ASIC succeeds in application to wind up Chris Marco’s unregistered investment scheme
The Australian Securities and Investments Commission (ASIC) was successful in its application for winding up an unregistered managed investment scheme operated by Chris Marco and AMS Holdings (WA) Pty Ltd. Today, the Federal Court has ordered the winding up of the scheme.
The Court also ordered that Mr Marco be permanently restrained from carrying on a financial services business without an Australian Financial Services (AFS) licence or operating an unregistered managed investment scheme.
Justice McKerracher made declarations that Mr Marco, AMS and AMS as trustee of the AMS Holdings Trust (AMS Trustee) contravened the Corporations Actby:
- operating an unregistered managed investment scheme when the scheme was required to be registered; and
- carrying on a financial services business without holding an AFS licence.
The Court has appointed Mr Robert Kirman and Mr Robert Brauer of McGrathNicol as liquidators, replacing Mr Cameron Shaw, Mr Richard Albarran and Mr Marcus Watters of Hall Chadwick, who are the current liquidators of AMS. The Court has also appointed Mr Kirman and Mr Brauer as receivers and managers over all the property of the defendants.
ASIC’s investigation into the conduct of Mr Marco 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.
On 28 and 29 October 2020, the Federal Court heard ASIC’s application for final orders to wind up the scheme.