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  • Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    ASIC drops case against Henry Kaye

    Australia's corporations watchdog has abandoned a bid to prosecute a Melbourne property spruiker over an alleged $18 million fraud.

    The Australian Securities and Investments Commission (ASIC) charged Henry Kaye with one count of obtaining financial advantage by deception after an investigation in December 2005…………………….

    rest at
    http://business.smh.com.au/asic-drops-case-against-henry-kaye/20080404-23p3.html

    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 XeniaXenia
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    @xenia
    Join Date: 2002
    Post Count: 1,231

    I think that's great news! I think the whole scenario just reflects the "tall poppy" attitude of the society we live in. If a poor person had been caught with fraud it would not have been anywhere near as bad!

    Profile photo of IratusIratus
    Member
    @iratus
    Join Date: 2008
    Post Count: 13

    Interesting,
    DPP's main witness ( alleged to be a solicitor) changes critical evidence that weakens the prosecutor's case. Has anyone heard news on what evidence was and why it was changed?

    Profile photo of IratusIratus
    Member
    @iratus
    Join Date: 2008
    Post Count: 13

    Just in response to Xenia's post.
    A trip down memory lane, reflecting on Henry Kaye's 'outstanding' career.

      4 March 2003  The Australian Securities and Investments Commission (ASIC) commence proceedings in the Federal Court in Melbourne against Messrs Henry Kaye and Alan Meagher, National Investment Institute Pty Ltd (NII) and Novasource Consulting Pty Ltd (Novasource).
    Allegation: the parties disseminated false, misleading and deceptive information in connection with mezzanine mortgage lending facilities and the related training courses, advice and strategies provided by NII and its associates. 

    31 July 2003
    The Australian Securities and Investments Commission (ASIC) obtain undertakings from Mr Henry Kaye and Mr Alan Meagher, National Investment Institute Pty Ltd (NII) and Novasource Consulting Pty Ltd (Novasource). Mr Kaye and NII have provided undertakings to the Federal Court which will prevent them from conducting seminars as they have in the past. The Federal Court also ordered, by consent, that Henry Kaye, NII and Novasource pay ASIC costs in the proceedings, fixed in the sum of $50,000.  

    12 September 2003
    Henry Kaye appears on Melbourne current affairs television program Today Tonight. Kaye agrees to submit to a polygraph test. The results of the questioning indicate Henry Kaye:
    ·      Admits lying to make money
    ·      Lies when asked about lying to consumers to make money in real estate.
    ·      Admits to lying to real estate agents
    ·      Has lied about the value of property.
    ·      Admits to promoting property at his seminars in which he has a financial interest  

    7 October 2003
    The Federal Court of Australia gives directions in new proceedings brought by the Australian Securities and Investments Commission (ASIC) against Mr Henry Kaye and National Investment Institute Pty Ltd (NII). ASIC alleges that NII and Mr Kaye breached the compensation provisions of the Enforceable Undertaking. These provisions provide for the payment of compensation to people who paid money to attend courses conducted by NII, as a result of having relied on statements that courses or products were approved by ASIC (the ASIC approval statement). 

    25 November 2003
     Henry Kaye places NII into voluntary administration and receivership following the appointments of:
    ·         Andrew Hewitt of Grant Thornton as administrator by the directors of NII; and
    ·         Andrew McLellan of PPB as receiver by Group Corporate Services Pty Ltd, a company connected to Mr Kaye. Mr Hewitt has also been appointed as administrator of Empower Group (Vic) Pty Ltd.NII has ceased trading as a result of these appointments. 

     
    4 December 2003 Mr Henry Kaye and Property Corporate Services Pty Ltd (PCS) give undertakings to the Federal Court of Australia in relation to their assets until an application from the Australian Securities and Investments Commission (ASIC) for the appointment of a receiver or trustee can be heard on 15 December 2003. Mr Kaye's solicitors, Maddocks, gives the court an undertaking to hold Mr Kaye's passport until 15 December 2003. ASIC has applied to the court for the appointment of a receiver or trustee over the property of Mr Kaye and PCS. PCS is an operating entity associated with Mr Kaye. Mr Kaye and PCS agreed that they would not transfer, deal with, diminish, mortgage, assign or dispose of any assets unless for full value and in the ordinary course of business, or to meet legal or living expenses. Among areas ASIC is investigating are suspected breaches of directors duties by directors and officers of NII and PCS in relation to loans totalling approximately $28 million from NII to PCS.  

    February 2004

    NII is voted into liquidation at a creditors meeting by 3 votes. In doing so creditors forego any chance of a return from the liquidation of NII assets. Henry Kaye attends the meeting with one known bodyguard. Kaye's sister, Julia Kukuy, votes in favour of liquidation.

     

    October 2004
    Federal Court finds that Henry Kaye breached the Trade Practices Act by engaging in misleading conduct in the promotion of a "millionaires" property investment course.The Australian Competition and Consumer Commission alleged, and the court found, that in the advertisements promoting the "millionaires" property investment course on radio and on the internet claiming that: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 Mr 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. 

    April 2005
    Henry Kaye discontinues his appeal to the Federal Court against the court ruling that he had breached the Trade Practices Act.
    Peripheral Information ASIC bans Mr. Paul Batho for 2 years and Mr. Len McDowell for 18 months from providing any financial services. These bans follow an investigation into Henry Kaye's property seminars. ASIC discovered both Batho & McDowell allowed Laton Capital Finance to conduct a financial services business without holding an Australian Financial Services licence. ASIC also found Batho was prepared to; compromise the interests of investors, failed to consider investor circumstances and the nature of investments. Both Batho and McDowell were involved with Kaye by providing services regarding property development and Mezzanine finance.

     
    December 2005 Criminal proceedings are instigated against Henry Kaye by the Australian Securities Investment Commission for his dealings with St George Bank. The summons was served by ASIC. The case will be prosecuted by the Commonwealth Department of Public Prosecutions.
    Allegation: – Henry Kaye fraudulently used deposit bonds to convince St George bank to loan 17 million dollars in order for a development project to proceed. 

    July 2006
    The Age newspaper publishes a story alleging Henry Kaye funnelled approximately $50 million into the Wyndham Waters estate prior to NII being placed into voluntary receivership. 

    September 2006
    Henry Kaye faces a public examination in the Federal Court along with former NII office holders:·      Robert Stubbs – Former NII Financial Controller
    ·      Les Smith – Director of LAS Investments Corporation Pty Ltd
    ·      Len McDowall – Former Group CEO

    The public examination is instigated by the liquidator Grant Thornton. The purpose of the examination is to gather more information regarding loan transactions between Kaye inter related companies to support existing potential actions that may benefit creditors.


     
    January 2007 The Age newspaper publishes a story describing how Henry Kaye had been using a disabled parking space in Flinders Lane. The disabled parking space is across the road from his solicitor, Lewis Janover. The disabled permit Kaye displayed on the black Jeep Cherokee dashboard was confirmed by Glen Eira council as not having been issued to Henry Kaye. 

    March 2007
    A Committal Hearing in the Melbourne Magistrates Court is scheduled to commence on 5th March and last four weeks. CaseNo. T0968206 . The hearing actually commences 7th March before Magistrate Maurice Gurvich. During the hearing the court hears:
    ·      Henry Kaye requested Deposit Bond Australia, an agent of GIO, fast-track deposit bonds applications.
    ·      The Oasis development would be the ninth Kaye project using the "low doc approach".

     
    19th March 2007 The Magistrates Court commits Henry Kaye to stand trial on one count of obtaining financial advantage by deception. Henry Kaye pleads not guilty. Bail was granted without surety. Kaye was ordered to surrender his passport and not to contact any witnesses. This was partially waived as Kaye has current dealings with some witnesses. A Mention hearing is scheduled for the County Court of Victoria 28th May 2008.  Case ID: CR-07-00564. Event: Case Conference. Room: Second Floor Courtroom 02. Location: Melbourne. Presentment No:T02968206                       

    27th April 2007
    Papers filed at the Federal Court against investment company First Capital by it's former public relations manager Mr. Ted McDonnell.
    Allegation: First Capital and Mr. Les Freeman ‘deliberately and knowingly entered into false representations’ to him during employment negotiations in August 2006. McDonnell alleges First Capital concealed its links with Henry Kaye. Further, because Mr Freeman intended to take over Empowernet, he requested McDonnell meet with Henry Kaye and Michael Burnett (of Empowernet) in Melbourne and write a report on the suitability of Mr Kaye to work with Empowernet after it becomes a listed ASX company.  

    28th May 2007
    Henry Kaye's trial date in the County Court of Victoria is set for 28th July 2008.Length of trial is expected to be 60 days. County Court Case ID: CR-07-00564.            

    4th April 2008
    Department of Public Prosecutions files discontinuance notice. A key witness decided to change initial evidence which weakened the DPP's case against Kaye.There are no known further investigations into Henry Kaye's activities.


    If this 'tall poppy' was cut down, the only unfortunate aspect is it was not done earlier!


    Regards
    Iratus

    There are countless horrible things happening all over the country, and horrible people prospering, but we must never allow them to disturb our equanimity or deflect us from our sacred duty to sabotage and annoy them whenever possible. (Auberon Alexander Waugh 1939-2001)
                

    Profile photo of IratusIratus
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    @iratus
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    21st July 2010 –  Today Henry Kaye was banned by ASIC from managing companies for 5 years.  "ASIC said Mr Kaye had breached his duties as a director by failing to document significant inter-company loans within the group and to ensure those loans were properly secured. It also found the loans had been made to companies controlled by Mr Kaye and were not repaid."

    For the full story: http://www.theaustralian.com.au/news/nation/property-spruiker-banned-by-asic/story-e6frg6nf-1225894772803

    Profile photo of TerrywTerryw
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    @terryw
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    They have allowed him to manage two companies which operate as trustess of his SMSF though. http://asic.gov.au/ASIC/asic.nsf/byHeadline/10-160AD%20ASIC%20disqualifies%20Henry%20Kaye%20from%20managing%20corporations%20for%20five%20years?opendocument

    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 IratusIratus
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    @iratus
    Join Date: 2008
    Post Count: 13
    Profile photo of IratusIratus
    Member
    @iratus
    Join Date: 2008
    Post Count: 13

    Just another update.
    If anyone has more information contact me via private message.

    http://www.theage.com.au/business/investors-beware-lax-laws-let-spruikers-loose-20110812-1ir2d.html

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