Sasha Hopkins, director of The A Team Property Group, has been ordered by the Federal Court to pay a $1.25 million penalty and disqualified from managing companies for four years.
The penalty follows proceedings by the Australian Securities and Investments Commission (ASIC) against Hopkins for running unlicensed property investment schemes.
The Court has also mandated the winding up of The A Team Property Group, five unregistered investment schemes, and associated companies. Receivers have been appointed to manage the assets tied to these schemes.
Hopkins and his company promoted joint venture property investments on platforms like Facebook, offering high fixed returns of 25% to 50% over 12 to 26 months.
Many investors, referred to third parties, established self-managed superannuation funds (SMSFs) to participate in these ventures.
The court found that the schemes operated without a financial services licence (AFSL) and contravened section 601ED of the Corporations Act by running unregistered managed investment schemes.
The unlicensed property schemes involved 217 investors, many of whom were inexperienced and believed their investments were secure. Ultimately, investors lost a total of $27 million.
“This was a blatant disregard for regulatory requirements,” said ASIC Deputy Chair Sarah Court (pictured). “ASIC is prioritising action against high-risk property schemes targeting consumers with promises of significant returns.”
Justice Jonathan Beach described Hopkins as the “founder, designer, and operator” of the unlicensed property schemes, which encouraged individuals to set up SMSFs to fund investments.
Since 2014, Hopkins has served as a director of 46 companies, marketing 11 property ventures across multiple Australian states.
In June 2022, ASIC, which recently released a joint letter with APRA detailing observations from the banking industry’s implementation of the Financial Accountability Regime (FAR), obtained orders to freeze the assets of Hopkins, The A Team Property Group, and related companies. By July 2023, ASIC escalated its actions, leading to the Federal Court judgment.
This case marks the first time a penalty has been imposed for breaching section 601ED, with the $1.25 million fine being the third-highest penalty against an individual in ASIC’s history.
Hopkins must also pay $50,000 toward ASIC’s legal costs.
ASIC’s actions reaffirm its commitment to protecting investors and cracking down on unlicensed operators in the property market.
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