks, which were allegedly being manufactured in China, have been delivered despite orders being placed some four to five months ago.
In response to ASIC’s concerns, Justice Lyons of the Supreme Court ordered that: • Mr Jorgensen be restrained from approaching any point of international departure, • Mr Jorgensen be required to surrender his passport to the registry by 4pm on 14 August 2007, • Mr Jorgensen’s personal bank account and those of Jim’s Water Tanks be frozen, and that • Mr Jorgensen be restrained from dealing with any credit card payments until final determination of ASIC’s application. This application was adjourned until 10am on Friday 17 August 2007.
The matter returned to court on Friday 17 August 2007 but was adjourned (by consent) until Wednesday 22 August 2007 with the orders continuing. ASIC’s investigations are continuing. Background Mr Jorgensen was declared bankrupt on 21 June 2007. On 14 August 2007, he successfully applied for the sequestration order made on 21 June 2007 to be set aside, after payment of $200,000 to meet the claims of his creditors. For further information contact: Jan Redfern Executive Director, Enforcement Telephone: 02 9911 2191 Mobile: 0411 119 210 Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310