From: Owen .
This courtesy of the Fin Review for all the Queensland OTP investors. Maybe the cleanup is underway.
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Victory in marketing scam
Mar 8
Kathy Mac Dermott
Hundreds of victims of two-tier marketing scams were given hope of clawing back a portion of their losses totalling more than $100million after Queensland's Property Agents and Motor Dealers Tribunal claimed its first scalp this week.
The tribunal directed that a Brisbane couple, Craig and Fiona Gordon, be reimbursed $39,960 and found that several parties in the scheme, including National Asset Planning Corporation Pty Ltd, were part of an elaborate and misleading process in which secret commissions were paid.
The case was heard under the former Auctioneers and Agents Act because it was in force when the transaction occurred.
Industry analysts welcomed the finding. Queensland valuer Mr Iain Herriot called the result a "marvellous vindication of the system", saying: "It sends a clear message to the shonks and charlatans that the old legislation has teeth."
In particular, the tribunal found that NAPC was acting as a real estate agent but was not licensed and accepted that the townhouse involved was overpriced by $34,900.
Mr Herriot said the September amendments to Queensland's new Property Agents and Motor Dealers Act combined with a surge of legal action had significantly wiped out two-tier selling in the state.
"Current activity in the two-tier sector is now less than 5 per cent of what was occurring a year ago," he said.
The scams, which started in early 1991 on the Gold Coast, involve selling property to out-of-town buyers at inflated prices through aggressive marketing techniques.
Despite the fall-off in sales, the wash-out from the decade of unscrupulous selling is yet to come.
A solicitor with Carter Capner Lawyers, Ms Judy Teitzel, said nearly 500 victims had contacted her firm.
Ms Teitzel estimated that each person had lost on average about $80,000, which included over-inflated stamp duty payments and loan interest. "We have filed 60 claims to the Property Agents and Motor Dealers Tribunal, with five set down to occur after Easter," Ms Teitzel said yesterday.
More than 90 claims have been filed in the District Court. (Where claims are lodged is based on when the transactions took place.)
"The tribunal's finding gives people hope because it found there was an elaborate marketing scheme," she said.
She also noted that the tribunal had described the involvement of a solicitor in the process as "highly unethical".
Ms Teitzel said the majority of her clients were from NSW, Victoria and South Australia, with some cases from New Zealand, Samoa and South Africa.
Brisbane lawyer Mr Tim O'Dwyer said the tribunal had made a "landmark decision" but he remained disappointed that the Queensland Government had not prosecuted any party.
The industry is keenly watching the progress of the legal action begun by the Australian Competition and Consumer Commission, alleging that the Commonwealth Bank was involved in unconscionable conduct.
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Owen
"Gambling promises the poor what property performs for the rich – something for nothing"
This courtesy of the Fin Review for all the Queensland OTP investors. Maybe the cleanup is underway.
---------------------------------------------
Victory in marketing scam
Mar 8
Kathy Mac Dermott
Hundreds of victims of two-tier marketing scams were given hope of clawing back a portion of their losses totalling more than $100million after Queensland's Property Agents and Motor Dealers Tribunal claimed its first scalp this week.
The tribunal directed that a Brisbane couple, Craig and Fiona Gordon, be reimbursed $39,960 and found that several parties in the scheme, including National Asset Planning Corporation Pty Ltd, were part of an elaborate and misleading process in which secret commissions were paid.
The case was heard under the former Auctioneers and Agents Act because it was in force when the transaction occurred.
Industry analysts welcomed the finding. Queensland valuer Mr Iain Herriot called the result a "marvellous vindication of the system", saying: "It sends a clear message to the shonks and charlatans that the old legislation has teeth."
In particular, the tribunal found that NAPC was acting as a real estate agent but was not licensed and accepted that the townhouse involved was overpriced by $34,900.
Mr Herriot said the September amendments to Queensland's new Property Agents and Motor Dealers Act combined with a surge of legal action had significantly wiped out two-tier selling in the state.
"Current activity in the two-tier sector is now less than 5 per cent of what was occurring a year ago," he said.
The scams, which started in early 1991 on the Gold Coast, involve selling property to out-of-town buyers at inflated prices through aggressive marketing techniques.
Despite the fall-off in sales, the wash-out from the decade of unscrupulous selling is yet to come.
A solicitor with Carter Capner Lawyers, Ms Judy Teitzel, said nearly 500 victims had contacted her firm.
Ms Teitzel estimated that each person had lost on average about $80,000, which included over-inflated stamp duty payments and loan interest. "We have filed 60 claims to the Property Agents and Motor Dealers Tribunal, with five set down to occur after Easter," Ms Teitzel said yesterday.
More than 90 claims have been filed in the District Court. (Where claims are lodged is based on when the transactions took place.)
"The tribunal's finding gives people hope because it found there was an elaborate marketing scheme," she said.
She also noted that the tribunal had described the involvement of a solicitor in the process as "highly unethical".
Ms Teitzel said the majority of her clients were from NSW, Victoria and South Australia, with some cases from New Zealand, Samoa and South Africa.
Brisbane lawyer Mr Tim O'Dwyer said the tribunal had made a "landmark decision" but he remained disappointed that the Queensland Government had not prosecuted any party.
The industry is keenly watching the progress of the legal action begun by the Australian Competition and Consumer Commission, alleging that the Commonwealth Bank was involved in unconscionable conduct.
---------------------------------------------
Owen
"Gambling promises the poor what property performs for the rich – something for nothing"
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