The Australian Competition and Consumer Commission has pursued the proceeds of a pyramid selling scheme to Vanuatu, successfully gaining orders against Golden Sphere International Inc, Pamela Reynolds and Victor Cottrill in the Supreme Court of the Republic of Vanuatu.
The ACCC had previously gained orders against the Vanuatu-based company in the Federal Court of Australia.
Justice Saksak of the Supreme Court of the Republic of Vanuatu ordered: judgment in favour of the ACCC against the defendants (Golden Sphere International Inc., Pamela Reynolds, and Victor Cottrill), jointly and severally in the sum of $A292,791 with interest payable at a rate of 10% per annum from 1 June 1998; that the Registrar of Companies and/or the Registered Agent of the Company disclose the beneficial ownership and shareholdings, and bank accounts of the company; and that various banks in Vanuatu disclose relevant information relating to the defendants bank accounts such as providing information regarding cheques, telegraphic transfers, bank drafts and related documents to any withdrawal on any such accounts in excess of VT500, 000 on dollar equivalent.
The ACCC obtained judgment on 1 June 1998 against the same defendants in the Federal Court of Australia. The Australian judgment provided the basis for judgment in the Supreme Court of the Republic of Vanuatu.
"This case exemplifies the determination of the ACCC to pursue those companies and persons who have blatantly breached the Trade Practices Act 1974 whether they are situated in Australia or otherwise," ACCC Chairman, Professor Allan Fels, said today. "It demonstrates also that a large number of participants/claimants can obtain recompense through the use of representative proceedings.
"The ACCC instituted proceedings in 1996 to obtain injunctive and other relief. The ACCC also commenced representative proceedings to obtain monetary relief on behalf of the members of the public who had joined the Golden Sphere Scheme.
"On 1 June1998, Justice OLoughlin of the Federal Court of Australia, Brisbane held that Golden Sphere International Inc, Pamela Reynolds and Victor Cottrill had breached the pyramid selling section of the Trade Practices Act 1974. The defendants were ordered to pay an amount of $550,000 into a trust fund to be administered by Mr Digby Ross, Official Receiver of the Insolvency and Trustee Service Australia. By 23 October 1998 the fund had received an amount of $261,959 which had initially been frozen by a mareva injunction order of the Federal Court.
"The money in trust has been available to members of the public who participated in the Golden Sphere pyramid selling scheme. The ACCC and ITSA notified the participants of the Federal Court orders in major national newspapers and invited the participants to submit claims for recompense from the fund. ITSA advises that all of the claimants have been paid from the fund.
"Golden Sphere International is a Vanuatu-based company. The defendants did not pay the balance of the $550,000 in accordance with the June 1998 judgment.
"The ACCC obtained evidence that money due to the company had been transferred to Vanuatu. Therefore, the ACCC sought to obtain orders in Vanuatu including judgment for the balance of the monies owing to the fund.
"On 14 September 1999 the ACCC obtained the orders outlined above in the Supreme Court of the Republic of Vanuatu. The defendants did not appear in court to defend the ACCCs application nor has there been an appeal lodged within the 21 day appeal period".
