Director admits duping retirees

THE director of a get-rich-quick scheme has admitted dishonest dealings after more than 100 retirees and pensioners lost title to their homes

Director admits duping retirees

THE director of a get-rich-quick scheme endorsed by Olympian Dawn Fraser has pleaded guilty to two charges of dishonest dealings after more than 100 retirees and pensioners lost title to their homes.

The Money for Living scheme - established by a Melbourne man who had previously served four years in jail over separate business dealings - was designed to entice the elderly to sell their homes in return for a guaranteed income for life.

Founder Gary O'Neill, of the bayside suburb of Elwood, yesterday admitted the scheme operated by buying properties from the elderly below market value. He pleaded guilty to two counts of dishonestly using his position as a company director.

The scheme was endorsed by celebrities including Ms Fraser and The Sullivans actor Paul Cronin, who appeared in Money for Living television ads.

Ms Fraser said yesterday she was shocked and her reputation had been tarnished by the endorsement of the product, for which she was paid about $25,000.

"I felt my name was enticing people to join Money For Living and some of them were ripped off, which was embarrassing and it really upset me,'' Ms Fraser told The Australian.

In 2006, judge Ray Finklestein of the Victorian Supreme Court said retirees and pensioners had been enticed to sell properties in return for what the promoters described as a "guaranteed'' income and a "guaranteed'' right to live in their in their former homes for life.

"The idea was that home owners could free up and live off the equity that would otherwise be tied up in the family home,'' he said.

"To the great misfortune of those people the scheme collapsed.''

In that case, Justice Finklestein ruled homeowners who had been duped by the scheme were entitled to keep their homes, with their titles immune from any adverse claims arising from the Money For Living scheme.