The Australian Securities and Investments Commission (ASIC) has today published a list of companies and people who have been the subject of court orders arising from illegal investment schemes. This action follows a sharp rise in ASIC proceedings against illegal investment schemes across Australia.
ASIC's Executive Director of Consumer Protection and International Relations, Mr Greg Tanzer said that between 2003 and 2004, ASIC shut down 60 illegal schemes.
'In the past six years alone, ASIC estimates Australians have lost at least $300 million dollars, including superannuation savings, from putting their money into the hands of illegal schemes and unlicensed operators that ASIC has closed down. People from all walks of life, including professionals, retirees, church groups, and ethnic communities have lost money', Mr Tanzer said.
The documents lists companies and people from court decisions handed down from 1 July 2003, and will be updated every three to six months. The list is available from ASIC's consumer website FIDO at www.fido.asic.gov.au
'This list has been developed to warn people against giving money to unlicensed operators which is the only way to avoid the investment disasters that frequently result from incompetently-run, unlicensed or fraudulent schemes.'
Mr Tanzer warned, 'People must check whether the manager of an investment scheme holds a financial services licence or represents a licence holder. It's simply impractical for ASIC to know about or chase up every situation'.
'If you want someone to manage your money, always use a licensed financial services business. There are plenty of licensed managers operating reputable schemes that have rewarded investors well', Mr Tanzer added.
Attached are some major failed illegal investment schemes and unlicensed operators closed down between 1998 and 2004.
To obtain a copy of the list and to check licence details of investment schemes and managers, see ASIC's consumer website FIDO at www.fido.asic.gov.au or call the Infoline on 1300 300 630.
Major failed illegal investment schemes and unlicensed operators closed down by ASIC 1998-2004
|
Name of scheme |
$millions invested* |
Companies and people involved |
Number of investors* |
|
Wattle, (QLD, NSW, SA) |
$198 million |
Geoffrey Dexter† and others |
3,000 |
|
Karl Suleman’s ‘Froggy’ scheme (NSW) |
$60 million |
Karl Suleman† and others |
600 |
|
Financial Options Group Incorporated (NSW) |
$10 million |
Financial Options Group Inc Pty Ltd, and Robert Geoffrey Walker† and Robert Gary Johnstone† |
35 |
|
Infomercial Product Distribution Investment Scheme and Theme Based Investment Scheme (VIC) |
$38 million |
Infomercial Management Group Pty Ltd, Peter Leslie Ambrosy and others |
|
|
Bo Long Scheme (QLD & NSW) |
$7 million |
Bo Long group of companies, Donna Ho† and Mark Sweeney† |
|
|
United Investments Trust (SA) |
$6 million |
Jetsby Pty Ltd; James Allen Balacco; Terence Eric Loveday† |
100 |
|
The Chase Scheme (WA) |
$3 million |
Chase Capital Management Pty Ltd and others |
400 |
† indicates person jailed in connection with the scheme.