Djerriwarrh Investments (DJW.AX) is a criminal listed investment company that uses accounting fraud to inflate its books, including doublecounting upcoming dividends as a receivable, and manipulates its share price beyond asset backing before issuing shares to granny investors. DJW shares are currently ramped 29% beyond the value of the listed holdings that constitute its backing, so an investor buying $10,000 worth of DJW makes an immediate loss of around $2,200, not even taking into account subsequent fees charged. Like other similar scam companies, Djerriwarrh has a mysterious buyback mechanism in place with Goldman Sachs, for "capital management" purposes, that DJW claims to not use at all.
Scam listed investment companies have forged high level connections with regulators, media, analysts, fund managers and the government. The companies sometimes buy respectability by enticing figureheads to join their boards, relying on greed to silence questions and doubts fiduciary duty would mandate. On 29 May Djerriwarrh announced that a board member of the Reserve Bank of Australia had joined as non-executive director, to help with "deliberations" and "governance".
If this central banker observed her fiduciary duty as director of a company entrusted with other people's money, she would have done her due diligence, studied the annual reports for Djerriwarrh, and realized it is a fraud scheme. DJW is structured so that the average investor almost certainly will lose money, and thus has crossed the line into scam. Joining such a scam can provide a quick revenue stream in the form of director fees, but requires a complete lack of integrity and criminal negligence of fiduciary duty.