I worked for that Australian Capital Reserve racket back in 2003, what a weird operation.
I was on base of $43,000 plus super plus almost 5% commissions for all deposits I took, suspect or what!
I left on principle as they were ramping the valuations of their property portfolio which was the capital backing held against the unsecured deposit notes of the mums and dads who were piling in for a mere 2% more than they could get at the local CBA branch on 60 month term deposits backed by the CBA - not second mortgages on a twenty storey building on Church Street Parramatta with 100sqm 2 bedders trying to be sold for $800,000 when across the river you can buy 200sqm 2 balcony 3 bedders for $400,000.
Basically these guys were taking deposits from Mums and Dads without any financial planner advisory assistance and using it to buy up and develop ridicuously over priced non bank rated property in the dangerous hope that they could sell into a crazy rising property maket to repay capital and high interest to deposit holders. Total house of cards!
They also had a site next to Redfern railway that has only just been developed well after they crashed a year ago.
