Watch out for cold calls from a Queensland-based outfit called OLM selling an “investment package”.
Kiwis are being asked if they have $10,000 to invest. The “package” turns out to be betting software for horse races in Melbourne and Sydney.
OLM cold called a Consumer researcher’s home and made numerous claims, including that the betting returns had been audited in Australia by accounting firm Deloitte. We checked with Deloitte Australia and were told: “we have not been able to find any evidence that OLM Pty Ltd is a client of ours”.
The software system costs AUD$8900 to buy and OLM claims that its customers have made $93,792.38 total profits in 7 months from a $1000 initial “investment”.
No consumer protection
Although claiming to be an “investment”, OLM’s offer doesn’t come under our investment laws and leaves consumers open to being ripped off. Liam Mason, head of Legal at the Financial Markets Authority says his organisation is unable to take action because software isn’t technically a “security” (that is, a type of investment). But he said “we would discourage New Zealanders from sending money to any company, where it is unclear what the precise offer is, what risks are entailed and how you might obtain redress if something goes wrong.”
Authorities on both sides of the Tasman, as well as the TAB, are warning consumers not to pay money to OLM-type schemes.
Alastair Stewart, communications advisor at the Ministry of Consumer Affairs, says investment scam software will not work as promised and consumers will not get their money back. “Computerised gambling systems promise to predict results accurately, for horse races, sports events and even share markets. While there are legitimate software packages to monitor investment variables, the scammers make exaggerated claims by making empty guarantees that you'll be able to make money through betting.”
This message is echoed by the Australian Competition & Consumer Commission, which has warnings about sport investment schemes on its website scamwatch.gov.au. It told us the promoters of these schemes can be persistent, which is exactly what happened to our researcher. When asked for some time to “think about it”, OLM’s salesman claimed that there were only 4 licences left in the Auckland area – a classic hard-sell technique.
Our view
- This offer has all the hallmarks of a scam.
- It involves gambling, not investment.
- If OLM really offered the returns suggested, the company directors would have no need to tout for business on this side of the Tasman.
- Your chances of recovering money paid to an Australian-based company are slight.
More information
- Ministry of Consumer Affairs: www.scamwatch.govt.nz
More from consumer.org.nz
- Scams - our guide to protecting yourself
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I have bought the software from OLM, the person that contacted me was incredible nice and respectful over the phone she seemed so mature and nice, she promised me that in 6 months I would have 10000$ and that every single month I would have earnings other wise I could claim my money back as I was fully protected by law to do so, its been four months I haven't made any money, I lost a bit more than 300 $ so I asked for a refund as the software is clearly not working, OLM PTY ltd. sent me a 2 page letter where they said they were unable to accept the return of the software, once its open you can’t return it, they also said " we would ask you to persevere as we receive no real indication on when the averages will return in to our favor.
So I have lost 3950$ Australian dollars plus the 330$ that I put on the bets so all I can say is stay away from them no matter how nice and promising they sound they will tell you what ever you want to hear to make you buy it. THE SOFTWARE DOES NOT WORK and you aren’t getting your money back.
I was sent a catalogue showing horse racing results and how much money they paid, and then was contacted by a OLM agent who offered a computer prediction software, that will make me 3000 $ or over per month , she assured me that I was covered by the fair trading act so if the software did not perform as promised full money back guaranty applies. I have bought teh software for 3950A$ used it 4 four months did not make any money contacted them for a refund and it was denied to me .
The person I spoke to seemed very professional, coinfident and believable. He convinced me it was a good investment, but I checked what my accountant thought. His response: I wouldn’t touch this. The old maxim “if it sounds too good to be true, it probably is” applies. It looks decidedly dodgy to me.
I received an email with the investment info plus a phone call. The returns seemed to good to be true which I told the caller to which he told me that one had to be brave to get anywhere in this world. He was a bit pushy but not unpleasant - for an Aussie! I declined the offer to sign up