Richard Marlborough bailed to Hope Island mansion after allegedly rorting investors of millions of dollars
MEMBERS Alliance director Richard Marlborough is accused of “destroying the dreams” of investors, allegedly rorting them of millions of dollars in an elaborate cold call scam. But he’s living the life while on bail.
Gold Coast
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MEMBERS Alliance director Richard Marlborough is accused by police of ‘destroying the dreams’ of investors by rorting them of millions of dollars in an elaborate cold call scam.
Today the failed Gold Coast businessman woke up in his palatial Hope Island mansion, metres from his $640,000 Rolls Royce and wine cellar.
The 52-year-old yesterday wore designer glasses as he dodged reporters outside the Brisbane watch-house.
Marlborough was taken into custody at his Hope Island home yesterday following Operation Oscar Monkshood — an 11-month investigation by the Queensland Police Financial and Cyber Crime Group, the Queensland Building and Construction Commission and the Australian Securities and Investments Commission.
The director of the Members Alliance group was charged with dishonestly inducing victims to deliver money into accounts he controlled. Police will allege he swindled millions from at least 40 people. He is defending the charges.
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.
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 scheme operated by Members Alliance Group involved cold calling members of the public across Australia and selling them home and land packages as investments.
Investigators claim 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 allegedly 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 that triggered the pre-claiming on construction loans.
The company collapsed in 2016.
Police claim 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.
After Marlborough was given bail in the Brisbane Magistrate’s Court yesterday, his lawyer Daniel Hannay said his client was pleased to be going home.
That home is inside a gated golf estate and features a large private putting green flanked by bunkers and a pool.
“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.
“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.
Based at The Rocket tower in Robina, the group collapsed owing almost $30 million to the Australian Taxation Office, $741,000 in unpaid rent to the Gold Coast City Council, $7 million in superannuation to about 90 employees and $800,000 in entitlements to staff of a labour hire firm.
“Unfortunately, a lot of Australian investors have had their dreams of home ownership shattered. Our investigation and today’s arrest demonstrates the Queensland Police Service’s ongoing commitment to address cold-call investment fraud,” Det Supt Lawrence said.
Marlborough recently declared himself bankrupt, owing the Australian Taxation Office about $27 million. He listed as one of his few personal assets a Rolls Royce worth $640,000.
Originally published as Richard Marlborough bailed to Hope Island mansion after allegedly rorting investors of millions of dollars
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