$29 million resort scheme put into receivership amid offshore transfer concerns

The Federal Court of Australia has appointed Adrian Hunter and Jonathon Colbran of RSM Australia as receivers and managers of Star Investment Group Australia Pty Ltd (SIGA) and Gondal Holdings Pty Ltd, and receivers of the property of their sole director and shareholder, Ijaz Ahmad, following an investigation by ASIC into a property investment scheme associated with the proposed Lake Narracan Resort development in Victoria’s Latrobe Valley.

Justice Anderson made the appointments on 6 October 2026, following interim asset preservation and travel restraint orders granted on 15 September. The receivers have been directed to investigate the assets, liabilities, investor debts and solvency of the companies and Mr Ahmad, and report to the Court within 42 days. The existing freezing orders remain in place, as does a travel restriction preventing Mr Ahmad, who has been living in Pakistan since April 2025, from leaving Australia should he return.

SIGA operated an unregistered property development investment scheme that offered promissory and convertible notes to investors, with minimum investments of $100,000 and promised annual returns of 10% to 12%, paid monthly. According to promotional material, the scheme had raised more than $19.1 million from 111 investors by November 2025. However, ASIC's analysis of banking records identified approximately $29.4 million deposited into SIGA's principal account by persons believed to be investors, of which approximately $3.2 million was repaid as redemptions, $5.9 million as interest and $17.2 million advanced to Gondal.

The funds were purportedly intended to finance the development of the Lake Narracan Resort on land owned by Gondal at Yallourn, Victoria. The property was purchased for $4 million plus GST, with settlement completed in June 2022. Although Gondal had agreed to grant SIGA a registered mortgage and security over the property in exchange for funding, no such security was registered, leaving SIGA as an unsecured creditor. The property is subject to two registered mortgages securing approximately $3.64 million in loans.

ASIC commenced its investigation in March 2026 over suspected failures to maintain financial records, breaches of directors' duties and non-compliance with regulatory notices, subsequently expanding its investigation to include potential misleading or deceptive conduct in the promotion of the investment notes. The regulator raised concerns that substantial investor funds had been transferred offshore, including approximately $4.6 million sent directly to overseas accounts and a further $2.9 million transferred through a foreign exchange provider, principally to Pakistan. Approximately $2.8 million of the latter amount was transferred to a bank account in Mr Ahmad's name.

The investigation also identified significant gaps in the companies' financial records, outstanding taxation obligations and limited evidence of progress on the proposed development. As of March 2026, the combined balance of known bank accounts held by SIGA, Gondal and Mr Ahmad was approximately $25,000, and those accounts had subsequently been closed. SIGA suspended monthly interest payments to investors in February 2026, while the development property was placed on the market in April with an asking price of $32 million to $35 million, substantially above an agent's estimated value of $26 million to $28 million.

In his September reasons, Justice Anderson found reasonable grounds to suspect breaches of financial record-keeping obligations, directors' duties and misleading or deceptive conduct provisions. The Court noted that investors had been told their funds were protected by real property assets despite SIGA holding no registered security, and that investor money had been used to make payments to earlier investors and transferred to related entities and overseas accounts. Justice Anderson concluded that protective orders were necessary to prevent further dissipation of assets and establish the true financial position of the defendants. The findings were made at an interim stage and did not constitute final determinations of liability.

Following their appointment, the receivers said they were establishing communication channels for investors and purchasers who had paid deposits on land lots, while engaging with secured lenders regarding a potential realisation strategy for the properties. The receivers' investigation will seek to establish the extent of investor claims, identify available assets and determine the solvency position of the companies and Mr Ahmad. The matter has been adjourned to a date to be fixed.