ASIC brings fraud charges
The securities watchdog has brought two charges against North Queensland man Peter Edwards for operating an unlicensed investment scheme and embezzling more than $0.5 million from investors.
The Australian Securities and Investments Commission alleged that between April 2000 and December 2001, Edwards induced investors residing predominantly in Brisbane and Burpengary, Queensland, to purchase shares in Coppertone Investments. Seven investors ended up investing a total of $524,884 in the company.
In order to induce investors, Edwards promised that their capital would be guaranteed and could not be lost, as it would be invested through a concept he called ‘fractionalised reserve banking’.
Only some of the investors received small interest payments, while most received no income or interest.
To date none of the investors have been able to recover their investments.
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