Jailed for under 10 years: Swindler charged for cheating $10m from retirees
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Financial fraud that targets retirees is a widespread and concerning issue.
According to the Australian Competition and Consumer Commission (ACCC), people aged over 65 have lost the most money to investment scams in 2021, costing them $18.8 million.
Now, a Melbourne court case has shined a light on one extraordinarily cruel scheme that stole $10 million from trusting seniors.
Terence Nugara was a financial planner who used his position to swindle 28 clients, many of them retirees, out of their life savings and superannuation.
Using his credentials, Nugara convinced victims to invest their money into a long-running property development scam. He claimed he was developing properties in Malvern, Kew, Sandringham and Glen Iris, and some villas in Bali.
Some were even convinced to switch their superannuation into a self-managed super fund. In reality, he simply took the cash for himself and lived a lavish lifestyle.
According to reports, he used the swindled money to fill his garage with luxury cars and buy a helicopter and a boat.
Nugara promised outlandish returns as high as 98.93 per cent to lure investors. Because he established a personal relationship with his clients, many saw him as a friend and didn't suspect fraudulent behaviour.
One woman said he would visit her retirement home with flowers, taking her to lunch to gain her confidence.
Another woman Nugara targeted became especially vulnerable after the death of her accountant husband, who previously managed her investments.
Another victim had their family deceived after a son brought his parents into Nugara's scheme.
‘You took advantage of people who placed their trust in you, many of whom were older and looking forward to a comfortable retirement,’ County Court Judge Trevor Wraight said in a hearing.
When some of Nugara’s clients inspected properties he claimed were being developed, they found the buildings were unchanged, or demolition hadn’t even begun.
Some were advised by a financial watchdog to contact police, and others discovered the scheme through their solicitor.
By the time the fraud was uncovered, some victims had been strung along for years and had to delay retirement plans or turn to government support.
Judge Wraight called Nugara's actions 'callous, selfish and reprehensible.' It was also revealed that he let go of his assets and moved overseas before the investigation began, indicating he planned on starting over elsewhere with the money he stole.
But when his ventures in other countries failed, he returned to Australia and faced the charges—something his legal counsel argued was evidence of him being willing to face his crimes.
‘Whatever your reason for returning to Australia, I'm not convinced it was motivated by your contrition,’ the judge remarked.
He was sentenced to 9 years and 11 months in prison last October 5. He pleaded guilty to 27 counts of obtaining financial advantage and two counts of theft.
He will be eligible for parole after six years and six months in prison.
Most of the stolen funds had not been returned to the victims, though reports indicate at least some victims have had their money returned.
You can watch 10 News First Melbourne’s report here:
Members, this case highlights the importance for retirees to be wary of 'get rich quick' schemes and verify the credentials and legitimacy of companies handling their money.
It is important to research proposed investments thoroughly and watch out for promising returns that seem too good to be true. You may also consider getting a second opinion from a trusted expert or family member before making major financial decisions.
What do you think of this story, members? Do you know anyone who experienced a similar scam? Let us know in the comments below!
According to the Australian Competition and Consumer Commission (ACCC), people aged over 65 have lost the most money to investment scams in 2021, costing them $18.8 million.
Now, a Melbourne court case has shined a light on one extraordinarily cruel scheme that stole $10 million from trusting seniors.
Terence Nugara was a financial planner who used his position to swindle 28 clients, many of them retirees, out of their life savings and superannuation.
Using his credentials, Nugara convinced victims to invest their money into a long-running property development scam. He claimed he was developing properties in Malvern, Kew, Sandringham and Glen Iris, and some villas in Bali.
Terence Nugara scammed 28 clients out of $10 million. Credit: Shutterstock
Some were even convinced to switch their superannuation into a self-managed super fund. In reality, he simply took the cash for himself and lived a lavish lifestyle.
According to reports, he used the swindled money to fill his garage with luxury cars and buy a helicopter and a boat.
Nugara promised outlandish returns as high as 98.93 per cent to lure investors. Because he established a personal relationship with his clients, many saw him as a friend and didn't suspect fraudulent behaviour.
One woman said he would visit her retirement home with flowers, taking her to lunch to gain her confidence.
Another woman Nugara targeted became especially vulnerable after the death of her accountant husband, who previously managed her investments.
Another victim had their family deceived after a son brought his parents into Nugara's scheme.
‘You took advantage of people who placed their trust in you, many of whom were older and looking forward to a comfortable retirement,’ County Court Judge Trevor Wraight said in a hearing.
When some of Nugara’s clients inspected properties he claimed were being developed, they found the buildings were unchanged, or demolition hadn’t even begun.
Some were advised by a financial watchdog to contact police, and others discovered the scheme through their solicitor.
By the time the fraud was uncovered, some victims had been strung along for years and had to delay retirement plans or turn to government support.
Judge Wraight called Nugara's actions 'callous, selfish and reprehensible.' It was also revealed that he let go of his assets and moved overseas before the investigation began, indicating he planned on starting over elsewhere with the money he stole.
But when his ventures in other countries failed, he returned to Australia and faced the charges—something his legal counsel argued was evidence of him being willing to face his crimes.
‘Whatever your reason for returning to Australia, I'm not convinced it was motivated by your contrition,’ the judge remarked.
He was sentenced to 9 years and 11 months in prison last October 5. He pleaded guilty to 27 counts of obtaining financial advantage and two counts of theft.
He will be eligible for parole after six years and six months in prison.
Most of the stolen funds had not been returned to the victims, though reports indicate at least some victims have had their money returned.
You can watch 10 News First Melbourne’s report here:
Members, this case highlights the importance for retirees to be wary of 'get rich quick' schemes and verify the credentials and legitimacy of companies handling their money.
It is important to research proposed investments thoroughly and watch out for promising returns that seem too good to be true. You may also consider getting a second opinion from a trusted expert or family member before making major financial decisions.
What do you think of this story, members? Do you know anyone who experienced a similar scam? Let us know in the comments below!
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