Investment scam targets dealer group

Global Capital Resources Pty Ltd (GCR), an investment advice specialist licensee with three authorised representatives based in Lindfield on Sydney’s north shore, has been targeted by an operation using the name ‘Global Capital Wealth’, according to a warning issued to consumers by the Australian Securities and Investments Commission (ASIC). 

The scam operates two websites through which consumers were invited to invest in a managed share trading fund, fraudulently using GCR’s licence to deliberately mislead consumers. The ASIC statement is clear that GCR has “no connection” to the scam.

The scam is believed to be based offshore in Malaysia, a source has told ifa, with a number of agents in Australia “doing the leg-work” from a number of locations.

ASIC Commissioner Greg Tanzer has issued a clear warning to consumers, adding that the regulator welcomes any information or complaints relating to the matter.

“Consumers can be tempted by the promise of high returns or other incentives. However, they should remember that reputable financial services businesses do not cold call members of the public. If you receive such a call, hang up immediately and save yourself significant potential losses,” he said.