Monday, June 20, 2011

Today's fake: Supposed billionaire with money to lend

Author of not a Ponzi scheme but a simple fraud, this fellow advertised himself as a billionaire willing to loan millions out of his personal fortune. Companies only had to put up an "establishment fee":
Mr Johnson was one of many who saw the ads WGA ran in the Australian business press. Favourable stories followed about a Newcastle company so happy with its first $US200 million loan, it said it was after a second.

The Herald has since revealed that no money was ever received and that one of the directors of that company was Sydney lawyer John Mulally, who happens to be WGA's lawyer in Australia.
Mr Johnson paid a $3.8 million establishment fee to secure a desperately needed $150 million loan, which never materialised. He is now struggling to refinance his development company which was hoping to develop 10,000 housing blocks around the central coast and Hunter area.
Not sure how long the scammer expected to get away with that. Sounds like a simple pigeon drop scheme, only with millions of dollars on an international scale.

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