In Melbourne's central business district, Global Investment Marketing (GIM) is under scrutiny for allegedly defrauding investors of millions. The company, which claimed to manage vast sums of money, operated from a virtual office at 440 Collins Street, where it had minimal physical presence. Clients have reported feeling misled, believing GIM had a legitimate office staffed with professionals.

GIM's use of a virtual office allowed it to present a credible image while significantly reducing costs. This setup included services like a receptionist and mail handling, which contributed to the perception of a robust financial institution. One investor described the company's operations as “very serious, very well done efforts … to swindle people.”

Recent investigations have revealed potential offshore connections, raising suspicions of involvement by a criminal syndicate. Stephen Cubis, GIM's former public representative, expressed his belief that GIM was running a fraudulent scheme. Many Australians have reported losses amounting to hundreds of thousands of dollars each.

Financial crime expert Neil Jeans noted that he was surprised to learn about GIM, given its claims of being a significant player in finance. He stated, "This location clearly would give credibility to a company that was providing financial services," emphasizing that GIM's virtual office could mislead investors.

Ron Renton, a retiree from Western Australia, invested over $750,000 in corporate bonds through GIM, only to suspect that the bonds were never purchased and that his money was stolen. He said he was led to believe that GIM staff were present at the Collins Street office. Renton remarked, "It was all part obviously of the very serious, very well done, efforts by these people to swindle people."

The National Anti-Scam Centre has reported nearly $8 million in losses linked to GIM since last year. Renton highlighted the need for accountability, stating, "Somebody was making payments to the owners of the virtual office system and that needs to be followed up."

GIM had advertised itself as a leading financial services provider, claiming to manage $52 billion in assets with over 140 employees. However, when Renton had someone check the Sydney office, they discovered that no staff were present, and communication was solely via email.

Jeans reviewed GIM's claims and concluded that they did not align with reality. He stated, "That is the essence of a scam that I think has occurred. They have created a veneer, a veneer that instils confidence in the investor."

The company that provided the virtual office, Virtual Headquarters, stated it conducts thorough customer checks and has serviced over 15,000 businesses. However, it did not respond to inquiries about GIM's specific arrangement.

Jeans noted that while virtual offices are commonly used by legitimate businesses, they can also be exploited by criminals. New anti-money laundering laws set to take effect next year may help address such issues by requiring companies to register with regulators and verify customer identities.

Cybercrime investigator Ken Gamble has been hired by several clients to trace the funds lost to GIM. He explained that fraudsters often use multiple bank accounts to move stolen money, complicating recovery efforts. Records indicate that between October and December 2024, clients transferred their savings to a Commonwealth Bank account associated with GIM. The bank halted the account after receiving credible information about GIM's legitimacy.

Despite warnings from Commonwealth Bank and Macquarie, payments continued to flow into another account at National Australia Bank. Gamble questioned whether NAB acted swiftly enough to protect clients, stating, "There needs to be an investigation into when they were notified and if they were notified by another bank that there's a potential fraud."

NAB maintained that it acted appropriately and cooperated with investigations. Gamble also revealed that GIM used a money exchange service called TorFx, which converts funds into foreign currency before transferring them to other accounts. TorFx declined to comment on the situation.

Cubis, who was involved with GIM, claimed he was instructed to manage a company bank account and move funds based on directions from two men, one of whom was overseas. He admitted to having previous minor convictions but insisted he initially believed the operation was legitimate.

New findings suggest that GIM may have connections to an offshore criminal syndicate. The company's former owner, Hilton Wood, sold GIM to Cubis for $220,000, with payment originating from a Hong Kong company. Gamble believes this indicates a broader scheme requiring urgent investigation by authorities.