Tuesday 8 May 2007 LAWFUEL – The Law Newswire – The Supreme Court of Queensland has made orders in relation to Gold Coast based company, Cycclone Magnetic Engines Inc (CME), following an application by the Australian Securities and Investments Commission (ASIC). CME’s directors in Australia are Mr Micheal Peter Nugent, of the Gold Coast and Mr Robert George McClelland and Mr Steven Vincent Foster, both of Lismore. CME, incorporated in the USA, operates from the Gold Coast and Lismore areas. In material on its website, CME stated it was dedicated to developing a commercially viable, environmentally friendly engine known as the ‘C3X’.
The company claimed the C3X could supply mechanical power on demand through the use of magnets rather than fuel. ASIC alleges that: • since March 2005, CME has raised over $1.1 million from more than 120 investors, predominately from the Lismore area; • contrary to requirements under the Corporations Act, CME has not issued a disclosure document; and that • CME engaged in conduct that is misleading and deceptive. At the hearing, the directors of CME provided undertakings that they would provide ASIC with an itinerary at least 14 days before any overseas travel, pending final hearing of an application brought by ASIC.
On the directors’ undertakings, the Court ordered that until further order: • CME and its directors be restrained from offering securities in CME without a current disclosure document, and from carrying on a financial services business without holding an Australian financial services licence; and that • The directors not remove CME assets from Australia, pending determination of the application. Directions have been made to progress the matter to trial. For further information contact: Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310
