Scam Artists, Dodgy Seminars and My Past mistakes

Scam Artists, Dodgy Seminars and My Past mistakes

So I have written a few articles about different types of seminars. I have written about seminars showing different ways to make money in property. Later – I plan to write about seminars about the sharemarket, internet and other businesses (see bottom).

Seminars – Henry Kaye

I went to see Henry Kaye back in 2003. It was probably the biggest free seminar I have been to – there might have been 500-1000 people there.

He said he could turn ‘ordinary Australians’ into ‘property millionaires’.

I don’t really remember what was said in the seminar (it was nearly 8 years ago!) but I didn’t sign up as it was quite expensive something like $8,000 for the course/mentoring.

In 2003/4 ASIC stopped him from conducting wealth-creation seminars and his companies collapsed.

It is only in 2010 that the court case was finalised and Henry Kaye was banned from being a director of a company for 5 years (from the articles below they let him stay as director of his self managed super fund trustee company).

Seminar & Share Software I purchased

In 2004 I went to a seminar with my dad and paid a few thousand for a computer program that picked which shares were going to go up in value.

Student Discount: 50% now, 50% when you make X profit in 12 months -Luckily as I was a student at the time they agreed to give me the program for half the cost they usually charged, with the other half being paid in 12 months, assuming certain profits were achieved.

I didn’t make the profit to require me to pay the other ½ and the company never contacted me again (and no longer appears to be trading after a quick internet search).

Tax -I claimed the software over a few years (and the $20/month data cost I paid for either 6 months or a year) as a tax deduction under Dividend and Interest Deductions (i.e. I got refunded my marginal rate of tax at the time – 30%) and the capital losses I made on shares have since been offset against capital gains. But although I received a “tax discount” on the software I still lost money overall.

The Software Program

The program itself might have worked perfectly well, but I think it failed because of me and my lack of education.

I didn’t test the software first by paper trading (pretending to buy shares and seeing what the results were).

Instead I rushed straight in (my strength and weakness!) and purchased 5 different shares costing $1,000 each (so invested $5,000). Only 1 share made money which I sold immediately and the rest I kept in the hope they went up again.

I had little patience and the first 5 share lots – I think I tried 1 more go (purchased $1,000 worth of another 2 shares with the profits from the 1st share and extra cash I had saved).

The 2 new companies lost money as well so then I gave up.

Education as a Share Trader

Now with a bit more education if I planned to trade shares I would do things a lot differently.

Defined Exit -I have a defined exit plan – Yes.  So if the shares went up to X (say 15%-20% up) I would sell or if they went down to Y (10%-15%) I would sell.

Paper Trade –I might paper trade for a month or two before actually using the software if I was worried about losing money.

Seminar Rip Offs – 2003- Country House and Land Sales/Vic Ollis

Investment coach tour weekend 4-5 October 2003.

My dad and I rocked up at Parramatta on a Saturday morning in October 2003 and hopped on a bus. We were shown a bunch of country properties Saturday day and Sunday day.

We stayed in North Parkes Hotel on Saturday night.

All of the properties offered a 9 or 10% rental return (i.e. on a $160,000 property he would offer $16,000 rent per annum)

My dad’s initial thoughts:

Vic was quite a large man who wore tracksuit pants. In the documentation his office was in Gosford and his home (which appeared on some documentation) was a close by in a middle class suburb –not somebody who appeared wealthy (although obviously where you live doesn’t determine your wealth).

We received free Saturday & Sunday lunch, dinner and accommodation. As dad said “There’s no such thing as a free lunch – somebody is paying for this and I suspect its people who buy the properties”.

The decision

So I decided – based on my Dads thoughts that we wouldn’t buy but come back and do our own tour at a later date.

Later on the news

Maybe 6 months later on 60 minutes we saw that he had on-sold the properties and made a lot of money.

I also found a few articles about him as well.

More Seminars re: Sharemarket, Internet and Other Business

I have yet to right all the different ways to make money with the Sharemarket:

Shares general, share software, Eminis, Foreign Exchange, Commodities trading/Futures,  Options Trading and what I am currently doing –  Options – Writing Covered Calls

Also I haven’t written about all the ways to make money with the Internet:

Ebay, Blogging, Being an Affiliate, Multiple Websites, E-Books, Membership Sites, Freelancing/Virtual Assistants

And other businesses: my take on Network Marketing, buying a Franchise or buying a bricks-and-mortar business .

Posted in Gripes & Rip-offs, Making Money, Shares

Sign up




Tweet This
SEO Powered by Platinum SEO from Techblissonline