Exactly What would make a poker that is successful danger every thing by getting associated with a massive, multimillion dollar bank fraud and Ponzi scheme plot? That is the question many are now asking regarding poker that is australian Bill Jordanou, who is under research by Victoria authorities for his alleged role in a bank fraud that went on for years, based on reports.

While information on the reported Ponzi scheme are sparse, the $70 million bank fraud procedure was reportedly carried out with Jordanou’s business partner, Robert Zaia, 45. The 2 allegedly ensnared Zaia’s wealthy clients, via his accountancy firm Zaia Arthur & Associates, into an undetailed Ponzi scheme, while simultaneously forging bank papers to secure loans, often times in Zaia’s clients’ names, which they then comingled with home and development loans they also received from the bank, for jobs that either never ever existed or were never started.

Bank Holds Victims Hostage

But the caper gets even crazier from here. The bank used for all these transactions was Australia’s biggest: Commonwealth Bank. That bank happens to be holding Zaia’s allegedly clients that are scammed within the loans guaranteed inside their names, without their permission. One of these former customers, Rita Klapanis, says Commonwealth served her with a $6 million demand note, even though she just heard concerning the loan’s existence whenever contacted by Commonwealth for payment, and immediately contacted the police.

Undeterred, apparently, by the logic here, Commonwealth remains going after Ms. Klapanis’ Toorak property, and even charging her interest that is ongoing on loan during the reported rate of $1,135 per day. Ms. Klapanis has now filed an affidavit with the Supreme Court, saying she’s maybe not responsible for a loan fraudulently obtained, without her permission, in her name. Her wealthy family members was indeed one of Zaia Arthur & Associates’ financial clients.

Again, there are not any information on the reported Ponzi scheme, or how much any customers were supposedly defrauded or what ended up being promised; only that 20 such clients that are well-to-do involved.

Also known as within the Supreme Court affidavit are an additional eight alleged victims of the accounting firm, which Ms. Klapanis is now suing for damages in what is called a ‘conspiracy’ in the event. Other victims are expected to follow suit shortly with legal action.

Bank Didn’t Check Loan Forms

And the tentacles of the financial octopus keep on coming; a house developer who claims to own lost millions is now accusing Commonwealth of gross negligence.

‘The bank would not always check the validity of tax returns or they did not check employment representations that were made, they did not undertake valuations on the properties to be secured whether they had been filed. They accepted anything completed in the loan application without question,’ the lawyer for the developer said.

If only those bankers could be got by us working for the IRS.

Commonwealth, not surprisingly, isn’t saying word about any from it. But it’s maybe not the very first time their ethics have come under scrutiny; earlier in the day this present year, it had been reported that the lender had covered up major misconduct from within its own monetary planning division, which allegedly place thousands of clients’ savings at danger.

The Australian Securities and Investments Commission (ASIC) subsequently banned seven of the bank’s economic planners, and forced Commonwealth to shell out tens of millions in damages to the victims.

And as if which weren’t enough heated water to be in, it now appears Commonwealth brought in an international security firm, whose job it was to conduct undercover surveillance on Michael Fraser, a prominent anti-banking lobbyist, also as some other politicians ( not, we are assured, Germany’s Chancellor Angela Merkel. Hey, we must here amuse ourselves sometimes). The spying that is secret National Senator from brand New South Wales John Williams, whom is involved in a Senate inquiry into the ASIC’s very own conduct after bringing the Commonwealth scandal to light.

Good lord, all we need are Anthony and Cleopatra to help make this any more dramatic.

Jordanou has made 15 career poker tournament cashes, including 3rd that is taking $300,000 in the 2010 Aussie Millions $100,000 Challenge in Melbourne.

The investigation that is two-year anticipated to be completed by the end of the year.

PONZI SCHEMES:

Called for early century that is 20th Charles Ponzi, these schemes actually first started long before he lent his notorious name to them. The aim of these financial scams is for the perpetrator to collect vast amounts of cash considering insanely ambitious promises of riches towards the ‘investors,’ after that your instigator takes off, with every person’s cash in tow.

Typically, Ponzi schemes involve a few elements that are predictable. The very first is a far-above-average promised rate of return on investments, along with a seemingly plausible explanation of just how these prices will be accomplished; usually, the scammer will say they either have insider information, or are engaged in an elite investment opportunity not ready to accept the public.

Next, the perp makes sure that some of the investors that are initial certainly get the promised returns, to create buzz and credibility, and clearly to bring in yet more investors, who are needed to really make the scheme profitable to its creator. However, subsequent investors will not be so happy, and are typically left completely cleaned out when they not only receive no returns, but lose all their investment that is initial as.

Bernie Madoff, needless to say, is one of the most Ponzi that is infamous schemer history. After defrauding every person from elite nonprofit organizations to superstars to banking institutions out of a lot more than $50 billion on the course of decades, he happens to be serving what is tantamount to a life phrase. His ripoffs left many of his investors penniless, including countless citizens that are senior.

Whether an actual ponzi scheme had been presumably committed by Jordanou and Zaia is not entirely clear through the reports released so far; but if a scheme was indeed perpetrated on Zaia’s wealthy accounting clients, it most likely left a monetary Cat 5 hurricane in its wake.