Adviser restrained over Nigerian scam
A Melbourne financial planner has been issued with an order from the Federal Court restraining him from receiving money in connection with the supply of financial products and services, after allegedly pouring $700,000 of clients’ funds into a ‘Nigerian letter scam’ scheme.
The orders were made by the Court earlier this week against Robert Andrew Street after an investigation by theAustralian Securities and Investments Commission (ASIC). The court also appointed a provisional liquidator to Street’s company, Tira.
ASIC alleged that between April and August 2002, Street, who operated a Box Hill-based financial planning business called Making Dollars and Sense, borrowed over $700,000 from several clients, by misrepresenting the purposes for which the money would be used.
It is then alleged that Street, through Tira, transferred the money to various overseas destinations after receiving a proposal from a person purporting to be the Reverend Sam Kukah, chairman of the Presidential Payment Debt Reconciliation Committee in Nigeria. ASIC alleges that this person offered to transfer US$65 million to Tira upon payment of certain up-front fees.
“This type of proposal is commonly known as the Nigerian letter scam. We urge all investors to avoid putting money into unsolicited get-rich-quick offers of this type,” ASIC executive director of consumer protection Peter Kell says.
ASIC’s enquiries into Street’s actions are continuing.
AUTHOR
George Liondis
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