I have just received an e-mail from a colleague about the collapse of Australian Capital Reserve (ACR). This is a company that provided the promise of high investment yields on an income basis. Their advertising said that 'They knocked other investment returns for six'. (The theme of the add was a cricketing one).
The underlying investments of ACR were loans to related parties for the purpose of propery construction. Just like Fincorp. Just like Westpoint. They all collapsed too.
ACR looks to have taken about $300 million of investors money down the drain with it. This is a disgrace - and must be so shattering for those investors who are hurt.
It's time to stop mucking around. Do not invest your money in funds that use the money to on-lend for property construction schemes or to related parties. It does not work. Read my Eureka Report article here for further information.
And stay away from these 'Investments of Wealth Destruction'.