Endow promised investors returns of up to 40% in six months for lending him money to buy what he claimed were bonds issued by the Indian government.
The bonds are said to be tied to a major ongoing government infrastructure program that aims to improve India’s rural road network. Endow said he was managing the project as a contractor, according to documents he provided to investors.
The bonds are said to be tied to a major ongoing government infrastructure program that aims to improve India’s rural road network.Credit:Bloomberg
The investors, which in addition to Deloitte partners include senior executives from consulting and IT firms across Australia, said age And The Sydney Morning Herald they were convinced to send funds to several personal accounts. Endow operated in all four major banks.
“The promised returns are obviously mind blowing and should have raised some major red flags,” said a source, who asked to remain anonymous as he was not authorized to comment.
Investors said another issue was preferential payments, which involve early investors getting back their capital and sometimes additional interest payments at the expense of those later lured into the suspected scheme.
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Investors told this masthead that they wanted to know what Deloitte knew about Endow’s business and the extent to which he violated company policy.
Deloitte is one of the largest accounting, auditing and consulting firms in the world, and among the core services it provides to its clients is the detection of fraud and improper behavior in businesses and government agencies. Deloitte employees must disclose their investments and business interests to avoid conflicts of interest and reputational issues.
It is unclear whether the Deloitte partners who invested in Endow’s suspected scheme sought permission to do so and to what extent each promoted the suspected scheme to others outside the company, although two investors told this masthead that they invested because of advice provided by a Deloitte partner.
There is no indication that investors linked to Deloitte knew that Endow was a suspected fraudster or that they themselves had acted illegally.
Endow lived with his wife and children in a rented apartment in Sydney next to Delta Goodrem, drove a black Porsche and convinced at least 10 active or former Deloitte partners to back his ‘foreign direct investment’ vehicle qu he named ‘Endow Family Cap’.
Her three-bedroom apartment, which has “a view of the harbor and the opera house”, is now publicly online as available to rent.
Sources said an initial scan of his bank accounts revealed lavish spending on luxury and lifestyle items, including gambling.
This masthead spoke to several investors, all of whom described their interactions with Endow on condition of anonymity due to the sensitivity of the ongoing investigations.
Rodney Eade, former AFL champion and former coach of the Western Bulldogs, Sydney Swans and Gold Coast, is one of the leading investors looking for funds. He declined to comment.
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An investor who has dealt with Endow described him as compelling and polished.
“He was very believable,” the source said.
Investors said Endow’s speech centered on his trusted leadership position at Deloitte, as well as the fact that several Deloitte partners were investors in his alleged scheme. A businessman said he was advised to invest with Endow by a Deloitte partner who vouched for the suspected scheme.
“My wife warned me it was too good to be true and I should have listened,” the investor told this masthead on Monday.
Another said: “Greed got the better of me, but I wouldn’t have invested without the Deloitte connection.”
Endow’s LinkedIn profile says he is currently “on short hiatus” and is looking forward to his “most challenging and exciting leadership role yet.”
big promises
Endow lured investors to his alleged scheme by promising huge risk-free returns.
In a 2019 pitch document distributed to investors, Endow described how his family business in India was “lucky to be one of 3 selected contractors” on the funded Pradhan Mantri Gram Sadak Yojana infrastructure mega-project. by the Indian government to reshape the country’s rural. road network.
Deloitte said Endow ceased being a partner in January 2021 and its conduct, involving its private company Endow Family Cap, is now under investigation.Credit:Paul Oak
He claimed his family business ran a works pipeline worth hundreds of millions of dollars and needed funds from Australia to buy Indian government bonds that project contractors were required to hold to prove their financial stability.
Australian investors who gave Endow up to $50,000 were guaranteed six-month returns of 20.12%, while investors who provided more than a quarter of a million dollars were guaranteed “ 39.02% for six months”.
“Investment represents a zero risk profile – it is simply an instrument of financial engineering and the advantages of being an FDI [foreign direct investment] for a major capital program of this nature”, documents prepared by Endow and marked “confidential”.
The leaked documents describe Endow as “the personal guarantor of invested principal and interest.”
“Lately we have seen several (government led) infrastructure projects in India going through the same process…there is a scenario where after June 2020 we might be looking at launching a contract finance fund fully fledged here in AU (Infra Fund under AU regulation) However, currently the transaction mechanism described above is suitable for a limited community of investors.
McLaughlin, commenting for Duxton Hill, said: ‘I can confirm that we are carrying out a very thorough investigation involving complex financial transactions, including the transfer of funds overseas. Our investigation is continuing. »
Want to know more about this story? Contact the journalists at nmckenzie@theage.com.au and simone.koob@theage.com.au.
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