Jail for $5.4m Ponzi
Friday, October 13th 2017, 11:27AM
Shane Richard Scott has been sentenced to four years, eight months’ imprisonment for operating a Ponzi scheme that caught out friends and investors.
He pleaded guilty in September.
Scott had some friends and associates who invested with him over a number of years and some who were relatively short-term. The long-term investors believed he had been working on various overseas investments. The short-term investors believed they would receive high returns in relation to property developments and exporting/importing deals.
The total of Scott’s offending was about $5.4 million.
SFO director Julie Read said: “A Ponzi scheme works by using the money provided by later investors to pay out the earlier investors. There was never an intention to invest the money as promised and inevitably the scheme falls over when the new investors’ money is insufficient to pay out ‘investments’ that have fallen due.”
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