The Australian Competition and Consumer Commission has instituted legal proceedings against Mr Henry Kaye and National Investment Institute Pty Ltd alleging misleading and deceptive conduct over the promotion of a "millionaires" property investment strategy.
The ACCC has alleged that in advertisements for seminars in print and on the Internet:
- it was claimed Mr Kaye could turn ordinary Australians into millionaires with no money down, no equity, no debt and a price protection guarantee that if the market were to go down they would not lose their money by teaching them and by them following Mr Kaye's property investment strategies;
when, in fact:
- the strategies do not enable ordinary Australians to become millionaires;
- that neither Mr Kaye nor NII had reasonable grounds for claims that an ordinary Australian would, if they followed Mr Kaye's strategies, become a millionaire; and
- that neither Kaye nor NII had reasonable grounds for claims that five volunteers provided training by Mr Kaye would become property millionaires in six months without using their own money or taking on a risk of debt.
Similar advertisements were also broadcast on radio.
The ACCC further alleges that Mr Kaye:
- aided, abetted, counselled or procured; and
- was directly or indirectly knowingly concerned or a party to NII's alleged misleading and deceptive conduct in promoting its Investment Mastery Program.
It is also alleged Mr Kaye and NII claimed that a thousand ordinary people who signed up and paid to be taught property investment strategies by Mr Kaye would become property millionaires within 12 months when neither Mr Kaye or NII had reasonable grounds for making the representation.
The ACCC has alleged that NII solicits members of the public to enrol in the Investment Mastery Program for a fee of $15,000.
The ACCC is seeking:
- injunctions restraining Mr Kaye and NII from publishing the advertisements; and
- corrective advertisements on radio, in print and on Mr Kaye's website.
A directions hearing has been set for 9.30 a.m. on Wednesday, 29 October in Melbourne before Justice Goldberg.