Australian Securities and Investments Commission v Cycclone Magnetic Engines Inc & Ors [2009] QSC 58 demonstrates the complexity in regulating fundraising by "fringe" operators.

ASIC successfully obtained an injunction against misleading conduct by a company raising funds for its magnetic engine project without a prospectus, but not without difficulty.

Apart from an interesting history of the search for perpetual motion the 83 page judgment is a useful restatement of the fundraising regulation provisions in the Corporations Act and ASIC Act.

It also acknowledges the willingness of investors to "take a gamble" notwithstanding the risks.