Kiwi money man has assets frozen and passport surrendered

The New Zealand-born founder of LM Investments, Peter Drake, has had to surrender his passport and has had his assets frozen following the collapse of the company.

Monday, September 30th 2013, 9:29AM

The Supreme Court of Queensland has ordered the moves on an application from the ASIC, which is investigating the collapse of the Gold Coast-based fund manager .

LM Investment Management went into administration in March 2013, with the company responsible for managing at least A$750 million on behalf of almost 12,000 investors in Australia and overseas.

The Supreme Court of Queensland made interim orders, which include preventing Drake from selling his assets, though they do not extend to the intended sale of Drake’s Mermaid Beach, Queensland home.

William Fletcher and Tracy Knight of Bentleys, who have been appointed as joint and several receivers of Drake’s property, will be required to identify and secure all assets held by or on behalf of Drake and to report to the court.

The matter will return to the Supreme Court of Queensland on 9 October 2013 when the court will decide whether to maintain the interim orders that have been made.

ASIC will not comment further at this time.

However, its investigation into the collapse of LM Investment Management is looking at the conduct of the directors and the management of the various managed investment schemes and transactions with related companies.

The surplus of the sale proceeds from the sale of Drake’s home, which was expected yesterday, will go to Drake’s solicitors' trust account and cannot be used or dealt with unless by order of the court or agreement with ASIC. If the property does not sell, this asset will be further dealt with by the court on October 9.

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