The Australian Securities and Investments Commission (ASIC) has revoked the licenses of 95 companies suspected of being involved in investment scams. A federal judge authorized the deregistration of 93 companies on March 21, with two others set to be wound up gradually due to their valuable assets. ASIC believes that these companies were involved in deceiving consumers into investing in fake trading opportunities, including foreign exchange, digital assets, and commodities. Many of the companies appeared legitimate, masking their fraudulent activities through their corporate structures.
ASIC’s Deputy Chair Sarah Court stated that the regulator typically removes 130 scam websites every week.
However, these scams are difficult to control, as shutting down one often leads to the creation of several new ones. Investigations into the companies revealed that many had directors who were not aware of their supposed roles, and the listed addresses for these companies often proved to be fake. This approach was used to give the scams an air of credibility, deceiving unsuspecting consumers.
One high-profile company affected by the crackdown is Titan Capital Markets, which was linked to the Fulham English Premier League soccer club.
Reports of suspicious investment practices led to the revocation of Titan’s license. ASIC investigators discovered that although the company had a listed address in Canberra, it was an empty office with all mail returned. Investors, mostly from India, reported substantial financial losses, sending emails to liquidators expressing concern about the fate of their investments.
According to Australia’s Anti-Scam Centre, Australians lost at least A$192.3 million (about $115.3 million) to investment scams in the previous year. This loss represents a decline of over a third compared to the previous year, highlighting the ongoing challenge of curbing fraudulent activities. ASIC’s investigation into these companies is still ongoing, as it seeks to address the widespread issue of investment scams targeting vulnerable consumers.
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