A Queensland lawyer who set up a sham diamond business selling payday loans to vulnerable people has lost an appeal to have his license reinstated.
Robert Leggat, a former director and legal adviser at Fast Access Finance (FAF) in Queensland, was investigated over a scheme authorities say involved Leggat preying on vulnerable customers who approached his company for short-term loans.
Instead, customers were offered the option to purchase diamonds on credit that were stored outside the business, according to investigators.
Leggat was banned by the Australian Securities and Investments Commission in September 2017 for his role in the scheme.
The diamond model has been the subject of several court hearings, including in the Federal Court in 2015 and 2017.
Customers would sign a confidentiality agreement form, which noted that the customer had applied to “borrow a certain amount of money,” and then sign other forms, including a diamond purchase contract.
The purchase price was $250 per diamond.
The diamonds will then be sold to another company, Diamond Clearing House Pty Ltd, for half the purchase price and the customer will receive cash.