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From: Anonymous
I just had to post this. It's from Saturday's Courier Mail.
It is stuff like this that brings a smile to my face
Sorry about the anonymity, but Kevin Young's track record suggests that this is the wise thing to do!
http://finance.news.com.au/common/story_page/0,4057,3751608%255E14315,00.html
Property club faces probe by watchdog
By ANTHONY MARX and HEDLEY THOMAS
Courier-Mail
09feb02
THE founder and operator of a club which promises to make its members wealthy through repeated property deals is under scrutiny from the Office of Fair Trading.
Kevin Young runs one of Queensland's biggest property marketing firms under the banner of the Investors Club, which negotiated almost 900 sales nationwide for more than $150 million last year. About 60 per cent of the sales were concentrated in southeast Queensland.
At investment seminars across Australia Mr Young tells thousands of members of his "club" that he has enjoyed an outstanding business career and retired twice as a multi-millionaire.
He does not disclose that he was a bankrupt for five years until 1989 at the time he claims to have been retired and fabulously wealthy.
The Office of Fair Trading investigation is examining the club's operation and whether it complies with tough new anti-marketeering laws.
The club, which was launched in 1995, is based in Carina on Brisbane's southside. It has already been the subject of complaints from the real estate industry that its fees exceed legal limits.
The club was initially found not to be in breach of property laws last year, but Fair Trading Minister Merri Rose said this week that her office was closely monitoring its operations.
"Office of Fair Trading has now received additional information, which is currently being investigated," she said.
Fair Trading Commissioner Matt Miller said: "We need to have a very close look at the way they are operating. The whole of the club needs to be reviewed and whether they are complying with our legislation and disclosure laws."
Mr Miller said he refused a request by Mr Young in late November to endorse the club's operations.
The Real Estate Institute of Queensland has complained to the Office of Fair Trading that the club's fees are excessive. REIQ chief executive Don McKenzie said it appeared the club accepted fees "way in excess of the commission that real estate agents could receive" before a buyer had even been identified.
Mr Young, 55, does not hold a full REIQ licence.
He told The Courier-Mail his club was open, accountable and beneficial to members, who were growing rich through property acquisitions.
He said he personally owned more than 150 properties and was interested in buying more.
Mr Young downplayed his bankruptcy, calling it a misunderstanding that lasted only "a few minutes".
However, the official file held by the Insolvency and Trustee Service Australia shows it lasted five years and he was almost prosecuted for deceptive, argumentative and unco-operative conduct.
The petitioning creditors, retired Sunshine Coast motel operators Alton and Lorraine Kempster, said they had been duped by Mr Young.
"You've got to be kidding," said Mrs Kempster when asked if she would follow investment advice or buy a $200,000 property from him.
Mr Young's club generates huge revenues that go into Lisson Pty Ltd, controlled by him and his wife Kathy.
The bulk of the profits are made by charging developers and other sellers a marketing fee of 6 per cent of the sale price, usually between $11,000 and $15,000 per property.
I just had to post this. It's from Saturday's Courier Mail.
It is stuff like this that brings a smile to my face
Sorry about the anonymity, but Kevin Young's track record suggests that this is the wise thing to do!
http://finance.news.com.au/common/story_page/0,4057,3751608%255E14315,00.html
Property club faces probe by watchdog
By ANTHONY MARX and HEDLEY THOMAS
Courier-Mail
09feb02
THE founder and operator of a club which promises to make its members wealthy through repeated property deals is under scrutiny from the Office of Fair Trading.
Kevin Young runs one of Queensland's biggest property marketing firms under the banner of the Investors Club, which negotiated almost 900 sales nationwide for more than $150 million last year. About 60 per cent of the sales were concentrated in southeast Queensland.
At investment seminars across Australia Mr Young tells thousands of members of his "club" that he has enjoyed an outstanding business career and retired twice as a multi-millionaire.
He does not disclose that he was a bankrupt for five years until 1989 at the time he claims to have been retired and fabulously wealthy.
The Office of Fair Trading investigation is examining the club's operation and whether it complies with tough new anti-marketeering laws.
The club, which was launched in 1995, is based in Carina on Brisbane's southside. It has already been the subject of complaints from the real estate industry that its fees exceed legal limits.
The club was initially found not to be in breach of property laws last year, but Fair Trading Minister Merri Rose said this week that her office was closely monitoring its operations.
"Office of Fair Trading has now received additional information, which is currently being investigated," she said.
Fair Trading Commissioner Matt Miller said: "We need to have a very close look at the way they are operating. The whole of the club needs to be reviewed and whether they are complying with our legislation and disclosure laws."
Mr Miller said he refused a request by Mr Young in late November to endorse the club's operations.
The Real Estate Institute of Queensland has complained to the Office of Fair Trading that the club's fees are excessive. REIQ chief executive Don McKenzie said it appeared the club accepted fees "way in excess of the commission that real estate agents could receive" before a buyer had even been identified.
Mr Young, 55, does not hold a full REIQ licence.
He told The Courier-Mail his club was open, accountable and beneficial to members, who were growing rich through property acquisitions.
He said he personally owned more than 150 properties and was interested in buying more.
Mr Young downplayed his bankruptcy, calling it a misunderstanding that lasted only "a few minutes".
However, the official file held by the Insolvency and Trustee Service Australia shows it lasted five years and he was almost prosecuted for deceptive, argumentative and unco-operative conduct.
The petitioning creditors, retired Sunshine Coast motel operators Alton and Lorraine Kempster, said they had been duped by Mr Young.
"You've got to be kidding," said Mrs Kempster when asked if she would follow investment advice or buy a $200,000 property from him.
Mr Young's club generates huge revenues that go into Lisson Pty Ltd, controlled by him and his wife Kathy.
The bulk of the profits are made by charging developers and other sellers a marketing fee of 6 per cent of the sale price, usually between $11,000 and $15,000 per property.
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