Australian Securities and Investments Commission v Heydon Park Ltd [2005] FCA 1583

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Heydon Park Ltd [2005] FCA 1583 AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION v HEYDON PARK LTD & ORS NSD822 OF 2004 EMMETT J 13 SEPTEMBER 2005 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NSD 822 OF 2004

BETWEEN: AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

PLAINTIFF

AND: HEYDON PARK LTD

FIRST DEFENDANT

ALLAN JOHN MASON

SECOND DEFENDANT

DOUGLAS JAMES CRAGO

THIRD DEFENDANT

PETER ALEXANDER KINNAIRD

FOURTH DEFENDANT

HARRY JEONG RHEE

FIFTH DEFENDANT

ANDRE STEPHAN BACKHAUS

SIXTH DEFENDANT

PANAX GINSENG WHOLESALERS PTE LTD

SEVENTH DEFENDANT

JUDGE: EMMETT J

DATE OF ORDER: 13 SEPTEMBER 2005

WHERE MADE: SYDNEY

BY CONSENT THE COURT: A. THE FIRST GINSENG SCHEME: The misleading nature of the documentation: 1. Declares that between about 23 July 2002 and 1 April 2004, Heydon Park, through Mr Mason, Mr Crago, Mr Kinniard and Mr Backhaus solicited ('the First Ginseng Scheme Solicitations') members of the Australian public with a view to encouraging them to invest in the First Ginseng Scheme ('the First Ginseng Scheme'), as defined in paragraph 25 of the Statement of Claim. 2. Declares that in carrying out the First Ginseng Scheme Solicitations and with a view to inducing investors to invest in the First Ginseng Scheme, Heydon Park, through Mr Mason, Mr Crago, Mr Kinniard and Mr Backhaus, provided potential investors with the First Ginseng Scheme Documentation ('the First Ginseng Scheme Documentation'), as defined in paragraph 49 of the Statement of Claim. 3. Declares that the First Ginseng Scheme Documentation contained material which conveyed the following ('the First Panax Ginseng Representations'):