The business model for each of the schemes followed a similar pattern that deceived many investors.
R2i produced glossy and attractive marketing brochures that contained false representations about land security, land valuation and prospective returns.
These brochures and the persuasive sales staff raised significant funds from investors.
Common features included the failure to ring-fence client accounts, highly suspicious transactions, falsification of financial statements, overinflated land valuations and transactions not being carried out at arms-length which resulted in further investor funds being misappropriated.
A frontman was often involved to give the investment schemes credibility but in reality, the entire process was controlled by the Crossicks and R2i.
Failed investments were blamed on a developer and a Ponzi style replacement was offered.
A large amount of funds remains unaccounted for or have simply disappeared, other funds went off to the directors and associates to fund their lifestyles with little or no justification and large volumes of funds were transferred across numerous R2i accounts so that the audit trail was disguised.
Consequently, many R2i retail investors now face significant financial loss.