Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

Asic

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Former TZ Limited executive Andrew Sigalla was yesterday ordered to stand trial over allegations he used money from company accounts to pay off his gambling debts to bookie Tom Waterhouse.
The Australian Security and Investments Commission (ASIC) alleges Sigalla, used the majority of a total $8,719,318 to pay gambling debts. The rest allegedly went towards mortgage payments.
The 24 payments from TZ Limited were allegedly made between late 2006 and March 2009, with ASIC alleging Sigalla failed to ensure the payments were properly recorded and failed to obtain shareholder approval.
In 2010, Sigalla was made bankrupt, owing Waterhouse $2.6 million. In 2012, he was ordered to complete 120 hours of community service, after he was convicted of contempt of court by the NSW Supreme Court for failure to disclose almost $30,000 in payments to escort agencies.
Sigalla was arrested at the Intercontinental Hotel in May 2013.
Mark Bouris took over from Sigalla at TZ Limited. The technology company later launched a $7.5 million claim against Sigalla, that was settled for an undisclosed sum.
By mid December, it will be known whether Sigalla will face the District Court or the Supreme Court.
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jrichardson-uRX5hFdKfN

Sydney businessman to stand trial over alleged breach of duty

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Legal action has commenced against collapsed Gold Coast-based LM Investment Management Limited founder Peter Charles Drake and other former directors, over the lending of funds for a Gold Coast development.
Maddison Estate Pty Ltd, known as Maddison Estate, was a Gold Coast property development that LM Managed Performance Fund loaned money to. The ASIC action is specifically targeted on the conduct of the directors of LM Investment Management Limited approving a number of loans to Maddison Estate. Drake owned and controlled Maddison Estate in 2011 and 2012.
The loan limit to Maddison was increased from $40 million to $280 million between 2008 and 2012. In 2011 and 2012 loan extensions had been approved by the former directors. This was done without independent valuations or any feasibility studies.
No construction had begun, no plans of subdivision had been registered and none of the proposed lots had been sold by the time LM went into administration. Development approval had been obtained with some land clearing taking place.
ASIC alleges that the decisions to extend the loan from $115 million to $180 million in September 2011, and further from $180 million to $280 million in August 2012, were innapropriate.
It is also alleged by ASIC that a loan re-establishment fee of $9.8 million, that was payable to LM Investment Management Limited, was extended to Maddison Estate as part of a 2012 loan extension and then levied to ensure they booked a profit for the financial year.
ASIC is seeking financial penalties and banning orders.
Civil penalty proceedings are currently underway in the Federal Court of Australia against Drake, with allegations he used his position to gain an advantage.
Francene Maree Mulder, Eghard van der Hoven, Simon Jeremy Tickner and Lisa Maree Darcy, as former directors, also face civil penalty proceedings for breaching director’s duties and failing to act with the proper degree or care and diligence. This is in relations to transactions involved the LM Managed Performance Fund, with various contraventions applying to different former directors.
The maximum fine for directors breaching duties is $200,000 per contravention. ASIC also seeks disqualification for Drake and the former directors from managing companies and providing financial services in the future.
“Investors should be able to have confidence that the people responsible for managing their investments act appropriately, take a diligent and intelligent interest in the affairs of the company, and apply an enquiring mind to the responsibilities placed upon them,” said ASIC commissioner Greg Tanzer.
A directions hearing in the Federal Court will be in Brisbane on 25 November.
LM Investment Management was the responsible entity for a total of seven registered managed investment schemes, managing a total of more than $800 million for 12,000 Australian and overseas investors.
They were the trustee for MPF, an unregistered managed investment scheme with 4,500 investors, according to ASIC. More than $400 million was invested in MPF.
There is <a href="https://www.asic.gov.au/about-asic/media-centre/key-matters/lm-investment-management-limited/" target="_blank">a dedicated webpage for any investors caught up in the collapse</a>.
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jduke-EHk3XBmHkn

Peter Drake's collapsed investment company LM faces ASIC over Gold Coast development loans

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Park Trent Properties Group Pty Ltd, known as Park Trent, is under scrutiny from ASIC.
ASIC has commenced proceedings in the Supreme Court of New South Wales, where they seek interim and final orders that will stop the property promoters from carrying on an unlicensed financial services business.
Park Trent’s property promotion includes the use of SMSFs to purchase property. ASIC alleges that they are unlawfully carrying on a financial services business without a financial services licence.
At least 500 members of the public have been advised by Park Trent to start an SMSF and switch funds into it to then buy investment properties owned or promoted by Park Trent companies, according to ASIC, who are seeking orders to force Park Trent to notify current and former clients about the proceeding.
They would also be required to post details about the proceeding on their website.
Park Trent currently has almost 14,000 likes on Facebook and hold seminars across the country with offices in every state and territory apart from Tasmania and the Northern Territory.
The<a href="https://www.parktrent.com.au/finance/smsf/why-smsf/" target="_blank"> SMSF section of their website</a> encourages those who are interested in reading more to call their “EasyPlan Financial Services” team.
No doubt this will be of interest to other SMSF property promoters that do not hold financial services licences.
ASIC commissioner Greg Tanzer said that Australians hold more than $1.85 trillion in superannuation funds assets, including $557 billion in SMSFs.
“It is important when making decisions regarding superannuation to consider obtaining appropriate advice from an authorised financial adviser,” he said.
“Dealing with an authorised adviser affords specific protections under the law, such as acting in the best interests of clients, a duty to avoid conflicts of interest and providing access to dispute resolution schemes.”
The first hearing is listed for 26 November.
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ASIC commences proceedings against property promoter Park Trent Properties

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Carrum Downs couple Maureen Gael Johnson, 58, and Douglas Gordon Johnston, 71, have been charged with more than 70 offences relating to an alleged $1.5 million property development fraud, following an investigation by the Australian Securities and Investments Commission (ASIC).
ASIC investigated two companies: Investman Nominees (USA) Pty Ltd and Small Business Management Pty Ltd, of which Maureen Johnston was a former director and current director respectively. Douglas Johnston was the former accountant and current shareholder of Small Business Management.
The Victorian duo is accused of misleading people into investing $1.5 million into a number of property developments across Australia and the United States. Allegedly, the money raised was not used to develop properties, but for the couple’s own personal benefit, resembling a ‘<a href="https://www.sec.gov/answers/ponzi.htm" target="_blank">Ponzi scheme</a>’.
The Herald Sun reports that Maureen Johnston was a high roller at Melbourne's Crown Casino where she had used her connections with Collingwood football players to help her befriend potential targets.
Maureen Johnston faces 52 counts, while Douglas Johnston faces 25. The charges include fraud, obtaining a financial advantage or property by deception and attempting to pervert the course of justice. Some of these offences carry a maximum penalty of 10 years imprisonment.
The couple are set to appear at the Melbourne Magistrates Court on 28 January 2015.
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Couple charged for alleged $1.5 million "Ponzi" property development fraud

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Michael Vincent Iannello, a Sydney-based building and construction specialist, was the subject of an Australian Securities and Investments Commission investigation that found he continued to act as general manager of Vibo Constructions despite declaring bankruptcy in 2010.
Bankruptcy disqualifies those from managing a company unless they obtain court permission or the bankruptcy ends.
He was convicted of managing Vibo Constructions Pty Ltd while disqualified, and given 100 hours of community service.
He pleaded guilty and was convicted earlier this month to one charge of managing a corporation while disqualified.
Vibo Constructions was placed into liquidation on 12 April 2011.
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Sydney-based Vibo Constructions boss disqualified

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Malcolm Royce Jones, a former finance broker, has been permanently banned by the Australian Securities and Investments Commission (ASIC) from providing financial services and engaging in creditor activity.
Having been convicted of serious fraud offences, Jones was sentenced to two years and five months in prison, with 15 months non-parole, in September.
In November last year Jones pleaded guilty and was convicted in the District Court of South Australia. The charges included one count of aggravated deception and one count of aggravated dishonestly dealing with a document.
Jones had forged a memorandum of a mortgage and then used it to defraud $170,000 from an investor.
ASIC deputy chairman Peter Kell said that those engaging in financial services and credit activities are expected to act with honesty and integrity.
“ASIC will ensure those engaged in fraud are removed from these industries,” he said.
Jones has the right to appeal.
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Broker banned, given prison time after defrauding investor

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Westpac Banking Corporation has offered to make payments to another seven investors in a failed scheme operated by Capital Growth International Club Pty Ltd, now in liquidation, according to the Australian Securities and Investments Commission (ASIC).
This is as a result of the investors’ contact with former Westpac home finance manager David St Pierre who, in March, was banned permanently from credit activities and financial services.
From Mount Nathan, Queensland, St Pierre’s ban came after an ASIC investigation that found he had submitted loan applications to Westpac for approval knowing they contained false information supported by false documentation.
He had also failed to perform an authority accurately identifying the payee of the cheque, resulting in a customer’s cheque going into a personal account of a non-office holder of Capital Growth International Club. He also encouraged and enabled customers to borrow funds from Westpac and earned cash bonuses from doing so.
This was while he knew that they were elderly, a pensioner, a carer or suffering from the disability and, if the scheme failed, they would be unable to repay.
St Pierre operated as a home finance manager for Westpac between September 2000 and April 2011. He was also involved in providing loans to All About Property Developments Pty Ltd, now in liquidation. It was the real estate arm of the Capital Growth International Club.
Of the 18 customers with home loan related applications, some were elderly or vulnerable and yet encouraged to borrow against their houses. Some had not debt on their homes prior to this. They had been promised 15% to 25% returns per annum.
Westpac has already compensated some customers who borrowed through St Pierre.
The seven new investors did not borrow funds from Westpac, but claim contact with St Pierre before making an investment into Capital Growth International Club.
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Westpac to make payments to seven more investors in failed Capital Growth International Club scheme 

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A review of low documentation, or 'low doc', home loans by the Australian Securities and Investments Commission (ASIC) has discovered that lenders have tightened their policies around these mortgage products since 2010.
Before new responsible lending laws were introduced in 2010, borrowers did not always have their financial circumstances verified for a low doc loans, with lenders relying on statements from borrowers that they could meet the repayments.
ASIC notes that in some cases this led to borrowers being unable to repay the loans, or forced to sell their homes.
The review of 12 lenders found that since the introduction of the new laws, lenders had introduced more stringent requirements for low doc loans. New practices included obtaining additional information to verify income and introducing additional processes to ensure the reliability of information provided by brokers.
The Australian Prudential Regulation Authority has recorded a decline in the proportion of low doc loans of all new residential loan since the introduction of the regulations in 2010. Low doc loans now make up 0.7% of all new residential loans, down from 6.4% in 2010.
ASIC identified three compliance risks with low doc loans:
<ul>
<li>Poor-record keeping, including not recording the outcome of inquiries into borrowers’ requirements and objectives, and the relative priority of these objectives 
</li>
<li>Lenders relying solely on benchmark living expense figures rather than taking separate steps to inquire into borrowers’ actual living expenses 
</li>
<li>Lenders performing limited verification of borrowers’ ongoing fixed expenses for other loans they may have 
</li>
</ul>
Source: ASIC
Lenders reviewed have made changes to their practices in light of the compliance risks identified during ASIC’s review.
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Lenders tightening low doc loan requirements: ASIC

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It seems the National Australia Bank is not having 'The BEST $2014 EVER'. 
NAB has been fined $40,800 for potentially misleading consumers in advertisements for a UBank home loan product where it offered a $2,014 EFTPOS gift cards.
Using slogans like "The BEST $2014 EVER" and "Own $2014", NAB advertised the gift cards as free for borrowers who took out UBank home loans. The advertising campaign covered newspapers, radio and online media between December 2013 and March 2014.
The Australian Securities and Investments Commission (ASIC) had concerns that NAB were not disclosing all the relevant details in some of the advertisements, including minimum loan size and a requirement for documents to be provided within five days. 
Some advertisements also failed to mention that to be eligible for the offer borrowers had to use FASTRefi, an electronic settlement process, for refinanced loans. There was also a limited number of cards on offer, which went undisclosed.
The bank received four infringement notices from ASIC, each with a penalty of $10,200.
According to ASIC deputy chairman Peter Kell, ASIC has taken action against 10 organisations so far this year.
"ASIC will continue to take action where we believe firms have not provided clear, consistent information in their advertising", he said.
Following ASIC's actions, UBank gave a $2,014 gift card to all borrowers who applied for a UBank loan within the relevant period and settled their loan.
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Misleading ads cost NAB $40,800

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Shashi Kanta Prasad, of Chipping Norton, New South Wales, has been convicted of four charges of fraud, in relation to creating false loan documents to secure mortgages totalling more than $3.6 million.
Although the ASIC investigation led to the conviction, Prasad was noted to have acted in full cooperation, a fact which was taken into account to in the conviction and decision to grant Prasad an 18 month good behaviour bond.
Prasad created false loan documents for seven clients, which resulted in her obtaining upfront and ongoing commission payments exceeding $11,000.
She <a href="/expert-insights/finance/financial-advisor-found-guilty-of-3-6-million-of-loan-fraud">previously pleaded guilty in the Downing Centre Local Court</a> to making seven false statements, producing 41 fake documents and using those documents to obtain a financial advantage for her employer in the form of commissions.
This type of conduct sees the offender facing a maximum imprisonment of five years for one offence of obtaining a financial advantage by false or misleading statements and a maximum penalty of five years for one offence of intention to defraud by false or misleading statement. Offenders face a 10 year maximum penalty for one offence of using false instruments and a maximum penalty of 10 years for one offence of using false documents.
ASIC Deputy Chairman Peter Kell said that ASIC will continue to pursue those who engage in this type of conduct, but it is also their policy to encourage and recognise cooperation.
“This case illustrates the potential benefits available to those who provide full and timely cooperation to ASIC and plead guilty to their offending at the earliest opportunity,” said Kell.
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