HOTEL ENTERPRIZE SCAM - DON'T GET ROBBED!

Hotel Enterprize Scam Alert - they sell apartments to unaware investors in order to cheat them!

Don't invest in Hotel Enterprize - they are scamming investors! If you already own an apartment in Hotel Enterprize, join our class action - click here to contact us. If you haven't invested in the Hotel Enterprize as yet - don't! Hotel Enterprize has already cheated over a hundred investors and is currently being investigated by ASIC, ACCC and Victorian Consumer Affairs.

Investor Testimonials

Together with about a hundred other investors, in September 2003 I purchased a unit in the Hotel Enterprize (Lot 313) 44-64 Spencer St, Melbourne 3000. The contract of sale included a lease agreement (Hotel Enterprize leasing back the units).

At the time of purchase we were assured the units would be fully renovated by Hotel Enterprize within 3 months from the date of purchase. There was a display unit set up (fully renovated and furnished) and it was shown to investors as to what standard of finish they were buying. The agents even produced depreciation schedules and advised investors to claim depreciation on their tax forms immediately as the renovations would happen within months. Several witnesses can attest to those facts.

All this was misleading conduct designed to scam the investors. The renovations have not taken place to this day (February 2008), four years later. Due to this the units are not rentable on the open market, which in turn allows Hotel Enterprize to reduce the rent without the risk of losing the lease. And this was exactly the course of action they took - Hotel Enterprize has reduced the rent in half in March 2006. A clever strategy was deployed to subdue protesting investors: rent was withdrawn pushing some of them close to bankruptcy, and a threat was made to increase the body corporate fees tenfold (Hotel Enterprize retains most units and thus controls the body corporate) for those who would try to take their units into the open market.

I believe the abovementioned actions constitute misleading conduct as per S20 of Fair Trading Act as well as S50 of Trade Practices Act. In addition, this conduct also matches the definition of fraud as per the Crimes Act (a deception to cause payment of money or financial advantage). I have reported those to ASIC, ACCC and Victorian Consumer Affairs, and received formal confirmation that they are being investigated.

Darius Mikolajewski

More testimonials coming soon...

 

Do you want to add your story? Please contact us.