Victoria Police charge seven for $14m international investment scam

Seven people have been charged over their alleged role in an international investment scam that swindled an estimated $14m from at least 30 Australians.

Police will allege an international syndicate hired the seven to open fraudulent businesses and bank accounts with local financial institutions.

Overseas scammers, pretending to be bank officials and stockbrokers, then allegedly used the local bank accounts to trick victims into believing they were depositing their savings into fixed-term deposits or purchasing shares through a brokerage, the police said.

The police say the seven “Victorian-based mules” managed the fraudulent bank accounts and moved more than $14m offshore between August 2022 and February 2024.

The seven received commissions for their role in the alleged scam, the police added.

“Investigators have so far identified 30 victims from across Australia, who lost millions to the alleged scam,” the police said on Monday.

The victims include a 56-year-old ACT woman who transferred $1.6m to a fraudulent account in February 2024 and an 86-year-old Melbourne woman lost $400,000 the same way in July 2023.

“It is beyond devastating for innocent victims to be allegedly scammed out of their life savings,” ND5 Investigation and Response Manager Inspector Timothy Cron said.

“To anyone thinking of making a quick dollar by taking part in these scams – know that what you’re doing is a crime and you will be held to account.”

The investigation into the alleged scam kicked off more than a year ago and the arrests of the seven took place over the past nine months.

The seven arrested and charged include a 45-year-old Watsonia woman, a 45-year-old Watsonia man, a 51-year-old Preston man, a 50-year-old Point Cook man, a 45-year-old Hawthorn man, a 44-year-old Reservoir man and 46-year-old Heidelberg Heights man.

The police have charged all seven with knowingly deal with the proceeds of crime, negligently deal with the proceeds of crime and dealing with property suspected of being the proceeds of crime.

The Watsonia pair have been remanded in custody, while the other five were bailed or charged on summons.

All seven are due to appear before Melbourne Magistrates’ Court on September 26, 2024.

The investigation into the Victorian offending is ongoing.