The Sydney Morning Herald --- Page: 17 : 4 June 2007 Original article by Danny John
ABIX Summary
The Australian Securities & Investments Commission (ASIC) has made admissions about its role in the failure of real estate investment group Fincorp. An independent accountants' report commissioned by ASIC a year before Fincorp's collapse concluded that $A200m in loans from the main company to its real estate development and investment subsidiaries could be repaid in full. This resulted in the removal of an order preventing the company from raising more funds from 8,000 investors. Between June 2006 and February 2007 Fincorp raised another $A72m before entering receivership in March 2007. The investigating accountants were appointed by Sandhurst Trustees.
