This might be old news in relationship to V8 Supercars, but I heard an interview today with the author of a new book "Firepower" about the "greatest fraud in Australia". Most of us heard how Firepower was a con, but until I heard the author and dug a little, I didn't realise the scope of it.
Basically the guy who set it up sucked-in millions by the old-boys network. The Firepower tablets actually do nothing, and the claims say each tablet costs about five bucks, and promises to save you .... about five bucks in fuel - go figure! But this guy got his start by pyramid selling Firepower agencies. Then he found a sucker in the Australian Rugby Union, which is full of old-boys. They took him to dinner and he promised them money, and coughed up some of it to sponsor the Western Force. Then they vouched for him to their business mates, who then vouched for him to pollies and government agencies with cash, such as Austrade. Everybody thought it was a huge company, but it had eight employees in an industrial estate in WA.
The old-boys network promoted Firepower to their financial investor mates, who flogged Firepower shares to unsuspecting investors, including retirees. The sell was encouraging people to get in on Firepower at the beginning of a huge boom in fuel-saving technology. Some people smelled a rat and reported it to ASIC. ASIC asked him questions by mail, to which he replied with bull%^&, and they believed him. Austrade subsequently gave him $394,000 in grants to develop an export market. His networking continued all the way up to promised donations to the Liberal Party, so he was best mates with John Howard.
The newspapers started digging in 2007 and then it all came undone. But not until he had also become a major sponsor in ARL, NBL and V8SC, again helping to groom corporate buddies and gain political support.
In 1992, the NZ equivalent of the NRMA had proven Firepower tablets to be a con, and publicise the results. No one listened, they were all too busy vouching for their new-found mate, the sports sponsor.
Basically the guy who set it up sucked-in millions by the old-boys network. The Firepower tablets actually do nothing, and the claims say each tablet costs about five bucks, and promises to save you .... about five bucks in fuel - go figure! But this guy got his start by pyramid selling Firepower agencies. Then he found a sucker in the Australian Rugby Union, which is full of old-boys. They took him to dinner and he promised them money, and coughed up some of it to sponsor the Western Force. Then they vouched for him to their business mates, who then vouched for him to pollies and government agencies with cash, such as Austrade. Everybody thought it was a huge company, but it had eight employees in an industrial estate in WA.
The old-boys network promoted Firepower to their financial investor mates, who flogged Firepower shares to unsuspecting investors, including retirees. The sell was encouraging people to get in on Firepower at the beginning of a huge boom in fuel-saving technology. Some people smelled a rat and reported it to ASIC. ASIC asked him questions by mail, to which he replied with bull%^&, and they believed him. Austrade subsequently gave him $394,000 in grants to develop an export market. His networking continued all the way up to promised donations to the Liberal Party, so he was best mates with John Howard.
The newspapers started digging in 2007 and then it all came undone. But not until he had also become a major sponsor in ARL, NBL and V8SC, again helping to groom corporate buddies and gain political support.
In 1992, the NZ equivalent of the NRMA had proven Firepower tablets to be a con, and publicise the results. No one listened, they were all too busy vouching for their new-found mate, the sports sponsor.
