Thursday 2 November 2006 – LAWFUEL – Law News Network – The Supreme …

Thursday 2 November 2006 – LAWFUEL – Law News Network – The Supreme Court of New South Wales has appointed a provisional liquidator to seven companies related to the Sydney Investment House Group following an application by the Australian Securities and Investments Commission (ASIC).

On 27 October 2006, Mr Quentin Olde of Taylor Woodings was appointed provisional liquidator to the following companies: • Sydney Investment House Equities Pty Ltd (SIH Equities); • Sydney Investment House Capital Limited (SIH Capital); • Sydney Investment House Pty Ltd; • Sydney Investment House (Beaconsfield) Pty Ltd; • Melbourne Investment House Pty Ltd; • Melbourne Investment House (Hawthorn) Pty Ltd; and • Melbourne Investment House (Collingwood) Pty Ltd (the companies) Two of the directors of SIH Capital, Mr Edwin Goulding and Mr Steven Geagea, were also defendants to these proceedings. Mr Goulding is a director of the other seven companies within the Sydney Investment House Group.

SIH Capital is an unlisted public company that raised over $8.4 million from the public through the issue of redeemable preference shares between November 2004 and June 2005. The funds raised from the public were lent to other companies within the Sydney Investment House Group that were controlled by Mr Goulding. Many of the investors in SIH Capital were previously investors in SIH Equities and had their investments rolled over into SIH Capital.

ASIC alleges that Mr Goulding, Mr Geagea and the companies within the Sydney Investment House Group had been involved in a number of contraventions of the Corporations Act and ASIC Act, including that SIH Equities operated an unregistered managed investment scheme and that Mr Goulding and Mr Geagea were involved in making false and misleading statements to investors. It is alleged these false and misleading statements were made to investors to encourage them to invest with SIH Capital. ASIC is also concerned that some of the funds raised by SIH Capital through the issue of a prospectus were then lent to related companies by the defendants in a manner contrary to statements made in the prospectus. ASIC is seeking orders and declarations in relation to these and other allegations. A hearing date in relation to these matters has not been set by the Court.

Sydney Investment House (Newcastle) Pty Ltd, a defendant to the proceedings was not placed into provisional liquidation. Sydney Investment House (Newcastle) Pty Ltd is the developer of the Soque apartments located at 13 Roslyn Street, Islington, a suburb of Newcastle. On 1 November 2006, the Court gave Mr Olde powers required to prepare a report into the affairs of Sydney Investment House (Newcastle) Pty Ltd and to provide such report to the court by 1 December 2006. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Danielle Huck ASIC Media Unit Telephone: 03 9280 3407 Mobile: 0417 540 769

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