Date: 4 April 2025
Source: Federal Court of Australia

The Federal Court has ordered the simultaneous winding up of 95 corporations involved in financial scam activity upon application by the Australian Securities and Investments Commission (ASIC), prompting a consumer warning by the regulator regarding continued risk of scam activity.

ASIC applied to have the corporations would up under s 461(1)(k) of the Corporations Act 2001 (Cth) (Corporations Act) on the basis that it was just and equitable to have them wound up, ASIC contended its investigations had found the companies were involved in a genre of scams known as “pig butchering” whereby scammers build a relationship (whether a friendship or romantic relationship) with victims via social media or messaging apps and then convince them to participate in fake online investment opportunities, defrauding them of funds. In this instance, the companies were linked to such scams originating from transnational organised crime groups. ASIC thus argued that the corporations’ affairs were improperly managed, and that they were not operating legitimate businesses, thus leading to a risk to the public...