PHOTO: Roxy Jacenko. THE NIGHTLY
Roxy Jacenko, the well-known PR mogul, has issued $76,000 in refunds to dissatisfied entrants following the failure of her controversial $10 million house lottery. This move, representing just 10% of the $684,000 she claimed to have set aside, has attracted significant media attention and public scrutiny.
The prizes included a $10million waterfront Cronulla home (pictured) – owned by Mr Tleis and Mr Alaouie, a Birkin bag and a Rolex timepiece and the promotion was due to be drawn last month, before it was halted
The Controversial Promotion
Jacenko, aged 44, collaborated with businessmen Youssef Tleis and Kassim Alaouie on an ambitious promotion tied to their Brand Bootcamp online business course. The promotion promised participants a chance to win a luxurious $10 million waterfront home in Cronulla, along with a Birkin bag and a Rolex watch. The lottery, however, was abruptly halted last month, leaving many entrants disillusioned.
In the wake of the lottery’s collapse, Jacenko publicly declared her intention to cover refunds out of her own pocket. She cited a “shortfall” in the prize money pool as the reason for her departure from the venture. Addressing the situation, Jacenko stated, “I stand by my offer to refund customers and as a result of this, $684,000 of my own personal funds remain in my solicitor’s trust account.”
A total of 7,489 people had paid between $29 and $499 to sign up for the boot camp, but it has been estimated that some 90 per cent of participants remain out of pocket after the refunds
Refunds and Fallout
Despite her commitment, only $76,019 has been refunded to participants, a mere fraction of what was promised. According to The Daily Telegraph, out of the 7,489 individuals who paid between $29 and $499 to join the boot camp, approximately 90% remain without refunds. Eligibility for a refund was limited to those who requested it within a narrow seven-day window from June 9 to June 15.
Jacenko faced criticism over this limited refund period but defended her actions, stating on social media, “A seven-day window is not an unusual offer, it is not even something I had to do. I chose to refund those who applied from my own pocket.”
Legal and Financial Repercussions
Jacenko has sought to recover the $76,000 in refunds through liquidators after the company behind Roxy Bootcamp was ordered to wind up. She is also reportedly trying to retain the Birkin bag and Rolex watch purchased as part of the lottery.
The NSW Supreme Court intervened, appointing liquidators following allegations that Tleis and Alaouie engaged in misleading conduct. Jacenko had previously advocated for provisional liquidators due to undisclosed conditions in the promotion, which stipulated that prizes would only be awarded if the competition generated over $11.5 million in revenue. These conditions were notably absent from the official terms and conditions.
She partnered with businessmen Youssef Tleis (right) and Kassim Alaouie (left) on her Brand Bootcamp business course and they launched a promotion offering new customers the chance to win three epic prizes
Supreme Court Justice Anthony McGrath recently denied Jacenko’s request for her legal costs to be covered, stating, “I do not consider it was unreasonable conduct of the proceedings by Mr Tleis to have opposed the application for a provisional liquidator.”
The Broader Impact
The collapse of the lottery has led to significant negative publicity and online backlash against Jacenko, Tleis, and Alaouie. The trio’s business relationship has deteriorated rapidly, culminating in legal battles and public apologies from Tleis and Alaouie, who expressed regret for partnering with Jacenko.
Jacenko’s decision to personally loan over $100,000 to the company to cover creditor payments and ensure a $250,000 cash prize payout underscores the financial strain caused by the failed promotion.
As the dust settles, the controversy surrounding the $10 million house lottery serves as a cautionary tale about the complexities and risks associated with high-profile promotional ventures.