International scam busted by ASIC
An international investment scam that netted over $3.9 million of Australian funds has been uncovered by the Australian Securities and Investments Commission (ASIC).
Following investigations into an international ‘boiler-room’ or cold calling scam with connections to the United States, Malaysia and Hong Kong, ASIC has obtained orders in the Federal Court of Australia to freeze bank accounts connected to the scam.
Using names including HPR Commodities, Capital Marketing Services and Vitol Capital Management, unsuspecting Australians have been prompted to purchase options in heating oil and other commodity options purportedly traded on the fictitious New York Petroleum Option Exchange (NYPOE) or the non-existent International Energy Exchange (INTENX).
Victims are initially cold-called by a person involved in the scam who is supposedly surveying the individual’s interest in investing generally. This is then followed up a few days later by another person purportedly calling on behalf of a New York broker in relation to the fake commodity options.
ASIC has reiterated warnings about such schemes, which are “particularly concerning as they target unsuspecting investors and provide an elaborate trap for siphoning money into allegedly legitimate investments,” according to ASIC’s executive director of enforcement, Jan Redfern.
She emphasised the point that neither HPR Commodities, Capital marketing Services or Vitol Capital Management are registered with ASIC and as such are not authorised to provide financial services in Australia.
“Australians are able to purchase overseas financial products through many Australian-based financial service providers who are licensed by ASIC. This gives investors the protection of Australian laws if things go wrong,” Redfern said.
Investigations into the activities of HPR Commodities, Capital Marketing Services and Vitol Capital Management are continuing.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
