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A self-styled property mogul is facing legal action for raising $32 million without a licence from investors for dozens of investment schemes.
The Australian Securities and Investments Commission (ASIC) has taken civil action against Melbourne businessman Sasha Hopkins and his company, The A Team Property Group, for alleged unlicensed conduct and operating numerous unregistered managed investment schemes.
On 8 June 2022, the regulator alleged Mr Hopkins and The A Team Property Group used social media to promote at least 25 property development joint ventures in Queensland, Victoria, New South Wales and South Australia.
Describing itself as “the fastest growing property mentoring company in Australia”, the firm marketed property investment opportunities online by offering clients the chance to invest personally or through their self-managed superannuation fund (SMSF) in a “joint venture” development program for purchasing and developing real estate.
The investors were promised guaranteed returns ranging from 25 to 50 per cent over the life of the development, which was typically forecast to be between 18 and 24 months.
However, findings of the investigation showed neither Mr Hopkins nor The A Team Property Group held an Australian Financial Services licence (AFSL) at any point, which would have authorised them to engage in such activities.
Alarmingly, the investigation also showed Mr Hopkins carrying on a financial services business without licence and providing personal advice to investors.
This included advising property investors to rollover their superannuation into SMSFs and using the rolled over superannuation to invest in property developments.
After reportedly raising $32 million from investors, Mr Hopkins proceeded to misuse the funds, which included converting them into crypto assets.
In light of the investigation’s findings, ASIC secured freezing orders for the assets of A Team Property Group on 8 June 2022.
Now, the regulator is seeking civil penalty orders from the Federal Court against Mr Hopkins for operating a financial services business without licence and an unregistered managed investment scheme.
ASIC has also applied to the Federal Court to wind up The A Team Property Group, five of the investment schemes and associated companies and trusts, and to disqualify Mr Hopkins from managing corporations or financial services businesses.
Mr Hopkins has given an undertaking to the Federal Court that he will take all reasonable steps to ensure that all sale proceeds are paid into a bank account belonging to the joint venture companies that were formed as part of the property schemes.
ASIC’s latest crackdown adds to the mogul’s series of legal woes.
Since late 2014, ASIC noted Mr Hopkins has been linked with 46 companies in the capacity of a director. Investigations further suggest that Mr Hopkins and/or companies associated with him have been involved in as many as 28 property developments.
Among these, at least six companies, which were put into administration in late 2020 and liquidated in 2021, are connected to 10 property developments.
Liquidators for six collapsed companies associated with Mr Hopkins are reportedly facing claims from more than 100 investors – most of which are mum and dad investors – for a total of more than $23.5 million in loans and interest.
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