The Federal Court has banned locals Jamie and Dennis McIntyre from managing corporations and from carrying on financial services for a period of 10 years each.
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The Court has declared that land banking developments operated by the McIntyres were unregistered managed investment schemes in a decision delivered by Justice Bromwich on October 17, 2016.
Justice Bromwich handed down the decision due to the McIntyres being officers of companies that had failed, by being wound up, and which had also contravened the Corporations Act.
ASIC commenced proceedings in August 2015 against Jamie and Dennis McIntyre and the 21st Century land banking companies in relation to their promotion and sale of interests to investors in five land banking schemes.
ASIC Commissioner Greg Tanzer said the high banning periods ordered by the Court in this case are necessary to protect the public from those who are officers of companies that contravene the Corporations Act.
It also serves as a warning to those involved in unlawful unregistered managed investment schemes, including those that involve land banking, that ASIC will take action, he said.
Jamie and Dennis McIntyre agreed to the banning orders made against them but Dennis said they did try and rectify any issues with ASIC once they became aware of them.
What we eventually took the bans over we did try and rectify with ASIC by retrospectively licensing the developments, but they werent interested in that, he said.
We did have legal advice that said they werent managed investment schemes but the law is very broad so for an inadvertent breach we settled for a fairly hefty punishment.
We offered to sell the developments if we could maintain control of the companies and then refund all the investors 100 percent of their money, and we had offers of more than we paid which would have given us sufficient funds to carry out those refunds, but ASIC had no interest in letting us do that.
Mr McIntyre said all of the investors in the developments had security over the land.
We had measures in place to protect our investors, so from our perspective, any losses only occurred due to the inadvertent breach and we believe ASICs actions.
We have set up a fund so investors can be assured that they wont take any losses.
*21st Century Group Pty Ltd, based in Sydney is not associated with the McIntyres or their businesses.
Craig Thomson
I am a media and communications professional with experience across print, digital, social and radio broadcasts. I am currently the Editor of Australian Community Media's Launceston Examiner.
I am a media and communications professional with experience across print, digital, social and radio broadcasts. I am currently the Editor of Australian Community Media's Launceston Examiner.
