ASIC investigation into Mr Chris Marco

ASIC takes steps to wind up Chris Marco’s alleged unregistered managed investment scheme

ASIC has commenced action in the Federal Court in Western Australia against Mr Chris Marco, who traded as Coastline Group and related entity AMS Holdings (WA) Pty Ltd (AMS). ASIC is seeking orders to wind up the scheme operated by Mr Marco and, in the short term, appoint a receiver to manage Mr Marco’s and AMS’s assets.

If granted, the appointment of a receiver will:

  1. enable the receiver to identify and secure Mr Marco’s and AMS’s assets; and
  2. determine what assets may be available for the benefit of investors.

Copies of the documents ASIC filed today can be accessed here:

Interlocutory Process

The matter has been tentatively listed for a two-day hearing commencing on Monday, 16 March 2020.

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 received approximately $240 million from 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.

ASIC’s investigation into other aspects of the alleged conduct of Mr Marco and AMS is ongoing.

ASIC’s action in the Federal Court does not include recovery action on behalf of investors.  ASIC confirms previous advice to investors that they should consider seeking their own personal legal advice in regard to their rights in relation to their investment.  Any investors who may be suffering financial or other distress are also encouraged to consider seeking appropriate counselling.

If investors have any questions regarding this matter, they are invited to contact ASIC at CMarcoinvestorliaison@asic.gov.au

Last updated: 19/12/2019 03:48