The Australian Securities and Investments Commission (ASIC) has commenced Federal Court proceedings in Perth against Mr David Alan Zohar and Swancove Enterprises Pty Ltd (Swancove).

These proceedings follow an ASIC investigation into written advertisements containing recommendations intended to influence people to acquire shares in Red River Resources Limited, Corella Oil Limited and Australian Biogen Limited. Mr Zohar is a director of these companies.

Between July 2003 and August 2004 ASIC alleges Swancove used a bulk mailing company to send unsolicited letters to over 55,000 persons offering shares in the companies.

ASIC alleges that Swancove and Mr Zohar carried on a financial services business without holding an Australian financial services licence.

ASIC is seeking orders from the Federal Court preventing Swancove and Mr Zohar from operating, or being involved in the operation of, a financial services business without a licence and to provide notice to investors, giving them an opportunity to cancel their acquisition of shares.

The action has been listed for a hearing in the Federal Court in Perth on 15 July 2005.