‘Like pigs to slaughter’: ASIC to shut down almost 100 scam websites
ASIC has been granted court permission to shut down almost 100 websites running investment scams, with the Federal Court describing how victims were being “fattened like pigs to slaughter”.
Permission was granted for 95 companies to be wound up on just and equitable grounds after ASIC found they had been incorporated with false information and there was a “justifiable lack of confidence” in their conduct and management.
Many of the companies were also associated with websites and apps, which ASIC believed may have been involved in facilitating suspected scam activity by tricking consumers into making investments in phoney foreign exchange, digital assets or commodities trading.
In particular, a Sha Zhu Pan pig butchering scam is being conducted via transnational organised crime groups in South-East Asia.
At the time of the hearing, nearly 1,500 claims by “investors” had been received by the provisional liquidators amounting to total claims of $35,881,288. It is unclear whether that figure represents only the principal amounts invested, or whether it includes the claimed profits.
On the other hand, only two of the 95 companies were found to hold “meaningful assets”, the Federal Court said, and none appeared to be trading.
In a judgment, Justice Angus Stewart described how the scammers made contact with victims on social media then built a friendship – either friendly or romantic – before introducing the idea of creating a trading account. The perpetrators then manipulated the accounts to show the appearance of substantial profits which encouraged the individuals to invest larger sums.
“Ultimately, when an attempt is made to withdraw funds, the victims are unable to do so and never recover their invested funds or any profits from the purported trading. Thus, the victims are fattened like pigs for slaughter,” he concluded.
ASIC deputy chair, Sarah Court, said: “ASIC believes many of these companies were set up with the aim of providing a veneer of credibility by purporting to provide genuine services. This action has shut these companies down and protects consumers from entities with no proper management or control, including some that were associated with potentially fraudulent activity.
“However, these scams are like hydras: you shut down one and two more take its place.”
Catherine Conneely and Thomas Birch of Cor Cordis have been appointed by the court as joint liquidators of the 95 companies.
AUTHOR
Laura Dew
Recommended for you
Technology firm Iress and investment manager Challenger have formed a strategic partnership to launch an adviser solution to better serve their retiring clients.
There have only been a “handful” of opportunities in the last 20 years when infrastructure has looked as cheap relative to equities as it does now, according to Lazard, making it a viable option to provide portfolio security amid market volatility.
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
EY has broken down which uses of artificial intelligence are presenting the most benefits for wealth managers as well as whether it will impact employee headcounts.
