ASIC gets lashed by furious land banking investors in what they say is a corrupt corporate watchdog for deliberately destroying their investments to serve a personal vendetta against McIntyre
Land banking investors appear fed up with the ASIC. Many of the investors now claim that the ASIC is corrupt to the core and its sole agenda is to see them lose their entire investments as the corporate regulator allegedly continues to abuse the law by sabotaging their land banking investments.
It has also now become clear to many investors and observers that ASIC’s sole agenda is to abuse its power to serve a spiteful and aggressive vendetta against McIntyre for being a whistle blower of ASIC’s misconduct. Moreover, many also believe ASIC is politically motivated in its actions.
Whatever the reason, it is now apparent that ASIC will stop at nothing in abusing the law and attempt to destroy McIntyre, even if it means destroying the investors it’s meant to protect.
ANR is set to release some explosive new information that confirms once and for all that ASIC has not only seemingly lost the plot, but also that its actions are corrupt and it acts with impunity thinking its above the law.
One disgruntled investor sent ANR a copy of the emails exchanged with ASIC regarding the matter:
“I am writing to you as an investor in the 21st Century Land banking options at Wallan. My husband and I purchased an option in December last year with our SMSF after doing complete due diligence, going to the office to discuss the project and visiting the site.
“We are shocked, confused and quite frankly terrified at the current action being undertaken by ASIC. Can I please ask why ASIC is trying to undermine these projects? Is ASIC now requiring that all real estate agents must register with them if people are investing in the property market? From my understanding, the settlement of Sydney was based on land options, so it is not a new idea or way to purchase land.
“If 21st Century have done the wrong thing by not “registering” as a financial investment company (I thought we were investing in land, not a financial product), would it be possible for you to point out their mistake and assign them the correct paperwork you require so all the investors involved aren’t taken to the wall? It doesn’t feel to me that your concern is with protecting the investors at all, rather a personal vendetta against Jamie McIntyre.
I am concerned that ASIC has some personal matter with Jamie and the investors are the ones who are going to suffer because of it. If ASIC wins the case on October 8, does this mean a liquidator would be appointed? If that is the case, you will be guaranteeing that all the investors who you are meant to be protecting will lose their money. The agreement we have with 21st Century is if the project doesn’t go ahead, we will be refunded our money. But if liquidators are appointed this will be negated. If ASIC could turn their focus away from attacking one person and instead consider the investors they are going to ruin, wouldn’t this be the job they are meant to be doing? Who can protect us from ASIC?
“If this situation could be resolved in a grown up matter and not be about ASIC not wanting to lose face, it would be greatly appreciated. If you would like to actually speak with me I am available. No effort has been made by ASIC to explain what they are doing and why to any of the people they are going to affect. From my perspective it is a Government department gone mad on the power they can wield. I will be copying in my local member of federal government, Cathy McGowan in on this email so she can be aware of what is going on”.
Following these emails, a representative from ASIC simply sent through a link of FAQ’s the corporate regulator published on its website regarding its investigation into the 21st Century Group’s land banking projects. However, one investor unsatisfied with the response went on to state:
“If the issue is they are an “unlicensed financial services business”, why not work with the group and find a way to register them and get them licensed? This would be a way to protect investors if it is a financial service rather than a real estate investment (which was my understanding). Why go straight to the court and spend taxpayers’ money on lawyers when you could work with them to find a solution? My concern is the object here is not to protect the investors at all, but to see Jamie McIntyre and his companies go down. This appears to be the focus, not protecting anyone.
“Once again I have copied in Cathy McGowan who is my federal parliamentary representative and is now watching how this proceeds. I feel the very reason that ASIC was created is being undermined by public servants who have lost focus on what they are meant to be doing, i.e. protecting investors and not seeing them go down. While you are busy focusing on this, there is no doubt another Storm Financial is quietly slipping by your front door. Let’s please remember this is real estate and not a financial “product”. Property options have been around for centuries and isn’t something “dreamed up” by Jamie McIntyre. If he is found to have neglected to register as a financial product while working in Real Estate, this will open a huge can of worms for the entire Real Estate industry within Australia”.
Another critic of ASIC recently posted on a social media platform:
“Fairfax is one of the big offending companies, which pays no tax in Australia yet feels it has the right to influence Australians- using an unethical and creative accounting practice that can be shut down the by the government, but surprise surprise, it’s not. Same as Chevron, BHP, Rio Tinto and about 100 more. Why don’t ASIC spend their time on this? I have to say this though, politicians who target this group- will have a short time in politics, so I urge you to be cautious Jamie as I would love to see 21st Century Australia Party get up if you’re still steering that way. On the other hand, it is good to see someone doing something about these f***wits, as they are killing the entrepreneurial spirit of the country”.
Here is what other investors that are risking losing all their investment money wrote to ASIC:
“I would like to know exactly what is going on with these property options. I bought a property option with my superannuation in 2014. I thought it was a wise decision hoping to not have to rely on the government when I retire. That was the plan I had in mind. When I read about the property option strategy there was the offer of a full refund by Jamie McIntyre if something went wrong. Now with the current news I am hearing about ASIC, I am worried that I will lose the money I have invested completely. This is most of my superannuation. It has taken me about 25 years to save this superannuation”.
“We do not want liquidators appointed to the land banking project that we have invested in. We have made the decision and taken full responsibility on what we have chosen to invest our money in, as well as our superannuation”.
“I write to you deeply concerned regarding the legal action being taken against the 21st Century Group in relation to their land banking projects of which I am an investor in the Bendigo project. I understand that if ASIC are successful in winning this legal battle based on a technicality, investors will be the ones that lose out as the properties in question will be placed into liquidation.
“I understand that ASIC are suggesting that property options are a financial product and therefore require an AFSL to be issued, even though legal advice received by 21st Century Group indicates they are not, according to securities law. I understand that Jamie McIntyre, CEO of 21st Century Group, has offered to refund option holders and gain the necessary licensing if that is what is deemed to be required. However, ASIC have refused these proposals. I do not understand why this offer has been denied. I believe I made an informed decision to acquire my property option with 21st Century Group and believe that the contract I signed held reasonable protection against my investment with consideration that all investments hold some degree of risk. I invested the majority of my superannuation held in a SMSF in this option and if ASIC push for liquidation of these projects, that investment will be lost. I cannot understand why ASIC, who I believed were there to protect investors, are taking action that will ultimately destroy the people they are supposed to be protecting. I can only assume that there is more of a political motivation to this cause and that there is no consideration for the everyday Australian that will ultimately become the collateral damage. This is not acceptable. If by any chance I have misinterpreted the facts, I have stated clarification of this case and where I stand as an investor is welcomed and would be appreciated prior to 8th October 2015 when court proceedings will occur”.
“I would like to express my absolute concern regarding ASIC appointing liquidators to any of the land banking developments being undertaken or marketed by 21st Century companies. Unless it can be identified and these companies have lost investors’ money or have done something illegal, there is absolutely no advantage to the option holder in liquidating these companies. This will cost the investor and the projects with no substantiated outcome in favour of the investor. Hence my support of 21st Century to find a resolution with ASIC outside of court proceedings and liquidation”.
“I am still lost as to why ASIS is blatantly making an attack on 21st Century to investor detriment? The only result I can see here is, ASIC will knowingly lose investors money for their own personal gain. ASIC are mediating body paid by taxpayers and from what I can read they will blatantly lose investors (mums and dads like me) money in pursuing this class action. 21st Century has formally stated (and presented to ASIC) if ASIC rules they will pay back investors money, which to me seems very honourable and fair. However, if ASIC, to prove a personal point appoints administrators, investors like me will lose all our money. I am personally emailing to have this letter presented to court on the day of the hearing to voice my concern and show that I am not happy with ASIC if they go ahead with losing my money. Currently, as investors stand now, there is no money lost. If ASIC win, it’s a major loss to investors.
The matter heads back to Melbourne’s Federal Court 8th October.
A company spokesperson has said it is predictable that liquidators will be appointed on Oct 8th and investors will get no more than 1-10 cents in the dollar, according to independent expert advice it has recently sought, as liquidators will take most monies in fees.
21st Century Group provided offers that would have seen zero loses, however, ASIC not only have continually refused but have actually gone on a rampage to sabotage some of the projects from not allowing them to settle to target another developer who offered to acquire two of the biggest sites and license them. Thus option holders would have been either refunded or allowed to keep their options in place.
ASIC to date has continually refused to answer investors’ questions as to why they are motivated to take such actions. It is now believed that they are attempting to go to court sooner to liquidate the companies before concerned politicians can investigate and have ASIC stopped.
ASIC refused to comment on this article.