Matt* invested $200K with a company he was told invested in international bonds, under the recommendation of his licensed financial advisor. He planned to use his return on investment towards his daughter’s education. After the first year, he stopped receiving payments along with zero response from the company’s managing director. 

After receiving an AFCA determination, Matt applied for the CSLR which he believes was his last resort and is an important scheme for anyone who has been wronged in the financial services sector. 

“My licensed financial advisor recommended a company that invests in international bonds. I followed his advice but unfortunately, it turned out he was in kahoots with them. I invested $200K with the understanding that I will receive quarterly income, which I intended to use for my daughter’s education. 

 

For the first year, everything seemed fine until the payments stopped coming. My financial advisor didn’t help so I spoke directly to the company’s managing director to no avail. I got a solicitor involved and that did not lead to anything, so I went to AFCA and they eventually issued a determination in my favour but I couldn't get all my money back because the company went bankrupt. 

 

I applied for the CSLR the minute I could. I think the CSLR is absolutely fantastic for people like me, we were taken for a ride, I know at least another 15 couples who were also scammed. Some of them died because of old age or got heart attacks because of what happened and never saw their money back. I am hoping that these companies who are illegitimate or criminals get pushed out of the business. The industry needs to have higher standards.”

*Name changed for privacy