Car loan scam an ASIC award winner

The Australian Securities and Investment Commission has given its Pie in the Sky dunce award to the Carsworthy Scheme, a scam which promoted an interest-free loan to members of a car-buying club in Queensland. 220 people invested $2.4 million in scheme, under which they borrowed more than they needed to buy the car, invested the surplus offshore, and were persuaded the investment returns would pay the car loan. The investment failed to deliver the promised returns, and the car buyers were left to repay their car loans with interest