Roger Hamilton & XL Results Foundation Pte Ltd, in Singapore are facing extensive mass refunds from disgruntled members from throughout the Asia Pacific Region.
Suspect 'wealth creation' network in Brisbane
Georgina Robinson | May 30, 2007 - 2:01PM
A global business networking scheme that's under a legal and financial cloud in Singapore will target Brisbane investors in seminars tonight and tomorrow morning.
Results Net Australia is the Australian arm of XL Results Foundation, a business coaching club that purports to generate "wealth beyond words" for its members at the same time as working to eradicate poverty.
Consumers pay $US8600 to join as life members in return for access to online networks, mentoring and coaching seminars.
Members can on-sell their memberships after one year, but about 69 life members in Singapore last year were refunded their money, claiming they were duped by Foundation director, Roger Hamilton.
Forty of the disgruntled members defied Singaporean law, which bans public demonstrations, to march on the company's office and deliver their demands in writing.
They claimed they were led to believe their memberships would appreciate in value and generate a profit upon selling, and that the company would help them find buyers for the memberships.
However, they said when they wanted to sell they could not.
The members also alleged they did not get access to the extensive network of business contacts the scheme promised.
Paul Dunn, the head of the company's Australian arm, said there was nothing unusual about the refunds.
"I've been in business and speaking for 27 years and people trust me," he said. "If, for whatever reason, we don't deliver value for money for the customer then they shouldn't pay for that."
The company, formerly known as Competitive Edge, currently has 640 members in Australia and about 1000 worldwide. In the 2005-2006 financial year it reported a $207,600 net profit.
Two complaints against the company have been lodged with the state government's Office of Fair Trading but investigations did not revealed any legal breaches.
It is understood the New South Wales Office of Fair Trading has received a complaint against the company.
In Brisbane this evening the company has invited people to listen for free to Mr Hamilton - a millionaire author and the company's founder - to give a "Wealth Dynamics" address at an inner-city hotel.
It will be followed by a breakfast seminar tomorrow morning where guests will be briefed on the company's "extraordinary vision towards 'binding' entrepreneurs together to eliminate poverty on our planet".
Queensland Fair Trading Minister Margaret Keech said people should be wary of "get rich quick" schemes.
"People are sometimes lured into these schemes by free breakfast, lunch or dinner conferences and promises of wealth," Ms Keech said.
"The sting comes at the end of the conference when people are asked to pay thousands of dollars to sign up for the 'advanced course'."
Ms Keech said wealth creation seminars were notoriously high-risk.
She warned people not to commit to sales on the day of seminars and to seek independent financial and legal advice.
Mr Dunn said the success of XL Results Foundation and its Australian arm, Results Net, had proved the company's detractors wrong.
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