Land banking is a controversial subject because it is sometimes associated with fraud. In the UK, for example, the Financial Conduct Authority states that land banking companies divide land into smaller plots to sell it to investors on the basis that once it is available for development it will soar in value. However, the land is often in areas of natural beauty or historical interest, with little chance of it being built on or even being the subject of planning permission.

The five Australian schemes are promoted and advertised as follows.

• Botanica, located at 805 Archer Rd, Kialla, Victoria 3631.
• Secret Valley Estate, located at  955, Old Sydney Road, Bylands, Victoria 3762.
• Oak Valley Lakes Estate & Resort, located at 124 Booth Road, Brookhill, Townsville, Qld 4816.
• Bendigo Vineyard Estate & Resort, located at 51 Andrews Road, Bendigo, Victoria 3551.
• Melbourne Grove Estate, located at 1491 Dohertys Road, Mount Cottrell, Victoria 3024.

ASIC believes that there are more than 100 investors in the schemes, which have been promoted at seminars and by other means, by entities associated with McIntyre's 21st Century Group. Companies associated with the McIntyre empire are also the developers of the schemes, known as development companies. ASIC is seeking orders to appoint a provisional liquidator or receiver and manager to each of the five schemes and the development companies so as to take control of any assets and protect the interests of investors.

The development companies are:

• Archery Road Pty Ltd (ACN 162 921 735);
• Bendigo Vineyard Estate Pty Ltd (ACN 600 088 211);
• Secret Valley Estate Pty Ltd (ACN 602 817 532);
• Kingsway South Holdings Pty Ltd (ACN 159 230 976); and
• Melbourne Tarniet Estate Pty Ltd (ACN 603 945 393).

ASIC says that it is also taking action against the development companies and the following people for being involved in an unlicensed financial services business.

• Jamie Neville McIntyre (Surfers Paradise Qld);
• Dennis McIntyre (Surfers Paradise Qld);
• Property Tuition Pty Ltd (ACN 129 421 281);
• Education Holdings Pty Ltd (ACN 129 551 917);
• Sourcing Property Pty Ltd (ACN 602 474 779).

ASIC is also asking judges to sign orders to restrain the defendants from promoting the schemes and from operating any financial services businesss. A hearing has been convened for Friday 14 August 2015.

Deep probe

ASIC’s proceedings are part of the regulator’s wider and continuing investigation into land-banking schemes. It has recently reached a settlement with Midland HWY, the developer for a land-banking scheme known as Hermitage Bendigo (formerly Aacia Banks), located outside Bendigo in Victoria. The 21st Century Group also promoted this development.

The regulator has stated: “While ASIC does not regulate direct property investment, ASIC considers that land banking schemes, depending on the particular scheme, may be a managed investment scheme and/or a financial product and that the promoters of these schemes should therefore hold an Australian financial services licence and register these schemes with ASIC.”