As the New Year approaches I’m still marvelling at the amount of scams and schemes people have sunk their money into this year.
Yet the biggest doozy was saved for last, as an Australian punters’ club known as The Edge went belly up in the final weeks of the year.
Those stung were apparently some big timers in media, sport and business – the ‘more money than sense’ types, but it had filtered down to the man on the street looking to pay off the mortgage early.
And how were they looking to do it?
It was all very secretive and without any form of documentation – so just the kind of place you’d really want to ‘invest’ your money!
If you sunk your money in, you received a spread sheet and emails from the head of the syndicate, Bill Vlahos, about alleged bets placed and wins the club had – no less than a 25% return a year, sometimes over 200%.
But even before The Edge fell apart (somehow misplacing $194 million) questions were being raised about its legitimacy.
As sceptics pointed out, for the size of the operation and the alleged returns, it would have had a hard time finding a corporate bookmaker that would consistently accept its bets.
Gambling companies make money from losers and have no interest in big-time winning gamblers.
Those running The Edge apparently had VIP status with some corporate bookmakers, but this only indicates they were premium losers – more perks to lose more money.
Suspicions have now pegged The Edge as a Ponzi scheme with early winners being paid out from later entrants into the scheme.
Unfortunately, we’re now hearing sob stories in the media about people who redrew on their mortgage and lived the high life on their assumed profits.
Most unfortunate of all, they’re being termed as “investors”.
Sorry, but I deal with investors, the people who put money into The Edge were gamblers.
Enjoy a scam free 2014!
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL/ACL 224543, www.mfg.com.au This information is general in nature and readers should seek professional advice specific to their circumstances. Looking to reach your goals with one of Australia’s highly rated financial advisors?
