I would like to come to the book launch in Sydney very much. However, that day we will be driving back to Sydney from Melbourne – so sorry to miss it.

I ended up not going to the seminar because girlfriend pulled out and I had to study. Anyway, this is what Neil Jenman said –

THREE DAYS, THREE SEMINARS & AT LEAST THREE MILLION
How a gang of American spruikers is fleecing Aussies.

Here’s how an American seminar gang is pulling off a multi-million dollar spruiking heist in Australia.

They began with an advertisement in The Sydney Morning Herald in May. Come and see “Australia’s Number One Conference on Millionaire Secrets”. Learn how to buy real estate at 55% below value, earn 18.5% return; retire in two years. It was all offered for “FREE!”.

The two smiling speakers in the advertisement were Sydney agent, John McGrath and American author William Danko. By the time the seminar was presented, neither McGrath nor Danko would be speaking.

But next came a national letterbox campaign where free “VIP tickets” (allegedly valued at $149) were offered to tens of thousands of householders. This time there were four smiling speakers – William Danko, James Smith, Phil Town and Wayne Gray – all supposedly “Australia’s Greatest Financial Super Stars”. It was a lie – none were Australian.

Then, last week, the ACCC came to the rescue of consumers. Well, sort of.

Action was taken in the Federal Court compelling the American company, National Training Conference, to correct a multitude of misrepresentations made in its advertisements. But, as the former Chairman of the ACCC, Allan Fels, explained on Channel Nine’s Business Sunday yesterday, we have the absurd situation in Australia where the ACCC can only take action on the advertising and promotion of the seminars, not on their content.

The ACCC is responsible for claims made before the seminar doors open and then, once consumers walk through those doors, the responsibility passes to another government department, ASIC. Well, sort of. You see, it all depends who’s interpreting our spruiking laws. While spruikers fleece millions of bucks from consumers, governments pass the bucks on who’s responsible for protecting consumers.

Over three days (in Brisbane on Thursday, Melbourne on Friday and then Sydney on Saturday), around 3,000 people showed up to this “free” seminar. Large posters displayed details of the corrections required over the misleading advertising. But most of the advertised speakers did not appear.

The main speaker, Phil Towns, was urging people to attend a one-day “comprehensive workshop” about stock trading, at a cost of $5,000. Towns used a closing technique that went something like this – “We’ll give you a black briefcase filled with great material, you give us your credit card details to show us you are interested.”

Hundreds of people handed over their credit cards. In around three hours, over three days, in three states, this gang of spruikers probably raked in at least $3 million (after expenses).

Now, for those who are shocked that anyone could give their credit card to an American company they have known for three hours and where there are prominent signs around the room with admissions about false advertising, consider this – the ACCC action, as well-meaning as it may be, becomes part of “the sell” for the spruikers.

The inference is clear – Aw shucks, we made a mistake but, hey, we have corrected it and all is fine now. So, give us your money and we’ll show you how to get rich. And, of course, it’s all “guaranteed”.

Now, consider something else – if a company tells lies in public via its advertising, what do you think it will do in private? Suddenly become truthful? Of course not.

Public liars become worse in private. And, because of the ACCC action, naïve consumers – many of whom are eager to secure their retirement – come to believe that the seminar company has been given the “all-clear”.

This is the same pitch that was used by the disgraced spruiker Henry Kaye. After Kaye gave undertakings to the Federal Court last year concerning his misrepresentations, he created the impression that he was suddenly totally legit. Before he eventually folded, Kaye used this ‘all-clear-pitch’ to fleece millions of dollars more from consumers.

From the stage, the American spruikers were ultra-careful at their three seminars. Back-stage they were telling another story.

Said William Danko, “I don’t write the advertisements. I have been with this company for five years.” The inference was clear – everything is above-board.

Another staff member said, “The ACCC are reviewing the information.”

As for ASIC, the back-stage comments could have come straight out of Henry Kaye’s mouth, “They have approved it and said it’s okay for us to have the seminar.” This is a lie because neither ASIC nor any federal government department gives its approval to seminars. But most consumers would never know such a fact. They just believe what they are told, especially if it sounds good.

And what about the real estate agent, John McGrath, why did he appear in the May newspaper advertisement for this seminar? According to a staff member of the seminar company, they “heard bad press and so they cancelled him.” This is another lie.

According to his lawyers, John McGrath is “in the process of taking legal action to ensure that public apologies and retractions are made by the promoters of the conference regarding their false representations that John McGrath will be a speaker at their conferences.”

But how did John McGrath come to be involved with this American seminar company in the first place? Was he conned? Or did the seminar company just grab a photograph of him and use it in their advertising? McGrath is not saying, so the full extent of the lies of these Americans is not clear.

What is clear, however, is that they now have the credit card details of hundreds of Australians. They are holding three more seminars – at around $5,000 a head – in Melbourne on July 16, Sydney on July 17 and in Brisbane on July 18.

These American spruikers are such fly-by-nighters that they are even holding their Melbourne seminar at an airport hotel – ready for a quick getaway.

Action should be taken immediately to stop this gang from coming back to Australia. If not, at least $3 million is going to go missing.

And that’s just the seminar fees, next will come the trading losses when consumers act on the financial advice handed out by these spruikers.

I have registered for this seminar and will attend it – but not sure if I will stay for the whole day. However, for those who have doubts about the seminar then below is the view of ASIC on this seminar. I will go with a cautious mind.

http://fido.asic.gov.au/fido/fido.nsf/print/FIDO%27s+invited+to+an+investment+seminar?opendocument

FIDO’s invited to an investment seminar

FIDO recently received ‘complimentary VIP tickets’ with a purported ‘value’ of $149 printed on them, to attend what the promoters describe as ‘the country’s #1 financial conference’.

This is only one of numerous wealth creation seminars on the market. However, motivated by the invitation, FIDO decided to examine this seminar’s marketing claims more closely simply to point out:

what questions you could ask yourself and
what steps you could take to save your time and money.
Who’s presenting and what’s known about them?
Claim
The ‘country’s #1 financial conference’, featuring ‘four of Australia’s Greatest Financial Super Stars’.

FIDO’s comment
We checked ASIC’s databases to see if any of the presenters of the seminar who intend to discuss shares or investments held an Australian financial services licence. They did not. Nor did the conference organising company.

Using an internet search engine, we discovered that three of the four speakers appear to live and work in the USA, not Australia. (FIDO could not find any leads about the fourth person.)

The internet search engine also led FIDO to a bulletin board that mentions a couple of speakers, and relates some experiences of others who have attended the course. This can be useful information, although not always a reliable guide about the worth of a course.
How credible are claims about what you will learn?
The promotional flyer makes various claims. FIDO selected a couple for analysis and comment.

Claim
‘Earn 15-60% interest per year with a unique government approved investment’.

FIDO’s comment
The first warning sign about this claim is the representation that it is ‘government approved’. No Australian government ‘approves’ investments of any kind. Whatever investment you may consider, Australian law makes it clear that you must decide for yourself whether it’s suitable for you.
Australian governments may offer some types of investments, for example government bonds, although none of these currently pay 15% -60% interest per year. Australian governments may give some investments favourable tax treatment, for example superannuation funds pay only a maximum of 15% tax on their investment earnings to encourage retirement saving. However, these examples are a long way from governments approving investments.
Claim
‘You will learn how to retire in 2-5 years with an additional cash flow of $9,100.78 per month.’

FIDO’s comment
Such a precise amount, right down to the 78 cents, contrasts strangely with the promise of retirement with a broad range of three years.
Forecasts about future earnings and cash flows can only be made if people have a reasonable basis for them, and will usually depend on the individual circumstances of each person. It is difficult to conceive how someone could estimate your future earnings or cash flows without knowing anything about you.
Would this be value for money?
FIDO has been offered free tickets. This reminds us of the saying ‘you get what you pay for’.

Free seminars are often a marketing device to enrol people in costly follow-up training or to sell things like books, CDs, software or videos. If you’re offered these products, stop and consider what else you get for your money. There are some excellent courses and books, often at far lower cost.

The seminar appears to run for nine and a half hours on a Saturday. It is often the experience of consumers who attend such seminars that it can be difficult to leave before the seminar has finished. How much is nine and a half hours of your time worth to you?

Lots more information about seminars

Hi Terry

I also spotted the ad and phoned the 1800 number to register for it out of curiosity. They told me they had a website http://www.nationalrealestateinvestors.com. I looked it up and it is a US site. I don’t know who in Australia is behind this. I may attend to see what it is all about – however, I suspect that they will probably pressure people into signing up for more expensive seminars / workshops later on – the usual selling strategy. I subscribed to Chris Batten website and last week he was talking about Robert Allen’s visit to Australia – to keep away from it. Neil Jenman warned people about this person.

No, stamp duty cost on the purchase of an IP is not tax deductible. It forms part of the cost base for CGT when the property is sold in the future.

I live in Sydney but use Dale Gatherum Goss in Melbourne http://www.gatherumgoss.com. However, I know Dale has recommended Nick Moustacas in Sydney http://www.strategicwealth.com.au. I could have used Nick but I had contacted Dale before I met Nick. These 2 guys are well versed in setting up trust structure for property investments.