ASIC sues MKS Property over $11m investment scheme

ASIC has launched another lawsuit against Morley real estate developer MKS Property and Monica Kaur over allegations the two parties were involved in an unregistered investment scheme in which they raised more than $11 million.

In a statement released this afternoon, the Australian Securities and Investments Commission confirmed it had launched the legal action in the Federal Court over allegations the two parties encouraged about 300 investors to establish self-managed superannuation funds and invest in MKS’s property investments.

The corporate watchdog claims its investigation has found Ms Kaur, MKS Property director Sadu Singh and Paradise Property Group consultants Melvin Paul Singh and Stephanie Lee were involved in the promotion of the scheme and raised $11.3 million between March 2017 and December 2020.

It is alleged the funds were spent for their own personal use and to pay returns to investors.

The legal action comes after ASIC obtained orders to freeze the company’s assets and prevent Ms Kaur, MKS Property director Sadu Singh and Paradise Property Group consultants Melvin Paul Singh and Stephanie Lee from leaving the country.

ASIC and the Australian Federal Police had executed search warrants on two premises associated with the defendants in December last year as part of its investigation.

ASIC is now pushing to have liquidators and receivers appointed to the companies in a bid to secure assets of the alleged scheme.

The matter has been adjourned to August 25, 2021.