LAWFUEL – The Legal Newswire – The Australian Securities and Investments Commission (ASIC) yesterday obtained orders in the Supreme Court of Adelaide appointing a provisional liquidator to John West & Associates Pty Ltd.
Mr Austin Taylor, of Meertens Chartered Accountants in Adelaide, was appointed provisional liquidator of the company.
ASIC alleges Mr Jonathan Peter West of Athelstone, South Australia, and the company have been operating a managed investment scheme in breach of the Corporations Act since 21 May 2003.
ASIC commenced its action seeking declarations of breaches of the Corporations Act and the winding up of both the company and the scheme in the Supreme Court in March 2007. This action is continuing.
On 24 July 2007, Mr West placed the company into voluntary administration after resolving that the company was insolvent or likely to become insolvent.
ASIC alleges that Mr West or the company borrowed funds from investors at interest rates of up to three per cent per month and on-lent the funds to borrowers for commercial purposes. ASIC is concerned that the majority of these loans are in default and investors are owed about $9.5 million.
ASIC’s investigation is continuing.