Property investment scheme blocked

The Federal Court has permanently restrained the marketing and promotion of a Pilbara property scheme involving Perth-based Macro Realty Developments and east coast investment promoter Jamie McIntyre.

The court made declarations today that Macro, 21^st Century Property, and 21^st Century Education had breached various provisions of the Corporations Act by promoting and marketing the investment proposal.

The proposal was promoted using the tagline ‘Do you know how to buy Australian property, no money down?’, however this was flagged by the Australian Securities and Investments Commission in September last year, at which point an injunction was obtained to prohibit the promotion of the investment.

Macro managing director Veronica Macpherson had previously told Business News that the marketing and promotional material Asic was referring to was not generated, permitted or endorsed by the firm, and had been put together without Macro’s knowledge.

The court also declared that both 21^st Century Property and 21^st Century Education had provided financial advice in an unlicensed manner.

In a statement, Asic said the proposed investment involved investors becoming a director and shareholder of a company, acquiring properties through Macro through this company, and receiving a director’s fee (but having agreed that Macro would be the sole decision maker for the company).

“His Honour Justice Beach made declarations that the marketing and promotion of the investment proposal by the companies was misleading and deceptive, and that investors had been procured into breaching director’s duties,” Asic said.

“Asic has also issued proceedings in the Federal Court against 21^st Century Property and 21^st Century Education in relation to their promotion and the sale of interests to investors in five land banking schemes.”