Deloitte Australia chief executive admits to investing in allegedly fraudulent scheme

The investors said another issue was preferential payments, which involve early investors recouping their capital and sometimes additional interest payments unwittingly at the expense of those later lured to the suspected scheme.

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Endow promised investors huge returns of up to 40 per cent with zero risk for lending him money to buy what he claimed were Indian government-issued bonds.

Investors, who in addition to over a dozen Deloitte partners include senior executives from consulting and IT firms across Australia, told The Age and The Sydney Morning Herald they were convinced to send funds to multiple personal accounts Endow was operating across the big four banks.

“The promised returns are obviously eye-watering and should have raised major red flags,” said one source, who asked to remain anonymous because he was not authorised to comment.

Endow claimed the Indian bonds were linked to a large, ongoing government infrastructure program called the Pradhan Mantri Gram Sadak Yojana that is working to improve India’s rural road network. Endow said he was servicing the project as a contractor, according to documents he provided to investors.

Investors who spoke on the condition of anonymity due to the sensitivity of ongoing investigations told this masthead earlier this week that when Endow was pitching the investment, a key selling point was that they were told Powick was an early investor.

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Endow allegedly said to them that Powick had been at his wedding in India, alongside other senior partners, and it was there that the idea for the foreign direct investment scheme was created.

“That’s how he roped me into it, by mentioning Adam’s name,” said one investor. “At the time, it influenced me and others to join the scheme.”

Another investor said it brought “a lot more trust” to the investment.

“It legitimises it, and these are all successful prominent people [who invested],” he said. “We trusted this guy … I thought it was fairly safe because of who was involved.”

“At no stage have I ever encouraged or invited anyone to be part of this investment.”

Deloitte CEO Adam Powick

A Deloitte spokesperson on Wednesday had declined to answer questions and in response to questions directed to Powick said: “Deloitte does not comment on the personal investments of our partners.”

Endow’s pitch also centred on his own position at Deloitte, where he had worked his way up to a senior role of lead partner of robotics and automation, along with the fact multiple Deloitte partners were investors in his scheme.

Endow promised investors huge returns for lending him money. A 2019 pitch document said those who provided more than $250,000 were guaranteed returns of 39.02 per cent over six months. An updated 2022 document outlines returns of 29.19 per cent over six months on investments of $950,000 or more.

Several investors have made complaints of fraud to police in New South Wales and Victoria. Police in both states are investigating.

Sources not authorised to speak publicly said the Australian Securities and Investments Commission had also received several reports about the suspected fraud in late December and January, and had contacted police to assist them in their inquiries.

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