Every now and then something appears that makes you want to throw up.
Sam Tomarchio is one of those things.
His main business is running a motel, or as The Australian newspaper called it, “renting chalets” in Laverton. However in recent years it has been overtaken by his loan shark business, a lender of last resort at interest rates of 33 to 50%. Perhaps we could call it taking advantage?
Travelling east from Laverton the next place you can get a drink is Yulara, the resort at Uluru in the Northern Territory. All the land in between is “dry”.
The Australian article “Outback loan shark strikes gold in indigenous welfare payments” states:
Mr Tomarchio says he is providing a service that no one else will and points to the fact that his loans have helped stranded people get home to their lands.
What he doesn’t say is that when you receive a loan from him he keeps your card. And your pin number. Apparently there is nothing to stop him from doing this. To get their cards back they need to travel back to Laverton which could be a journey of 500 to 2000kms (if in Alice Springs).
From The Australian newspaper
The Western Australian Attorney General, Christian Porter, believes introducing legislation is not the best way to stop this. From The Australian, Jan 18
Mr Porter, a former prosecutor, urged Mr McLean to contact Commissioner for Consumer Protection Anne Driscol. “While I share your concern about possible misuse of funds, I do not agree that the solution is to include new provisions in the Criminal Code,” Mr Porter replied.
So Tomarchio is a friend to the Aboriginal people and is helping them out. Here’s what the Laverton police think:
Laverton Police believe Mr Tomarchio’s actions are immoral and many of his cheques are spent on alcohol, which leads to violence and anti-social behaviour.
Senior Sergeant Dave Hornsby said that because of Mr Tomarchio, trouble occurs any night of the week and not just on the days when Centrelink money arrives in bank accounts.
“There is a continual flow of money available within the community at all times, and this just encourages non-stop drinking,” he said.
He added that he was particularly worried about the effect on children. “They are unable to access their own accounts to withdraw funds, resulting in them having no money to purchase food or items for children,” he said.
What the police don’t say is it may assist with alcohol coming back to dry communities and it also means family or the community may have to assist these peope with food due to them owing money and no access to their bank account.
The Shire of Ngaanyatjarraku president has so far been able to persuade about 100 people to cancel their cards and pin numbers to try and force this obscene practice to cease. As the police cannot act and the government unwilling to act hopefully this works. Although Tomarchio has written to the fraud squad seeking assistance!
Great News! In an article just published online by The Australian:
WEST Australian Police Commissioner Karl O’Callaghan has promised hundreds of welfare-dependent Aborigines across central Australia they can default on their debts to outback money lender Sam Tomarchio without fear of criminal prosecution.
This would leave the one-man Laverton bank with losses that Mr Tomarchio has estimated would be $100,000.
The Indigenous Affairs Minister is providing “Centrelink financial services officer and a social worker be deployed to Laverton early next week to meet with income support clients to provide financial advice and support.” This for a client base with little literacy, English as a third or fourth language and scattered all the way to Alice Springs.
And rather than stopping this sort of activity and doing the hard yards in providing education so people can manage their finances Centrelink has recommended that quarantining half their money for food as occurs in the Northern Territory Intervention (with no real evidence this helps).
The Australian has published several articles over the last few days on this man and his practices. Please read them.
Outback loan shark strikes gold in indigenous welfare payments
Outback loan shark, Sam Tomarchio, seeks police aid
The high cost of compassion
High price of debt in the dead heart
Jenny Macklin blasts ‘appalling’ Laverton loan shark Sam Tomarchio
Aborigines free to ignore debts to loan shark Sam Tomarchio
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Tomarchio's actions are downright immoral. He shouldn't be taking advantage of those in need, just because that lots of people need a loan badly due to the bad economy. I do hope that the right authorities would intervene and stop him from going further with such schemes.