THE LAUREL SPRINGS INVESTIGATION |
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THE LAUREL SPRINGS RETIREMENT VILLAGE |
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FINANCIAL INVESTIGATION |
DETAILS OF FINDINGS |
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Details of Findings |
13. Deceived residents - sale of Manager's Residence |
| 18. Defrauded residents who bought new unit - structure unfit for purpose, and unconscionable exit terms |
| 19. Deceived residents - renaming of Village to Resort |
13. Deceived residents - sale of manager's residence At the 2017 AGM, the scheme operators of Laurel Springs encouraged residents to vote to allow the manager to reside in her own home instead of living on-site in the manager’s residence. The residents were told only that this was for personal reasons, and did not disclose to residents their intention to sell the unit. In July 2018, the scheme operators sold a lease for the manager’s residence to a new resident for $242,000, forever depriving residents of the benefit of having a resident manager. The scheme operators received a significant financial benefit from the sale of the village asset.
13.1.1 At the 2017 AGM, the scheme operators encouraged residents to vote to allow the manager to reside in her own home instead of living on-site in the manager’s residence. The residents were told only that this was for personal reasons, and did not disclose to residents their intention to sell the unit.:
13.2 Sale of manager's residence 13.2.1 In 2018, the Manager's Residence was advertised for sale for $320.000:
13.2.2 In July 2019, the Manager's Residence was sold by the scheme operators for $242,000:
13.3.1 The Manager's Residence was clearly a significant village asset, as shown on the bottom right of the Village Plan for Laurel Springs:
13.3.2 Ferrier Hodgson, the administrators of the Laurel Springs Retirement Village in 2011, listed the Manager's Residence as a significant asset:
13.4 Contravention of Retirement Villages Act 13.1.1 The scheme operators of Laurel Springs contravened s86 of the Retirement Villages Act by deceptively encouraging residents to vole to allow the manager to reside off-site, without revealing their intention to sell the unit and benefit financially from the sale of a village asset valued by residents:
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