Corporate watchdog winds up Gold Coast property development group

The Australian Securities and Investment Commission has successfully applied to the Supreme Court in Queensland to wind up a Gold Coast property development group that raised $20 million from about 500 investors.

IC Group, which was based in the Gold Coast suburb of Bundall, raised money from retail investors by promising returns of between 15-20% per annum. ASIC says the company raised over $20 million from at least 500 investors, who were told their funds would be on-lent to property developers at a higher interest rates.

The group struck trouble in 2008, when the GFC smashed into the Gold Coast area and many of the property development companies were plunged into receivership.

Once the property developers collapsed, the returns to investors dried up. The company’s manager Susanne Rae Percival was declared bankrupt on November 24, 2009 and while the company remained inactive, ASIC has pushed for the winding up orders to ensure the IC group companies are wound up in an orderly way.

“The IC Group investment companies have since remained inactive, allegedly insolvent with no active directors, registered office or place of business. ASIC intervened to ensure the companies were wound up in an orderly fashion, so the interests of investors and creditors could be properly attended to,” the watchdog said in a statement.

Peter Dinoris and Nick Combis of Vincents Chartered Accountants in Brisbane have been appointed as liquidators.

ASIC also announced yesterday that Susan Marie Palusi of Kurnell in New South Wales, has been sentenced in the District Court of New South Wales to 12 months jail after helping nine people release more than $261,000 from their self-managed super fund.