The Federal Court of Australia has permanently restrained the promotion of a property investment proposal associated with a notorious property spruiker.
In a statement today, ASIC announced that the Federal Court has permanently restrained the marketing and promotion of a proposed Pilbara property investment by Macro Realty Developments Pty Ltd (Macro), a company associated with property spruiker Jamie McIntyre.
Further, the court made declarations that in promoting and marketing the investment proposal Macro, Property Tuition Pty Ltd (21st Century Property) and Education Holdings Pty Ltd (21st Century Education) were in breach of various provisions of the Corporations Act.
According to ASIC, the Pilbara investment was promoted using the tagline 'Do you know how to buy Australian property, no money down?' with the proposed investment involving investors:
- becoming a director and shareholder of a company;
- acquiring properties from Macro through this company; and
- receiving a director's fee but having agreed that Macro would be the sole decision maker for the company.
His Honour Justice Beach declared that the marketing and promotion of the investment proposal by the companies was misleading and deceptive, specifically the claims that “the investment proposal was essentially risk free, that it required no money down or capital and that there were no fees involved”.
He also declared that investors had been procured into breaching director's duties.
Referring to 21st Century Property and 21st Century Education, Justice Beach declared that financial product advice had been provided in circumstances where neither entity was licensed to do so.
The latest update in ASIC’s case against Mr McIntyre and associated companies follows the announcement last week that the Federal Court had made orders appointing liquidators to companies associated with Jamie McIntyre and 21st Century land banking companies.