A case in the NSW Supreme Court alleges misleading conduct and fraud against a property investment scheme that some people claim has left them on the verge of bankruptcy.

Transcript

CHRIS UHLMANN, PRESENTER: A property investment scheme that sold thousands of houses and units around the country is being accused of misleading conduct and fraud.

A retired couple driven to the verge of bankruptcy is suing the group, known as The Investors Club, claiming loan documents were falsified and their debt spiralled out of control. A 7:30 investigation has found the couple are not the only ones who say they've lost their life savings.

Here's consumer affairs reporter Amy Bainbridge.

KEVIN YOUNG, PROPERTY EDUCATOR: This is my little dungeon in here. Only come in on Tuesdays. We do our own magazine, which I'll give you a copy. That's the archives. They're the seven pillars of honesty that we follow. I'll give this to you.

Wayne up the end there controls all the brokers. This is David and Emily who control all the stock coming through.

I'm running out of time, aren't I?

AMY BAINBRIDGE, REPORTER: Kevin Young is one of the richest men in Queensland.

KEVIN YOUNG: This is really the foundation of The Investors Club. As far as I know, it's the only wealth creation book in the world that is game to have examples of people who followed that strategy.

AMY BAINBRIDGE: With some 180 properties in his investment portfolio he's at the helm of a scheme that claims to help everyday Australians fund their retirement.

KEVIN YOUNG: The proof in that is that we've been going 20 years and we've created more wealthy people than everyone else combined.

(Excerpt from Investors Club promotional video)

KEVIN YOUNG (video): In 1974 I was able to retire at 27 years of age.