The Fairfield City Champion reports…
“A Wetherill Park couple are warning others about lending money to members of their church after they were the victim of a money scam known as a Ponzi scheme.
The couple, who lost more than $685,000 in three years, cannot be named because investigations into the scheme are still under way.
They say they were tricked by a woman who preyed on the generous spirit of the Filipino community, who work hard to give each other a hand-up in the world.
“Many will think that my wife is naive, gullible even to the point of stupidity, but her biggest mistake is giving her trust and friendship to the wrong person,” the husband said.
“She told my wife she was planning to expand her business and needed to borrow $20,000.
“Though unsure and not having lent anyone that amount of money, my wife willingly obliged.”
As the couple soon found out after nearly three years of increased payments to their friend, the Ponzi scheme asks for loans with regular and high-interest repayments to build the trust of the lender.
After a period of high interest, regularly paid repayments, the schemer asks to borrow more, relying on their good record.
As they borrow more, amounts are put aside to make initial repayments before more is borrowed.
A spokeswoman for the Australian Securities and Investment Commission (ASIC) said Ponzi schemes are widespread throughout Australia, particularly in church communities.
“Fraudsters and operators of unlawful investment schemes sometimes target church groups in order to find their victims,” the spokeswoman said.
“When the schemes collapse, ASIC sees first-hand the financial ruin, personal distress and breakdown of relationships between friends, neighbours and members of their church.
“If you want to invest, talk to a licensed Australian financial adviser.”
Details on Ponzi schemes, visit www.fido.asic.gov.au “
