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Already tied up in a case with the corporate regulator, notorious property spruiker Jamie McIntyre is again in the spotlight after ASIC stepped in to prevent him promoting another investment scheme.
ASIC has obtained an injunction against three property companies over concerns a Pilbara property investment scheme they were promoting was in breach of the Corporations Act.
The Federal Court of Australia granted the injunction against Macro Realty Developments Pty Ltd (Macro), Property Tuition Pty Ltd (21st Century Property) and Education Holdings Pty Ltd (21st Century Education) – the latter two are owned by Mr McIntyre.
The injunction was granted in time to prevent a seminar for prospective investors, scheduled for 10 September, from going ahead.
The scheme was promoted using the tagline “Do you know how to buy Australian property, no money down?” and involved investors being appointed as directors and shareholders of a company and establishing a trust, according to ASIC.
The trust would then be used to acquire properties in the Newman Estate, WA, which was developed by Macro.
The regulator alleged that these directors would delegate all decision-making to Macro – resulting in the allegation that 21st Century and Macro are counselling and procuring investors to contravene their director’s duties under the Corporations Act.
ASIC also alleged that the investment documents relating to the scheme are “misleading and deceptive” and that the investment proposal constitutes a financial product.
This is not the first time a company owned by Mr McIntyre has faced the regulator’s ire.
Just last month, ASIC announced it was launching proceedings against 21st Century Group over five land banking schemes that it had been promoting.
The regulator alleged that the arrangements were unregistered managed investment schemes,and that the 21st Century Group and Mr McIntyre had been unlawfully carrying on an unlicensed financial services business.
In a statement to Smart Property Investment’s sister publication Real Estate Business, 21st Century Group defended itself against any wrongdoing.
The statement said: “21st Century Group has a media division that gets paid to send out digital marketing and print ads to promote its advertising clients' services."
The statement continued: “It is neither responsible for services provided by its advertising clients nor is it responsible for their compliance.
“ASIC’s attempts to somehow hold the 21st Century Group responsible for one of its advertising client's services is beyond belief.”
The statement also alleged that “ASIC [wishes] to damage Jamie McIntyre for being a whistleblower regarding ASIC’s widespread misconduct for years now”.
The matter is set down for final hearing on 26 October.
ASIC has said it will ask the court to declare that the Corporations Act was breached, and that the current injunctions against the three companies be made permanent.
An investment is an asset or item purchased with the expectation that it will generate income or appreciate in value in the future.
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.