Exporter Wins A$1.8m in Wool Swap Scam

August 6, 2004 -- An Australian Federal Court judge has awarded wool exporter BWK Elders a payment of A$1.8 million after it filed a claim against Westgate Wool for falsely repacking and rebranding wools.

The claim was launched by Elders in July 2001 after Italian wool processor Marzotto complained that a delivery of wool was broader than accompanying test certificates showed.

The wool was part of a larger batch bought by Elders on the basis of samples displayed by Westgate Wool. A search of Westgate?s Footscray premises discovered the company was repacking and rebranding wools with stencils purporting to be grower-classed wools.

Westgate has since been liquidated, and its three directors have filed for bankruptcy.

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