Property investment business Real Wealth Australia Pty Ltd and its director have admitted to engaging in misleading and deceptive conduct and making false and misleading representations to potential investors.
Sole director, Helen Connie Collier-Kogtevs, 43, admitted breaching the Australian Consumer Law by making false, misleading or deceptive statements or claims on the company’s website.
Upon receipt of a statutory notice from Consumer Affairs Victoria, both the company and Ms Collier-Kogtevs were unable substantiate claims to potential investors from their advertising material that:
- ‘You’ll be in the top 2 per cent of property investors…and be able to retire financially free with 10 properties in 10 years.’
- ‘The latest research by the ATO on property investment shows that just 5.4 per cent of the population are property investors and… only 2 per cent of Australians own more than 1 property.’
- ‘Only 5 per cent of the total Australian population have purchased an investment property and only 1 per cent have purchased more than two properties.’
- ‘80 per cent of my mentoring students purchase a property within 12 months. What’s more, 50 per cent go on to purchase 2, 3, 5 and even up to 10 properties within their first 12 months.’
- ‘82 per cent of students buy at least 1 property whilst on the program, 52 per cent have bought two or more.’
Ms Collier-Kogtevs, personally and on behalf of the company, offered an enforceable undertaking to the Director of Consumer Affairs Victoria, to not:
- make any false, misleading or deceptive representations on the website or in any other materials produced or published by Real Wealth or Ms Collier-Kogtevs
- produce, publish, advertise or promote information, claims or representations that are not able to be substantiated with accurate data or true testimonials.
She also gave an undertaking to:
- remove all inaccurate, untrue or unsubstantiated statements on the Real Wealth Australia website
- implement a compliance program designed to ensure that their website content complies with the ACL.
Ms Collier-Kogtevs also agreed to pay $2500 to the Director of Consumer Affairs Victoria, on behalf of the Victorian Consumer Law Fund.
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Real Wealth Australia Pty Ltd and Helen Connie Collier-Kogtevs - Enforceable undertaking (Word, 201KB)