Two men have been arrested on the Gold Coast for fraud and money laundering following an ongoing, 11-month investigation into dodgy boiler-room activity.
Last Thursday and this morning, two Gold Coast men aged 23 and 37 were arrested by detectives.
It is alleged both men were the principals behind two companies ‘Prestige Capital Australia Pty Ltd’ and ‘Keystone Finance Pty Ltd’ that had operated on the Gold Coast during 2014 and 2015.
ARTICLE CONTINUES AFTER THIS ADVERTISEMENT
It is alleged between August 2014 and December 2015 the two companies operated telemarketing call centres out of rented Surfers Paradise offices. Private individuals across Australia were contacted and induced into collectively transferring over $3 million.
The companies sold membership to a managed investment trading service, with victims parting with two separate payments – the purchase of the membership followed by funds allegedly to become the subject of investment-related trading activity.
“Investors have lost varying amounts of money including $180,000 from an elderly retired couple from rural New South Wales,” Acting Detective Inspector Jason Gough from Taskforce Maxima said.
During the investigation officers seized over $330,000 cash believed to be the proceeds of the fraudulent activity.
“I can only reinforce and restate the many previous warnings made about this type of activity. Some of these syndicates are very sophisticated and use technology to their advantage. Just because a company is registered and has a professional looking website doesn’t mean it is legitimate,” Acting Detective Inspector Gough said.
Operation North Guitar was commenced by the Taskforce Maxima Criminal Economy Unit in late 2015 following information a member of an Outlaw Motorcycle Gang was involved in fraudulent boiler-room activity.
Members of the public who are concerned that they may have fallen victim to this scam are urged to report it to police here.