The Australian Securities & Investments Commission (ASIC) has announced that the Federal Court ordered the remaining ALAMMC Group companies to be wound up on just and equitable grounds, following significant concerns raised by Court-appointed receivers about investor funds and the businesses’ viability. Control of the affected companies will move from receivership to liquidation, with Andrew Fielding and Helen Newman of BDO appointed as official liquidators. Receivers reported that around AUD 91.6 million was raised from hundreds of investors across ALAMMC entities, with significant funds allegedly misused or not applied to the specific projects investors were told they were funding. Investor monies were intermingled across entities, including transactions of concern such as payments to personal accounts and loans not aligned to specific projects; construction activity on most projects was minimal or had stopped, and the companies appeared to have limited cash inflows and no meaningful trading income, with expenditure largely funded from investor funds. The receivers expressed the view that the corporate defendants are insolvent with limited to no ability to restructure, and identified potential breaches of directors’ duties. The liquidators will continue investigations into investor funds and company assets, communicate with investors about next steps, and pursue any appropriate recovery actions for creditors and investors. ASIC noted the outcome follows its earlier civil action preserving assets and appointing receivers in late 2024, while its criminal investigation into the conduct of those involved in the ALAMMC businesses continues.

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