The operators of the Regal Theatre have launched legal action in a bid to retrieve $850,000 they claim they handed over to an investment company which promised to double their funds in 30 days.
According to a writ lodged in the Supreme Court this week, production company Interstar has launched legal action against Halston Capital and its managing director Scott Michael James Mundell.
In the writ, Interstar claims it entered into a written investment agreement with Halston back in March, agreeing to hand over $850,000 which was to be invested in a $4 million short-term private placement program managed by multinational investment bank Rothschild & Co.
The agreement allegedly promised a 100 per cent return in 30 days.
Interstar claims it made the $850,000 advance five days later, but hasn’t seen a cent since.
The production company is now taking Halston and Mr Mundell to court, claiming the two parties engaged in fraudulent and misleading conduct contrary to Australian Consumer Law.
Interstar is attempting to rescind the agreement and claw back the cash through a writ of summons, seeking a court declaration that it be refunded $850,000 or that the funds be held on trust, as well as interest and compensation.
Alternatively, the company would like to see the $1.7 million it was allegedly promised under the agreement.
Business News has contacted Interstar and Halston for comment.
Interstar is one of Perth's largest theatre production companies and took over the operation of the theatre in the 1970s.
