by jolly_roger
September 2010
Western Australia police warn of bogus investment deals
West Australian police are warning people to avoid get-rich schemes after arresting two alleged swindlers who police say took nearly $10 million from people in southern suburbs of Perth.
A 39-year-old man allegedly received $3.5 million from unsecured investors, while a 50-year-old Canning Vale woman allegedly reaped $6 million, much of it from elderly pensioners.
The pair have been charged with a total of more than 30 offences relating to so-called Ponzi schemes.
Ponzi scheme operators dupe investors into handing over large amounts of cash with the promise of large returns.
They may pay the investors dividends, but they do so using other investors' money.
Such schemes fall over when the promoter spends the money too quickly or the pool of investors dries up.
A spokesman for the Major Fraud Squad said that despite public warnings, detectives continued to receive new complaints from unwary investors.
"We regularly see victims who have sadly lost their entire life savings as a result of these schemes and our aim is to prevent it from happening to others," he said.
Western Australia's Consumer Protection Commissioner warned that higher returns meant higher risk.
"Before signing any documents or handing over hard-earned savings, be absolutely clear on what you are agreeing to, study the fine print and assess what security you have over your investment," she said.
The commissioner went on to say, "Potential investors should always get a second opinion from an accountant, lawyer or licensed financial adviser not involved in the scheme".
Western Australia police warn of bogus investment deals
West Australian police are warning people to avoid get-rich schemes after arresting two alleged swindlers who police say took nearly $10 million from people in southern suburbs of Perth.
A 39-year-old man allegedly received $3.5 million from unsecured investors, while a 50-year-old Canning Vale woman allegedly reaped $6 million, much of it from elderly pensioners.
The pair have been charged with a total of more than 30 offences relating to so-called Ponzi schemes.
Ponzi scheme operators dupe investors into handing over large amounts of cash with the promise of large returns.
They may pay the investors dividends, but they do so using other investors' money.
Such schemes fall over when the promoter spends the money too quickly or the pool of investors dries up.
A spokesman for the Major Fraud Squad said that despite public warnings, detectives continued to receive new complaints from unwary investors.
"We regularly see victims who have sadly lost their entire life savings as a result of these schemes and our aim is to prevent it from happening to others," he said.
Western Australia's Consumer Protection Commissioner warned that higher returns meant higher risk.
"Before signing any documents or handing over hard-earned savings, be absolutely clear on what you are agreeing to, study the fine print and assess what security you have over your investment," she said.
The commissioner went on to say, "Potential investors should always get a second opinion from an accountant, lawyer or licensed financial adviser not involved in the scheme".
When you post them, can you please cite the source and include a link? Thanks.