Fairfax Media and ASIC to face class actions by angry investors who say they were scammed by Fairfax Media’s actions to destroy their land banking options.
Investors are reportedly so furious with Fairfax Media and the ASIC over their role in scamming investors out of their land banking options; they are preparing class actions against both.
Fairfax Media planted dozens of false articles in The Age and Sydney Morning Herald written by disgraced journalist, Simon Johansson.
It was reported and revealed last year that Simon Johansson had received financial inducements from Fairfax Media to write (allegedly false and deceptive) articles about land banking, especially land banking projects promoted by the 21st Century Group.
They made false claims stating that between $100-$300 million had been lost in land banking schemes (even though not a single dollar had been lost and 21st Century Group’s land projects only ever had $6.8 million of investor money).
They also implied that the land banking schemes were somehow breaching the law, even though land banking is perfectly legal and the use of options in the property market a common practice. Never before has any regulator taken action against this, especially a securities regulator that has no business trying to be a property regulator.
They also made claims that investors were not protected or didn’t understand what they were investing in. However, an ANR investigation found that claim to be false, as almost every investor had been through intensive education beforehand on land banking.
They also repeatedly claimed investors had lost money and even brainwashed Ms Grace Monka into thinking she had lost her entire investment. They flew her into Melbourne for a land banking Senate Committee meeting in order to have her deliberately mislead the Senate into believing she was a victim who had lost money. However, no such losses had occurred and her investment was not even with one of 21st Century’s five land projects.
Fairfax Media were instrumental in pressuring ASIC and dodgy union slush fund Senator Sam Dastaryi to take action against perfectly legal methods, i.e. land banking, as Fairfax was about to be exposed for falsifying losses made by investors. Therefore, they desperately required ASIC to shut down the land projects to create losses before they could get exposed and inquiring politicians could investigate.
Fairfax’s deceptive and dishonest practices has resulted in investors suffering significant losses and estimated losses to the 21st Century Group of over $20 million. Fairfax has its nose out of joint also, as the CEO launched a competing newspaper, which has recently overtaken Fairfax Media’s only profitable newspaper- the Australian Financial Review.
As a result many investors are furious that a major media company in Australia can manipulate certain Senators and the ASIC to create such a sham and cause innocent investor losses just because the CEO of 21st Century launched a competing news website (which has already overtaken Fairfax owned Australian Financial Review in online readership) and a centre right political party in 21st Century Australia, which opposes the corrupt unions and other political ideology that Fairfax supports.
One observer said, “It’s absolutely appalling how Fairfax and dodgy Labor Senator Sam Dastaryi have scammed investors and hoodwinked ASIC into using tens of millions of taxpayers’ money to serve a political vendetta and stop Fairfax Media’s new major competitor.
Anyone checking the facts can see that land banking has been around for hundreds of years and is a perfectly legitimate way to invest. It is one of the safest investments available.
One angry investor said “In fact, one would have to be a moron to believe that 21st Century land projects would not have been worth a lot more in 15- 20 years time, i.e. the time frame investors had invested for. Fairfax failed to report that all investors had real estate security over the land and could not lose money unless ASIC had liquidators appointed based on fake trumped up allegations, which were started by Fairfax Media to serve a spiteful vendetta.
Many investors have also written to their local MP demanding an investigation into ASIC and Fairfax Media and how taxpayers’ money has been abused. They are appalled at how innocent investors can be ripped off by Fairfax Media and their dishonest agendas.
Some investors have said, “the sooner Fairfax goes broke, the better off Australia will be”.