Foreign share scam warning

The Australian Securities and Investments Commission has issued a warning to potential investors about an overseas share trading scam operated by a company called Equity-1 Limited. ASIC said investors have been promised returns of up to 30 per cent, but the company is not registered in Australia and anyone transferring money overseas to Equity-1 will not be covered by Australia law.

Several hundred investors have already been caught out sending more than $3.5 million to the foreign company, lured by attending overseas seminars presented by Equity-1 director Shayne Heffernan and by word-of-mouth promotion. The company claims to be based in Hong Kong, however ASIC said it's believed not to have any actual operations there.

Anyone contemplating investing through an overseas trader should check out ASIC's web site to see if the company is listed there as licensed to operate in Australia. The ASIC web site is located at www.fido.asic.gov.au.

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