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Carsales Staff13 Jul 2015
NEWS

Aussie speculators ripped off $2.4 million

Dodgy company under investigation for fraudulent 'sale' of Tesla shares

An investigation by Police and Consumer Protection in WA has revealed that a couple was swindled out of $45,000, believing they were investing in American EV manufacturer, Tesla.

Through an online search the couple found a company, Larosa Holdings trading as Larosa Group. They understood that Larosa, a company claiming to have offices in Dubai and Canada, would sell them shares in Tesla.

Depositing the money into a Dubai bank account in two amounts – $28,000 initially and $17,000 more after being contacted by a company agent offering more shares – the couple waited. When they received no official notification they had acquired shares in Tesla, which is currently worth $260 a share, they contacted the authorities.

The WA couple are among numerous Australian speculators who have been ripped off by Larosa on the same basis. According to police and Consumer Protection, at least five WA residents have lost a total of $120,000, but across the country investors have been conned out of as much as $2.4 million, thanks to the Larosa scam.

From preliminary investigations Consumer Protection and police have learned that Larosa is "not registered as a provider with the Dubai Financial Services Authority" and nothing about the Larosa website is genuine. Legitimate contact details and images have been lifted from other websites.

"Anyone who has had dealings with Larosa Group is urged to make a report to the Australian Cybercrime Online Reporting Network (ACORN)," said Consumer Protection Commissioner Anne Driscoll, as quoted in a press release.

"I would also strongly recommend that investors only use licensed financial investment operators when looking to invest their money.

"Doing random searches on the internet for investment opportunities is a risky exercise as some professional looking websites could be fake and operated by criminals seeking to defraud would-be investors.

"We would urge investors to go through Australian stock brokers and financial services providers licensed by ASIC to ensure their investments will be handled in a secure and professional manner.

"If you choose to deal with an overseas based company which is not registered in Australia, you should consult the International Organization of Securities Commissions (IOSCO) website and check with the appropriate authority where the overseas business is located to confirm they are appropriately registered to provide the services you require."

In the USA, American website AutoblogGreen contacted Tesla concerning the hoax, but the company declined to comment on the case.

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