CONMAN PETER FOSTER BANNED FOR LIFE

Written on the 12 May 2016

CONMAN PETER FOSTER BANNED FOR LIFE

THE Federal Court has fined conman Peter Foster $660,000 and permanently banned him from being a company director or having any business in the health industry.

Justice David Yates fined his weightloss scam business SensaSlim, which is now in liquidation, a total of $3.55 million for engaging in misleading and deceptive conduct and making false representations.

An investigation by the Australian Consumer and Competition Commission found that SensaSlim's oral spray, which claimed to cause weight loss, suggested it was the subject of 'a large worldwide clinical trial'.

The SensaSlim solution was distributed through franchisees to be on-sold to consumers through retail outlets. Around 110 areas were sold to franchisees for the cost of $59,950 each.

SensaSlim earned approximately $6.4 million from the sale of these franchises.

"Mr Foster went to great lengths to hide his involvement in SensaSlim from franchisees and others - his conduct was unacceptable and extremely deceitful, and the Court imposed penalties reflect this," ACCC deputy chair Dr Michael Schaper says.

"People who decide to buy into a franchise business typically put much of their own savings on the line. They must be able to make informed business decisions on the basis of full and accurate disclosure by the franchisor."

In handing down the penalty Yates says that Foster "preys on the right-mindedness of others to cheat and deceive."

He says in the present case, he lurked behind SensaSlim precisely for that purpose and is beyond redemption.

The Court also found that SensaSlim made false representations about the role of SensaSlim's officers, Michael Boyle and Peter O'Brien, that there was a 'worldwide clinical trial' of the SensaSlim Solution and the earning potential of SensaSlim franchises.

Foster, Boyle and O'Brien were found to be knowingly concerned in, or party to, some of SensaSlim's contraventions.

The Federal Court made Boyle pay a penalty of $75,000 and be disqualified from managing a corporation for 3 years and O'Brien was ordered to pay a penalty of $55,000 and be disqualified from managing a corporation for 10 years.

The ACCC initially instituted proceedings against SensaSlim and its staff in July 2011.


Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter