Australian authorities have identified BG Wealth Sharing as an unlicensed entity suspected of fraudulent activity, saying it has impersonated legitimate financial institutions, including HSBC Bank Australia Limited, to attract investors.
As a result, Australia has joined the United States, Canada, the United Kingdom and Tonga in issuing a formal warning, following the Australian Securities and Investments Commission’s (ASIC) addition of the operation to its Investor Alert List on 16 January 2026.
The move comes amid an escalating war of words triggered by the promotions of the scheme within the Tongan community, with some observers warning that hard lessons appear to have gone unlearned from the wave of pyramid schemes that swept through the community between 2021 and 2024, leaving victims with losses totalling millions.
However, some participants who reported withdrawing funds from the scheme dismissed the criticism, saying the money was theirs and that any potential failure was a matter of personal choice.
The financial harm previously suffered by the Tongan community has led to multiple court cases in New Zealand, with some pyramid‑scheme promoters receiving substantial fines and other matters still before the courts.
One of the most prominent examples is the HyperFund scheme, which collapsed after losses estimated at US$1.8 billion. The scheme was heavily promoted within the Tongan community by Tongan promoter Setaita Folau Tanaki, alongside its founders Sam Lee and Richard Brunton, who have recently been indicted in the United States.
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Another was the Validus scheme, which was widely promoted within the Tongan community in Australia and New Zealand by Tongan promoter Timote Makaui. The scheme has effectively collapsed following heightened regulatory action, with its operations largely halted in 2023.
Validus, which regulators accused of operating as a Ponzi or pyramid scheme and linked to figures associated with the earlier OneCoin scam, stopped processing withdrawals in April 2023, leaving many investors unable to recover their funds.
The pyramid scheme known as Tongitupe differed from HyperFund and Validus in that it was created by a Tongan national, Tilila Siolaʻa Walker‑Sumchai. The 63‑year‑old Richmond, California resident was indicted in September 2023 for allegedly operating the US$13 million Ponzi scheme.
Prosecutors say the operation targeted the Tongan community across the United States, Australia, and New Zealand, with more than 1,000 victims worldwide.
What does Australia say about BG Wealth Sharing?
The regulator said the scheme is operating without a licence and may be targeting Australian consumers.
In its public notice, ASIC cautioned people to “be wary of dealing with this business,” stating that BG Wealth Sharing Investment Group, which operates through the website tradewithnick.com and also uses the alias DSJ Exchange, is not authorised to provide financial services in Australia.
The regulator said the entity does not hold an Australian Financial Services Licence or credit licence and is not authorised by any licensee.
ASIC’s alert lists the operation as an unlicensed entity with no verified address and a phone number linked to 707‑342‑6229.
The regulator warned that scammers frequently change names, websites and contact details to avoid detection, and said consumers should independently check a business’s licensing status before investing.
Australia’s warning adds to a growing international consensus that BG Wealth Sharing and its associated platform DSJEX are operating as fraudulent investment schemes.
Regulators in the UK, US and Tonga issue warnings
The United Kingdom’s Financial Conduct Authority (FCA) issued a warning in May 2025, stating the scheme was providing financial services without authorisation and may be targeting UK residents.
The National Reserve Bank of Tonga declared the operation a scam in December 2025, saying it was targeting Tongans both in the Kingdom and across the diaspora, including communities in New Zealand and Australia.
Regulators in North America have also raised concerns, noting that the scheme relies on fabricated profits, misleading documents and blocked withdrawals.
Across these jurisdictions, authorities have highlighted the same pattern of red flags, including pressure to reinvest larger sums, fake trading dashboards and demands for additional fees or taxes that never lead to the release of funds.
Investigative reports have also noted the scheme’s reliance on private messaging groups, community‑based recruitment and claims of fixed daily returns of up to 2.6 percent, all indicators of a Ponzi‑style operation.
ASIC reminded consumers that even if a company is not yet listed on its alert list, that does not mean it is safe or licensed. The regulator urged people to always verify the legitimacy of any business offering financial services before investing.
