INSIGHT INTO A PROPERTY SCAM

A guided tour of how they do it.

UPDATE. March 2008. Insight Investment Corporation Australia Pty Ltd and many of the other companies that form part of 'The Insight Group' have recently been placed in liquidation. As often happens with spruikers who crash-n-burn, they soon re-emerge under another guise. We'll keep you informed when Trent Richards and his dodgy pals surface again.

UPDATE. August 2008. As predicted, it seems they have re-surfaced. Click here for details.

*************** by Neil Jenman

The purpose of this article is to warn the public about a mob calling itself The Insight Group (or The Insight Group of Companies; sounds more impressive) and a 32-year-old spruiker called Trent Anthony Richards.

For two days I have been trying to speak to Trent Richards. He won't return calls. His receptionist is not allowed to give out his mobile number, which means that Trent is either very busy or very dodgy.

The best way to explain why I think Trent Richards is dodgy and why I urge consumers to be very careful of his "Insight Group" (see full list of companies at the end of this article) is to take you on a sort-of guided tour of what he and his gang are doing.

As we go along, I'll give you some comments - just like a real tour guide. I'll also use a real life case study.

Ian and Carol Reid are in their mid-40s. They live on the Mornington Peninsula. They have six children. Ian works in the building industry, but Carol has the tough job, she's a full-time mum. Like thousands of hard-working decent Aussies they are concerned about their financial future.

These sort of people are bait for property spruikers.

One night, earlier this month, Ian answered the phone. A man with an Indian accent asked if he was interested in investment strategies. The caller asked Ian some questions to see if he "qualified" to meet a representative from Insight.

Beware of anyone who says you have to "qualify". They really want to know if you qualify to buy what they are flogging (over-priced property).

After a few questions Ian was told he qualified. The caller made an appointment for a representative from the Insight Group to come to Ian and Carol's family home.

The call centre in India had done its job - another lead will now be passed to the Insight Group. A slick sell is about to commence.

A couple of days later a friendly bloke called Joe turns up at the Reid family home and convinces Ian and Carol to pay $220 to have an appointment with one of the Insight finance specialists.

This is a con to get people to pay money for a sales spiel by a property spruiker. The audacity is breathtaking.

On February 14, a woman called Irene Slingsby came to the Reid's home. She described herself as an "Insight Property Investment Specialist". Irene drove the Reids to the Insight offices at 52 Albert Road, South Melbourne.

They were taken to a room to meet the "Finance Manager", a bloke called Ashwin Sethi.

This is where a spiv masquerading as a financial advisor makes a big show out of asking lots of questions and making lots of calculations.

In truth, these spivs just want to know two things - how much equity is in the family home and how much can the people afford to repay. The people are then handed back to the "Property Investment Specialist" (known in the trade as a "runner") who will be responsible for making sure they are quickly stitched up.

Watch how it happens.

Ashwin Sethi told Ian and Carol Reid that there were three properties they could afford. Irene Slingsby then drove them to the outer working-class suburb of Melton, an area which was totally unfamiliar to them.

The job of a runner is to keep the soon-to-be-victims captive.

Don't let them near local agents where they may learn about local prices. Speed is important. Don't allow time for too much thought. It helps if you delay feeding people. Hungry and tired people are pliable.

After seeing some blocks of land and discussing house/land packages, the Reids were rushed back to the Insight offices. It was time to sign documents.

Carol was nervous. It was all happening too fast. She told Irene Slingsby and Ashwin Sethi that she wanted to take the documents home. No, that wasn't possible.

At this point, in order to make everything totally legal (i.e. stitch them up good and proper) the spruikers usually take the victims to a lawyer (who is, of course, known to the spruiker and gets business from the spruiker. Nudge-nudge, wink-wink).

Ian and Carol Reid were taken a short distance to the offices of Andrew Blaak solicitors. They were introduced to a lawyer called Michelle Ould.

Before they knew it, the contracts were signed and they were walking out of the lawyer's office with the lawyer.

Carol then noticed something that didn't feel right. The lawyer asked the salesperson, "Now, can I go home?" Carol thought to herself, "Who is this lawyer working for?"

The golden rule is that you must never ever use a lawyer recommended by the company selling you the real estate. Always get a lawyer of your own choosing, one who has nothing whatsoever do with the spruikers.

Carol Reid's brother-in-law owns a real estate agency. He smelt scam. He called an agent in the Melton area who told him that the Reids had been stitched into a property deal that was "conservatively over-priced by $30,000 - $40,000".

Carol's brother-in-law remembered someone else who had dealt with this Insight mob and who had narrowly missed being stitched into a house/land package that was over-priced by $40,000.

In a panic, Carol's brother-in-law called Insight and spoke to Ashwin. Fortunately the Reids were not able to get finance (they did not have enough equity in their home).

This is always the biggest clue that an investment is overpriced. If the lender will not take the investment property on its own as security for the loan, it must mean that the price of the investment property is inflated.

Carol's brother-in-law insisted on written confirmation that Ian and Carol Reid were released from their contract. He received a call from "a smart-alec with attitude", a bloke from Insight who said he would only deal with Ian and Carol's lawyer (yes, the one recommended by Insight).

The agent told the smart-alec that he was going to speak with Neil Jenman. The smart-alec spat back, "I couldn't care less what you do."

Compared with what could have happened, Ian and Carol got off lightly. They lost $220 for the mock financial consultation and $250 to the lawyer recommended by the Insight Group.

In preparing this article, I tried to speak with Trent Richards the boss of the Insight Group (by calling their office on 1800 467 4448).

As well as Ian and Carol's case, I wanted to ask him about other matters. I wanted to ask about some statements on his web site. I wanted to ask about his background and where he learnt his property spruiking trade.

But, as hard as I tried, Trent Richards didn't want anything to do with me.

And that's my recommendation for Trent Richards and The Insight Group - don't have anything to do with them.

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The following companies are all part of the Insight Group.

- Insight Investment Corporation (Aust) Pty Ltd
- Insight Lending Services (Aust) Pty Ltd
- Insight Realty Australia
- Insight Residential Developments Pty Ltd
- Insight Insurance Agency (Aust) Pty Ltd
- Insight Accountancy (Aust) Pty Ltd


A QLD and NSW based company, Insight Investment Services, is NOT connected to Trent Richards and the Insight Group. Also, please note the following message received: Hi Neil, I run a financial advisory business, Insight Family Wealth Consultants P/L, licenced through Lonsdale Financial Group Ltd, from offices at Chatswood NSW. I am the sole director of Insight and the sole adviser. Would you add my business to the other Insight that you noted as having nothing to do with Insight Group? Anything else I can provide you to assure you of this? Appreciate your action on this ASAP. Regards, Russell Wadey

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IMPORTANT. Dear Neil, Please be advised that Insight Realty in Tasmania would also like to be placed on the register as a company that has no known affiliations or ties with the Insight Group. Thank You, Ben Goyne Director.

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UPDATE. Since this article appeared we have received several messages which have led us to conclude three facts.

One, this mob is still (right now) actively targeting naive investors. Congratulations to the lady who stopped her cheque. We are thrilled to know that this article saved you (and others) from these fiendish financial vampires.

Two, this mob has definitely ripped off investors (no, make that, torn the financial heart out of decent and trusting families). Shame on you, Trent Richards - and all your gang.

Three, this mob should be avoided at all costs. Hang up on them. Or tell them that your mobile number is 0419 317 446 (that's the number teenage girls give to creepy guys who want to call them).

And, finally, if anyone has an up-to-date recent photo of Trent Richards, please send it to us. I need it to include in my next book (which will have the mugshots of many shonks).

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