RIPPING OFF REAL ESTATE AGENTS

RIPPING OFF REAL ESTATE AGENTS
Thousands stung in multi-million-dollar scam.

by Neil Jenman

Michael Smith has an unusual job - he rips off real estate agents.

He's very good at it; indeed he's being doing it for several years. Since 2001 as many as three thousand agents have been stung for amounts ranging from $5,000 to $40,000 each.

In total, Smith and his gang - who first used the name Property Listing Professionals.Com Pty Ltd and then Real Estate Marketing Group Pty Ltd - may have fleeced more than $30 million from agents across Australia.

Their scam is simple. It appeals to the most important desire of any agent - to find properties for sale.

Smith tells agents that his group specialises in finding sellers in any postcode via his trained team of tele-marketers.

Agents are promised that they will receive a number of qualified sellers over a 12 month period - usually between 50 and 100. At an average commission of $10,000 per property that's serious money for agents.

But first, they have to pay Smith as much as $40,000 each.

To create urgency, Smith tells the agents that they will be given the exclusive rights to their postcodes. "No other agent will be able to use this service," he lies.

Smith knows that most agents do not speak to their competitors. This has enabled him to fleece several agents in the same area by making each think that they are the only agent getting his wonderful service to deliver them a steady stream of sellers.

Once the agents have signed up and paid their money to Real Estate Marketing Group, Smith does little or nothing other than give them excuses about why he does little or nothing.

Clearly, Smith has that tremendous talent which is bestowed on only the finest fraudsters - the ability to look directly at potential victims and tell the most whopping lies while still seeming to be sincerely honest.

It's a talent all dishonest salespeople yearn to possess.

But such a gift is bestowed only upon a rare few - those pathological and usually psychopathic persuaders. People such as Michael Smith.

Or is it Charles Smith or perhaps Peter Smith?

Varying reports are coming in from different agents who all describe a similar Mr Smith with a different first name.

"How many Smiths work in your company?" one agent recently asked the man who calls himself Charles Smith. The man went silent.

Surprisingly, some agents are quite philosophical about being ripped off. "A fool and his money are soon parted," said an agent from Sydney's North Shore last night.

Others, however, are not so amiable. They'd like a few minutes alone with Michael Whatever-his-name-is and their auction hammers. They don't like being treated like dummies.

Another agent was deeply traumatised. "This contributed to me having a nervous breakdown," she said last night. Her business is now for sale.

It appears, however, that agents are not the only ones being ripped off by the gang (whoever they are) at Real Estate Marketing Group Pty Ltd. It seems we were all being ripped off because the Australian Taxation Office has commenced proceedings against them in the Federal Court.

And, late yesterday afternoon, a short fax was sent by Real Estate Marketing Group Pty Ltd to several agents.

The fax was headed 'CESSATION OF BUSISNESS (sic)'.

It said, "Dear Client, It is with regret that we advise that the business will cease trading as from 28th June 2007. We will have the appointed liquidator contact you in due course. Once we received a Creditors Statutory Demand from the ATO it became clear that the company was not in a position to pay its debts and accordingly we have no option but to prepare to cease trading."

The fax ended with "Yours faithfully, Director". There was no name, just a little squiggled initial beside the word 'per'.

ASIC's records show that the director and secretary of Real Estate Marketing Group Pty Ltd is a person called Theo Philippou, born December 15, 1967.

Other people who have, at some time, held senior roles in Real Estate Marketing Group are Ian Bredle (Director, Operations and Administration); Christopher Ballis (Client Relationship Manager); Veronica Lamanna (Director, Call Centre); Mary Drougas (National Public Relations Manager).

But no sign of the mysterious Mr Smith.

One thing's for sure, though - he'll be back in another form with another company, perhaps under another personal name.

As one agent quipped: "He would have made a terrific real estate salesperson. If he'd have had some ethics."

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UPDATE: June 28, 2007. Well, we said he'd be back for sure. But even we didn't think it would be this fast.

At the same time as Real Estate Marketing Group Pty Ltd was closing down, a new company, Real Estate Property Services (Aust and NZ) Pty Ltd. was starting up.

This is what's commonly known as a 'Phoenix Scam' where one company closes down after fleecing a number of victims and then the people behind the company start a new company to use the same scam on new victims.

This time, judging by the name (Real Estate Property Services (Aust & NZ) Pty Ltd.), it looks like they also plan to target Kiwi agents.

To see their close-down letter followed by their start-up letter (both dated the same day), please click on following link http://www.jenman.com.au/Downloads/phoenixscamonagents.pdf
.
Honestly, this mob has more front than rats with gold teeth.

They should be arrested for fraud.

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This article was written by Neil Jenman, Author & Consumer advocate.



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