ASIC has recently been accused of destroying $6 million in investors monies invested into land options, which is inevitable since they will have Provisional Liquidators appointed on Oct 8 in the Melbourne Federal Court.
However, they are also now accused of preventing a $75 million donation by Jamie McIntyre (CEO and founder of 21st Century Group of Companies) in land planned for the homeless and women escaping domestic violence.
This has reportedly occurred due to ASIC’s sabotage of 21st Century land banking projects and refusal to allow them to be licensed.
McIntyre is renowned for his seminars that he has conducted over the last 17 years teaching only his strategic concepts and ideas, (that have reportedly helped over 550,000 individuals and companies from over 17 different countries) on several conditions.
Seminar attendees have said, the main thing he asks is that 10% of any profits participants generated from his ideas are considered being donated to a favourite charity of their own.
McIntyre is known to help a variety of charities and for being especially generous. He also runs Free Youth Summits to motivate and inspire Australia’s youth and donates millions per year in education scholarships. He had earmarked $75 million in future land lots across five of his land projects mainly in Victoria and one in Townsville for the homeless and women escaping domestic violence.
The plan was to donate the land for select charities helping the under privileged, especially women suffering from domestic violence to have homes built for them to be able to live in safety .
Australia’s new Prime Minister Malcolm Turnbull recently announced $150 million from the Federal Government towards the same domestic violence issue against women. Therefore, an individual donation of $75 million worth of land is quite significant and would have made a big difference, which could have inspired many other land developers to match it.
The charities would be able to sell the land to use the proceeds or have a home built, often with help of builders donating time and material.
However, due to the aggressive and what some say uncalled for action by Australia’s corporate watchdog, the donations will be prevented by ASIC’s unnecessary and deliberate actions in the Federal Court on October 8 2015.
This is on top of the $6 million in investors’ money that will be destroyed by ASIC’s actions that refuse to allow investors to be refunded or some of the land projects to be resold to other developers at significant profits and be converted into a Managed Investment Scheme.
Yet many are bemused, as ASIC can’t point to when the law was changed or when they notified the industry of such a change. Some question, when did ASIC appoint themselves as the Property Regulator?
One observer said, “evidence shows no such laws have changed and ASIC is simply abusing it’s power”.
Most interviewed by ANR believe ASIC has been pressured by large landbanking property companies threatened by McIntyre’s 21st Century Group’s financial innovation of combining land banking with property options and investor protection to solve Australia’s housing affordability crisis by releasing a lot more land and consequently capping prices. It would also make land a retail product, which is no longer the monopoly of the rich.
Others speculate that ASIC is targeting McIntyre as he founded a centre right political party that has widespread support and will contest the next Federal Election and unlike Palmer Party, it has detailed policies and grass root support including a leader focussed on the good of others, unlike what the egocentric Palmer Party has been accused of.
On the other hand, some investors and observors speculate ASIC’s motivation is driven by the fact that McIntyre has been a whistleblower of ASIC’s misconduct for years and it’s simply looking at this as payback time, combined with the tall poppy syndrome.
McIntyre spoke recently at a Senate Hearing into Landbanking to present the solution to the housing affordability crisis and to inform the Senate Committee of ASICs misconduct.
Many investors are furious with ASIC for plotting to cause them $6 million in losses. Yet, this is somewhat insignificant compared to the $75 million in losses the people who can least afford to lose, i.e. the homeless and women fleeing domestic violence.
ASIC, despite causing such losses is not expected to apologise or provide compensation to those it has caused losses to. However, it is believed investors are threatening a class action and have reported it’s abuse to their local MPs.