DISHONEST? INCOMPETENT? OR BOTH?

13th April 2006

DISHONEST? INCOMPETENT? OR BOTH?
"Super Wealth Coach" who recommended Westpoint.


A Melbourne financial advisor concedes that there were only two reasons why anyone could have recommended investing in Norm Carey's Westpoint Group - dishonesty or incompetence.

It's admirable for this advisor to confess to his own incompetence, considering that his own clients lost almost $10 million. As ashamed as he feels, he's still prepared to come forth and talk.

Unlike Denise Simmons, who gave Westpoint a glowing endorsement as it was collapsing.

Simmons, a director of Queensland based Wealth Gem Pty Ltd who gives herself the title of "super coach", urged investors to place their savings into Westpoint two weeks before the company began to publicly unwind.

In what must be one of the most appalling examples of financial buffoonery in Australian history, Denise Simmons, after flying from Queensland to Western Australia to research Westpoint, sent a two thousand word report to her clients which included the following comments.

"My visit to Perth was very informative and worthwhile.

I was fortunate to spend a lot of time speaking with the Westpoint Staff and Director Norm Carey during my trip.

Norm advises that over the 30 year period of operations they have successfully borrowed and repaid to a total of $30 Billion without default. They have also never defaulted on any investment payment or return of capital. That is a very fine record to be proud as an Australian owned company. Their current balance sheet is $90 Million, all profits are put back into the company and Westpoint has no borrowing as a company structure.

Richard Beck the other Director of Westpoint Management Ltd has been associated with the company for approximately 8 years and has also brought to the company a wealth of knowledge and experience.

I was extremely impressed with the Westpoint operations and procedures.

Norm Carey advises their intended AXS listing will probably happen around 2008. He will ensure the company structure is well prepared and in the correct placement prior to listing.

Westpoint have their own established panel of Westpoint Real Estate Consultants to allow the public to purchase properties within their developments "off the plan" as well the completed projects.

We viewed four of their completed developments. I was very impressed with all the prime locations, the quality of workmanship as well as their design and finishes. I would rate them as 4-5 star quality

Westpoint mainly concentrate on the major capital cities such as Perth, Sydney, Melbourne and Queensland, although they have done smaller commercial and residential sites in Adelaide. They have not ventured to Darwin. These two cities also have a lower population base which
under the Westpoint due diligence process, too small for the larger developments.

I believe the Westpoint company to be very smart operators.

Contrary to some of the reports you may have read recently, I feel that as more assets are acquired by this fund it will become a leading fund to have within your total investment portfolio, providing the rates offered remain attractive.

I consider the special offer by Westpoint to existing clients (2 yrs @ 12% pa) to be quite good, however upon maturity what the rates will be then for reinvestment will have to be considered at that time.
I hope this report will assist all investors existing and new in determination of your investment funding via the Westpoint Group."

Yes, and let's hope all investors will be careful when dealing with Denise Simmons, Super Coach of Wealth Gem Pty Ltd. "Authorised Representative Licence No 273276".

But aren't investors constantly told to be sure their financial advisor is licensed by ASIC?

When asked for a comment, Denise Simmons did not respond to phone calls or email messages.

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This Article was taken from the Articles page of the Jenman website

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