ASIC secures court orders against director and his companies

ASIC secures court orders against director and his companies | Insurance Business Australia

Insurance News

ASIC secures court orders against director and his companies

This follows concerns regarding the companies’ practices in NDIS property investments

Insurance News

By
Jonalyn Cueto

The Australian Securities and Investments Commission (ASIC) has initiated urgent civil proceedings against company director David McWilliams and several associated companies, following concerns over their investment practices in National Disability Insurance Scheme (NDIS)-compatible property developments.

On Sept. 11, the Federal Court issued orders to preserve the assets of four companies linked to McWilliams: ALAMMC Developments Pty Ltd, SDAMF Pty Ltd, Harvey Madison Capital Pty Ltd, and Coral Coast Mutual Pty Ltd. The court also ordered the preservation of assets belonging to McWilliams and his partner, Laura Fullarton, and imposed a travel restraint on McWilliams, prohibiting him from leaving Australia.

The legal action comes in response to an ASIC investigation into the companies’ financial activities and the management of investor funds from 1 January 2021. The inquiry was prompted by concerns related to McWilliams’ gambling activities.

Justice David Yates of the Federal Court of Australia issued interim orders in the matter of Australian Securities and Investments Commission v ALAMMC Developments Pty Ltd [2024] FCA 1063. ASIC’s urgent ex parte application sought interim relief under section 1323 of the Corporations Act 2001 and related legislation.

On 16 September 2024, Justice Angus Stewart extended the asset preservation and receivership orders from the 11 September 2024 ruling in the case of Australian Securities and Investments Commission v ALAMMC Developments Pty Ltd.

The revised orders allow the 14th and 15th defendants to apply for modifications by 20 September 2024, including adjustments to payment limitations.

The court scheduled a hearing for 27 September 2024 to address these modifications and non-publication issues. A subsequent hearing for additional relief is set for late October or early November 2024.

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