MCINTYRE'S LAND-BANK SCHEME IN LIQUIDATION
Written on the 18 March 2016 by Nick Nichols
PROPERTY spruiker Jamie McIntyre's land-banking activities have been stopped in their tracks after the Federal Court appointed liquidators to a number of his companies.
McIntyre also remains in the corporate watchdog's sights with orders sought to have him disqualified from running a corporation.
The Federal Court has appointed Simon Alexander Wallace-Smith and Robert Scott Woods, of Deloitte, as joint liquidators to eight companies within McIntyre's 21st Century group after the court appointed them provisional liquidators to the company last October.
The move follows a crackdown by the Australian Securities and Investments Commission on land-banking activities, which have seen small investors pour millions in retirement savings into undeveloped sites.
The sites are often in rural areas and they are sold with promises of big capital gains once approvals are obtained for residential subdivisions at some time in the future.
ASIC has alleged the 21st Century schemes, which drew more than 100 investors, were unregistered managed investments. It also has alleged the group and McIntyre had unlawfully operated an unlicensed financial services business.
The properties involved were largely based in Victoria, with one in Townsville.
The companies to be liquidated are Archery Road Pty Ltd, Bendigo Vineyard Estate Pty Ltd, Secret Valley Estate Pty Ltd, Kingsway South Holdings Pty Ltd, Melbourne Tarniet Estate Pty Ltd, Property Tuition Pty Ltd and Education Holdings Pty Ltd.
Investors were tipped into the investments through seminars where, in most cases, they were invited to fork out up to $40,000 to secure an option on a yet-to-be-subdivided lot.
The scheme is understood to have operated for about five years before ASIC moved to close it down.
The liquidators' report in December found that each of the companies were insolvent and had recommended that they be wound up.
Further investigations into the affairs of the companies will be conducted as part of the liquidation process, with a particular focus on potential recoveries for creditors.
The Gold Coast-based McIntyre remains in ASIC's sights after the Federal Court also granted the corporate watchdog leave to seek orders that Jamie McIntyre be declared a shadow director of each of the liquidated companies.
It also is seeking declarations that Jamie and Dennis McIntyre be disqualified from managing corporations. That matter has been adjourned until April 8.
Business News Australia notes that McIntyre's 21st Century group is not affiliated with Sydney-based property developer 21st Century Group Pty Ltd.
Author: Nick Nichols