Victims of John Adams’ $100m Ponzi scheme hire lawyers in bid to claim back lost funds

Victims of John Adams’ $100m scam say they have been left struggling to buy bread and milk. Now, they’re fighting to claim lost funds from the sale of his $5m home in Lorne.

Victims of a $100 million Ponzi scheme led by a former AFL heavyweight will launch a test case to claw back their cash.

Victims of a $100 million Ponzi scheme led by a former AFL heavyweight will launch a test case to claw back their cash.

Former North Melbourne and West Coast powerbroker John Bernard Adams left a trail of destruction when he died last year at his $5 million holiday home in Lorne, Victoria.

Investors became aware in the days following that the lawyer’s mortgage business was a scam and there was no money to pay them out.

Now, victims have hired lawyers to give advice about whether a claim can be made against Adams’ former partners at AMS Law, Shane Maguire and Vin Sier.

Both have denied any knowledge of the scam, and the Victoria Legal Services Board found that there was “no evidence to suggest that any other AMS lawyers or staff had known or participated in the scheme.

“It was our life savings, we were going to use it to build a house. We just want to get some justice,” a victim, whose family lost $1 million, said.

“I was disgusted. Most of the people in the meeting of investors were 80 years old. The only ones there who were younger were people acting on behalf of their parents.”

John Bernard Adams, who died last year.

Vin Sier, one of his former partners. Picture: Facebook

Another victim, who poured in more than $600,000 said they were now struggling to sleep.

“I don’t have any cash, I’m living on the MasterCard and when I get the statement I look at it and say why did I do that? The bills just keep coming in,” the victim said.

“I’m struggling to buy a bit of petrol and some bread and milk.”

Adams had run a mortgage book from his office AMS Law in Ivanhoe, Melbourne for decades, which was previously a common practice for suburban solicitors.

Investors were receiving 8 per cent interest at a time when banks were only paying out 2 per cent on term deposits.

Adams would pay out interest monthly, which had run smoothly for years until his death, aged 81, in October at his cliff top mansion in Big Hill, near Lorne, on the Great Ocean Road.

Victims want that house sold, along with any money from a court case, to pay them back.

Adams’ will has not been granted probate in the Victorian Supreme Court, a check this week showed.

Lawyers from Gordon Legal have prepared a 60-page document about their investigation into the case.

All lawyers in Victoria must take out insurance with the Legal Practitioners’ Liability Committee. Victims hope to make a claim on that insurance.

An aerial view of John Adams’ holiday home, which includes a tennis court, on the Great Ocean Rd near Lorne.

James Naughton, partner at Gordon Legal, said: “We are seeking instructions from clients on pursuing a potential claim against Shane Maguire and Vince Sier of AMS Law.

“There are lots of aggrieved people, some of our clients have lost a significant amount of money, millions of dollars and they are entitled to pursue their rights.”

Mr Sier, who retired from the practice in 2018, spoke publicly about the case for the first time this week.

He said he was blindsided when details of the scheme emerged after Adams’ death.

“I knew nothing about it and that’s what’s in the Legal Services Board report,” Mr Sier said.

“There was no paperwork, I think it was mostly in his (Adams’) head.

“A lot of the time he was working early and working late and on weekends, but there was nothing in the office to indicate what he was doing.

“He had bank accounts but they were separate from the legal business. Nothing ever surfaced in any shape or form.”

Gordon Legal partner James Naughton. Picture: Supplied

AMS Laws’ Shane Maguire. Picture: LinkedIn

Mr Maguire said: “John Adams not only destroyed them but he also destroyed our legal practice, causing enormous stress to the staff members.

“I have had to close the practice because it was not viable and I’ve had to pay significant sums from my own savings to meet the liabilities of the practice which are ongoing.

“I was the one who discovered the problem, I was the one who reported it and I was fully cooperative with the investigation and the investigation found that neither my staff or I knew of it or were involved in any way.”

AMS Law has been closed down, with clients files moved to a different law firm.

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Originally published as Victims of John Adams’ $100m Ponzi scheme hire lawyers in bid to claim back lost funds