The Australian Securities and Investment Commission (ASIC) has dropped charges against Westpoint directors, Norman Carey and Graeme Rundle, two weeks into the trial, after the regulator discovered a "surprise document".
The charges relate to the collapse of property investment brand, Westpoint Corporation, which was running a Ponzi scheme that collapsed in January 2006.
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Around 3,500 investors invested a total of A$304 million across seven mezzanine funds. When the group collapsed, the investors in Westpoint-related financial products had total capital invested of A$388 million outstanding.
Carey and Rundle were accused of breaching their duties as officers under the Corporations Act in light of events surrounding the collapse of the property investment brand.
Post the disclosure of the "surprise document", ASIC said: "Following an assessment of the document in the context of the prosecution’s case, the Commonwealth Director of Public Prosecutions today advised the District Court of Western Australia that the case should proceed no further and filed Notices of Discontinuance."
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