ASIC has commenced civil proceedings in the Supreme Court of Queensland against three subsidiary companies of the formerly listed MFS Ltd (now known as Octaviar Ltd (in Liquidation) and four former officers and one manager of MFS Investment Management Ltd.

ASIC alleges that in November 2007, officers of MFSIM caused PIF to transfer $130 million to MFS Administration Pty Ltd so that MFS Administration could use those funds to pay financial obligations of other MFS Ltd subsidiaries, including $103 million owed to Fortress Credit Corporation (Australia) Pty Ltd by MFS Castle Pty Ltd.

ASIC also alleges that in December 2007, officers of MFSIM caused PIF to transfer $17.5 million to MFS Pacific Finance Ltd, a New Zealand registered company (now known as OPI Pacific Finance Ltd (Receivers and Managers Appointed)).

ASIC further alleges that in about January 2008, officers and the fund manager of MFSIM created and used false documents, relating to the use of the $147.5 million.

As a result of the funds being transferred, ASIC alleges that the PIF suffered a loss of $147.5 million.

Further details are available at ASIC.