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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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BFCSA: Secrets of The Investors Club (renamed The Property Club) boasted $4 Billion in Mortgages up to 2005

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Kevin Young asked me for lunch in Perth in 2002.  I declined.  Rarely did his customers see or speak to him.  He was a constant Mr Invisible with an army of spruikers.   Now it is obvious what the gut feeling was all about.  He claims NO DEFAULTS.  Well these loans from Bankers where people have up to 12 properties as a Bank Driven Creating Wealth Strategy....are paid by buffer monies and more debt as property market goes up.  But what happens when she blows downward?  Young boasts as Australia's # 1 Creating Wealth risks mentioned Kevin?  Property always goes up - never down, shares go down.  Use home equity - make it work for you.......  ARIPS (Bank acronym) to use equity from their existing home?  

Yep this is risky business.  You never saw the LAFs and would not know whether they were fraudulent or not...but we knew back then.

Did you by any chance explain that the banks hike up the Interest Rate after honeymoon is over to almost credit card rate 18%  Its like paying a home off on steroids.  Your members were mostly "eager to learn" homeowners with very ordinary jobs and incomes and rarely had any investment experience.  That's the problem with spruikers.  Yes capital gain may look rosy from time to time but what about the HIDDEN AND UGLY COSTS of Low Doc Lending?  The UNVERIFIED LOANS....come in spinner.  Had we gone to lunch and I warned you of the downward consequences for ordinary Australians, would you have listened and not continued your TIC business?  I doubt it.  YOU may now say: "Golly Gosh, I did not know the Bankers were such dogs."  But the damage is done Kevin and a staggering $4 billion in Low Docs - most likely $8 billion by now was rich commissions for you indeed.

ASIC sniffed around a couple of times. Ah well.  Spare a thought for this poor ole bugger whose life has been ruined by your financial strategies and advice...someone who feared they may be left in poverty if they did not do as you suggested.....well poverty was the end result.  The alternative would have been he was living in his own hard earned home and debt free but there we go!

Maybe we can do lunch now Kevin as I may want to ask you what are YOU doing now to clean up the mess?

Hullo Denise, I had to write as I saw your email from a friend of ours. I am one of those elderlies-67 years old-  you speak about. My wife and I had been “stung” by the investors club in 2006/7 buying 3 properties through them after much encouragement from them, finding out within 1 – 2 years I was struggling to meet impossible interest payments and scorned by the club afterwards as a trouble maker no matter what I complained about. The last 8 years have been a living hell. I have poured everything I own into my lines of credit, managing to narrowly survive bankruptcy so far, but my life has been turned upside down with depression, suicidal tendencies, family relationship breakups, humiliation, anger, resentment, sleepless nights; I am a changed man   living in fear that today or tomorrow will be the day the banks foreclose or that rates will go up again and I simply will no longer be able to survive. My retirement years have been turned into “ blood, sweat and tears” since I invested. Everything you have said is 100% true. The issue you have not mentioned is about re-financing. I have also never seen those LAF. I am trying at the moment to locate my 3 original LAF form when I first invested  in the knowledge that I wont because one of the bank’s branch managers I saw the other day said- “No one gets the LAF. You get the contracts.”

I asked why is this the case and all he could say was with a shrug of the shoulders was, “because you don’t, and that’s the way that it is”  He kept asking me my ‘Why do you want it?” I did not tell him the real reason but I am sure he knows. 

There must be so many people in the same boat by now.  If you need instructions on how to get the LAF you need to join us.  Just hit the membership button and we will send you the templates.

The Banks send out letters suggesting approval from more than what is asked for.  The bank loans are mostly Low Docs and the entire financial strategy is based upon property going up and never going down.  None of the risks are explained.  Sometimes "rental guarantees were offered, and yet in other moments in time rent Warranties were implied whereby the novice "investor" is lulled into a false sense of security that TIC "will sort out any problems you may have if a renter is not easily come by."  There are several versions of this spiel.  The figures are worked backwards from say a suggested $2400 pm down to $800 per month on average loan of $320 to purchase a second home, having the new member believe that its all affordable.  The seller of the lending product is in fact an agent of the bank and ABOS Colin Neave (see Bulletin # 36 dated 2001) had a policy on that conduct to protect consumers at the time.  

The sellers of the financial strategy try to mask this operation is if it is "general" financial advice" yet the bank agent would assist with the set up of the "financials."  Hence the bank would then offer more money than was originally sought contained in the bank's original letter to all Low Docs customers.  ASIC preferred no financial advice given so accepted this was all innocent "general advice."

Yet the Lender was happy to then provide a usual $100k Line of Credit to act as "buffer" to spend money as any shortfall.  But this was entirely made up as debt.  TIC and the Lender knew people could fall in a hole using this strategy.  Credit Cards of around $20k were offered as "part of the package." Some used them and some did not, but if people are struggling they will use them when the going gets tough.  This comes dangerously into the area of "third line forcing" but that's another story.  People were convinced this was safe and secure investment - people who owned their own home and had no mortgage, yet were encouraged to add to their retirement monies.  Now they risk losing the lot.

The Government created TAX ADVANTAGES which became the catalyst and the gravy train for spruikers and developers riding on a seemingly endless gravy train of grabbing the equity in people's homes and leaving them mercilessly in debt and heading for ruin.  What kind of person does that to another human being?  

I had meetings with PETER KELL Deputy Chairman of ASIC in 2003 (dinner in the ZOO - remember Pete?).  Every question you were asked about closing down these operators by Senators Conroy, Sherry, Williams, Cameron et al, you simply brushed off with "we will get tough with Spruikers.  You then said the same words to Mathias Cormann last year and also the usual  "I will take the question on notice."  We are fed up with the 11 year delay and those who lose homes because of your folly in ASIC, will be paying a heavy price indeed.

You had powers Mr Kell and you failed to use them and people's lives are being ripped apart. The advice given was indeed "unlicensed PERSONAL FINANCIAL ADVICE..." and you can churn and twist that however you wish.  Had Low Docs been banned these people would now have the original asset and none of the DEBT and would not now become SLAVES TO THE BANKERS.  $4 - $8 billion in mortgage lending generated by this one spruiker who boasts such a figure on his website.  We accept there are a few who may have become wealthy (usually the bankers, developers, spruikers, but many ordinary Mums and Dads do not.   This email address is being protected from spambots. You need JavaScript enabled to view it.


Some indisputable facts:

  • Nearly 11,000 properties purchased using our free services since 1994. Many of our buyers are multiple purchasers – some even twelve or more properties through the Club.
  • Most of these investors continue to experience near zero vacancy proving wrong location/stock is ignored by the Club.
  • Over $4b in mortgages without one default!
  • Our workshops are free, educational and open. All our Support Members who speak have purchased through the Club helping other ‘mums and dads’ like themselves.
  • Unlike others there are no expensive courses.
  • Our annual national (educational) conference attracts hundreds of members.

We provide our members with the following free benefits:

  • Help with tax audits.
  • Tax deductions.
  • Property hot spots and spots to avoid.
  • Pre settlement quality inspection checks.
  • Liaison with Property Managers and On Site Managers in locating tenants and again when lease expires, keeping vacancies down. Also checking rents increase.
  • Our investors will soon have their own password accessible property portfolio on our website.
  • Free on going support and legal help with vendors/builders under Council structural warranties.
  • World’s best software for avoiding wrong property selection and providing future cash projections.
  • Best home loans.
  • Best insurance.
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  • Sandy Phillips
    Sandy Phillips Monday, 18 August 2014

    As a former member of TIC

    I know of many members who are financially distressed because of the strategy of Kevin Young including myself. Kevin was instrumental in forcing me to purchase a property in Queensland that was many thousands of dollars over valuation. When I could not settle I was provided with a second finance offer which I could not refuse, I was threatened with bankruptcy, I should have taken the deal way back then (2008). as I am currently looking at bankruptcy now. The second finance offer it now appears is also illegal. The second finance was arranged by KY's personal secretary. The developers have a second mortgage on the title of the property which has made it impossible to sell as the interest rate is 7.70% or in default 15%. As I have not been able to pay for this and pay the shire fees, body corporate and water rates I am now being sued for this as well. What a wonderful organisation TIC is!

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  • setup
    setup Tuesday, 19 August 2014

    That's the trouble with these spruikers, They are only focused on the commissions and benefits in it for them and don't care a damn about the life long damage they are causing the investor.

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  • PreySOS
    PreySOS Tuesday, 19 August 2014

    National scaled trouble will lead to national economic disaster sooner or later

    National scaled trouble will lead to national economic disaster sooner or later

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