ASIC pays out to cold-caller victims
The Australian Securities and Investments Commission (ASIC) will divvy up over $80,000 to investors duped by a cold-calling scam last year, after the Melbourne Federal Court found the company had misled the investors.
The Court ordered Goldsmith and Associates to cease operating a financial services business for 10 years and unlocked the $81,500 in previously frozen funds.
Goldsmith was ordered to remove any promotional material and disconnect any phone lines linked to the fraud.
Acting without an Australian financial services licence, Goldsmith promoted investments between 22 August 2011 and 16 December 2011 that directed investors to false product information on the company's website.
ASIC found 31 investors deposited a total of $364,000 into a bank account owned by Goldsmith.
The Court maintained Goldsmith made false representations about the experience and reputation of the company and guaranteed a return on investments the company made on investors' behalf.
ASIC Commissioner Peter Kell said it was another step in ASIC's campaign to stop cold-calling scams.
"Where possible, ASIC will freeze the bank accounts of fraudulent companies and seek court orders removing them from the industry. Often in such scams, the money is gone, so ASIC is pleased to be able to return any money to investors whenever it can," he said.
ASIC previously acted against Australia AFT Finance Market, Golden Sparrow, City Index Australasia, West Trade and Dellingworth for engaging in similar cold calling scams.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
