AFTER THE NOAH GROUP

A story about one battling family.

Brett Marks of the Noah Group.

UPDATE - August 4, 2008. The Noah Group has changed its bait. Instead of offering "$10,000 CASH", it is now offering "FREE Fuel for a Year". The small print, however, reveals that the maximum "free fuel" is $5,000. And, of course, there can only be one winner. There is no limit, however, on the numbers of suckers attracted by this bait. Meanwhile, more complaints are coming in from people harmed by this mob. BE WARNED.

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by Neil Jenman

The company is called the Noah Group. Their main office is at 3986 Pacific Highway in Loganholme, almost mid-way between Brisbane and the Gold Coast.

The boss of the Noah Group is a 46-year-old wealth spruiker by the name of Brett Shayne Marks.

According to Queensland's major newspaper, The Courier-Mail, Brett Marks lives in a waterfront mansion. He drives a gleaming silver Mercedes-Benz CLS 55 AMG V8 Kompressor (not much change from 300 grand for one of those) with, of course, the personalised plates.

Apparently, though, it's not just the big boss Brett making big bucks at the Noah Group. Even lowly part-time tele-marketers earn up to $800 per week. "Not bad for four hours a day," boasted one of their managers.

Flash cars, waterfront homes and big incomes. Nothing wrong with being successful. But, sooner or later, those who flaunt their wealth may face a question: "How do you earn your wealth?"

Brett Marks makes his wealth by promising to show other people - often battler types - how to increase their wealth. Or, at least, that's the way he describes what he does.

Brett Marks has written a little booklet for his Noah Group. It's called The Simplicity of Investing. It's peppered with cute quotes from the Bible and several references to God. For example, in one sentence, Marks mentions God and, in the next sentence, he writes, "You are only one idea or opportunity away from making millions of dollars." 

Noah Group's slogan reads, "Dedicated to Helping Australians Build Wealth."

As we have seen, when it comes to wealth, Brett Marks and his Aussie mates seem to be doing very nicely, thank you. They are the ones who appear to be "making millions of dollars".

But what about their clients, those ordinary Australians?

Well, let's look at how Brett Marks finds his clients, what he tells them and how at least one family is doing since they met the Noah Group.

One of the most common places you're likely to meet the Noah Group is your local shopping mall. You'll see a display booth and a big sign, "FREE ENTRY. 1st PRIZE $10,000 CASH".

Move closer and a smiling person will ask if you'd like to "enter a free competition."

If you say yes, you'll be asked to fill in a small form with your details. The form includes three questions: First, 'Would you like to reduce your taxes?' Second, 'Would you like to pay off your home loan faster?' and, third, 'Would you like to build wealth through investments?'

All you have to do is tick a little box beside each question and place your completed little form in a big box - just like you would with any competition - and you are now in the "draw to win $10,000".

Soon you'll get a telephone call (from one of those part-time tele-marketers who earn $800 a week working four hours a day).

Here's how the Noah team explains it behind-the-scenes, "People fill out a competition form to win something. Then we go through the forms, ring the people back telling them they have been placed into the draw and ask them if they'd like to save money on their mortgage. If they say yes, then we set an appointment."

One such family to have an appointment with the Noah Group was the Bovero family from the city of Mackay. That was back in 2006.

The Boveros were advised to enter into two major financial investments.

First, they were advised to buy a house-and-land package.

Today, the Boveros are finding it almost impossible to make the repayments. They say they are battling to put food on their table.

Sure, they may been told that property is a long-term investment, but they are struggling to survive in the short-term. In the area in which they bought, records show that property prices increased in the past two years.

But not the property recommended by the self-proclaimed experts at the Noah Group. It has decreased. If they sell it, they face a loss of $50,000, and that's probably conservative.

So much for the wealth building promise.

But what about the Noah Group's much-touted claim of being able to help "pay off your home loan faster". In his booklet, Brett Marks claims that the Noah Group can help home-owners "accelerate the payment of your mortgage, possibly in less than half the time you expected."

Really? How does that work?

Well, this was the second investment that the Noah Group recommended to the Bovero family.

Noah call it their 'BOLT ACCELERATOR'.

It works like this: The Noah Group advise you to take out an extra loan on your family home. You borrow this money at say 8 per cent and then you on-lend this money to one of the Noah Group's recommended companies at 15 per cent. The difference between the rate you pay (8 per cent) and the rate you get (15 per cent) enables you to pay off your housing loan even faster. It seems simple.

According to the Noah Group, this investment at 15 per cent was so safe that the prospectus was "approved by ASIC". [Warning to all investors: ASIC never "approves" any investment or prospectus. Any wealth company that makes such a claim should be reported to ASIC].

The Boveros borrowed money to invest in the company recommended by the Noah Group. For a year or so, everything went well. And then, suddenly, last September, the income from the company stopped.

Today, the Bovero family are paying a huge monthly payment and getting no monthly income.

In desperation, the Boveros contacted the Noah Group. According to the Boveros, the Noah Group recommended they borrow more money and invest it with another Noah-recommended company, this time at 30 per cent interest. Unlike what they did in 2006, the Boveros decided to ignore Noah's advice. They went to another financial adviser who also told them to ignore Noah's advice.

So much for the 'paying off the home loan in half the time' promise.

Today, in July 2008, a little more than two years after they first met the Noah Group (and despite signing paperwork that, in some cases, warned them), the Bovero family is in dire financial straits. Not only have their finances suffered, their health is starting to suffer. Mrs Bovero is "sick with worry".

They have complained to the Noah Group. Other than blaming the Boveros and the interest rate rises, there has been little help there. They have complained to ASIC. They are now looking for a lawyer who can help them on a no-charges up-front basis.

Meanwhile at a local mall, more people are filling out forms hoping to win a prize from the Noah Group.

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