Investment director charged in alleged $2M fraud in Australia
A 24-year-old man from Mandurah in Western Australia has been charged with orchestrating a fraudulent investment scheme that allegedly swindled victims across Australia out of $2m. Police arrested the man on 6 March.
The individual, identified as the managing director of an investment firm, faces 11 counts of gaining benefit by fraud, highlighting a complex web of deception that spanned three years, according to information from Western Australia police.
Investigators from the financial crimes squad said the scheme operated between February 2021 and February 2024. The suspect allegedly enticed investors with the promise of performing lucrative trades on the global stock exchange using their funds.
These investments, police said, were pitched as secure opportunities for yielding returns of about 3% per month.
READ MORE | Changes in mobile triangulation laws
While a small number of investors received partial returns, many saw no returns at all. This prompted them to report their concerns to the authorities.
The police statement showed the breadth of the alleged deception, indicating that the accused managed to receive millions of dollars from hopeful investors across the nation under the guise of profitable trading.
The suspect is set to appear before the Perth Magistrates Court on 22 March.
Where and how Australians can report a scam
As the Western Australia police continue to unravel the extent of this alleged fraud scheme, the case serves as a cautionary tale about the risks associated with investment opportunities that seem too good to be true.
Government agencies such as the Australian Securities & Investments Commission (ASIC) and the Australian Competition & Consumer Commission (ACCC) urge people to come forward if they have information on a potential case of fraud or investment scam.
READ MORE | ACCC monitoring of Qantas and Virgin airlines
The ACCC, for its part, works to address scams that purportedly "use the language of 'financial investments'". The agency offers the service, SCAMwatch.
Complainants can also reach out to consumer affairs in their state or territory if they have concerns about:
- Scams involving consumer goods and services
- Pyramid marketing schemes not involving a financial product
Meanwhile, the ASIC investigates scams involving a financial product. These include investment scams that promise returns that are too good to be true or are offered through social media, websites, or phone calls.
Scammers typically impersonate financial services firms or websites claiming to be regulated and/or authorised by ASIC.