Western Australian Peter Kleinig prevented from sending any more money to dodgy African investment scheme

HE lost his life savings, but Peter Kleinig was so convinced a dodgy African deal was all good he’s had to be legally stopped from sending any more cash.

THE case of a Western Australian man, who refused to believe he had fallen victim to an elaborate scam despite losing millions of dollars, has highlighted the huge amounts fraudsters are swindling from gullible Australians.

So convinced was Peter Kleinig that his investment in a fake West African company was above board, authorities in WA have had to legally prevent him from sending his, or anyone else’s, money to the bogus investors.

Since January alone, Australians have squandered $15 million on dodgy investment schemes and frauds with more than 20,000 cases reported to the Australian Competition and Consumer Commission (ACCC).

From “get rich quick” strategies, which end up making only the person devising the strategy rich, to dating cons when you find out the man or woman of your dreams is a money-draining cad; people are continuing to have the wool pulled over their eyes and the savings pulled out of their bank accounts.

Just this week, news.com.au revealed that a group of multi-level marketing spruikers from UK made off with an estimated $5 million from everyday Australians after a “cashback shopping” scheme collapsed.

Mr Kleinig, 65, has sent at least $3 million to the West African nations of Togo and Ghana since 2007, refusing to believe warnings from police and consumer authorities that his money was going to fake investment schemes.

This certificate all looks aboveboard ... Picture: Consumer Protection WA.

‘EXTREMELY SAD’

Consumer Protection officials in the state now have an enforceable undertaking with Mr Kleinig that restricts him from soliciting or accepting money from others to give to scammers who pretend to run an investment scheme.

Acting Commissioner for Consumer Protection David Hillyard said officers took the step after failing to convince Mr Kleinig that all his money had been going to a bogus gold and silver company, reported AAP.

“It’s extremely sad that Peter Kleinig has lost his life savings and refuses to accept that he is at the centre of an investment fraud,” Mr Hillyard said.

“However, when the actions of a victim present a financial risk to other members of the community, authorities have a responsibility to step in to protect the public.”

Consumer Protection officials say that Mr Kleinig had solicited money from across WA to invest in the fake company since 2009, promising them that they will be repaid their original investment plus a reward.

Police in Ghana reportedly made nine arrests in 2015 in relation to the defrauding of Mr Kleinig, and his friend Fred Williams, who had invested $2 million.

But Mr Hillyard said that even news of the arrests did not deter Mr Kleinig from continuing to solicit money from others to send overseas.

“Anyone wanting to invest money should not give it to Peter Kleinig, or anyone like him who is not licensed or qualified to deal with other people’s money,” he said.

Altogether, more than $15 million has been lost to scammers and fraudsters in 2016 with 21,000 cases reported to the ACCC.

According to the consumer watchdog, nearly $4 million has been lost in investment scams alone so far in 2016.

Adrian Simule lost nearly $30,000. Source: Supplied

BE SUSPICIOUS

Statistics from the ACCC show people aged 45-54 are the most susceptible to investment scams, which include fake stock broker cold calls, share tips and promotions, and investment seminars spruiking risky “get rich quick” strategies and featuring self-made millionaires.

Earlier this week, news.com.au revealed that Go Aspire Ltd, formerly Aspire Worldwide, had gone into insolvency months after investors’ so-called “franchise agreements” — some of which had been purchased for hundreds of thousands of dollars — were exchanged for shares in the now worthless company.

It is unclear exactly how many investors lost money but it could be as many as 1000.

Aspire, which deregistered its Australian arm late last year, purported to be a cashback loyalty scheme into which members, who paid between $3000 and $30,000 to join, were enticed with promises of earning money for doing nothing.

Members were promised they could earn so-called “passive income” by signing small businesses up to a payments system to create “micro shopping communities”, while also earning commission for signing up other members.

Adrian Simule, from Dandenong in Victoria, said promises made by the company never seemed to eventuate. He ultimately ended up spending just under $30,000, plus lost income and travel costs.

“I spent my mortgage deposit money,” he said.

“I could have bought a house. I’ve lost the majority of my clients. People I used to be quite close to don’t want to have anything to do with me because I was going around promoting Aspire. I even got my mum involved.”

Mr Simule says his “world has come crashing down”. “I’m [nearly] 30 years old now, by this point I should already be going somewhere. I don’t have anything to my name besides my car,” he said.

The ACCC advises people to keep their personal details secret, be wary of unsolicited calls and emails, and to be suspicious of “too good to be true” investment schemes which promise a high return with little risk.

BIGGEST SCAMS

• Investment schemes, pyramid schemes, sports betting: $5.4
• million
• Unexpected money and inheritance claims: $4.8 million
• Dating and romance: $3.2 million
• Classifieds, health products, online shopping: $1.4 million
• Personal information: $565,045
• Surprise lottery winnings and travel prizes: $260,000