Following an application by the Australian Securities and Investments Commission (ASIC), the Federal Court in Melbourne has ordered that Offshore IMF Investments Pty Ltd and Dynamic Business Centres Pty Ltd be wound up.

Mr Peter McCluskey of Ferrier Hodgson has been appointed liquidator of the companies. The directors of the companies consented to ASIC’s application.

ASIC’s investigation revealed that between February 1998 and January 2001, 12 investors, all from Victoria, put more than $1.4 million in the two companies after being promised returns of up to 12 per cent per annum. Although some of investor’s funds have been returned in interest payments, the companies are now insolvent.

The majority of investors were elderly clients of Mr Alexander Carrick Ross. Mr Ross was formerly a client adviser for several Melbourne stockbroking firms, and a director of Offshore IMF Investments.

‘ASIC will continue to take appropriate action to protect the interests of consumers, particularly those who may be more vulnerable to the adverse effects of poor investment advice’, ASIC Executive Director of Enforcement, Ms Jan Redfern said.

ASIC’s investigation is continuing.