Trust me, I’m Lying
/
In a time where schemes and scams are constant, understanding what tactics and behaviors to look out for is crucial to prevent larger losses. At the 36th Annual ACFE Global Fraud Conference, Roland Winter, CFCI, CFCS, an executive director of forensic and cybersecurity at Korda Mentha, delivered a compelling case study on one of Australia’s most notable con men, Peter Clarence Foster.
Winter entranced attendees with his session, “Trust me, I’m Lying: Australia’s Greatest Con Man of the Modern Era,” delivering insights with a fun and humorous spin throughout. His presentation offered a detailed look into Foster’s long history of scams, providing the audience with insights into how he managed to deceive as many people as he did for many decades. Dubbing himself the “International Man of Mischief,” Foster managed to conduct a myriad of schemes including weight loss teas, pills, sprays, treatments and even bitcoin fraud and a sports arbitrage scheme.
The International Man of Mischief
Peter Clarence Foster is a name synonymous with fraud in Australia. As Winter began his presentation, you could sense the years of experience and personal investment he had in this particular case. He jokingly mentioned that he did have a personal connection to the case, after first encountering Foster’s name at the age of 14 when he saw he was dating a singer and model Winter was interested in, vowing to himself that “One day, I’m going to get you Peter Foster.” And so, he did. Winter recounted how he finally apprehended the fraudster 31 years after his initial vow, describing the experience as “amazing” and admitting to being “a bit unprofessional on the plane” during the extradition.
Foster’s frequent appearances in court for both civil and criminal matters were so common that Winter joked he “should have probably had a lease at a couple of them.” Despite his criminal history, Foster portrayed himself as a very convincing man, almost fooling Winter himself during the extradition process in 2017.
Schemes and Scams of the Mischievous Man
Beginning the section of the presentation exploring the fraudster’s illicit acts, Winter described Foster’s first scheme, promoting boxing matches in his late teens and submitting a fake insurance claim when one of those events was canceled. However, he soon moved into the realm of fraudulent weight loss products, setting himself up for the next three decades.
Foster’s first major scam involved a product called “Bai Lin Tea,” which he marketed as a “Chinese diet secret” with “mysterious… powers.” He enlisted the help of Muhammad Ali’s third wife to promote the tea, which promised weight loss just by simply drinking it. Despite its dubious claims, many people fell for the scam and Foster was eventually fined. Winter then explained that Foster rebranded “Bai Lin Tea” as “Chow Low Tea,” in order to expand his scheme to the United States. This time, however, the tea was found to be nothing more than black tea, but Foster claimed it could lower cholesterol regardless of diet. This claim ended up landing him in a Los Angeles prison, a fate that Winter suggested, “probably wouldn’t have happened in Australia,” where authorities tend to be more lenient.
After his stint in the U.S., Foster returned to Australia and continued his weight loss schemes, moving from liquids to creams. His “magic cream” promised therapeutic benefits and was marketed aggressively, leading to another fine and imprisonment since Foster was a repeat offender.
As Winter continued with the case study, the sheer audacity of Foster’s schemes became increasingly apparent. His next venture involved weight loss pills, which he claimed could produce a 700% increase in weight loss. “I mean, 700%,” Winter chuckled, “he could have maybe stuck with 200% and been a bit more legitimate. I don’t know why 700%. But that was Mr. Foster. Always thinking big and trying to convince people that whatever he was selling you was the best and was not to be questioned.” This bogus claim, along with the history of his previous fraud schemes, led to further legal actions and fines.
In addition to the weight loss pills and teas, Foster also dabbled in “ageless aging jelly,” which Winter followed up jokingly with, “say that quickly.” The schemes continued for years, with Foster constantly reinventing himself and his products to stay one step ahead of the authorities.
In a major shift, Winter told the attendees how Foster moved away from weight loss products and into sports arbitrage betting, which involved promising “guaranteed” profits through betting on both teams in a sporting event by exploiting algorithmic advantages. However, this of course also ended in more legal trouble, including charges of assault and resisting arrest after he was found hiding in bushes and attempted to disarm a police officer. Despite his arrest, and subsequent court appearances, Foster managed to secure bail, showcasing his ability to skirt the legal system. Winter recounted a humorous anecdote from the extradition, saying that Foster, “tried to set his own bail amount to us,” suggesting figures like “20,000 I think is fair, maybe 15. Look, I’m not that bad. I haven’t done anything violent really.”
The List of Offenses
Throughout his career, Foster has faced a variety of charges related to his scams. These offenses included fraud, money laundering, contempt of court, assaulting a police officer and resisting arrest, resulting in fines and imprisonment in multiple countries, including Australia, the U.S., the U.K. and Vanuatu.
Despite his repeated offenses, Foster consistently managed to evade serious consequences, often securing bail and continuing his fraudulent activities while awaiting trial. His ability to hire skilled lawyers and present himself as a convincing and remorseful individual has, as Winter stated, “undoubtedly contributed to his success in avoiding lengthy prison sentences.”
Exploiting Vulnerabilities
Winter’s presentation did not stop there, as he neared the end of his session by listing several key reasons why people may have fallen victim to Foster’s schemes:
Persuasive marketing and false legitimacy: Foster created a credible illusion through celebrity endorsements, fake testimonials and slick advertising, making his schemes seem legitimate.
Exploitation of vulnerabilities: He targeted individuals during vulnerable times in their lives, such as those struggling with weight loss or seeking financial security.
Reinvention and international reach: Foster repeatedly “reinvented” himself and operated across many different countries, making him hard to track.
Slow regulatory responses: By the time one of Foster’s scams was shut down, another one was already launched due to consumer protection agencies acting reactively instead of proactively.
Charismatic and manipulative personality: Exhibiting traits of a serial fraudster, he was able to manipulate individuals with his charm and confidence.
Lack of due diligence: Many victims failed to verify Foster’s credentials or research his past.
As Winter wrapped up his session, he discussed the importance of understanding the vulnerabilities that could lead to fraud and to take proactive steps to protect individuals and organizations from similar scams. Throughout his presentation, Winter stressed the need for skepticism, thorough research and a willingness to question claims that seem too good to be true, such as a “700% increase in weight loss.”
