Saturday 29 May 2021

Money Scammers !

 People facing the dilemma of safely investing their superannuation payout when they retire must think the  world is against them. Putting it in a bank on a term deposit is no longer an option because the interest rate offering is at a record low.

The stock market is dangerous territory for the uninitiated and many seek the advice of " investment advisers ", but that can also be far from safe.  A woman named Melissa Craddock gave such advice to sixty of her customers and bilked them of of $ 7.3 million.

The money was spent on a lavish lifestyle and many overseas trips and the investigators now think she may have gained as much as $14 million dollars.  She mysteriously disappeared and recently a human foot in a shoe that washed up on a south coast beach was identified as consistent with her DNA.

This week another " financial adviser " was arrested and taken to Chatswood police station.   This 42 year old man has been charged with eighteen counts of dishonestly obtaining  financial advantage by deception and one count of knowingly dealing with proceeds of crime with the intent to conceal.

From May, 2017 to March 2020, he took funds from twelve people meant for share holding in a wealth fund and transferred them into his personal bank account.   This same crime   involved  another eleven complainants with the loss ranging from $40,000 to$355,000.   One case involved an 86 year old woman he had defrauded.

This deceit will earn him a stint in prison, but his clients face the loss of a comfortable retirement  and may have to apply for the aged pension.   He is cooperating with the police but it is unlikely that any of this money will be recovered.

Fortunately, the vast majority of financial advisers are honest people who give sound advice and many of their clients have little experience in dealing with money matters.  It is not only lump sum superannuation payouts they need to invest.  They may be selling a home they bought decades ago when property was cheap - and now the median house price in Sydney is topping a million dollars.

It pays to be wary of accepting advice that promises an extravagant return.  Investments that pay above a moderate interest are few and far between in the present circumstances and it is safer to invest with an institution that has capital backing - like a bank - than to invest with an individual.

It is also probable that a multi branch investment service will have probity insurance to cover the misplacement of funds, and that is a field worth enquiry when masking a selection. It is also wise to keep that old piece of logic in mind that applies to all money matters.   " If it sounds too good to be true, it probably is ! "

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