Members Alliance director Richard Marlborough charged over million dollar Gold Coast cold call scam

BOSSES of the failed Gold Coast Members Alliance Group could be in the crosshairs of police after director Richard Marlborough was charged with orchestrating a $2.2 million cold call investment scam. This is how they fooled more than 40 victims

BOSSES of the failed Gold Coast Members Alliance Group could be in the crosshairs of police after director Richard Marlborough was charged with orchestrating a $2.2 million cold call investment scam involving home construction.

Marlborough, 52, a director of Members Alliance, was today granted bail after being arrested at his luxury Hope Island mansion this morning and charged with swindling millions from 40 victims in a scam that’s been likened to a ‘big Ponzi scheme’.

Detective Superintendent Terry Lawrence flagged further arrests were likely.

“We’ve been informed there will be further inquiries conducted and there may likely be further arrests taking place in the future,” he said.

Richard Marlborough leaves the police watch house in Brisbane after being arrested. (AAP Image/Dan Peled)

INSIDE LUXURY MANSION OF SCAM SUSPECT

Marlborough’s arrest follows an 11-month investigation, Operation Oscar Monkshood, conducted by the QPS Financial and Cyber Crime Group, Queensland Building and Construction Commission and ASIC into the directors of the Gold Coast-based Members Alliance Group.

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It is alleged Marlborough dishonestly induced victims to deliver over $2.2 million for the construction of houses in Queensland and New South Wales.

The investment scam operated by Members Alliance Group involved cold calling members of the public across Australia and selling them home and land packages as investments.

The investigation involved building companies owned by the Members Alliance Group, including Image Building Group and Silverback Constructions.

Investigators said the Members Alliance Group began as a legitimate company that focused primarily on wealth creation and debt restructuring for members of the Construction Forestry Mining and Electrical Union.

But the business rapidly grew to a point where the actual construction of the homes was too difficult to complete financially so the Members Alliance Group bought a number of building companies.

Police will allege eventually those construction companies faced cash flow issues which was a factor which triggered the pre-claiming on construction loans.

The luxury house owned by Richard Marlborough, director of Members Alliance.

Offending allegedly began in 2013 before the company collapsed in 2016.

Police said the practise was to claim money from investors up to a certain building phase.

Investors were sent photos of homes in hard-to-visit rural Queensland and NSW to get more payments but many buildings were not completed and some did not even have slabs poured. Det Supt Lawrence said Members Alliance allegedly scammed money off people to complete existing homes.

“They’ve used the money of victims later on to fund people who were earlier in the piece and those later on have lost out completely,” he said.

Marlborough appeared in Brisbane Magistrate’s Court today where he was granted bail.

Outside court lawyer Daniel Hannay said his client was pleased to be going home.

“There was an application made by Mr Marlborough that was successful so he’s going to be able to go home to his family today, Mr Hannay said.

Richard Marlborough has been arrested over a $2.2m cold call scam.

“There’s an allegation of fraud for a company which at its height had 350 staff members so it’s an extensive and complex police investigation.

“We’re defending the charges.”

Marlborough was granted bail on the conditions he report to police three times a week, surrender his passport, make no contact with former staff and not go within 500m of international ports.

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A Gold Coast Bulletin reporter approaches a woman at the home of Richard Marlborough

The Members Alliance Group ceased trading in July 2016 and many victims were left without insurance to complete homes.

Based at The Rocket tower in Robina, the group collapsed owing almost $30 million to the Australian Taxation Office.

Today Marlborough was charged with dishonestly inducing victims to deliver money into accounts he controlled.

Police slammed the group “destroying the dreams” of investors.

“Unfortunately a lot of Australian investors have had their dreams of home ownership shattered by the unscrupulous behaviour of those involved in this group. Our investigation and today’s arrest demonstrates the Queensland Police Service’s ongoing commitment to address cold-call investment fraud,” Detective Superintendent Terry Lawrence of the Financial and Cyber Crime Group said.

“I would also like to take this opportunity to remind members of our community to be wary of persons calling them to offer investment opportunities. Legitimate, law abiding businesses do not operate in this manner. A cold caller is not operating in your interest, only in the interest of themselves,” he said.

Originally published as Members Alliance director Richard Marlborough charged over million dollar Gold Coast cold call scam