ASIC marks progress in case against AMS Holdings
The Australian Securities and Investments Commission (ASIC) today provided an update on its investigation into Chris Marco and unregistered investment scheme AMS Holdings.
The regulator said that, October 28th and October 29th, the Federal Court heard ASIC’s application for final orders to wind up an alleged unregistered managed investment scheme operated by Mr Chris Marco, AMS Holdings (WA) Pty Ltd and AMS Holdings (WA) Pty Ltd as trustee for the AMS Holdings Trust.
The Court reserved its decision. The regulator does not know when this decision will be handed down.
ASIC’s investigation into other aspects of Mr Marco’s conduct is ongoing.
Let’s recall that, in December 2019, ASIC took steps to wind up Chris Marco’s alleged unregistered managed investment scheme. Back then, ASIC commenced action in the Federal Court in Western Australia against Chris Marco, who traded as Coastline Group and related entity AMS Holdings (WA) Pty Ltd.
ASIC alleges Mr Marco breached section 911A of the Corporations Act 2001(Cth) (Act) by conducting a financial services business without an Australian Financial Services Licence (AFSL). ASIC further alleges that Mr Marco breached section 601ED of the Act by operating an unregistered managed investment scheme.
ASIC’s investigations indicate that Mr Marco owes approximately $240 million to 132 investors. Mr Marco provided most investors with a guarantee that their principal investment was secured. ASIC alleges that there is a very significant shortfall in the assets available to operate the scheme into the future.