ASIC swoops on $11.3m illegal property investment
The corporate regulator has frozen an allegedly illegal $11.3m property investment scheme operating in Perth, after police and investigators swooped on organisers.
The Australian Securities and Investments Commission says its lawyers have commenced civil proceedings and obtained urgent interim orders against the scheme’s alleged organisers Monica Kaur, Sadu Singh, Melvin Paul Singh and Stephanie Lee.
Investigators obtained fund and travel freeze orders on December 16 and with Australian Federal Police raided properties linked to businesses Paradise Property and MKS Property the following day.
The corporate regulator alleges the investment scheme had raised around $11.3m from 300 investors over three years through the business MKS Property.
ASIC alleges Ms Kaur was providing unlicensed financial advice, and that she and others were involved in promoting and operating an unregistered investment scheme.
The corporate regulator also alleges investor funds were used to pay for returns to other investors, as well as to fund personal expenses.
The corporate regulator has obtained orders banning Ms Kaur, Sadu Singh and Melvin Singh from leaving Australia.
ASIC alleges investors were encouraged to establish self-managed superannuation funds and invest part or all of their super into property investments and developments set up by MKS property and or Paradise property.
“This matter demonstrates ASIC’s readiness to take urgent action to protect superannuation consumers in the current COVID-19 environment,” ASIC said in its statement.
The case returns to court on a date to be fixed.
Calls to Ms Kaur went unanswered, but her biography describes her as having over 30 years experienced in real estate.
“My personal slogan is ‘Everything I touch turns to Sold’,” it said.
It notes how Ms Kaur “has received one-on-one mentorship and coaching from some of the biggest property developers and investors in Australia”.
“Monica has made it her primary objective to assist her clients to generate wealth through property investments and developments,” it said.
MKS Property Development’s website spruiks how the business “was set up for 1 purpose, to helpbuyers (sic), investors and developersto (sic) generate value from their capital through property investment and development.”