Victorian Police will be handed a secret report into the $120 million collapse of luxury developer Lion Property Group, after it was wound up in court.

The move comes as lawyers for burned investors have labelled it a “blatant financial scam”, and lashed out at corporate regulator, the Australian Security and Investment Commission (ASIC), over its failure to act.

Michael Landy, Principal, Eagle Financial Solutions, is representing the group of investors who launched the wind-up action and was scathing in his assessment of the situation.

“It’s incredibly disappointing that ASIC failed to act sooner, despite having multiple opportunities to investigate and intervene,” he told API Magazine.

“Their inaction left everyday Australians defenceless against what we believe to be a blatant financial scam.”

The Victorian Supreme Court on Wednesday (6 August) wound up Lion Property Group Pty Ltd and 25 related companies, having placed the group in provisional liquidation on 2 July.

Certain details about the activities of the group uncovered by provisional liquidators will be handed to the Victorian Police, following orders by Justice Matthews.

“We…believe there are further serious matters…