ICONIC Australian cartoonist Larry Pickering has denied he was involved in a sports betting operation that saw more than 100 investors across Australia lose millions of dollars in life savings.
Pickering, 68, who lives on the Gold Coast, is best known for his political cartoons in the 1970s and 1980s.
THE SYDNEY TELEGRAPH reports he is alleged to have used an alias as a salesman, selling software for a scheme that urged people to invest in a Hong Kong sports trading company that has since folded.
Yesterday Mr Pickering said the claims were "not true''.
"I don't know where all this comes from,'' he said. "It's rubbish.''
Hundreds of consumers were cold-called in an aggressive marketing campaign and sank up to $750,000 each buying a software program and then investing in a Hong Kong-based sports trading company called Nominee Traders Ltd, which promised a hefty return by betting around the world.
The company Cohen Strachan Investments Pty says on its website it uses a scheme called sports arbitrage, ``investing on both teams in a two-player event, and capitalising on the price differences in two markets''. Some investors found they could not withdraw money from their Nominee Traders accounts, despite repeated attempts.
In desperation, 24 people joined forces and employed Internet Fraud Watchdog, operated by private investigator Ken Gamble, to try to find out what had happened to their money.
Mr Gamble spent 12 months investigating the operation and travelled to Hong Kong.
The GOLD COAST BULLETIN has obtained 24 sworn statements from investors who say they lost money by investing in the scheme, which Mr Gamble says can be traced back to associates of Mr Pickering on the Gold Coast.
Queensland police have confirmed they are now investigating the complaints and have statements from people alleging Mr Pickering is Paul Perry, who was a salesman for the scheme.
Queensland Chief Superintendent Steve Hollands said police were investigating whether a fraud had been committed.
"The possibility also exists that it could have been a legitimate scheme which has failed,'' said Chief Superintendent Hollands.
"The issue of jurisdiction is being considered that is, has an offence occurred in Queensland or in another state or territory or even external to Australia? There is a shelf company in Hong Kong, International Arbitrage Strategies HK, that is also somehow involved.
"Some of those complaining that they have been defrauded have also contacted ASIC, AFP, the QPS, the ACC and the Office of Fair Trading (Qld) and police services in other States and in the NT.''
Police admit the paper trail and shelf companies have created a complicated maze for the police to work through.
Mr Pickering also denied he posed as Paul Perry. "No. He (Paul Perry) is a racing trainer,'' he said.
Just before the company folded, investors trying to get money out were told the Hong Kong betting company had suffered massive losses on the 2010 soccer World Cup. Others were told they had suffered losses on the Superbowl. Many were not told anything and emails were not answered.
"Due to the complexity of the matter and the significant amount of documentation involved and the involvement of multiple (investors) from a number of states, we are seeking specialist support from our Corporate Crime and Fraud Section in Brisbane who have access to forensic accountants' computer specialists, etc,'' said Chief Superintendent Hollands.
Investors are furious at what they see as a perceived lack of interest by any police force to act.
"Because of the complexity of the operation and the fact the (investors) are spread all over the country and even New Zealand, police had no real knowledge of the size and numbers involved until now,'' Mr Gamble said.
Mr Pickering, who has 11 children to five women, has had a complicated business life that has paid for his lifestyle but, according to the ASIC database, has had his name on the books of only one company, ZRD Technologies Pty Ltd, which has no connection to CSI.
Mr Pickering remains an undischarged bankrupt having been made bankrupt most recently in August last year on a petition by his former de facto father-in-law, George Luckardt. In reply to the bankruptcy, he said he disputed that he owed any money and that his only asset was a $250 set of golf clubs.
He is living in a rented luxury Coast home, drives a late-model Jaguar and plays golf regularly at the Grand Golf course, considered one of the most exclusive and expensive clubs in the country.
In 2003 in the Queensland District Court, Judge John McGill said Mr Pickering had "concealed his connections to business and property''.
The case involved a tax bill owed by a company, Hamlyn Crest, which promoted and sold through telemarketers a computer program it claimed could predict the results of horse races.
Mr Pickering was then living in Vanuatu with his partner Carmel whose father, George Luckhardt, was the sole director of Hamlyn Crest. When the company went bust, the tax office went after Mr Luckhardt as the sole director. He won the district court case, saying he had only agreed to be a director because Mr Pickering ``wanted to conceal the fact of his association''.
The judge said Mr Pickering's evidence of his minimal involvement in companies from whose operations he obviously derived significant financial benefits was ``thoroughly implausible''.
He said that after Carmel and Mr Pickering separated, Mr Pickering married another woman. His wife, from whom he was already separated, gave evidence to the court from England that Mr Pickering had told her that he owned Hamlyn Crest.
Judge McGill said Mr Pickering was evasive in the witness box, including when he was questioned over the ownership of a Rolls-Royce, and the judge was not prepared to accept his evidence unless it was supported by other credible evidence or contemporaneous documents.
The tax department appealed but lost in the Supreme Court. Cohen Strachan Investments was placed under administration and KordaMentha were appointed liquidators in November last year. They have confirmed allegations had been made about shadow directors.
They have said numerous complaints have been received from creditors who claim they have been defrauded and have "reported offences to ASIC and other law enforcement bodies'', including Queensland police and the AFP.
KordaMentha said the investment scheme worked by individuals buying sports arbitrage software known as Carbon A for $17,000 from CSI as an agent of a Hong Kong-based company. The software came with a $2000 trading certificate to use in a betting account facilitated by a company called Nominee Traders Ltd.
Each customer had their own log-in details where they could track the return of the initial $2000.
"The sports arbitrage software was not user friendly and did not perform to the standard represented to the customers,'' said KordaMentha in a statement to creditors.
Most customers did not seek a refund for the purchase of the software because the initial $2000 had increased in value.
"Problems arose when customers sought to withdraw the balance of their account and these requests were not actioned or fulfilled,'' KordaMentha said.
"Customers observed irregularities with the balances of the sports arbitrage accounts giving rise to allegations that the accounts were manually manipulated and did not actually exist.''
STORY SOURCE: SYDNEY TELEGRAPH & GOLD COAST BULLETIN - NEWS LIMITED.
