International scam may have caught NZ universities

A number of New Zealand universities may have been caught up in a multi-million dollar international scam.

University researchers and staff from non-profit organisations attended a three-day seminar in Sydney in March last year, which promised to provide expert speakers on how to apply for government grants and philanthropic funding.

It was run by the California Institute for Communication Improvement, trading as The Grants Institute (TGI).

Between 60 and 100 people signed on for the course, paying up to $A400 0 ($NZ5125) each.

NZPA understands researchers from Otago University, Otago Polytechnic, Licoln University, and the University of Auckland, were amongst the attendees.

A researcher from one of these universities, who did not want to be named, paid $US996 ($NZ1400) for her spot with a university credit card.

"I and others in our research office had spoken to organisers on the phone whom all sounded legit, the website was full of glowing reports...so why wouldn't you go and learn from the "experts" about grant writing?" she said.

"It was clear from the first entry to the room that we had been duped."

The venue had been changed at a day's notice to a shabby classroom with no power outlets, insufficient seats and no course material. The speaker had been hired the night before .

Shane Bowering, director of Queensland-based grant writing and lobbyist group Red Tape Busters, was one of the lecturers hired by TGI.

"I delivered my own course. I refused to deliver their course because it was atrocious," he told NZPA.

Mr Bowering said none of the speakers were paid and there was no response when the attendees, many of whom did not bother to attend more than the first morning, sought refunds via the TGI website .

Two months ago Mr Bowering received an email from an Australian organisation which said it had checked its accounts and found a series of recent payments to an American company called Mother Road.

He contacted others who had been on the course and while none had heard of the company, their records also showed purchases.

Mr Bowering said he did some digging and found one of the people listed as a project manager for Mother Road was also a co-ordinator for TGI.

He said representatives from about 15 Australian universities had attended the course and he had been trying to issue a warning for them to check their accounts.

"Some of the people have had seven transactions of between $A600 and $A1200 for each transaction."

The New Zealand researcher said she noticed several transactions of $NZ1000 had gone out over the past two months and notified the financial manager .

Mr Bowering lodged a complaint with Australian police who, in turn, notified Interpol. However, he did not expect anyone would be reimbursed.

"Basically I was told there's nothing you can do because (TGI) are operating internationally. The chance of pulling them in is nil."

A New Zealand police spokesman could not confirm whether any complaints had been lodged locally.

TGI has also come under fire in the United States, the Better Business Bureau of Colton, California, reporting 63 complaints in the 36 months to July 2008.

This prompted the North Dakota Attorney General Wayne Stenehjem to issue a warning about the company, saying he was "highly concerned".

TGI last year advertised a follow-up to the Sydney seminar to be held at Otago University.

Mr Bowering said the extent of the scam was not clea r as TGI's website, which has since been removed, advertised courses worldwide.

"They did run these (seminars) continuously .

"America was where they pulled the biggest scam.

"You've got to remember there's 52 states over there, (North Dakota) is just one state.

"I reckon there's hundreds of millions of dollars across the globe."

An Otago University spokeswoman said they were not aware of TGI but would investigate on Monday.

Spokespeople for other New Zealand universities could not be reached today.