Court orders WA property scheme to end

Sourced from WA Business News: http://www.wabusinessnews.com.au/en-story/1/63768/Court-orders-WA-property-scheme-to-end-

The Federal Court of Australia has ordered the appointment of an independent accountant to wind up unregistered management schemes operated by Perth property developers Kenneth and Morag Fraser and associated companies.

The court order follows injunctions obtained by the Australian Securities and Investments Commission in April to prevent The Project Managers Pty Ltd, Kenneth Fraser, Morag Fraser and five companies associated with the Frasers to prevent them from promoting and operating nine land subdivision schemes in Western Australia.

ASIC alleges that between June 2006 and July 2007, Frasers-The Project Managers Pty Ltd offered clients the opportunity to invest in schemes for the purchase and subdivision of rural land into residential lots adjacent to Perth.

ASIC alleges that investors paid an expression of interest fee and in some cases a deposit, and that this money was pooled and used in relation to the schemes.

The court order was not opposed by the property developers.



A copy of the ASIC statement is pasted below:

Federal Court orders the winding up of four WA property development schemes

On Wednesday 4 June 2008, the Federal Court of Australia, Perth ordered the appointment of an independent accountant to oversee four property development schemes operating in Western Australia following an application made by ASIC.

ASIC alleges that the schemes have been promoted and operated by Frasers-The Project Managers Pty Ltd, Kenneth Fraser, Morag Fraser and companies associated with the Frasers as unregistered managed investment schemes. ASIC alleges that the schemes that are the subject of the Court's orders involve approximately 48 investors and $3.7 million of investors' funds.

ASIC made the application as part of its efforts to preserve scheme assets for the benefit of investors. The orders made by the Court were not opposed by Frasers-The Project Managers Pty Ltd or other relevant defendants.

The four schemes the subjects of the Court's orders are:
- The Project at Baldivis, comprising the development at Lot 515 Sabrina Road, Baldivis;
- The Project at Baldivis, comprising the development at proposed Lot 41 of Lot 515 Sabrina Road, Baldivis;
- 10 Holmes Forrestfield Development, comprising the development at Lot 10 Holmes Road, Forrestfield; and
- 3 Anderson Forrestfield Development, comprising the development at Lot 3 Anderson Road, Forrestfield.

The Federal Court appointed Brian McMaster of KordaMentha to the role of independent accountant to oversee the winding up of the schemes in accordance with section 601EE of the Corporations Act 2001.

The interim injunctions previously made by the Federal Court on 10 April 2008 remain in force (refer to Media Release 08-74: ASIC acts to prevent detriment to investors in WA land schemes). The matter will return to the Federal Court for further directions on 24 July 2008.

'ASIC is keen to have an independent person take charge of the developments to ensure that investors are provided with transparency and clarity regarding their investments and can be assured that the information they are receiving is accurate,' said ASIC's Executive Director of Enforcement, Ms Jan Redfern.

'While these are winding up orders, the independent accountant will be able to assess what options are available and communicate with investors as to the most appropriate way forward to ensure maximum returns.'
 
i used to work with Ken Fraser and his brother at Perceptions / Impressions.

i had no idea he got himself into such hot water - but i guess looking back the signs were pretty clear.

he was always looking like he had hit rock bottom and borderline starving.
 
The Federal Court appointed Brian McMaster of KordaMentha to the role of independent accountant to oversee....

'While these are winding up orders, the independent accountant will be able to assess what options are available and communicate with investors as to the most appropriate way forward to ensure maximum returns.'


Ya reckon ??


I reckon Brian and his mates will have their massive revenue generating suction hoses firmly planted into the investors frozen funds and pulling at full tilt for months on end whilst 'assessing the options'.


I'd estimate KM will suck something like 80 to 90 thousand per month while attached to the side like a leech.


Brian will charge $ 500 / hr to gently oversee.
His main sidekick who will do the bulk of the work will charge $ 420 / hr.
A few lackeys straight out of college will run around aimlessly and charge $ 250 /hr.
Then you'll have the clueless 18 yr secretaries and assistants photocopying out the back for a measly $ 130 / hr.


Yes indeed - merry times ahead for the KM organisation.


Of course, the first two meetings as declared in the Act shall simply be a cosy little get together to formally approve the KM charges, and ensure that everyone at KM gets paid 100c in the dollar for all of their work.


Everyone else just has to sit idly by being told absolutely ring all, whilst typically their payout rapidly dwindles from the usual 45c in the dollar, down to about 12c in the dollar whilst the KM group sucks it dry.


But hey, they wear immaculate suits and do a truly outstanding professional job. Disclose nothing, tell everybody concerned absolutely bugger all, and charge like wounded bulls......and most importantly of all - absolve themselves of any liability for anything at all during the whole drawn out process. Professionals in every sense of the word.


The investors may as well walk away now.....they'll see bugger all left but bones after the "professionals" have heartily fed off the carcass.


....can ya tell, I've been down this path before ??
 
hi all
a couple of things
$3.7 million of investors' funds
is what they think is there that will not be there when they have.
'ASIC is keen to have an independent person take charge of the developments to ensure that investors are provided with transparency and clarity regarding their investments and can be assured that the information they are receiving is accurate.
the clarity will be
here is our monthly account and will tell you when its 0
transparency I have never seen that I have seen there is no money
clarity there was 3.7 mil now there is 0
and I like this
'While these are winding up orders, the independent accountant (who will be charging like he wants to go on holiday every day)will be able to assess what options are available ( and they will be non)and communicate with investors (you lost the lot)as to the most appropriate way forward to ensure maximum returns( who returns the investors or the accounting company most likely the suits)
I have no understanding of this group but anyone hat thinks they are getting any of that 3.7 mil back well there is one way to do that.
gate crash the accountants xmas party and drink some of the booze as you paid for it and the bonus will be made up of your money.
these are not liquidators but there is no set fee for a liquidator he gets a percentage of what he gets back and there is no time to get it back.
so this gravy train can easilly work out long it will last
divide the 3.7 mil by 3 and the 1.0 mil by 52 thats 20k and thats the accountants bill.
and you can have that info for free
so if you are an investor and you do go to a creditors meeting ask what the accountants fees will be and if it 19 to 20k per week. ask where there xmas party is usually every year and by the suit or dress as that where your money is.
and yes dazzling been there too
 
Tssk, tssk, you are far too cynical GR.

The winners of the world always like to put a positive spin on things.....I'm sure they'll get their full 3.7M back and dividied up fairly.

Have faith in the professionals looking after it. It's in very safe and steady hands....trust me.
 
hi dazzling
cynical me.
I should put my faith in the system your right.
and the guys at westpoint should have put there faith in asic as it was all going to be good.
or the opes guys should have had the faith that the suit is anz would not nick their shares.
or the suits at macq get better bonuses even if the shares go down.
cynical me
I should as the good lord says turn the other cheek.
well can't do that if you are getting hit from both sides.
I find it interesting that you can have a body that is protecting you and at the same time bankrupting you for your own good.
or a bank that wages one a win and a loser in the same game and then claims the loss as a operating cost and the people in between lose the lot and they can't claim anything as they are liquidated and in some cases the bank that carsed that loss is also the bank that is liquidating them because of the loss.
but that being to cynical.
cynical yes
why
those 2 and 3 thousnd dollar suits that walk our cities
alot should have arrows up and down them or as in america changed to bright orange.
interesting world
to steal this type of money with a gun would get you 25 to 30 behind bars.
do it with a pen and it gets you at the barr with 25 to 30 years worth spending money and to make the party role a wig usually white horse hair.
but now thats being cynical.
they could get there money back
 
Ah yes, alas I am an investor who faithfully believed she was buying a 500 sqm strata titled block in a 13 unit development. Crikey there are even photographs of the block up in the Somersoft gallery!! And yes I am very miffed about the deception of it all. It's a lot of money to lose.
Many of the investors think the same way as GR and Dazz and that we will be very lucky to get our money back. The greedy man morgaged the block for half a million ( without our permission) and of course that money is completely gone. Why would someone morgage a block that doesn't belong to him???? All I can think of is he got into debt over his head.

I don't really think theres a problem talking about it all now that it's been reported in the papers.

I'll let you know if I get any money back :)
 
Ken Fraser / Phillip Davies Morgan / Frasers the Project Managers

Update:
Phillip Davies-Morgan (otherwise Phil Morgan) of Century 21 Morgan Realty was banned for 2 years by the Real Estate Board - 2 year ban and $1000 fine. Doesn't seem quite fitting. Many of the investors have claims pending with the Real Estate Board where Morgan was responsible for taking deposit monies and are awaiting the outcome of the Board's findings.
Way more than $3 million was taken - reported to be more like $22m.
Ken Fraser and the vendor of the land (doing the flip at huge mark up prices to companies set up by Fraser which then sell to the investors) in all these failed developments (there are many) continue at large. Doesn't appear to have been any consequences to them so far and they haven't given any money back to the investors as far as anyone can tell. The story will likely hit the news in due course and put some pressure to bear on these people.
 
there is a lot more to this story actually... things got dirty and violent and some of the connections are not good. There are also some good people that I know that were dragged into this mess, not just investors. When it hits the fan there is a witch hunt and any sort of associated professional is a target.
 
having worked with Ken Fraser many years ago, i can say this doesn't surprise me.

i was always disgusted with is attitude towards people - like they were expendable or something. i used to ignore him entirely when he started his "high and mighty" rants and just the memory of him sends chills through me.

maybe i just have that extra sense that allows me to see this, but of all the people on earth he would be the last i would give money to.
 
http://www.invested.com.au/6/property-syndicate-offer-13300/
past discussions re the subject?

awful when investors lose their money. consequences seem low and often delayed for the wrong doers.

they often regroup and simply do it all again.

buyer beware.

not familiar with the people concerned or their...projects, but for the sake of others who maybe caught in the future, what are the red flags in these types of so called investment opportunities?
 
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