McIntyre to launch a $6.8 million land banking compensation fund to cover investor losses caused by the ASIC’s deceptive actions, whilst requesting the Government for compensation.
Jamie McIntyre, CEO of the 21st Century Group has been in a legal battle over five of its land banking projects. He alleges that ASIC took deliberate, pre mediated actions to sabotage and cause unnecessary losses to investors. McIntyre has announced that he is setting up a compensation fund to ensure his investors are protected from ASIC causing them losses.
When asked why he was setting up such a fund he said, “It’s grossly unfair what ASIC has deliberately and unnecessarily done to investors simply to serve a spiteful, politically motivated vendetta against myself and my companies.
“Some investors’ financial lives have been destroyed because of what ASIC did. I am appalled that such behaviour occurs in Australia. ASIC never needed to do what they did, and have zero justification for doing so.
“Not only are property options perfectly legal, but anyone with half a brain knows that land assets will rise substantially over time regardless of whether or not they get rezoning approvals. Therefore, investors win, which will be evidenced over time as they continue to rise and highlight just how wrong ASIC is.
“If ASIC has an issue with such use of options, then they should take it up in a manner that does not cause losses to innocent investors. Also, why wouldn’t they allow them to become licensed funds, if that’s what they prefer
“Why wouldn’t they allow option holders to be refunded when offered three times in July, September 2nd and September 15th, 2015?
“These are questions ASIC can’t answer with justifiable answers, as there aren’t any. To suggest the companies didn’t have the capacity is nonsense, as they had access to funds and two projects had buyers at $4.7 million and $4.4 million, which would be more than ample funds to cover option holders many times over with the other land assets”, he said.
When asked how the fund will work, McIntyre explained:
“The goal will be to grow the assets in the fund to approximately match the $6.8 million in investors’ monies used to acquire options over the land.
“There is $1.4 to $1.6 million approximately in equity in the Shepparton project, which is growing. There is also $600,000 or more in Bendigo Vineyard Estate. We were offered $4.4 million to sell this to a property fund, but ASIC wouldn’t allow the sale as investors would have profited and if that occurred, ASIC couldn’t justify why they spent tens of millions in taxpayers’ money pursuing investments that investors are profiting from.
“These two projects have approximately $2 million in net equity (yet the liquidators will understate this, as they want to take most of it in their fees and ASIC may try to get their fees back, as they have done in past cases).
“The provisional liquidators should be removed from these projects and returned to their rightful owners. Even without getting developed, the value of these two properties would reach $6 million within less than 10 years. However, with added value by the 21st Century Group it would grow to this value sooner. Alternately, developers may pay that amount now considering the pre sales in these projects to option holders.
“ASIC prevented the other three 21st Century land projects from settling in order to sabotage them and cause loss of deposits etc. Therefore, these aren’t recoverable. As a result, over time the 21st Century Group would look at investing into the fund to cover the losses ASIC caused to grow its assets and make redemptions to investors sooner, so eventually they are fully paid back. Option holders had a 100% money back guarantee in case the projects didn’t get rezoned within 20 years, and they would then get refunded from the sale of the land.
“Conservative estimated values of the land in 20 years would be 200% plus verse the dollar amount of options sold. This ensured the money back security was indeed safe. Yet, only ASIC had the power to undo this security and cause losses.
“They should be grilled regarding their motivation behind sabotaging investors’ interest when the taxpayer expects ASIC to protect investors and not screw them over for vendettas against its outspoken critics.
“The good news despite ASIC’s unethical and dishonest actions is that every single option holder in 21st Century Group owned projects will get 100% of their option fee back well ahead of the 20 year refund period. Ideally they would get it back within less than 3-5 years with redemptions hopefully starting within a year.
“However, if ASIC wanted to make amends to investors and be ethical, it could remove the provisional liquidators off the two remaining projects thus allowing them to proceed. All other option holders would get an option in these two projects and be 100% protected due to the increasing value of the land”, he said.
When asked about the investors caught up in the Midland Hwy Acacia Banks project, McIntyre explained:
“It is important that people know this isn’t our project, so we can’t be held responsible for what other land developers do. We have no control. We bailed a Shepparton project out and took over $4.7 million in liabilities.
“We still hope to be able to acquire the Midland Project at Bendigo to ensure it gets developed and our clients that acquired options in it get to profit from their cheap land lots, which their option entitles them to.
“This project is residentially rezoned and council approved. One must ask why ASIC stopped it from going ahead and why they are still stopping it, even though investors are voting for it to proceed and the developers are wanting to complete it.
“However, once again ASIC can’t have investors profiting and not making losses, as they only got funding to waste tens of millions of taxpayers’ money on an expensive land banking investigation because Fairfax planted fake stories alleging that between $100-$300 million had been lost (when not a cent had been lost- somewhat embarrassing for ASIC to have believed Fairfax, until of course, ASIC created the losses).
“Yet, while ASIC was wasting time targeting the 21st Century Group over five tiny land projects that are perfectly legal and where investors were safe and secure with only $6.8 million in investment money, Dick Smith Electronics managed to lose half a billion of investors’ money within a year. Yet ASIC was asleep at the wheel again.
“Storm Financial managed to lose $3 billion of investors’ money and ASIC watched that happen and even licensed Storm Financial, which is effectively ASIC endorsing mum and dad investors that it’s safe to invest with such companies.
“Macquarie Bank last year got a slap on the wrist for raising $100 million for a Chinese Coal Mine that didn’t exist and investors lost the lot. However, ASIC’s focus seems to be on land banking, which is the safest investment since medieval days and we all know that land will be worth a lot more in the 10-20 year time frame it’s banked for”.
McIntyre said the reason he is standing up and fighting so hard against ASIC to protect his investors is because of the stories he hears from them about the stress and damage ASIC has caused them.
According to him, most investors (bar a few fooled by ASIC) want to see ASIC exposed and made to compensate for the losses they created. They want ASIC stopped from doing what they do in gaming the court system and screwing over investors unfairly, explained McIntyre.
He said it’s appalling, and the ASIC officers who did this need to be individually held accountable for the lives they have ruined.
“I have had to console some investors who were close to committing suicide because of what ASIC have done to them.
“At what point will some politicians in Government have the guts and take a stand for everyday investors against ASIC and stop them from getting away with abusing their power and being used by those seeking to target companies and individuals for ulterior motives”, questioned McIntyre.