The Serious Fraud Office will not be laying charges against the group of failed Blue Chip companies - a decision likely to anger more than 2000 investors owed more than $80 million.
Since February 2008, 22 companies associated with the Blue Chip structured property investment scheme, which handled sales of more than 2000 properties, fell into liquidation. Later, Blue Chip co-founder Mark Bryers was bankrupted, believed to owe more than $170 million.
SFO director Adam Feeley said yesterday that the evidential threshold - " that an impartial jury could be satisfied, beyond reasonable doubt, that the person prosecuted has committed a criminal offence" - could not be met.
"Some may consider that Blue Chip operated in a moral vacuum with high-pressure sales techniques and less-than-forthcoming disclosures regarding the nature of the property investments," Mr Feeley said.
The investigation covered alleged false representations to investors, misuse of buyers' deposit money, on-selling of previously sold apartments, unauthorised amendment of loan applications and the use of false representations and documentation to obtain advances or fees and avoid penalties.
Earlier, Mr Feeley said an investigation had been launched into related party transactions by Dominion Finance Group Ltd and North South Finance Ltd before their collapse in 2008, owing creditors about $400 million between them.
