After an ACCC investigation of almost two years Golden Sphere International Incorporated has been ordered to pay $550 000 into a trust fund to provide refunds to consumers who invested in the Golden Sphere pyramid selling scheme.
On 1 June 1998 the Federal Court Brisbane found that Golden Sphere International Incorporated and two Australian promoters had breached the Trade Practices Act in promoting the scheme. Establishing the trust fund was part of the Court's orders.
The fund is being managed by the Insolvency and Trustee Service of Australia (ITSA). Over $250 000 has now been recovered and the Commission is attempting to locate further funds.
The Court also ordered the Commission to publish notices in The Australian, The Courier Mail and the Daily Telegraph newspapers to inform consumers about the way in which refunds may be obtained from ITSA. The Commission will not have a role to play in awarding refunds to consumers.
The notice will appear in these newspapers on Saturday 12 December 1998 and will invite consumers to contact ITSA with a view to applying for a refund of money they might have lost as a result of investing in the Golden Sphere Scheme.