Friday 30 June 2006 06 – LAWFUEL – Law News Network – The operators of an allegedly unregistered managed investment scheme have provided undertakings to the Supreme Court of Queensland, pending the further hearing of an application by the Australian Securities and Investments Commission (ASIC). The undertakings were provided on 23 June 2006 by Mr David Jeremiah Palmer, Mr Max Donald Collins, Mr Philip James Trudgeon and companies related to them (the Intertax Group). The Scheme conducted by the Intertax Group involved certain olive plantation investment, mortgage investment and land development projects. Members of the Intertax Group undertook, until 27 July 2005, not to: • promote or operate the Scheme, or any other managed investment scheme requiring registration under the Corporations Act; • receive, solicit or dispose of any funds in connection with the Scheme; • dispose of destroy or remove any of the books or records associated with the Scheme; or • issue interests, shares or units in connection with the Scheme. Further, the companies in the Intertax Group related to Mr Palmer undertook to convene a meeting of investors in the Scheme to discuss options for bringing about the completion of the Scheme by written notice on 17 July 2006 at 10 am. In addition, the following undertakings were provided by: • the companies in the Intertax Group, not to deal with any assets until 14 days after the holding of the investors’ meeting, without giving ASIC seven days written notice; • Mr Palmer not to permit the Intertax Group companies or the companies registered in New Zealand of which he is director, to deal with any assets until 14 days after the holding of the investors’ meeting, without giving ASIC seven days written notice; and • Messrs Palmer, Collins and Trudgeon not to deal with any of their assets or any of the property of the Scheme without giving ASIC seven days written notice, except for the payment of reasonable living and legal expenses, and in the normal course of other businesses. Upon providing the undertakings, the Court made orders relating to the repayment of investment funds along with accrued interest to two particular investors and the future conduct of the proceedings. Page 1 of 2
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The proceedings have been adjourned for further hearing on 27 July 2006. Background On 6 June 2006, ASIC filed an application with the Supreme Court in Brisbane seeking orders against an unregistered investment Scheme being operated by members of the Intertax Group. The proceedings were commenced as a result of information received by ASIC during the conduct of an investigation into the affairs of Mr Palmer and companies related to him. The information has given ASIC reason to believe that members of the Intertax Group may have operated an unregistered managed investment Scheme and carried on a financial services business, without holding an Australian Financial Services licence. ASIC is also concerned that Scheme investors may not have been provided with the appropriate information and protection required by the Corporations Act for investors in managed investment Schemes. The protection afforded by the Act seeks to ensure that any unregistered Schemes are completed in a manner that is in the best interests of all investors and are sanctioned by the Court. ASIC understands approximately 120 investors, located predominately in south-east Queensland, have invested around $12.5 million in the Scheme. For further information contact: Angela Friend ASIC Media Unit Telephone: 03 9280 3338 Mobile: 0412 058 800
