Victim of conman Hamish McLaren sues ANZ for $1m

A victim of Australian serial conman Hamish McLaren is suing a bank that provided her with a cash loan for the funds.

Karen Lowe is seeking damages and costs of almost $1m from ANZ bank, claiming she was ‘unsuitably’ granted two loans worth $1,295,206.51. Picture: Adam Yip

A victim of Australian serial conman Hamish McLaren, who was sentenced to 16 years’ jail after fleecing his targets of almost $8m, is suing a bank that provided her with a cash loan for the funds.

McLaren, the subject of The Australian’s award-winning podcast Who the Hell is Hamish? which tracked his deep web of lies and deception, fleeced $7.6m from multiple victims through fake investment schemes promising high returns.

Now Karen Lowe, is seeking damages and costs of almost $1m from ANZ bank, claiming she was “unsuitably” granted two loans worth $1,295,206.51.

In 2019, a judge described McLaren’s offending as the most “reprehensible” of any financial crimes that can be committed and described him as a man of “absolutely no compassion”.

When Ms Lowe first met McLaren, she was in a small amount of financial strife, struggling to pay maintenance on a multimillion-dollar Mosman mansion on Sydney’s north shore she received from a divorce settlement.

A friend had invested money with McLaren and received incredible returns - on paper - and he made it clear he’d be able to help her out of her troubles. Before long, he infiltrated her life, becoming a trusted adviser and friend. “(He was) charming in his Tom Ford suit and tie,” Ms Lowe told The Australian in 2019.

Hamish McLaren.

“He assured me that everything was going to be OK, and that’s all I needed to hear at the time. He ingratiated himself into my life, with my friends.”

According to court documents obtained by The Australian, Ms Lowe entered into a credit contract with ANZ, with the bank transferring $600,000 in February 2015 to Container8 Asset Manager Pty Ltd, a company controlled by the conman.

Just under two weeks later, another $50,000 was transferred to Container8, and in May 2015 a further $300,000 was transferred by the bank - bringing the total sent to McLaren by ANZ as part of the loan to $950,000.

Ms Lowe says in the Federal Court of Australia filing she believed the money paid to Container8 - essentially McLaren - would generate income enabling her to service the loans from ANZ.

She states she serviced the ANZ loans in 2015 and “most of” 2016 through money paid to her from Container8, but in late 2016 began experiencing difficulties getting payments from the entity before realising in December 2016 or January 2017 her investment would fail.

She claims McLaren was involved in “direct dealings” with ANZ staff regarding the loan applications, credit contracts, the transfer of funds to himself and Container8 and a loan variation.

Hamish McLaren with detectives.

The documents state the ANZ loans were “unsuitable” because Ms Lowe, who says she had no income at the time, did not have the means to pay the principal and interest except from money paid by Container8 or selling her home.

In February 2017, she paid out the second loan in full with money borrowed from a friend. She then sold her Mosman home in August 2021 for $13,000,000 and repaid the friend.

“At some stage in 2017, it became apparent to Ms Lowe that McLaren had operated investments in Container8 as a Ponzi scheme and that the money paid to Container8 and McLaren from the ANZ loans was irretrievably lost,” her filing reads.

Ms Lowe says ANZ contravened the Credit Act by making an unconditional loan offer before conducting an unsuitability assessment, and failed to make reasonable inquiries and verification of her financial situation.

ANZ declined to comment on the case as it was “a legal matter”.