THE liquidator of Rowena Nominees, one of the vehicles used
by failed finance broker Graeme Grubb, is seeking $6.4 million from 122
investors in two managed investment schemes Rowena was financing.
Over the past two months RSM Bird Cameron partner Mark
Conlan, as the liquidator of Rowena Nominees, has been issuing writs to growers
involved in the vineyard managed investment scheme called Karrioak, and the Ord
River Sandalwood scheme.
Mr Conlan said the legal actions were to reclaim monies from
investors in the two schemes who had not repaid their loans.
“Some of the investors in these schemes just paid for the
lots outright. Others ticked the box on the prospectus for Grubb to provide them
with the finance,” he said.
Mr Conlan has already recorded some default magistrate court
judgements in favour of his case.
He said one grower had paid up on receiving a writ and
several others had previously paid what they owed.
However, about 40 of the growers have retained Adelaide law
firm Doman Lawyers to represent them.
Doman Lawyers partner Tom Doman said the investors would
argue that Rowena’s loans were unenforceable.
“We’re saying the monies were not lent by Rowena to Karrioak
and Ord River because that money went around in a circle back to Rowena
Nominees,” he said.
The growers are mostly mum and dad investors who had
subscribed, at $25,000 a lot, in these schemes and sought finance for their
purchases from Rowena Nominees.
Both schemes had been billed as tax effective investments,
however the Australian Tax Office later disallowed any tax deductions accruing
from those schemes.
Mr Conlan said he had to fight in court to prove he had the
right to go after the money loaned to the growers.
Monies recovered from growers will go back into the Rowena
Nominees trust account that Mr Conlan is in charge of.
So far that account has about $10 million in it, but some of
that money is in dispute.
About $800,000 of that money is from growers.
Mr Conlan said he was hopeful of reclaiming about half of
the money.
