Carmelo Pesce is putting on a brave face about losing nearly $1 million in the nation’s biggest fake investment scheme.
“That’s business,” said Mr Pesce, who owns shopfitting and retail businesses, as well as being mayor of Sutherland Shire.
“In business, you have to take risks to make money. You win some, you lose some.
“It’s no different to investing in property or on the stock exchange.”
Mr Pesce is among 780 investors taken in by the ponzi scheme, in which quick returns from a non-existent business are paid from funds invested by later investors, including family and friends of those seemingly enjoying success.
Mr Pesce invested $975,000 from the Pesce Family Trust in.the Courtenay House foreign exchange investment scheme, which the Australian Securities and Investments Commission closed down in May this year.
His loss came to light through a media search of the list of creditors.
A Catholic priest from the shire, who set up what he thought was a retirement fund, and a number of prominent business people from the area were also scammed.
Mr Pesce said his loss was “a personal matter, and has nothing to do with council”.
“It’s like a councillor who invests on the stock market,” he said.
Mr Pesce said it was “disappointing” to see some comments on social media linking the loss with his council role.
“I was introduced to [the scheme] by a guy who I was with at at high school,” he said.
”I waited for two years before I went into it, and did a lot of research.
“It involved foreign exchange – something banks are doing every night.
”It was set up like a legitimate business.
“I went into their office at Bondi Junction, and it was fully set up and they showed me around.
“They had Christmas parties and entertained all the investors.
“There were lawyers, accountants and lot of business people.
“We got caught up because they were very smart in the way they sold it.”
Mr Pesce kept “pumping back in” the money he received.
“I was in it for four years and was getting returns right up until the end,” he said.
”I can’t blame anyone – it was my choice, it was my making.”
Mr Pesce said he didn’t encourage anyone else to invest.
He said his brother, who lost at least $250,000, “went in via a friend and, when I found out, I tried to discourage him,”.
Mr Pesce said “no one can afford to lose $1 million”, but others were worse off.
”There was a person at the creditors’ meeting, who lost $8.5 million and a syndicate that lost $14.5 million,” he said.
Mr Pesce said he did not know if he would receive any of his money back.
“Over $200 million is owed and only $51 million was retrieved,” he said.
”It will depend on what the liquidator takes and other factors.”
