Court acts on Swancove, Zohar

THE Federal Court in Western Australia has issued permanent injunctions against venture capital Swancove Enterprises and David Zohar regarding the operating of an unlicensed financial services business, following an investigation by the Australian Securities and Investments Commission into Swancove.ASIC had been investigating Mr Zohar, the managing director of Swancove, regarding written advertisements intended to influence potential investors in Red River Resources, Corella Oil and Australian Biogen. Mr Zohar is a director of those businesses. Between July 2003 and August 2004, Swancove used a bulk mailing company to send unsolicited letters to more than 55,000 people offering shares in the company.ASIC obtained court orders to stop Swancove and Mr Zohar from making representations to influence people to buy shares without holding an appropriate Australian Financial Services Licence.Swancove has also been ordered to send notices to subscribers of shares in the three companies, informing them of its improper conduct with an offer for reimbursement.Mr Zohar is also company secretary of Red River Resources, which listed in July. He said the order to offer shareholders reimbursement of five cents per share (what they paid for them) was “ridiculous”, since they were currently worth

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