Thousands of families around the world may not know it yet, but their life savings might have gone missing.
It appears they were tricked into thinking they were getting an early tip on stocks that were about to be listed. Truth is, those stocks still haven’t listed.
In an explosive confession on 60 Minutes, stockbroker Kris Ridgway admitted to taking part in this multibillion-dollar global financial scheme he claims was masterminded by Britain-based Andy Turner and Australian David Sutton.
In an explosive confession on 60 Minutes, stockbroker Kris Ridgway admitted to taking part in this multi-billion dollar global financial scheme he claims was masterminded by British based Andy Turner and Australian David Sutton. (60 Minutes)
Ridgway confessed to the con he played on his clients, including friends and clients who trusted him with their hard-earned money.
“I knew it was wrong. They said ‘we’ll pay you a decent commission’. I guess I was greedy. I was desperate for money, and I made a decision to let them sway me,” he told Adele Ferguson.
Ridgway ran the operation off the books while he was employed as a senior financial advisor at a reputable Brisbane investment firm, Shaw and Partners.
When the firm found out, Ridgway was immediately questioned, then fired.
No one at Shaw and Partners knew about Ridgway’s activities.
“I told the clients what I was told, so they felt as though they were having an investment that continued to be more and more prosperous,” he said.
Ridgway claims Britain-based Andy Turner (left) and Australian David Sutton (right) are the masterminds behind the multi-billion dollar global financial scheme. (60 Minutes)
Andy Turner’s response to questions via email
“I was not a founder of any of the companies mentioned, and the only renumeration (sic) that I have received for services provided from any of the companies mentioned was in shares of the companies,” Andy Turner wrote in an email.
“As far as I am aware [the shares] were all sold to sophisticated investors who were fully aware of the risks involved in purchasing shares at a deep discount to net asset value. Unfortunately, due to Covid and the subsequent financial markets turmoil of the past 18 months the market for IPOs has dried up with London recording its worst market for IPOs for 14 years.
“The investors should be fully aware that any public offering is subject to market conditions.”
Investors, he said, can sell their shares on a secondary placing market.
Kris Ridgway was a senior adviser at the prestigious Brisbane wealth management firm, Shaw and Partners. (60 Minutes)
Statement from Shaw and Partners
“Without our knowledge or approval, Mr Ridgway introduced parties to investments that now appear to be fraudulent. He deliberately circumvented all internal processes, systems and procedures to deceive us and his clients. This was all done outside of Shaw and he worked with external parties to facilitate his disgraceful activities.
“On becoming aware of Mr Ridgway’s side activities, we terminated his engagement with us, reported his illegal conduct to the regulator and committed to a comprehensive remediation program designed to compensate the impacted parties concerned and we are working with them to make good and uphold our corporate responsibilities which we take extremely seriously.
“It is our hope that the regulators and other authorities use the full force of their powers, and quickly, to hold those ultimately responsible to account and bring this to all to an end with justice being served.”
Statement from the Australian Securities and Investments Commission (ASIC)
“This matter is complex and multijurisdictional, involving companies and conduct across multiple countries. It is important that ASIC undertakes its investigation in a thorough and comprehensive manner. We commenced our investigation into this conduct in March 2022 and announced our first administrative outcome on 13 April 2023.
“It said it has permanently banned Kristofer Ridgway from having any involvement in financial services and that its investigation into David Sutton, as well as companies associated with Sutton and Ridgway, continues.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
