ASIC applies to wind up companies of hedge fund manager James Lovell after fraud accusations
Wednesday, July 29, 2009/
The Australian Securities and Investment Commission has applied to wind up three companies associated with Queensland hedge fund manager James Lovell, who was arrested earlier this month on one count of fraud.
Lovell is the chief executive of Mirtna Capital, a boutique hedge fund manager located in Brisbane.
According to a spokesperson for the Queensland Justice Department, Lovell appeared before the Brisbane Magistrates Court on 16 July charged with one count of fraud. The charge relates to a period between 30 August, 2001 and 23 June, 2009. According to a spokesperson for Queensland Police he is due to appear again in court on 7 September.
This morning, ASIC applied to the Queensland Supreme Court seeking to wind up Mirtna Capital Pty Ltd, Mirtna Holdings Pty Ltd and Mirtna Investments Pty Ltd.
A spokesman for the corporate watchdog was unable to comment as the matter is before the Court.
Attempts to contact Mintra Capital were unsuccessful.
According to a repot in The Courier-Mail, up to 200 people are believed to have invested with Lovell and his companies.
The 29-year-old Lovell is well-known in Brisbane’s social and business circles. He was formerly a sponsor of the Queensland Reds rugby union team and The Courier-Mail says he was well-known for throwing a lavish New Year’s Eve parties at Brisbane’s Hilton Hotel. He was also a sponsor of Brisbane’s Fashion Festival.
According to its website, Mirnta Capital was set up in 2007 by Lovell and executive chairman Michael Tunny. The company claims it uses an “independently developed trading system” that has been “extensively tried and tested to ensure responsiveness in all market conditions”.
The company launched the Mirtna Alternative Investment Fund earlier this year.
“These systems have been developed, tried and tested over the last 10 years to ensure they consistently return positive growth in all market conditions. The Mirtna Alternative Investment Fund will use absolute return philosophy while always focussing on preserving invested capital,” Lovell said in a statement released to mark his sponsorship of the Reds.