ASIC bans property spruiker Henry Kaye

The Australian Securities and Investments Commission (ASIC) said on Tuesday it had disqualified Mr Kaye following his involvement in 26 failed investment and property education companies.


ASIC found Mr Kaye breached his director’s duties when he failed to document significant intercompany loans within the group of companies and failed to ensure the loans were secured.

The loans were made to companies Mr Kaye controlled and were not repaid, which contributed to the companies’ collapse, ASIC said in a statement.

Adequate financial records were not maintained for the companies, and Mr Kaye was not fully aware of the financial position of the main companies within the group, ASIC said.

Mr Kaye’s troubled companies failed during 2004 when ASIC had more than 30 investigations into investment and wealth creation schemes.

His flagship company, National Investment Institute, was wound up by creditors in early 2004, after ASIC sought the appointment of a receiver or trustee to Mr Kaye and related companies in December 2003.

A number of the Mr Kaye’s companies entered into external administration in November 2003.

Between December 2003 and March 2004, ASIC was involved in numerous court applications and formal interventions to ensure the protection of creditors’ interests.

ASIC said on Tuesday Mr Kaye would still be permitted to manage two trustee companies to his self-managed superannuation funds.

He can appeal ASIC’s decision to the Administrative Appeals Tribunal.