WHO DARES LOSES
SAS troops say Coast property spruiker ambushed their life savings
AUSSIE war heroes who fought on the front line in the Middle East say they face losing their life savings after some were convinced by a smooth-talking ex-military man to invest in property deals that went sour.
Former Royal Australian Navy diver Hugh Ochremienko, now a Gold Coast-based property spruiker who was once investigated for but cleared of giving unlicensed financial advice, persuaded soldiers to pour their danger and deployment money into what are now underperforming property developments, mainly in Darwin.
Mr Ochremienko denied his clients had lost money, with the impact of a citywide decline in prices and general delays in receiving government subsidies offset by tax benefits built into the deals.
Up to 200 soldiers and officers sunk their savings – or in a handful of cases, superannuation – into the deals, with some saying Mr Ochremienko promised to double their wealth in five years.
Several current and former members of the Special Air Service Regiment (SASR) say they are deep in the red on recommendations by Mr Ochremienko, made worse they say because he traded on his military service to gain their confidence.
One former SASR member said he was down $80,000, which was “all the deployment money, eight months of my life in Afghanistan”.
Another former SAS member who estimated his losses at $160,000, said: “He played on the trust and culture we have in the army.’’
Mr Ochremienko’s company sponsored military events and advertised in the
Army magazine as he got to know soldiers, taking many out for lavish meals near military bases in Perth, Brisbane, Sydney and Townsville as he flogged deals to buy cheap housing catering for Government-subsidised tenants, mainly in Darwin.
For some it has proved a disaster. Property values have plunged, properties have gone without tenants for long periods and there have been delays of up to two years in receiving substantial government subsidies that Mr Ochremienko said would make their investments cashflow positive.
Many soldiers are struggling to meet their mortgage repayments but can’t sell as property values are so low.
But the deals were a winner for Mr Ochremienko, who said he netted an average fee of $20,000 per property from developers while NAB paid him a commission of 0.4 per cent of any loan.
News Corp tracked Mr Ochremienko to the Gold Coast, where he denied his clients were in the red.
“Some of these people … are perceived to have lost money,” he said. “But have they really? I’m saying no.”
Mr Ochremienko, who has not been licensed to offer financial advice since 2008, denied any wrongdoing.
He said that while he “financially plans” his clients, his advice was general in nature and did not require a licence.
Federal MP Andrew Hastie – formerly of the SASR – said some of his Diggers had invested and now felt “ripped off and misled’’. “He pitched himself as a ‘wealth creator’ and did the exact opposite,” Mr Hastie said.
It’s understood Mr Ochremienko faced questions from the Australian Securities and Investments Commission in 2010 after a complaint that he was giving financial advice without a licence. No further action was taken.
Still, ASIC’s ire may again be raised by revelations some soldiers put their super into property he recommended.
While advice about investing in property generally does not require authorisation, it does if the purchase is via a self-managed super fund.