ASIC applies brakes to Co Develop

The Australian Securities and Investments Commission is seeking to wind up the Co Develop group. The ASIC action follows a three-month investigation into seminars promoting mezzanine finance deals in which Co Develop invited unsophisticated investors, family and friends to become joint venture developers. Co Develop lured investors with promised returns of up to 100 per cent. ASIC is seeking the appointment of receivers to Co Develop. Nine Co Develop companies have raised funds raised from 100 investors through promissory notes, debentures and joint venture agreements for property developments worth between $500,000 and $3.4 million in south-east Queensland.