Phone: (07) 3802 2700

Fraudulent chain letter doing

The Office of Fair Trading (OFT) is reinforcing its warning to Queenslanders not to be enticed by

the “David Rhodes” chain letter scam following reports that letters are once again circulating

throughout the state.

Acting Executive Director Fair Trading, Tony Johnson said the notorious letter professes that

people can turn $200 into a $70,000 cash windfall over 60 days however consumers are instead left

with no return on their investment.

“Those who receive the letter are asked to mail a $10 note to the person at the top of a list of

names,” Mr Johnson said.

“They are asked to delete that person’s name, add their own name to the bottom of the list and

send copies of the letter to 200 people selected randomly from the telephone directory.

“They are then asked to tape a five cent coin to the front of each letter to draw attention to it.

“The letter claims the cost of photocopying, envelopes, postage and the money sent off is a small

outlay for a $77,760 guaranteed return.

“Despite these promises, consumers usually end up out of pocket,” Mr Johnson said.

The new Australian Consumer Law, which commenced on 1 January 2011, makes it a criminal

offence to promote or participate in schemes of this kind with maximum penalties of $220,000 for an

individual and $1,100,000 for companies.

Similar schemes in the past have appeared under the names of Paul Collins, Edward L Green and

David Stein.

“Like many unscrupulous schemes there are always glowing testimonials where people have

supposedly gone from rags to riches by participating in these scams however Queenslanders are

urged not to be fooled. There is no proof that these are real.

“If you receive one of these chain letters, you should ignore it and just throw it in the bin.

“Don’t fall victim to this deceitful and illegal activity,” Mr Johnson said.

For more information on consumer rights, or the ACL, visit

www.fairtrading.qld.gov.au or call 13

QGOV (13 74 68).

Crestmead

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