Forums / Property Investing / General Property / Mislead by Financial advisors who stole my propert

Viewing 14 posts - 1 through 14 (of 14 total)
  • Profile photo of hlewishlewishlewishlewis
    Member
    @hlewishlewis
    Join Date: 2006
    Post Count: 1

    I was fraudulently mislead by my financial advisors. One of the financial advisors was Paul Crowley a discharged and jailed solicitor, for misappropriating client trust funds. (I found this out too late)
    The advisors assured me they had arranged finance for the purchase of my property but at the 11th hour they told me the mortgage would take another three weeks to come through and I was pressurised into accepting an unseen and unexplained contract for Temporary Bridging Finance, told I would lose my deposit and the property to another offer if I did not settle on the sales contract on time.
    The advisers assured me that they had already arranged the other finance to take over the bridging finance, but when the bridging finance ran out I never received this other mortgage and no one took responsibility for it, even though I had already paid the commission for this remortgage.
    When I later researched going through another broker to re finance my property I found out the undisclosed interest rate on the bridging finance was crippling and I would never be able to get out of the temporary bridging finance and within a few months I was in an extra million dollars of debt so there was no way to finance the re mortgage and I lost my property by default and when the mortgagee’s enforced there rights as mortgagee in possession they took my asset selling it for one million dollars less than the valuation but declaring I owed millions.
    I bought based on the valuation but the mortgagee’s did not act with a duty of care to ensure they sold the property close to the valuation and there was no evidence of a real- estate market decrease in the area.
    The advisors and mortgagee’s and solicitors seem to have a scam running where they force clients into pressurised situations and trap them in bridging finance knowing they will default, then they take possession of your properties selling them to what looks like dubious trusts. Selling to associates of the professionals you trusted, for their dishonest financial benefits, maybe making extra commission selling your property to their mates and making huge commission for nothing putting you into a unrealistic financial situation and maybe even having shares in the property or mortgage company. Who knows exactly but this is an easy scam for them and it is ruining lives. It’s not going to ruin mine! Any assistance would be gratefully appreciated.


    Profile photo of reelygood1reelygood1
    Participant
    @reelygood1
    Join Date: 2005
    Post Count: 65

    Hi,
    I would approach the media about this and try and flush the low life’s out, I have to ask , did you sign the bridging loan contract? Obviously you were not made aware of the interest rate, I would also be seeking legal advice. All I can say is don’t give up fighting.
    Don

    djr

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Go to the Police.

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    Police will probably not be too keen, but ASIC will.

    Terryw
    Discover Home Loans
    Parramatta
    [email protected]
    Sign up to my mailing list.
    Just send me a blank email, with “subscribe” in subject line.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of v8ghiav8ghia
    Member
    @v8ghia
    Join Date: 2005
    Post Count: 871

    This is really disturbing, and you must feel so used. My personal opinion is to get publicity and ASIC involved. Unless the mortgagee was an absolute shark, which means ASIC will be very interested in them) I would have thought there might be some recourse there once you get the ball rolling. Re the publicity, check out http://www.jenman.com.au and maybe see if they can help you, as I noticed him/them and a few others inolved on Today Tonight recently when staff at a well known real estate franchise were taking older people to the cleaners with a similar scam, less the finance bit. keep at it, and while you may not get anything back (sorry,) you will likely find that some if not all of the mongrels end up with boyfriends for a few years where they all belong. keep us posted.[evil4]

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    This is a case that ASIC will like to know about, have you contacted them?

    Xenia Ioannou-Mena
    Property Manager &
    Property Sales Consultant
    E: [email protected]
    M. 0412 437 582

    Profile photo of mathewc73mathewc73
    Participant
    @mathewc73
    Join Date: 2005
    Post Count: 241

    According to the papers Gatto is a good guy for dispute resolution!

    It is frustrating to read what you are going through and it would seem what ever you do will take time and cause a lot of stress.

    Really makes you want to do something that may be bending the law a little!

    But going to the police could be a good idea. Theres a financial fraud squad who specialises in this stuff, but I have no idea how to get in touch with them.

    Profile photo of trackatracka
    Member
    @tracka
    Join Date: 2005
    Post Count: 16
    Originally posted by mathewc73:

    Theres a financial fraud squad who specialises in this stuff, but I have no idea how to get in touch with them.

    if in Sydney, call (02) 92810000 and ask to be transferred to the fraud squad. speak to one of the detectives there.

    Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    Hi hlewishlewis,
    It upsets me to hear of your predicament. I wish I could jump on the bandwagon and offer proactive solutions to correct the injustice you have suffered at the hands of others. I truly belive and know that replies to follow will lead you to an outcome that hopefully satisfies your predicament, brought on by the hands of others. I apologize for my philosophical response which is the last thing you need at this point. Rest assured though, it will not ruin your life as you state, but may be a long haul to restore your financial loss. Stay the course through the correct channels and hopefully you will seek an outcome that will recover the incredible loss. Hopefully also, it may lead further to preventing this from happening to others. Again, I apologise if this seems as cold comfort. But please don’t make the same mistake I did when I made a huge loss (which at this time will seem insensitive) and that was with the Investor’s club. Sometimes it’s better to end a fight 10 punches too soon, than one punch too late. it’s sounds though that you are in a position for full recourse, if that is your goal.
    Gatsby.

    “Sometimes the hardest thing to do in life is often the best thing to do.”

    Profile photo of gmh454gmh454
    Member
    @gmh454
    Join Date: 2003
    Post Count: 537

    I am amazed at the responses here. Absolutley amazed.

    We always have people talking about creative finance well can’t get more creative than this.

    Unfortunatley the punitive interest would have been stated in the contract, can someone please explain how this is an ASIC matter (you have to be kidding… ) or fraud. Maybe Current Affair, but how is this criminal ????

    Seen it before, guy in trouble borrowed $200 serious history of late payment, and yes he was always late, and shock horror they never chased. the default rate jumped interest from 11% to 25%, and in three years they just stepped in and took the house, smooth clean and minimun of fuss. Wife had breakdown dies soon afterwards, hubby is shattered and now lives in a unit in the outer suburbds that his kids bought.

    If you have to go to lenders of last resort (creative finance) then be very aware.

    Really sorry to hear of the problem but amazed at the response from what should be a sophisticated audience.

    Okay flame away.

    Profile photo of elkamelkam
    Member
    @elkam
    Join Date: 2006
    Post Count: 722

    Hello

    Firstly, sorry to hear of your problems hlewishlewis.

    gmh454. Surely the fact that the brokers failed to organise the finance, not once but twice, after assuring their client that it was in hand shows intention to defraud or gross negligence at the very least. hlewishlewis had had no intention of using “creative financing”.

    Are brokers members of some association that you could contact to enquire about possible options ?

    I would still go to both the police and the ASIC. What have you got to lose? Maybe they have done this before and this will strengthen your claim that this was a deliberate set up.

    Good luck
    Elka

    Profile photo of gmh454gmh454
    Member
    @gmh454
    Join Date: 2003
    Post Count: 537

    The problem is not that they did not organise finance but that they manouvred their “client” into their preferred finance option.

    The conversations would then have gone “We will do everything we can to get a better long term finance option, ” or ” I think I can get something better IF or When”.

    If this is the case how can he have a case ????

    If he had other finance options would he have not taken them.

    Had a client who was a money lender, charged 120% and it was always legal.

    Just because it is unfair does not make it illegal.

    Again sorry to hear it but again their are some real rogues out there and buyer beware does not just apply to used cars.

    Profile photo of Ol PaintingOl Painting
    Member
    @ol-painting
    Join Date: 2003
    Post Count: 123

    You used a solicitor in your purchase, didn’t you?

    Wasn’t it his duty to make sure the financing is organised and inform you what interest you are paying and what the worse case scenario is!!! And it had to be in written!!!

    If you have no letter from you solicitor advising you about possible issued – forget others – it was his job to keep you away from legal trouble!!!

    If you have been mislead no way you should pay any fees!!! [medieval]
    You engaged professionals to help you and it was their duty to provide you with qualified advice!!!

    I would strongly advise you to contact with a layer that has an experience in both – property and criminal law!!!

    Take just an introductory strictly-one-hour visit. So you can clarify your rights and be sure you are not signing for a major expense. Some layers offer free first half an hour – so you would only have to pay for the second half an hour.

    I had kind of a similar problem with my last IP.

    My finances were OK, but my solicitor simply disappear two weeks before settlement. He mysteriously moved out of office and was coming around midnight to pick up his mail. There were quite a few clients chasing him. Thanks to the very cooperative receptionist I must have been the first who found him at his new premises – but settlement was two weeks overdue already at this time and I was charged the interest on overdue settlement.

    I settled two months later. But my layer made a bustard to pay all interest and fees associated with this delay, as well as reimburse me his fees. Week after I settled I got a call and was advised that he lost his licence and was declared a bankrupt (Insert evil laugh here!).

    The main actions I did in addition to cooperating with the old receptionist –

    1. Immediately getting a professional advice!!! And advising the original solicitor (at his latest known address) that I will take actions against him.

    2. I also contacted the NSW Law Society and they were very helpful and quite powerful.
    Definitely worth contacting – customer service email is fine – they will send you back a contact number to the person who will help you.

    Don’t leave it for too long – time will be against you!

    I know the feeling when you are like hitting the wall and everybody treat you as an idiot and you do the smartest thing you can think of and they are still go over you!!! [grrr] But it became really easy once I got the right person to do the legal job!

    Good luck!

    Cheers,
    :)

    Lesia
    http://www.ol-painting.com.au

    Profile photo of gmh454gmh454
    Member
    @gmh454
    Join Date: 2003
    Post Count: 537
    Originally posted by maxolau:

    You used a solicitor in your purchase, didn’t you?

    Wasn’t it his duty to make sure the financing is organised and inform you what interest you are paying and what the worse case scenario is!!! And it had to be in written!!!

    I think quite a few solicitors would disagree about “organising finance” being there responsibilty. They get paid for conveyance and contract work can’t see finance as their problem.

    Again sorry for his problems, but…

Viewing 14 posts - 1 through 14 (of 14 total)

You must be logged in to reply to this topic.