Slater and Gordon has hired law firm Minter Ellison to represent it against aggrieved property purchasers it formerly represented. Henry Kaye. Credit:James Davies The Age is aware that during an internal investigation of its involvement in the schemes, Slater and Gordon grew concerned that Mr Kaye and/or his family may be involved. An Agethat property spruikers Market First Property Consulting featured the Slater and Gordon brand in get-rich seminars including in Melbourne, Sydney and Perth, for "wholesale options" on lots in proposed luxury estates in Melbourne's outer west. Market First documents obtained by The Age reveal a managing partner as Julia Feldman, the sister of the Belarus-born Henry Kaye, whose get-rich-quick and property empire collapsed in 2003 owing 3500 investors up to $60 million.

Ironically it was Slater and Gordon, a company renowned as the legal champion of ordinary Australians, that ran a class action by disgruntled property investors against Kaye after his property empire collapsed. The developers promised the world. The firm's written advice to its clients is effectively a warning to hundreds, and possibly thousands, of Australians who have signed up to a string of similar projects across Victoria and Queensland, that investments of tens of millions of dollars could be at risk. Fairfax Media is aware of similar "land-banking" scheme sites in Wallan, Bendigo, Shepparton and Townsville by another marketing firm, 21st Century, which also has links to Henry Kaye.

The mainstream development industry has warned investors about purchasing options in future housing estates that may never be built. Former Urban Development Institute of Australia chief executive Tony De Domenico has described such purchases as "high-risk investment products, not land sales". The actual owners and developers of the two sites in Melbourne's west remain a mystery. Law firm Clamenz Evans Ellis, through holding companies, is listed on the titles for both. However the true beneficial owners of the holding companies are undisclosed. Market First and its spruikers have made grand claims about the proposed estates on Melbourne's western perimeter, traditionally one of the city's more affordable and humble housing locations. The "Foscari" housing estate is proposed for paddocks in Wyndham with a recent history of contamination problems. The local council has confirmed granting a permit for subdivision of the site in Palmers Road. However permits for construction have not been granted, nor have development plans been lodged.

"Veneziane", earmarked for the backblocks of Melton, was spruiked in marketing material as an "iconic architectural masterpiece" featuring a resident-only helicopter service, waterfront wellness retreat, private gold class cinema room and a "secluded terrace oasis". It is in the early stages of planning. But in a February letter to clients, Slater and Gordon's Sharon Taylor raised major doubts about both projects. Her letter notes that after an internal investigation, Slater and Gordon could not remain involved. It lists "facts" that investors should be aware of including: The schemes' promoters may have made misleading or inaccurate representations to some prospective investors. The purchase price paid for lots was likely to have "significantly" exceeded their true value.

The solicitors acting for the developers would not disclose the identity of all of the individuals behind the projects. Ms Taylor recommends purchasers obtain alternative legal advice, including about possible withdrawal from their contracts. She "strongly" advises purchasers against engaging lawyers recommended by the schemes' promoters, developers, or their lawyers, Clamenz Evans Ellis. In the early marketing of both projects Market First had recommended Slater and Gordon to prospective investors as legal representative in negotiations with itself and the project's developers. One unhappy investor in Foscari, who attended a Market First get-rich seminar, said attendees were repeatedly reminded of Slater and Gordon's involvement. "That was our assurance; that a reputable firm that had a reputable name in the community was involved in it ... that's the one thing that sold me," the investor said. Then Slater and Gordon senior associate Adam Zuchowski worked closely with Market First and with potential purchasers. He left the firm in 2013 around the time of the firm's investigation of the housing schemes.

Independent of Market First, major Melbourne law firm Holding Redlich has stepped in to represent a growing number of concerned purchasers in the two schemes. "We have been asked to advise investors of their legal position and the possibility of any recovery action," said Holding Redlich partner Howard Rapke. Slater and Gordon refused requests by The Age for an interview. Instead it issued a brief written statement confirming it had previously acted for investors in Veneziane and Foscari, and noting that: "Mr Zuchowski no longer works for Slater and Gordon." In the early 2000s Henry Kaye promised in newspaper advertisements and wealth-creation seminars to transform small-time investors into property millionaires. He was later found by the Federal Court to have breached the Trade Practices Act for misleading conduct, and in 2010 he was barred from managing companies for five years. But he retained much of his wealth, and is understood to have an interest in properties in Melbourne's west and elsewhere.

Ms Feldman did not return calls. Nor did Market First spruiker Rowan Burn or former Slater and Gordon lawyer Adam Zuchowski. In a lengthy written statement, Clamenz Evans Ellis principal Christian Daly-Thomson said his firm acted for unnamed trustees of a unit trust, and that his clients "categorically" denied Mr Kaye was a beneficiary or unit holder. No details were provided on any of the investors or beneficiaries. Mr Daly-Thomson said it was "unfounded speculation" that marketing of the projects was misleading. "The developments are progressing and considerable works have been undertaken to date," he said. Hundreds of mum and dad investors across Australia have already spent tens of millions of dollars on options on possible future housing lots in the two schemes. That figure could grow markedly with plans to increase each investment in stages. The amount invested will total hundreds of millions if Market First has its way and investors convert to actual land or building contracts for the 1200 homes proposed across the two sites.