The Australian Securities and Investments Commission (ASIC) has taken further court action against a Perth-based property investment group that encouraged investors to set up SMSFs to invest in property, alleging it was unlicensed to provide advice and its investment scheme was unregistered.
The regulator stated it has commenced Federal Court proceedings against Monica Kaur and MKS Property Investments/Developments Pty Ltd and is seeking winding-up and disqualification orders and the appointment of liquidators and receivers to secure assets of an investment scheme.
In the proceedings, ASIC alleged Kaur and MKS Property operated an unregistered managed investment scheme and provided unlicensed financial advice to consumers when, between at least 1 March 2017 and 16 December 2020, they encouraged around 300 investors to establish an SMSF and invest in property investments and developments set up by MKS Property.
This court action follows ASIC obtaining interim travel restraint and asset freezing orders in earlier proceedings against Kaur, MKS Property, MKS Property director Sadu Singh, and Paradise Property Group Pty Ltd, Melvin Paul Singh and Stephanie Lee.
At the time of those proceedings in December 2020, ASIC claimed $11.3 million had been raised from the investors and some of those funds were used by Kaur, Saud Singh, Melvin Singh and Lee for their own personal use, and Kaur, Sadu Singh and Melvin Singh were prevented from leaving Australia.
ASIC stated its investigation is continuing and the matter has been adjourned to 25 August.