ACCC institutes against property investment seminar promoters

The Australian Competition and Consumer Commission has instituted legal proceedings against Morgan Pacific Pty Ltd and its directors, Mr Paul Hanna and Mr Danny Hanna Assabgy, alleging misleading and deceptive conduct in the promotion of property investment seminars in advertisements entitled "YOU! A Property Millionaire".

The ACCC alleges Morgan Pacific is responsible for the advertisements, which appeared in a number of Australian newspapers and on the Internet in late 2003. The advertisements promoted three-hour property investment seminars, presented by self-described "multi-millionaire property investors and developers", Danny and Paul Hanna. The seminars were held in a number of capital cities during October and November 2003 costing $65 a ticket.

The ACCC alleges that Morgan Pacific made the following representations in the newspaper and Internet advertisements:

• that the property investment strategies practiced by the Hannas and taught at the seminars were capable of being implemented by seminar participants to the same effect as they had been implemented by the Hannas
• that people who implemented the strategies would be likely to become wealthy and build multi-million dollar property portfolios by investing in property and engaging in property development, and
• that people who implemented the property investment strategies would be likely to acquire property valued at hundreds of thousands of dollars using none of their own money and with zero debt
  when in fact:
• the property investment strategies could not be implemented by seminar attendees to the same effect as they had been implemented by the Hannas
• the successful implementation of the property investment strategies was in practice very difficult and the possibility of becoming wealthy or building a multi-million dollar property portfolio, by implementing those strategies was remote, and
• it was a remote possibility that persons who implemented the strategies would become wealthy by investing in property without using their own money and with zero debt.

The ACCC further alleges that the Hannas aided, abetted, counselled or procured; and were directly or indirectly knowingly concerned in or a party to Morgan Pacific's alleged misleading and deceptive conduct in promoting the seminars.

The ACCC is seeking:

• declarations that Morgan Pacific, Paul and Danny Hanna have breached the Trade Practices Act 1974;
• injunctions restraining Morgan Pacific, Paul and Danny Hanna from publishing the advertisements and making the representations;
• corrective newspaper advertisements; and
• costs.

A directions hearing before Justice Bennett will be held in the Federal Court, Sydney on 23 November at 9.30 a.m.