ASIC hangs up on scam as websites blocked

The Australian Securities and Investments Commission (ASIC) has again warned consumers about cold-calling investment scams and permanently banned a Sydney insurance broker.

Using the name “Global Capital Wealth”, the scammers offer consumers opportunities to invest in a managed share-trading fund via websites at www.globalcapitalwealth.com and www.globalcapitalaustralia.com.

The regulator has blocked access to these websites.

Of further concern to ASIC is that the scammers, via their websites, promotional material and cold calling, appear to be fraudulently using the Australian business number (ABN), Australian company number (ACN) and Australian financial services (AFS) licence number of Global Capital Resources Pty Ltd, a licensed financial services business with no connections to Global Capital Wealth.

The watchdog’s investigations indicate that Global Capital Wealth is associated with a group of fraudulent financial services businesses against whom ASIC obtained orders in the Supreme Court of Queensland on October 31 last year.

ASIC commissioner Greg Tanzer said investors need to be cautious when offered unsolicited investment advice and products.

“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,” he said.

“If you receive such a call, hang up immediately and save yourself significant potential losses.”

The companies behind these frauds are predominately based on the Gold Coast – although their registered offices might be anywhere in Australia – but investors are targeted all over the country.

Insurance broker caught short

In related news, ASIC has permanently banned Sydney insurance broker Ronald Coshott from providing financial services after an investigation found he engaged in dishonest conduct.

Coshott, of Edgecliff, was the director and sole responsible officer of Bay Pacific (Insurance Brokers) Pty Ltd.

The regulator found Coshott engaged in dishonest conduct between October 15 2010 and March 2012, including providing invoices to a client that specified insurance was in place when this was not the case. In permanently banning Coshott, ASIC found reason to believe he was not of good character.

He has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.