THOUSANDS of people were conned into paying a total of $78 million for lactic powder worth less than $600,000 in an 18-month scam, the High Court heard yesterday.
They were told for just three hours' work a month they could earn a minimum of $3,000-a-month by growing lactic ferment which would be sold back to the company to make an ''exclusive line'' of cosmetics in Switzerland.
But Breckenridge Corporation Limited was set up by a couple, Robert John Walsh, 63, and his wife, Suzanna Wong Sau-ping, 43, as a deliberate fraudulent scheme to obtain money from the public by deception, the High Court heard. The growers had not been paid.
The lactic ferment was never used in any cosmetics and had no commercial value, the Crown alleged. In fact, it was unsuitable for cosmetic use.
When Breckenridge ceased trading in June 1991, more than 3,400 growers had paid $78.7 million for lactic culture. The court heard Breckenridge had paid $588,000 for the same culture.
Opening the Crown's case, Bernard Ryan said Walsh was the driving force behind the company and Wong played an active part in the fraudulent scheme.