$100m mortgage Ponzi scheme closed down

Mystery surrounding a Ponzi scheme that ripped off bikies, bookmakers and AFL heavyweights has deepened as a forensic hunt is on for a missing $100 million.

A forensic hunt is on for the $100 million missing from a Ponzi scheme that ripped off bikies, bookmakers and AFL heavyweights.

Accountants have been called in to trace the money lost in the scam dubbed worse than the Melissa Caddick con.

The stratospheric losses were discovered when AFL powerbroker and Melbourne lawyer John Adams died suddenly last year at his multimillion property on the Great Ocean Road in Victoria.

John Bernard Adams.

The Victorian Legal Services Board investigated the scheme run out of AMS Ivanhoe Lawyers, where Adams promised returns of up to 8 per cent based on “mortgages”.

But they were fake, with the money transferred to new members of the Ponzi scheme instead of being invested.

The Victorian Legal Services Board stopped their inquiry this month when it was found that Adams, 81, was not using trust accounts to funnel the cash.

Now forensic accountants have been hired to follow the money trail, as angry investors line up to sue Adams’ estate, which includes a clifftop Lorne property, and companies that provided him with legal insurance.

Mr Adams’ business partner Shane Maguire was cleared in the Victorian Legal Services Board report and is not accused of any wrongdoing.

“There is no evidence to suggest that any AMS lawyers or other staff, other than Mr Adams, participated in or had knowledge of how the Loan Business actually operated,” the report said.

AMS Lawyers was now closing down, with Mr Maguire retiring and clients moved on to Aintree Group Legal.

Shane Maguire. Picture: LinkedIn

Ian Collins. Picture: Ian Currie

Mr Adams was a powerbroker at the North Melbourne, Carlton and West Coast Eagles football clubs for decades.

He used those connections, and his weekly Mass attendance, to portray an image of an upstanding lawyer working for the good of society.

However, after he died, Mr Maguire discovered the mortgage scam and reported it to authorities.

Carlton and AFL figure Ian Collins, who ran Docklands Stadium for the league, was among those who lost money.

Bookmakers also poured millions into the scheme, while it was suspected that bikies and other organised crime figures also used Mr Adams’ financial services.

There were fears some of those would attempt to collect debts directly.

The “mortgage-backed” fund paid out monthly dividends, which made it appear legitimate.

AMS Lawyers office in Ivanhoe. Picture: David Crosling

However, instead of being used for home loans, Adams put the money into a Commonwealth Bank account which was set up in the name of a dead client.

“Funds invested appear to have not been applied towards intended purported loans, and instead these funds appear to have often been distributed to investors as their expected monthly “interest” from fictitious loans,” the report found.

Victoria Police was understood to be unlikely to investigate the fraud because of Mr Adams’ death.

Gordon Legal has been advertising for victims to join a lawsuit against Mr Adams’ estate and AMS Ivanhoe Lawyers.

Mr Adams’ family is not accused of any involvement in or knowledge of Mr Adams’ actions.