The Australian Securities & Investment Commission has applied to the Federal Court to freeze the assets and confiscate the passport of Eddy Groves, founder of collapsed child care company ABC Learning Centres.
In court papers filed yesterday, ASIC has applied to freeze all property held by Groves and his wife, Viryan Collins-Rubie.
The corporate watchdog also wants to freeze property owned by Groves’ brother-in-law,
Frank Zullo.
While ASIC wants the court to prevent Groves and his wife from selling or giving away any of their assets, it has proposed that the couple will be allowed to draw a $10,000-a-week allowance to cover “ordinary living expenses” for themselves and Groves’ two children.
ASIC wants to confiscate Groves’ passport until 30 June, 2010 to prevent him “leaving or attempting to leave Australia”.
The application will be heard in Sydney on Tuesday. Groves is expected to fight the application.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
