Henry Kaye and National Investment Institute Pty Ltd
s. 52. Alleged misleading or deceptive conduct
30 September 2003: Proceedings were instituted in the Federal Court, Melbourne, against Mr Henry Kaye and National Investment Institute Pty Ltd (NII) alleging misleading and deceptive conduct over the promotion of a ‘millionaires’ property investment strategy.
The ACCC alleged that Mr Kaye and NII made misleading or deceptive claims in various print, internet and radio advertisements for their seminars, that he:
would turn five ordinary Australians into property millionaires in just six months using no money down, no debt and no equity
would turn 1000 ordinary people, who signed up for NII’s investment mastery course, costing around $15 000, into property millionaires within 12 months
could teach anyone to acquire a million dollar plus portfolio with no money down, no debt and no equity and without the risk of losing money should the market go down.
The ACCC alleged that neither Mr Kaye nor NII had reasonable grounds for making the representations, and sought orders for declarations, injunctions and corrective advertisements.
8 October 2003: At an initial hearing, Henry Kaye and NII agreed not to publish any further advertisements promoting his ‘millionaires’ property investment strategy pending the final outcome of the court proceedings.
25 November 2003: NII went into voluntary external administration and the ACCC’s proceedings against the company (but not Mr Kaye) were automatically stayed under s. 440D of the Corporations Act 2001.
18 February 2004: NII went into liquidation following a meeting of creditors and as a result the ACCC continued its action against Mr Kaye alone.
9–16 March 2004: The case was heard by Justice Kenny. Henry Kaye did not give evidence in his defence during the proceedings.
The ACCC is awaiting judgment.
22 October 2004 : Justice Kenny found that Mr Kaye and his company, now in administration, breached the Trade Practices Act by engaging in misleading conduct in the promotion of the 'millionaires' property investment course.
Justice Kenny has indicated that she will make declarations as to Mr Kaye's breaches of the law and permanent injunction orders restraining Mr Kenny from engaging in the offending conduct or similar conduct in the future.
12 November 2004: Henry Kaye filed an appeal against the Federal Court's decision. The appeal is listed to go before a Register on 25 February 2005 when it will be listed for hearing.
February 2005: Appeal books are due to be settled and finalised on 30 March 2005. An appeal hearing date had been set for 16 May 2005.
23 March 2005: a Notice of Discontinuance was filed with the Federal Court by Mr Kaye's lawyers.
