Bookkeeper Michelle Lawson pleads guilty to $2.8 million farming family fraud
Michelle Kathleen Lawson, 53, defrauded the farming family that employed her in Tully, between Cairns and Townsville. (ABC News: Dominic Cansdale)
In short:
Michelle Kathleen Lawson has pleaded guilty to defrauding seven businesses belonging to members of a farming family from Tully in Far North Queensland.
The District Court heard Lawson funded luxuries with the money gained while working as the family’s trusted bookkeeper.
What’s next?
The 53-year-old is due to be sentenced in Cairns next week.
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.