A former bankrupt using multiple names can be revealed as the head of a property marketeering racket disguised as independent financial advice that has cost investors millions of dollars.
The scheme has sold more than 400 properties and continues to flourish, despite crackdowns by the Queensland and federal governments targeting unscrupulous selling and predatory lending to naive investors.
A Sun-Herald investigation has established aggressive marketing by Heritage Financial Solutions of often overpriced and second-rate Queensland properties has left a trail of burned investors, bankruptcies and broken hearts.
Some investors have seen their property values plummet by more than half. In one unit block, $2 million has been wiped from the value of clients' investment.
The Sun-Herald is aware of investors being bankrupted because of loans they could never service, and stories abound of people being left with debts of more than $150,000.
"I'm angry and appalled," said one investor, Luke Bellamy. "I cannot believe [their] unconscionable tactics employed that has so-called customers fearing bankruptcy."
The organisation's mastermind is Faye Kotsis, a discharged bankrupt who first plied her trade on the Gold Coast with a discredited property marketeer, who was later found to have breached to Trade Practices Act. Until 2010, her business partner was her then husband, the Gold Coast property developer Alan Myall.
The scheme has paid scant regard to laws designed to prevent hard-selling by real estate sharks, with a raft of breaches including clients being asked to sign blank contracts.
The operation includes a call centre in Manila, a sales office in Brisbane and headquarters in Thornleigh. It promises its salespeople earnings of more than $200,000 a year, and offers bonuses and a Ferrari to high-performers.
Ms Kotsis, who has amassed a property portfolio worth millions, helps coach sometimes unlicensed staff to pressure investors by using a strategy they call putting them "in the hole". In the words of one company insider: "'The hole' is a very scary place to be ... They are asked how they will provide for their retirement ... 'Can you live on the pension?' Then after scaring the hell out of the people, [they] tell them there is a way to save them."
In the past decade, companies associated with Ms Kotsis - including Sunshine Pacific Corporation, Sunpac Finance, Alfa Homes and, more lately, Heritage Financial Solutions - have sold more than $65 million worth of property in Queensland.
Buyers have been kept in the dark about how many parties in the deal are taking their cut. Investors are not told that their financial adviser, the property vendor, the financier (including a company called Fast Loans), the property caretaker and the letting agent are all linked.
Ms Kotsis has denied having any relationship with many of Heritage's associated companies and Mr Myall said he had not been involved in the scheme for the past four years.
Full story Pages 8-9
Frequently Asked Questions about this Article…
What is the property marketeering racket involving Heritage Financial Solutions?
According to a Sun‑Herald investigation, Heritage Financial Solutions ran a property marketeering operation disguised as independent financial advice that has sold more than 400 properties. The scheme is reported to have pushed often overpriced, second‑rate Queensland properties on investors and has cost people millions of dollars.
Who is Faye Kotsis and what role did she play in the scheme?
The report identifies Faye Kotsis as the alleged mastermind. She is described as a discharged bankrupt who helped coach sometimes unlicensed staff, amassed a multi‑million dollar property portfolio, and previously worked with Gold Coast developer Alan Myall until about 2010.
How much have investors reportedly lost through these property investments?
The investigation says investors have lost millions: some property values plunged by more than half, about $2 million was wiped from the value of one unit block, and there are stories of people being bankrupted or left with debts of more than $150,000 after taking on loans they could not service.
What high‑pressure sales tactics did the operation allegedly use?
Reported tactics included aggressive marketing and hard selling, using a strategy called 'putting them in the hole' to scare people about retirement and then offering a 'solution', asking clients to sign blank contracts, coaching unlicensed staff, and operating a call centre plus incentives such as large bonuses and even a Ferrari for top performers.
Were buyers told about related parties or conflicts of interest in the deals?
No. The article says buyers were kept in the dark about how many parties were taking a cut. Investors were reportedly not told that their financial adviser, the property vendor, the financier (including a company called Fast Loans), the property caretaker and the letting agent were linked.
Which companies are named in the investigation as being associated with the scheme?
Companies associated with the people in the report include Heritage Financial Solutions, Sunshine Pacific Corporation, Sunpac Finance, Alfa Homes and, in financing links, Fast Loans. The article says companies connected to Ms Kotsis have sold more than $65 million worth of Queensland property in the past decade.
Have regulators or governments acted against these kinds of predatory property sales?
The article notes there have been crackdowns by Queensland and federal governments targeting unscrupulous selling and predatory lending, but it does not detail any specific enforcement outcomes in this particular investigation.
What red flags should everyday investors watch for to avoid similar property marketing scams?
The investigation highlights several warning signs: aggressive or high‑pressure sales tactics, promises of unrealistic returns, being asked to sign blank contracts, undisclosed related‑party arrangements between advisers, vendors and lenders, use of unlicensed staff, overpriced or low‑quality properties, and lenders or loan terms that could leave you unable to service the debt.
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