These appear to be yet two more related Ponzi-style schemes very similar to those we have already exposed. Theses scams also
potential borrowers, predominately builders and property developers, handing over money for loans that never eventuate.
Wikifrauds has the details of some dozen clients of EFSL who have all
paid up-front fees ranging from about A$17,500 to over A$400,000 and
not one single loan has ever been settled despite settlement dates
being advised to these clients.
Some clients have been waiting in the long queue for over a year.
EFSL's lawyers, Astills of Queensland, have even issued mortgage
documents for these loans but never settled. (One would think that the
law firm by now would have wondered why not, and asked questions of
their client, EFSL)
It appears from the information provided to Wikifrauds that EFSL has
never actually had any money to lend, and that at some time around the
last quarter of 2010, they claimed
to their clients that they had
sought to obtain underlying backing funds for their portfolio from some
USA-based lending outfit, and that they had forwarded a vast amount of
the client's fees to this lender, but to no avail - the allegedly
promised funding never came.
Notwithstanding the obvious problems of having no money to lend, the
company continued to take new loan applications and fees right up to
January 2011, and to continue the facade of producing new mortgage
documentation and advising these new clients of settlement dates - none
of which have eventuated. With no other apparent income, EFSL and its
directors can only have survived this long by using clients fee's as
EFSL is now telling clients that they are required to pay yet another
up-front fee of 20% of the loan required, and that they can then expect
settlements towards the end of 2011. One newly found source of funds is
supposedly a company called Spearhead Services Group
A lot is now known about this group which has now been exposed as
another major fraud run by one evangelistical predator, Tua Toki.. The
20% fees required jointly by EFSL and yet
Melbourne based company (name withheld) are to
be paid in a one way deposit to a small-time suburban solicitor's trust
fund, James Watts Lawyers of Milton, a Brisbane suburb. The spiel that
some EFSL clients
have been given is that Spearhead is an introducer to this other
company, and that these funds are being enabled via some
obscure United Nations or charity-based NGO fund for third world
development projects, coordinated by a former barrister, name also
withheld. Further information about this will be released in due course.
Disgruntled EFSL clients are looking to lodge formal allegations of
fraud with the Queensland police shortly.
In the meantime, Flaherty and Wheeldon have decided that their website
should be "updated". It has been in this status for several months now since Wikifrauds exposed the fraud.
However, it is affiliated with and manages Civic Capital Mortgage Fund
a company run by Flaherty's father, Terrence Flaherty. This company
allows EFSL to use its Australian Financial Services Licence under
which the EFSL frauds have been committed. Investors should be wary of
doing business with this company also as it is part and parcel of the
whole scam. (See website for proof of the connection.)
Michael Flaherty and Greg Wheeldon
, a South African, is the CEO of EFSL. It is
understood that he lives in a rented house and has very little in
tangible assets in Australia.
Flaherty also had another company, Flo Concept Group Pty Ltd
, to which
on December 9, 2009. Employees were left
in a situation where, contrary to law, their superannuation had not
been paid. The outstanding amount is $90,774.61. The ATO is owed some
$198,418.00. Flaherty, who doesn't care who he hurts nor how much he
people, was meantime of course, running around in two
Audi Turbos. And in a bit of sleight of hand accounting, these two
expensive luxury vehicles were listed as assets of the company when in
fact they were under leasing contracts with BOQ.
, also a director
of EFSL, is the company's in-house lawyer. He boards with another
couple and likewise apparently has very little in real assets. Wheeldon
was previously involved in the $87 Million collapse of Secured Mortgage Management
and Summit Mortgage Fund in June 2008.
Until recently the EFSL Website
provided readers and borrowers alike with a lot of glossy information
about their funding prowess. It is now undergoing a re-design, or so it
says. We think they have ducked for cover.
Empowered Financial Services Limited
(ACN 137 742 442 ) is an unlisted public company, limited by shares, and first registered on June 17, 2009.
Spearhead Services Group
142 915 704) was first registered on April 01, 2010 and operates from a
66th floor apartment at Q1 in Surfers Paradise Queensland. The CEO is a
Mr Tuo Toki. We are also advised that allegedly connected to Spearhead
are two legal men, one un-named, and a Robert Corrie. Their specific
involvement levels is unspecified at present, and we are looking
further into these connections. The ASIC registration details show the
locality of the registered office as Michellton QLD. Mr Corrie's
accounting office is also located at Michellton, QLD. Tua Toki is
telling clients that Mr Norrie set up his "NGO" lending platform and
gives clients the clear impression that Norrie is part of the deal. At
this stage we cannot confirm this, and it may well be that Tuo Toki is
just using the name for window dressing.
Wikifrauds knows of a number of clients who have sent large fee amounts
(up to $100,000) to Spearhead and Tua Toki, and no action has been
taken in advancing their loan applications, with many clients wanting
their money returned, which is not happening. Tua Toki is reportedly
not paying his employees on time, does not have an employee
superannuation fund, and can't even reimburse his sales people's petrol
Concerned readers or clients who have not already discussed these
two companies with us are urged to do so in complete confidence. Contact us.
Latest from another victim:
Pasted below is an email exchange between us and a victim of Flo
Concept Group. Read from bottom up. We have the victim's permission to
Hi John Hello
Yes I have been to the police
and they said to me that the only way that I could charge him with fraud was to
have myself charged with fraud also because it was my signature that appeared on
the original loan documents. The letter that was given to the provider was a
definite forgery as I have only become aware of this letter as I have a
complaint with the financial ombudsman service and they produced it if you have
any other ways you think I may be able to get at this piece of scum I would love
to hear back from you
I was originally tele-marketed
from a surf club members list that he must have been privy to from having a
sponsorship with the club at the time which I am not happy about
As far as I know I had no
dealings with greg weeldon . Could you please tell me if there is any type of
class action being made against him as I know I am not the only person that has
been affected by his dealings from speaking to various solicitors
You are welcome to post my email
on your website
Regards Paul Carragher
16 October 2013 3:15 PM
Subject: Re: *** SPAM
***Flo Concept Group (Michael Flaherty)
to hear of your plight.
you been to the police yet? If not, you should get together all your documents
and emails etc and see them immediately. If you need a first contact I can get
one for you, depending on your location.
of further things - were you introduced by anyone to Flaherty, and if so,by
whom? And did you have any dealings with his in house lawyer, Greg
me know if you would like this email of yours posted on the website - minus your
name of course.
for letting me know, Feel free to call me if you wish.
Original Message -----
Wednesday, October 16, 2013 3:27 PM
*** SPAM ***Flo Concept Group (Michael Flaherty)
This fellow has destroyed my life and my credit rating. All I
wanted to do was to roll a credit card debt into my home loan. He and this
company coerced me to buying an investment property he forged loan documents
stating I was earning 120 000 per annum under an ABN to get a low doc loan. I
have lost my house and now am applying for bankruptcy to get myself out of a
situation that I never should have been in. He has cost me about 300 000
dollars financially and have been hospitalised for depression for what this
fellow has done to my life. A bullet is too good for this person he needs both
his arms and legs broken and jailed for life in my eyes. I cannot afford to
attack him legally.
Regards Paul Carragher