Instant Access - The Scam Continues

Well there was us thinking we might be able to continue with the mammoth task of continuing the "Great Bait and Switch" article, when all of a sudden a couple of e-mails pop up about a new "saving" to be made from our chums who also like to change names, directors and companies at a moments notice, Instant Access. (or Inside Track, or IAP UK, or IAPG, or IAPI, or IAP Global, or indeed iaprops.com)

"Dear Client,

We have recently been contacted by a number of International purchasers requesting updates and assistance with the sales progression of their Spanish investments.

As you are aware, Instant Access Properties (IAP UK) were placed into administration in September 2008. IAP UK’s Spanish Subsidiary (also known as IAPI) continued to trade with their sole director being Maria Gifford. This separated the Spanish team from IAP Global (IAPG). We were saddened to learn that IAPI have ceased trading, closed their Spanish offices and let all their staff go. This has had obvious repercussions on the Sales Progression of your Spanish purchase. Accordingly, we approached the developers on your behalf to discuss their involvement in this process; unfortunately we fear they do not have the resources to offer such a substantial progression service.

As a result of this news IAPG will look to offer the Sales Progression Service for any purchaser on this development, in line with the existing Sales Progression Service offered to purchasers within the UK and other International markets.

You may or may not be aware, IAP Global Ltd was launched solely to continue being able to offer you access to outstanding property deals within the UK and abroad, and to ensure that we can carry on assisting you with the Sales Progression and completion of your existing property transactions.

Historically, under Instant Access Properties, the subscription fee charged covered services such as ongoing educational events, access to the IAP and Inside Track websites, customer service assistance, Sales Progression services and access to Aftercare Solutions vetted suppliers. In order to help you understand the value of your subscription payment, below are the benefits for your Golden Sun and Beach Resort development that the Sales Progression is currently making.

The team at IAP Global Ltd are constantly chasing developers, lawyers, mortgage brokers and lenders on your behalf every day. They are the "vital link" between yourself and all other parties relating to your property purchases.

The following benefits will only be available to the clients who subscribe to our Sales Progression Services.

· IAP Global will be visiting your development at the end of the May to review its progress and meet with the agents involved. A comprehensive report and associated images will be available.
· A dedicated Sales Progression Development Co-ordinator has now been assigned and is on hand to assist with any queries right through to completion.
· We anticipate build completion in September 2009 – this will be confirmed and assistance will be offered regarding the process of the ‘Habitacion Licence’.
· Preferential rates for furniture packs, snagging services and Management Agents and other associated third parties.
· Regular liaison with your selected management agency for the rental organisation of your apartment.
· MOST IMPORTANTLY – we are currently negotiating with commercial lenders direct for the mortgage finance. Direct contact with lenders often gives the best mortgage rates, and also negates the need of a broker fee!

Many of you receiving this email will have already benefited from this Sales Progression assistance. We understand that this is a challenging time for both individuals and businesses and we want to be able to continue to help you through it, with the best team possible.

The New ‘Subscription’ or ‘Sales Progression’ Fee:

We have spent a lot of time speaking with our clients at events held across the UK and we have spoken with many people about how much they would be prepared to pay for the ongoing assistance and service of IAP Global Ltd. As a result of these discussions we have now set our new fee schedule.

The cost of the IAP Global Ltd subscription is £1,500.00 + VAT. This is a one-off fee for the sales progression of your property(ies), replacing the old annum subscription charging system and entitles you to benefit from all "sales progression savings", irrespective of the number of properties in your current portfolio.

HOWEVER, as cash flow is so critical to businesses including our own, we are prepared to reduce this to £900.00 + VAT - if paid by 29th May 2009 (to coincide with the site visit). You can pay this sum by bank transfer, and cheque. You can also make a Credit Card Payment through our Sales Progression team on 020 8481 3561. You will also find our bank details below.

Please note that if you choose not to pay the subscription we will not be in a position to help you through the sales process to completion and we will not be offering site updates or mortgage assistance. You will be alerted of your completion date via your legal representatives, typically once legal notice has been served for your purchase - 10 days before completion.

For those clients that have paid this Sales Progression fee after contact regarding the rest of your portfolio, you do not need to do anything – YOUR PROGRESSION SUPPORT HAS BEEN COVERED.

Please be sure to put your name as the "transfer reference" from your bank.

{BANK DETAILS REMOVED}

Thank you all for your continued support of IAP Global Ltd. We look forward to speaking with you again soon.

Yours sincerely

A.B. McKay
GROUP MANAGING DIRECTOR"

OK. Let us see if we have got this clear.

Instant Access flogged overpriced property through expensive seminars. They also charged a fee for the pleasure of doing so.

Instant Access then goes bust after it's not so elaborate Ponzi scheme collapses. At this point Jim Moore makes some vain attempts in the press to quell the heat, starts up a new company using other directors, and is then rumoured to have siphoned off a bunch of cash to Panama that can't be accounted for. (We covered the joke of a proposal of rescue plans last year in "The Instant Access-Inside Track Saga Goes On and On")

Now we see this letter, and apparently more wheels are falling off the cart, they have no money, and to help their investors out they want more money!

One would think that Jim Moore and his cronies would have the sense to keep a low profile, but oh no. Nip along to their "Special Edition" blurb on their site and what do we see after endless waffle of theoretical equity, profit, discounts? Jim Moore has his name there, bold as day, just above the convenient disclaimer,

"Comments made are based on current tax law and may, (in fact almost certainly will), change in the months/years ahead. Material supplied has been carefully checked for accuracy but no responsibility can be accepted for inaccuracies or errors or from subsequent use of this material. Specific professional advice must always be sought based on your own individual circumstances. As always, the buck stops with you. We recommend you take independent advice before making any such decision.

The writer, IAP Global Newsletter and associated companies, do not accept any responsibility for any loss suffered by readers as a result of any such decision."

At least Dick Turpin wore a mask Mr Moore.

Another Mysterious Inside Track

Well well, it never rains, it pours!

This week we see a story about another Inside Track. This time in the Middle East. Developers Al Barakah responsible for the "tallest tower in Ajman" Police are looking for the CEO Imran Khan after allegedly defaulting on $3.8 million USD worth of cheques.

The story goes according to the Dubai 7 Stars blog and The National Newspaper that the company was offering 50% profits in 6 months. Nothing illegal about that of course, the likelihood of it however takes a bit of believing to say the least!

Buyers however still bought in their droves, some buying entire floors of buildings in the traditional greedy sheep mentality that gripped the Dubai market place.

Now buyers with their bouncing cheques are flocking to the police after not being able to find Kahn. Strangely his house is empty! To rub salt, or maybe sand into the wounds, Al Barakah is registered in Ras al Khaimah (RAK) a tax free offshore zone, as an offshore company, the marketing company, aptly named "Inside Track Real Estate Brokers LLC" is a limited liability company in Dubai, quite likely as an offshore company too.

Perhaps Mr Kahn has an offshore company in Panama too like our other inside track chums?

Apparently staff at the sales agency has received death threats and not been paid, no projects are registered at the Ajman land department and no-one has anywhere too turn. The official real estate body in the region RERA is reported to be coming up with some cunning plan or another to deal with all of this, but considering it has only thought of 12 laws and decrees since 1997 on its website, it could be a little while.

As they say in Arabia, Enchala! (God Willing)

The Instant Access-Inside Track Saga goes on and on

Well after last nights rant at the TV we thought it appropriate that we bring you what is possibly the largest farce regarding the investment robbery world. The tale of Inside Track, Instant Access and all its other brothers and sisters.

There are numerous reports on all of the companies involved from many sources, so for convenience we will list them at the bottom of this article.

The articles mention several companies that all seem to be interwoven like a plot for an Eastenders Christmas special.

Instant Access,

L'Arome, (which went bust in the 90's owing millions)

Fuel Investments,

AfterCare Solutions,

The Pearson Foundation in Panama,

as well as the suggestion of several offshore trusts in the Isle of Man.

For those that are not aware of Instant Access and Inside Track, in a nutshell Inside Track held seminars amidst vast amounts of publicity claiming you could become an investment property millionaire if you paid them 5-10 thousand pounds. For your money they would tell you about the "opportunities they had sourced" (As it happens by people with little or no experience, let alone qualification) Which you the "Qualified Investor" would rush in and buy.

As it happens now, Inside Track and Instant Access are both in administration, no surprise considering the current state of the real estate industry and financing right now.

What the journalists appear to have missed though is a number of astonishing claims on the current Instant Access website made by Jim Moore. (Who signs off as the "Founder" now, when before he was nothing to do with anything at all, how strange!?)

Global Banking and Finance Crisis – IAP’s response for the future

As you will see, a lot of wittering on about how it is everyone elses fault and written in such a way it seems to be treating its' clients like 5 year olds which really adds insult to injury.

The statements that follow further on are just beyond belief though:

"Whilst the current climate is worrying and at best, testing for us all, (and I feel for every one of you with difficult investments at present - I also have my share - some have been the very same developments you may have invested in) I believe passionately in property investment for individuals like you and I, as a powerful complement, and alternative to straightforward "traditional" investments."

"As you are no doubt aware, I founded this business some eight years ago, and so, when other funding could not be sourced, it was left to me to decide the "ultimate fate" of the business.As a result of this, I've worked with my team in "crisis talks" since Friday in an attempt to come up with a solution.Our ongoing aim is to be able to offer you, as closely as we are able, the services and opportunities that you were previously offered, with minimal interruption and disruption. To do this I've been required to commit to further substantial investment in order to take the business forward."

So tell us Jimbo, how are you going to take the business forward? How are you going to get us out of this jolly old mess?

"This has meant it has been necessary to form a new operating company, "IAP Global"."

Whoa! What!!!!?????

"IAP Global is headed up by IAP's previous Managing Director, Tony McKay, and staffed by people I'm sure you will know and recognise.This team will help you to complete on properties that you've invested in, and continue to find new investments in areas of opportunity around the world for you to capitalise on as and when you feel you're ready.
You will appreciate these are difficult times for all of us, and we too have had to restructure and downsize in order to find a solution – as such we would ask you to please be patient with us should you feel you experience any service shortcomings in the near future – the decision was taken that "a smaller IAP was better than no IAP""

Now hold on a moment, let us get this straight. We have been to your seminar. We have paid you say 10K to see all your investment ideas. We have then handed over a huge wedge of cash to a developer that has then paid you a commission. You have let one company fade away, taken out a debenture on it just in time to see that you get paid before any other creditors and now you tell me that a smaller IAP is better than no IAP? Does this mean you can fritter away less of my money?

Apparently not! the page goes on to say,

"In the next few days and weeks, we will be launching a number of new "market appropriate" investment products, with a focus on high growth, minimum investment, minimum risk, and positive returns. IAP Global will also be launching its own website (at the same web address:- www.iaprops.com) - please ensure we have your current email and mailing address, and also, check the website regularly - we intend to make more use of it as a member communication tool.We will make sure we keep you abreast of any changes and developments, hopefully all good from now on. We all know that this is a difficult time for everyone, nobody is immune, but together I believe we can find a way through this and into profit. It’s difficult to be "courageous" at times like this, but you recognised property investment was good when you elected to get involved with us, and fundamentally that hasn't changed."

"Market Appropriate Investment Products". Hold on a moment whilst i climb back on to my chair after falling off it due to laughing so hard.

May we remind you that the last "Market Appropriate Investment Product" you promoted was as much use as a sunbed on a submarine?

An ingenious scheme to calm the heat and extract more cash from already desperate clients, some with debts into the millions already. If you are an Inside Track/Instant Access client, do let us know of the latest propositions. Be aware that any money sent has already disappeared, most likely to the Pearson Foundation in Panama, what is to stop the latest venture going the same way? I can't imagine this lot coming back from Panama in a few years time to face the music!

Irish Independent "On an inside track to a property jackpot"

The Free Library "No more takers for dream of becoming property millionaire"

The Guardian "Champion of buy-to-let boom succumbs to credit crunch"

Yahoo Business "Unanswered questions at Inside Track"

Fools Gold or Golden Fools? Channel 4

Astonished, flabbergasted, lost for words.

If any of you have watched Channel 4's aptly titled "The Price of Property: Fools Gold" with Jon Henly, you too are probably picking up your jaw from the floor. Personally, I have not lived in the UK for over a decade now and whilst no-one has been able to escape the rising house prices in the UK and Europe in general, I find it almost unbelievable to see a woman who managed to spend the best part of a million pounds on property she hadn't seen over a weekend, then on top of that, go to see one of them and wonder why the furniture was made of cardboard and seemed incredibly cheap!?

I must admit, although the numbers quoted seemed somewhat off, it is a stark, long overdue lesson on how not to invest money you don't have in something that is yet to exist and that you can't see! The woman in question (vague as she was) thought when asked that she would be some £400,000 out of pocket if she sold all 7 apartments there and then. (We don't know when this was filmed, so it could well be double that by now!)

The world of property seminars and exhibitions is a very murky one, not just from out and out misrepresentation hype, but the manipulation of the public into parting with their cash for something they know nothing about with the simple aid of a fancy dog and pony show in a posh hotel with big shiny TV adverts. (We'll come back to this murky world in a moment)

First, Ask yourself the question. Do you think you could fly a rocket to your local Tesco and back without crashing after an intensive course from NASA in just a weekend?

"Oh no!, that's just being stupid" I here you cry, well is it? This woman had gambled over half a million pounds of money she didn't have in a weekend.

The Channel 4 show went on, interviewing a young lad on his first "buy to let" investment at auction, saying "I can't lose, everybody needs somewhere to live" HELLO!! has no-one read the news lately???!!! like, in the past year?

Why and how do people manage this? even then when they have, why do they think there is still money in it?

It's simple. Hype, Press and Seminars.

Hype?

Whilst the Channel 4 show in this case has highlighted everyones mistakes after the effect, in an all very nice touchy feely way, we still have the wrath of tv shows to thank for the hyping of riches to be made from property investment, most of which are sponsored by some sales company or another, or in some cases property companies going to the length of buying TV stations to get just that bit closer to your wallet whilst you sip on your Horlicks on a cold winters night.

The press?

Well they will take ads, and sponsor events held invariably by media companies linked to real estate interests in some way or another (we have illustrated just the surface of this in previous posts)

Seminars and Exhibitions?

Dare we say it...... Inside Track and Instant Access. There. What a great idea, send us money and we'll tell you where you could buy. It'll make a profit, honest guv! The Instant Access website(s) does throw some confusion into the mix here, take a look at these 2 very similar links,

http://www.iaprops.com/itsredirect/index.asp

http://www.iaprops.com/

There is a great deal of debate and argument going on around Inside Track, Instant Access and all of it's owners, so we are going to refrain for the moment from commenting in too much depth, leaving you the reader to ask yourselves the question as to why a site might need 2 different versions. Once the dust settles a little, we will have a report on the shenanigans from both of these companies.

Back to the point though, before we rant on any more. Seminars. DON'T go there. No matter what the nice man in a shiny suit tells you or shows you, the chances of you paying off your house 150 times over in 10 minutes if you buy these 5 properties for only 5% down and take a 150 year interest only mortgage and rent them out to all of the 6 million tourists that walk past the front door twice over when it's 40 degrees below in darkest Bulgaria are slim to say the least!

As Public Enemy once said, Don't believe The Hype!