The Federal Court dismissed ASIC's allegations in regards to a breach of directorial duties at an investment management company which collapsed in 2013.
ASIC originally said that Peter Charles Drake, Francene Maree Mulder and Eghard van der Hoven, directors of LM Investment Management, failed to act with "the proper degree of care and diligence" in relation to transactions in the LM Managed Performance Fund (LPF).
The fund loaned money to Maddison Estate to complete a Gold Coast property development; ASIC was concerned about the directors' decision to allow an extension of said loan in 2012.
The investigation followed other ASIC actions regarding the company, which prior to its collapse was responsible for more than $800 million in funds under management, representing about 12,000 domestic and offshore investors. Of that amount, $400 million was invested in LPF.
The Queensland Supreme Court ordered Drake to surrender his passport in 2013 and froze his assets; ASIC at the time alleged that he "used his position to gain an advantage for himself and the former directors."
At this point, ASIC said it is reviewing the Federal Court's decision, but has "no further comment at this time."