by Alan Thornhill
Investors caught in a cold calling scam will soon get back part of their money.
This follows action that the Australian Securities and Investment s Commission took against. City Index Australasia Pty Ltd (CIA) and its director, Mr Blair Jason Travers.
ASIC took the case to the Federal Court, which ordered the company and Mr Travers to remove all material used to promote the scam.
The court also barred them from the financial services industry for ten years.
So what happens now?
ASIC said about $38,000 worth of investor funds, which had previously been frozen would be distributed to investors on a pro-rata basis.
“ ASIC estimates approximately 62 cents in the dollar will be returned to the five investors caught up in the scam,” the Commission said.
It said the company had conducted a cold calling scam between August September last year.
“The company promoted investments in financial products by cold calling investors who in turn were directed to false financial product information contained on a website: cityindexmutual.com,” ASIC said.
“At no time did CIA hold an Australian financial services (AFS) licence which is required under the Corporations Act,” it added.
ASIC also noted, though, that this company has “no association or affiliation with City Index Australia Pty Ltd (ACN 141 774 727) which does have an AFS licence.”
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Thursday May 23
The Dow Jones Index fell 80.02 points to 15,307.60
Man, believed to be a British soldier, hacked to death in the London suburb of Woolwich, in an apparent terrorist attack
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