The Federal Court has ordered the remaining ALAMMC Group companies be wound up following significant concerns identified by the Court‑appointed receivers about investor funds and the viability of the businesses.
ASIC was successful in seeking the winding up of 13 corporate defendants on just and equitable grounds after the receivers' reports noted:
- Around $91.6 million was raised from hundreds of investors across ALAMMC entities, yet significant funds were misused or not applied to the specific projects investors were told they were funding
- Investor funds were intermingled and used across multiple entities, with numerous transactions of concern including payments to personal accounts and loans not aligned to specific projects
- Construction activity on most projects was minimal or had stopped altogether
- Apart from a small amount of rental income, the corporate defendants appeared to have no other sources of cash inflows, did not generate revenue or trading income and almost all expenditure appeared to have been funded from investor funds
- The receivers expressed the view that the corporate defendants are insolvent, with limited to no ability to restructure, and
- The receivers also identified potential breaches of directors' duties.
ASIC Deputy Chair Sarah Court said, 'The decision to wind up these companies has been driven by public interest considerations and the need to protect current and potential investors.'
Control of the affected companies now transitions from receivership to liquidation to better protect investors and enable potential recovery actions. The Court has appointed Andrew Fielding and Helen Newman of BDO as official liquidators to carry out the wind‑ups. The liquidators will now:
- Continue investigations into investor funds and company assets
- Communicate with investors about next steps, and
- Pursue any appropriate recovery actions for the benefit of creditors and investors.
This outcome builds on ASIC's civil action that preserved assets and appointed receivers over Mr David McWilliams, Ms Laura Fullarton and ALAMMC-related companies in late 2024. ASIC's criminal investigation into the conduct of those involved in the ALAMMC businesses continues.
