MORE MEZZANINE-STYLE DISASTERS.
A promoter of crooked mezzanine funding schemes has been fined $1.122 million but it’s small change compared to the $14.1 million lost by small investors. Donald Richard Maxwell, promoter of property funding schemes run by ProCorp Investments, has been permanently banned from managing a company or providing financial advice. The NSW Supreme Court has also ordered Maxwell to pay $1.122 million in compensation, penalties and costs. Eight other men involved in the dodgy schemes were hit with fines and bans.
ProCorp Investments and the related Central Development group of companies collapsed in 2004, leaving 152 people out of pocket $14.1 million an average of $93,000 lost by each small investor. The investments, which were advertised in suburban newspapers, promised returns around 30 percent and described the investments as “secured and guaranteed”. They were nothing of the sort. ….link to Full Story