tag:blogger.com,1999:blog-5699112447971227192024-03-14T02:01:32.724-06:00Welcome to Seminarwatch.com - The Seminar Industry Watchdog BlogThis is a blog that has been created to monitor the Nationwide Seminar Business and the events and fraud associated with their existence. This blog is owned and controlled by the Western Capital Foundation, Robert Paisola and Western Capital and is a Media and Legal project of Western Capital Publications. Now covering the Trump University National Lawsuit.RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.comBlogger20125tag:blogger.com,1999:blog-569911244797122719.post-88051729241821424532016-03-07T00:05:00.000-07:002016-03-07T14:11:23.191-07:00DONALD TRUMP AND TRUMP UNIVERSITY SUED NATIONWIDE, ROBERT PAISOLA REPORTS 2016<div dir="ltr" style="text-align: left;" trbidi="on">
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<b style="color: #141823; font-family: helvetica, arial, sans-serif; font-size: 13.2px; line-height: 19.32px; text-align: left;">UPDATE: 3-2016 TO THE NATIONAL MEDIA: YOU KEEP CALLING OUR USA OFFICES ABOUT OUR INVOLVEMENT WITH TRUMP UNIVERSITY. WE WERE THE NATIONAL BACKBONE FOR THE ORGANIZATION. WE WERE BASED IN PROVO, UTAH . WE DID THE COACHING AND MENTORING AND WORKED WITH BILL ZANKER AT THE LEARNING ANNEX. WE PAID TRUMP 1 MILLION DOLLARS "Per Appearance" . And, YES, THERE WERE LAWSUITS FILED... HERE IS OUR ORIGINAL STATEMENT from 2014 <a href="http://www.robertpaisola.com/" style="color: #888888; text-decoration: none;">Robert Paisola</a>, CEO</b></div>
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<span style="font-family: "georgia" , "times new roman" , "times" , serif; font-size: large;"><span style="line-height: 22px;"><b>2016 UPDATE- WE HAVE ALL THE TRUMP UNIVERSITY LAWSUIT DOCUMENTS HERE!!!</b></span></span></h2>
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<span style="font-family: "georgia" , "times new roman" , "times" , serif; font-size: large;"><span style="line-height: 22px;"><b>DONALD TRUMP AND TRUMP UNIVERSITY SUED NATIONWIDE, ROBERT PAISOLA REPORTS</b></span></span></h2>
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<b>MORE LAWSUITS OUT OF UTAH! DONALD TRUMP SUED. ALL FULFILLMENT WAS DONE OUT OF THE SALT LAKE CITY AND PROVO UTAH AREAS. I WAS THERE. IF YOU HAVE A COPY OF THE LAWSUIT PLEASE EMAIL TO ROBERT@ROBERTPAISOLA.COM WHO IS BILL ZANKER WITH THE LEARNING ANNEX LETS LOOK AT JOHN SWALLOW? (Do your research America)</b></div>
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<b>CLASS ACTION 1</b></div>
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<span style="font-family: "georgia" , "times new roman" , sans-serif;"><a href="http://mycollector.com/Cohen-v.-Donald-Trump-complaint-.pdf">http://mycollector.com/Cohen-v.-Donald-Trump-complaint-.pdf</a></span></div>
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<b>CLASS ACTION 2</b></div>
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<a href="http://mycollector.com/Trump-University-2nd-Amended-Complaint-12-16-10.pdf">http://mycollector.com/Trump-University-2nd-Amended-Complaint-12-16-10.pdf</a></div>
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<span style="color: #333333; font-family: "arial" , sans-serif; line-height: 18px;"><span style="font-size: large;">Michael Cohen told the Associated Press on Saturday that Schneiderman's lawsuit was filled with falsehoods. Cohen said Trump and his university never defrauded anyone. LOL</span></span><br />
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The <a class="meta-loc" href="http://topics.nytimes.com/top/classifieds/realestate/locations/newyork/?inline=nyt-geo" style="color: #666699;" title="Find Real Estate listings and community news for New York State">New York State</a> attorney general’s office filed a civil lawsuit on Saturday accusing Trump University, <a class="meta-per" href="http://topics.nytimes.com/top/reference/timestopics/people/t/donald_j_trump/index.html?inline=nyt-per" style="color: #666699;" title="More articles about Donald J. Trump.">Donald J. Trump</a>’s for-profit investment school, of engaging in illegal business practices.</div>
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The lawsuit, which seeks restitution of at least $40 million, accused Mr. Trump, the Trump Organization and others involved with the school of running it as an unlicensed educational institution from 2005 to 2011 and making false claims about its classes in what was described as “an elaborate bait-and-switch.”</div>
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In a statement, <a class="meta-per" href="http://topics.nytimes.com/top/reference/timestopics/people/s/eric_t_schneiderman/index.html?inline=nyt-per" style="color: #666699;" title="More articles about Eric T. Schneiderman.">Eric T. Schneiderman</a>, the attorney general, said Mr. Trump appeared in advertisements for the school making “false promises” to persuade more than 5,000 people around the country — including 600 New Yorkers — “to spend tens of thousands of dollars they couldn’t afford for lessons they never got.”</div>
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The advertisements claimed, for instance, that Mr. Trump had handpicked instructors to teach students “a systematic method for investing in real estate.” But according to the lawsuit, Mr. Trump had not chosen even a single instructor at the school and had not created the curriculums for any of its courses.</div>
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“No one, no matter how rich or famous they are, has a right to scam hardworking New Yorkers,” Mr. Schneiderman said in the statement. “Anyone who does should expect to be held accountable.”</div>
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The inquiry into Trump University came to light <a href="http://www.nytimes.com/2011/05/20/nyregion/trumps-for-profit-school-said-to-be-under-investigation.html?pagewanted=all" style="color: #666699;">in May 2011</a> after dozens of people had complained to the authorities in New York, Texas, Florida and Illinois about the institution, which attracted prospective students with the promise of a free 90-minute seminar about real estate investing that, according to the lawsuit, “served as a sales pitch for a three-day seminar costing $1,495.” This three-day seminar was itself “an upsell,” the lawsuit said, for increasingly costly “Trump Elite” packages that included so-called personal mentorship programs at $35,000 a course.</div>
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On Saturday evening, Michael Cohen, a lawyer for Mr. Trump, denied the accusations in the lawsuit and said the school had received 11,000 evaluations, 98 percent of which rated students as “extremely satisfied.”</div>
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George Sorial, another lawyer for Mr. Trump, called the lawsuit politically motivated. He said that Mr. Schneiderman had asked Mr. Trump and his family for campaign contributions and grew angry when denied.</div>
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“This is tantamount to extortion,” Mr. Sorial said.</div>
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Andrew Friedman, a spokesman for the attorney general’s office, said that although Mr. Schneiderman had accepted a contribution from Mr. Trump in the past, “the fact that he’s still brave enough to follow the investigation wherever it may lead speaks to Mr. Schneiderman’s character.”</div>
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NY AG Sues Trump, 'Trump University,' Claims Fraud</h1>
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New York's attorney general sued Donald Trump for $40 million Saturday, saying the real estate mogul helped run a phony "Trump University" that promised to make students rich but instead steered them into expensive and mostly useless seminars, and even failed to deliver promised apprenticeships.</div>
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Trump shot back that the Democrat's lawsuit is false and politically motivated.</div>
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Attorney General Eric Schneiderman says many of the 5,000 students who paid up to $35,000 thought they would at least meet Trump but instead all they got was their picture taken in front of a life-size picture of "The Apprentice" TV star.</div>
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"Trump University engaged in deception at every stage of consumers' advancement through costly programs and caused real financial harm," Schneiderman said. "Trump University, with Donald Trump's knowledge and participation, relied on Trump's name recognition and celebrity status to take advantage of consumers who believed in the Trump brand."</div>
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But Trump's attorney accused Schneiderman of trying to extort campaign contributions from the real estate mogul through his investigation of Trump. Attorney Michael D. Cohen told The Associated Press on Saturday that Schneiderman's lawsuit was filled with falsehoods. Cohen said Trump and his university never defrauded anyone.</div>
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He said Trump University provided nearly 11,000 testimonials to Schneiderman from students praising the program and said 98 percent of students in a survey termed the program "excellent."</div>
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"The attorney general has been angry because he felt that Mr. Trump and his various companies should have done much more for him in terms of fundraising," Cohen said. "This entire investigation is politically motivated and it is a tremendous waste of taxpayers' money."</div>
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State Board of Elections records show Trump has spent more than $136,000 on New York campaigns since 2010. He contributed $12,500 to Schneiderman in October 2010, when Schneiderman was running for attorney general, records show. An outspoken conservative, Trump himself flirted with a presidential run last year.</div>
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"Donald Trump will not sit back and be extorted by anyone, including the attorney general," Cohen said.</div>
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The lawsuit says many of the wannabe moguls were unable to land even one real estate deal and were left far worse off than before the lessons, facing thousands of dollars in debt for the seminar program once billed as a top quality university with Trump's "hand-picked" instructors.</div>
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Schneiderman is suing the program, Trump as the university chairman, and the former president of the university in a case to be handled in state Supreme Court in Manhattan. He accuses them of engaging in persistent fraud, illegal and deceptive conduct and violating federal consumer protection law. The $40 million he seeks is mostly to pay restitution to consumers.</div>
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He dismissed Trump's claim of a political motive.</div>
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"The fact that he's still brave enough to follow the investigation wherever it may lead speaks to Mr. Schneiderman's character," Schneiderman spokesman Andrew Friedman told AP.</div>
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State Education Department officials had told Trump to change the name of his enterprise years ago, saying it lacked a license and didn't meet the legal definitions of a university. In 2011 it was renamed the Trump Entrepreneur Institute, but it has been dogged since by complaints from consumers and a few isolated civil lawsuits claiming it didn't fulfill its advertised claims.</div>
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Schneiderman's lawsuit covers complaints dating to 2005 through 2011. Students paid between $1,495 and $35,000 to learn from the Manhattan mogul who wrote the best seller, "Art of the Deal" a decade ago followed by "How to Get Rich" and "Think Like a Billionaire."</div>
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Scheiderman said the three-day seminars didn't, as promised, teach consumers everything they needed to know about real estate. The Trump University manual tells instructors not to let consumers "think three days will be enough to make them successful," Schneiderman said.</div>
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At the seminars, consumers were told about "Trump Elite" mentorships that cost $10,000 to $35,000. Students were promised individual instruction until they made their first deal. Schneiderman said participants were urged to extend the limit on their credit cards for real estate deals, but then used the credit to pay for the Trump Elite programs. The attorney general said the program also failed to promptly cancel memberships as promised.</div>
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Consumers may file complaints at:</div>
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www.ag.ny.gov/bureaus/consumer—frauds/filing—a—consumer—complaint.html.</div>
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Donald Trump sued by attorney general for $40M over 'Trump University'</h1>
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New York's attorney general sued Donald Trump for $40 million Saturday, saying the real estate mogul helped run a phony "Trump University" that promised to make students rich but instead steered them into expensive and mostly useless seminars, and even failed to deliver promised apprenticeships.</div>
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Trump shot back that the Democrat's lawsuit is false and politically motivated.</div>
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Attorney General Eric Schneiderman says many of the 5,000 students who paid up to $35,000 thought they would at least meet Trump but instead all they got was their picture taken in front of a life-size picture of "The Apprentice" TV star.</div>
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"Trump University engaged in deception at every stage of consumers' advancement through costly programs and caused real financial harm," Schneiderman said. "Trump University, with Donald Trump's knowledge and participation, relied on Trump's name recognition and celebrity status to take advantage of consumers who believed in the Trump brand."</div>
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But Trump's attorney accused Schneiderman of trying to extort campaign contributions from the real estate mogul through his investigation of Trump. Attorney Michael D. Cohen told The Associated Press on Saturday that Schneiderman's lawsuit was filled with falsehoods. Cohen said Trump and his university never defrauded anyone.</div>
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He said Trump University provided nearly 11,000 testimonials to Schneiderman from students praising the program and said 98 percent of students in a survey termed the program "excellent."</div>
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"The attorney general has been angry because he felt that Mr. Trump and his various companies should have done much more for him in terms of fundraising," Cohen said. "This entire investigation is politically motivated and it is a tremendous waste of taxpayers' money."</div>
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State Board of Elections records show Trump has spent more than $136,000 on New York campaigns since 2010. He contributed $12,500 to Schneiderman in October 2010, when Schneiderman was running for attorney general, records show. An outspoken conservative, Trump himself flirted with a presidential run last year.</div>
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"Donald Trump will not sit back and be extorted by anyone, including the attorney general," Cohen said.</div>
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The lawsuit says many of the wannabe moguls were unable to land even one real estate deal and were left far worse off than before the lessons, facing thousands of dollars in debt for the seminar program once billed as a top quality university with Trump's "hand-picked" instructors.</div>
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Schneiderman is suing the program, Trump as the university chairman, and the former president of the university in a case to be handled in state Supreme Court in Manhattan. He accuses them of engaging in persistent fraud, illegal and deceptive conduct and violating federal consumer protection law. The $40 million he seeks is mostly to pay restitution to consumers.</div>
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He dismissed Trump's claim of a political motive.</div>
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"The fact that he's still brave enough to follow the investigation wherever it may lead speaks to Mr. Schneiderman's character," Schneiderman spokesman Andrew Friedman told AP.</div>
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State Education Department officials had told Trump to change the name of his enterprise years ago, saying it lacked a license and didn't meet the legal definitions of a university. In 2011 it was renamed the Trump Entrepreneur Institute, but it has been dogged since by complaints from consumers and a few isolated civil lawsuits claiming it didn't fulfill its advertised claims.</div>
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Schneiderman's lawsuit covers complaints dating to 2005 through 2011. Students paid between $1,495 and $35,000 to learn from the Manhattan mogul who wrote the best seller, "Art of the Deal" a decade ago followed by "How to Get Rich" and "Think Like a Billionaire."</div>
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Scheiderman said the three-day seminars didn't, as promised, teach consumers everything they needed to know about real estate. The Trump University manual tells instructors not to let consumers "think three days will be enough to make them successful," Schneiderman said.</div>
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At the seminars, consumers were told about "Trump Elite" mentorships that cost $10,000 to $35,000. Students were promised individual instruction until they made their first deal. Schneiderman said participants were urged to extend the limit on their credit cards for real estate deals, but then used the credit to pay for the Trump Elite programs. The attorney general said the program also failed to promptly cancel memberships as promised.</div>
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Donald Trump investment school sued by New York attorney general: report</h1>
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<span class="focusParagraph" style="color: black; font-family: "arial" , "helvetica" , "sans"; font-size: small; line-height: normal;"><span class="articleLocatio</span>n">(Reuters) - The New York state attorney general filed a $40 million lawsuit on Saturday against Donald Trump's for-profit investment school, Trump University, accusing it of engaging in illegal business practices, according to the New York Times.</span></span></div>
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The newspaper reported that New York Attorney General Eric Schneiderman alleged that the real estate mogul, his Trump Organization company and others made false claims about classes at the school, including that Trump handpicked instructors.</div>
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Representatives for the New York attorney general's office and Trump were not available for comment late on Saturday.</div>
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But Trump said in a post on Twitter, "Light weight NYS Attorney General Eric Schneiderman is trying to extort me with a civil law suit."</div>
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The tweet linked to a website about Trump University, which says the school has a 98 percent approval rating from students.</div>
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The New York attorney general's lawsuit seeks restitution of at least $40 million, the Times said, and it alleges that Trump University was run as an unlicensed educational institution from 2005 to 2011 and that Trump did not create the curriculum for any of the school's courses.</div>
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(Reporting by Mary Wisniewski in Chicago; Editing by Alex Dobuzinskis and Peter Cooney)</div>
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The New York State attorney general’s office is investigating whether a for-profit school founded by <a class="meta-per" href="http://topics.nytimes.com/top/reference/timestopics/people/t/donald_j_trump/index.html?inline=nyt-per" style="color: #666699;" title="More articles about Donald J. Trump.">Donald J. Trump</a>, which charges students up to $35,000 a course, has engaged in illegal business practices, according to people briefed on the inquiry.</div>
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Donald J. Trump says students at his school want him to be more involved. A representative defended the school.</div>
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Dozens of students have complained about the quality of Trump University, which charged up to $35,000 per course.</div>
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The investigation was prompted by about a dozen complaints concerning the Trump school that the attorney general, Eric T. Schneiderman, has found to be “credible” and “serious,” these people said, speaking on the condition of anonymity because the investigation was not yet public.</div>
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The inquiry is part of a broader examination of the for-profit education industry by Mr. Schneiderman’s office, which is opening investigations into at least five education companies that operate or have students in the state, according to the people speaking on the condition of anonymity.</div>
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The investigation is the latest problem for a six-year-old company, known until last year as Trump University, that already faces a string of consumer complaints, reprimands from state regulators and a lawsuit from dissatisfied former students.</div>
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George Sorial, a managing director of the Trump Organization, confirmed that the company had received a subpoena from the attorney general’s office, and said, “We look forward to resolving this matter and intend to fully cooperate with their inquiry.”</div>
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Mr. Schneiderman is looking into whether the schools and their recruiters misrepresent their ability to find<strong> </strong>students jobs, the quality of instruction, the cost of attending, and their programs accreditation, among other things. Such activities could constitute deceptive trade practices or fraud.<strong></strong></div>
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The four other companies are the <a class="meta-org" href="http://topics.nytimes.com/top/news/business/companies/career-education-corporation/index.html?inline=nyt-org" style="color: #666699;" title="More information about Career Education Corporation">Career Education Corporation</a>, which runs the Sanford-Brown Institute, Briarcliffe College and American InterContintental University;<a class="meta-org" href="http://topics.nytimes.com/top/news/business/companies/corinthian-colleges-inc/index.html?inline=nyt-org" style="color: #666699;" title="More information about Corinthian Colleges Incorporated">Corinthian Colleges</a>, the parent company of Everest Institute, WyoTech and Heald Colleges; <a class="meta-org" href="http://topics.nytimes.com/top/news/business/companies/lincoln-educational-services-corporation/index.html?inline=nyt-org" style="color: #666699;" title="More information about Lincoln Educational Services Corporation">Lincoln Educational Services</a>, the owner of Lincoln Technical and Lincoln Colleges Online; and Bridgepoint Education, the operator of Ashford University.</div>
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Spokesmen for Lincoln Educational Services, Bridgeport Education and Corinthian Colleges each said the companies had been sent requests for information by the attorney general’s office and would comply with them.</div>
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A representative of Career Education Corporation declined to comment.</div>
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For-profit schools have become big business in the United States, especially as the unemployed seek a way back into the work force. Some of those schools, however, have been accused of creating as much economic harm as help: students have reported falling deep into debt to pay for classes that they said had failed to deliver what they had promised.</div>
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Mr. Trump’s institution is unique among for-profit schools: it is built almost entirely around the prestige and prominence of a single individual. Mr. Trump said he created the university in 2005 to impart decades’ worth of his business acumen to the general public. He aggressively marketed the school, telling students that his handpicked instructors would “teach you better than the best business school,” according to a transcript of a Web video.</div>
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The school has charged premium prices because of the Trump name, with the cost of the courses ranging from $1,500 to $35,000 each.</div>
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But, as The New York Times reported last week, dozens of students have complained about the quality of the program to the attorneys general of New York, Texas, Florida and Illinois. The Better Business Bureau gave the school a D-minus for 2010, its second-lowest grade, after receiving 23 complaints. Over the last three years, New York and Maryland have told the company to drop the word “university” from its title, saying that using it violated state education laws. (The school was renamed the Trump Entrepreneur Initiative in 2010.)</div>
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Four former students filed a suit against Trump University last year in a federal court in California, seeking class-action status. They contended that the school used high-pressure sales tactics to enroll students in the costly classes, promised extensive one-on-one instruction that did not materialize and employed “mentors” who at times recommended investments from which they stood to profit.</div>
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Mr. Sorial of the Trump Organization, which oversees Mr. Trump’s businesses, forcefully disputed those claims. He said on Thursday that 95 percent of the school’s students in New York had rated their courses as “excellent” on evaluation forms. The school’s national average is even higher, he said.</div>
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“Our customer satisfaction surveys speak for themselves,” he said.</div>
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As its troubles have mounted, the school has suspended new classes and begun overhauling its curriculum, executives said. One priority is finding a way to inject more of Mr. Trump into the program.</div>
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“The one thing is that they really wanted me involved, instead of the teachers,” Mr. Trump said in an interview last week.</div>
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In interviews, several former students said they felt betrayed by the real estate mogul and his school, especially after investing tens of thousands of dollars in what they thought was to be a comprehensive education.</div>
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“They lure you in with false promises,” said Patricia Murphy, 57, of the Bronx, who is among the former students suing Mr. Trump, whose suit makes similar claims. She said she had spent about $12,000 on Trump University classes, much of it paid with credit cards, in the hope of escaping her career as a part-time teacher and becoming a real estate investor.</div>
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Her instructors said they would introduce her to banks, help her secure loans and walk her, step by step, through deals, she recalled. “They did none of that,” she said. “I was scammed.”</div>
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Mr. Sorial said the school was looking into Ms. Murphy’s claims.</div>
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Carmen Mendez, 59, a public school teacher in Brooklyn, wrote to the Better Business Bureau in 2009 about her disappointment with the school — and with Mr. Trump. She said she had dipped into her retirement savings to pay nearly $35,000 for the classes, because “Mr. Trump is a very respectable person, and I thought that Trump University was a real institution,” she said in the letter to the Better Business Bureau.</div>
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An instructor promised her, she wrote, that the school guaranteed financial assistance to buy e real estate. But once she had enrolled, Ms. Mendez wrote, she was refused such assistance. Because her credit cards were loaded with debt to pay for the classes, mortgage brokers told her she was ineligible for a loan, she said.</div>
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“I am writing because I want people to be aware that Trump University is not a real educational institution,” she told the Better Business Bureau. “Please advise other people so they do not lose their savings in these difficult days.”</div>
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Mr. Sorial said that the school tried to offer Ms. Mendez a full refund more than six months ago. “She failed to return our numerous calls and e-mails,” he said.</div>
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A version of this article appeared in print on May 20, 2011, on page A18 of the New York edition with the headline: New York Attorney General Is Investigating Trump’s For-Profit School.</h6>
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RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0New York, NY, USA40.7143528 -74.005973140.3291643 -74.65142010000001 41.0995413 -73.3605261tag:blogger.com,1999:blog-569911244797122719.post-50612060455101660602012-09-09T03:16:00.000-06:002013-07-15T13:52:04.197-06:00The James Smith Real Estate Organization Lawsuit, Robert Paisola Reports<b><span style="color: red;">UPDATE 7/15/1013 Look for our upcoming report "WHO IS WEALTHROCK CEO JOE JOHNSON" also " MIT FINANCIAL JAMES SMITH MITCH HUHEM to KARI MICHAELSEN to JAY MITTON to JAMES MITTON TO MITCH HUHEM TO DEBORAH HUHEMTO DONALD TRUMP (WTF?) TO TO ROB STAHURA TO DAN HEATON -TO NATIONAL REAL ESTATE INVESTORS TO JAMES SMITH SERIES TO NRI, NATIONAL REAL ESTATE INVESTORS TO MULTI MILLIONAIRE SHOWCASE, TO THE JAMES SMITH COMPANY TO PSI GROUP JAMES SMITH STRATEGIC FINANCIAL SUMMIT, TO PETER LOWE, TAMARA LOWE TO AARON OSMOND (THE OSMOND BRAND) AND GET MOTIVATED TO WEALTHROCK... TO BILL COSBY TO LAURA BUSH ? (MUCH MORE) TO THE FBI-- FOLLOWING THE MONEY TRAIL FROM A SENIOR INSIDER (WITH DOCUMENTS) </span></b><br />
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Until February, Get Motivated had a partnership with Investools, a unit of discount broker <a class="web_ticker" density="sparse" href="http://www.bloomberg.com/quote/AMTD:US" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" ticker="AMTD:US" title="Get Quote" topic_url="http://topics.bloomberg.com/td-ameritrade-holding-corp/">TD Ameritrade Holding Corp. (AMTD)</a> that offered options training costing as much as $20,000. The Buffalo courses were to be taught by WealthRock, which is owned by Joseph Johnson, a resident of Apollo Beach, Florida, who bought Get Motivated in January.</div>
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Buffalo ticket holders were entered in a raffle, and Jerry Petrotto won the $10,000 grand prize. He said he hasn’t received a check and the company hasn’t returned calls or e-mails. A Get Motivated Facebook <a density="full" href="http://www.facebook.com/photo.php?fbid=322947284453960&set=a.322742304474458.74600.294005367348152&type=3&theater" rel="external" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="Open Web Site">page</a> still promotes him as the winner</div>
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<b>WEALTHROCK LAWSUIT, LAURA BUSH NOT PAID, BLOOMBERG NEWS SERVICE</b></div>
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Laura Bush May Go Unpaid in Investing Seminars’ Shutdown</h1>
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TD Ameritrade Class Pitched at Get Motivated! Event</div>
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A <a density="sparse" href="http://topics.bloomberg.com/florida/" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Florida</a> company that hired celebrities including Rudy Giuliani and Colin Powell for motivational events that filled arenas around the U.S. has closed, leaving lawsuits complaining of unpaid bills.</div>
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Get Motivated Seminars Inc. drew as many as 400,000 people a year, selling tickets starting at $1.95 to day-long pageants featuring fireworks and confetti. Photographer: Mandel Ngan/AFP via Getty images</div>
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Get Motivated Seminars Inc. drew as many as 400,000 people a year, selling tickets starting at $1.95 to daylong pageants featuring fireworks and confetti. The seminars were actually vehicles for investment firms to sell courses in stock options and other trading tactics from the same stage where luminaries held forth, Bloomberg News reported May 2.</div>
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Commercial presenters promoted annual returns of as much as 25 percent. A Michigan pastor told Bloomberg he lost $11,500 trading options after paying for $12,000 of classes advertised at a Get Motivated seminar.</div>
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After a sparsely attended event in June in Buffalo, New York, starring former Republican presidential candidate Steve Forbes, comedian Bill Cosby and Apple Inc. co-founder Steve Wozniak, Get Motivated canceled seminars scheduled for Michigan and <a density="sparse" href="http://topics.bloomberg.com/kentucky/" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Kentucky</a>. The Tampa, Florida-based company shut down July 2, said Rick Nash, a spokesman. A sister firm that sold financial courses, WealthRock LLC of Draper, <a density="full" href="http://topics.bloomberg.com/utah/" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Utah</a>, also terminated most of its staff, Nash said. The companies employed more than 250.</div>
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“It’s a hard business to make a profit,” said John LaRosa, research director at Marketdata Enterprises Inc. in Tampa. “We really haven’t seen anybody else doing this kind of format, where you have six or more big-name people that require large speaking fees.”</div>
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Last Stop</h2>
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The Washington Speakers Bureau was owed $1.7 million for speeches made between November 2011 and February 2012, according to claims in legal documents. The bureau represents well-known people who spoke at the events, including Giuliani, a former New York mayor, Powell, a former U.S. secretary of state, and former first lady Laura Bush, who made their last Get Motivated appearances on Feb. 16. Michael Menchel, the bureau’s senior vice president, declined to comment.</div>
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Speakers were supposed to earn $35,000 to $125,000 an appearance, according to the documents. Most speeches lasted 20 minutes. Giuliani netted $1.8 million from January 2006 to February 2007 for more than 20 <a density="sparse" href="http://www.getmotivated.com/" rel="external" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="Open Web Site">Get Motivated</a> events, according to disclosures he filed while running for president in 2008.</div>
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At Get Motivated’s last stop in Buffalo June 12, the 18,690-seat First Niagara Center was less than half full. Cosby, in a blue State University of New York at Buffalo sweatshirt and sweatpants, mixed one-liners with an appeal for seminar-goers to listen to the speakers selling financial instruction.</div>
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“All these millionaires are coming up and telling you how to make it,” he said. “Come on, understand what they’re saying. Get up.”</div>
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Door Prize</h2>
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Until February, Get Motivated had a partnership with Investools, a unit of discount broker <a class="web_ticker" density="sparse" href="http://www.bloomberg.com/quote/AMTD:US" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" ticker="AMTD:US" title="Get Quote" topic_url="http://topics.bloomberg.com/td-ameritrade-holding-corp/">TD Ameritrade Holding Corp. (AMTD)</a> that offered options training costing as much as $20,000. The Buffalo courses were to be taught by WealthRock, which is owned by Joseph Johnson, a resident of Apollo Beach, Florida, who bought Get Motivated in January.</div>
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Buffalo ticket holders were entered in a raffle, and Jerry Petrotto won the $10,000 grand prize. He said he hasn’t received a check and the company hasn’t returned calls or e-mails. A Get Motivated Facebook <a density="full" href="http://www.facebook.com/photo.php?fbid=322947284453960&set=a.322742304474458.74600.294005367348152&type=3&theater" rel="external" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="Open Web Site">page</a> still promotes him as the winner.</div>
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“It’s just disappointing they disappear right after my moment,” said Petrotto, 53, a design engineer from Williamsville, New York.</div>
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Johnson is named in a lawsuit in Hillsborough County, Florida, alleging he defaulted on a $12 million loan from an investor that he used to buy and operate Get Motivated. Laurence Pino, a lawyer representing the investor, said he couldn’t comment on the case. Companies that handled advertising, Web design and other services for the Tampa company have filed suits for allegedly unpaid bills.</div>
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Possible ‘Relaunch’</h2>
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Johnson is working with Get Motivated’s founder, Peter Lowe, to raise money to “relaunch” the seminars, Nash said. He said debts incurred since Johnson took control will be repaid once funding is secured and events resume. Johnson is in negotiations to resolve the lawsuit, according to Nash.</div>
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“Joe’s a really good guy and his intentions were the best,” Nash said. Johnson didn’t return telephone calls.</div>
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Peter Lowe, the son of a missionary, started Get Motivated 10 years ago, after the collapse of another celebrity seminar series he ran, called Success. Get Motivated also featured his wife Tamara Lowe, a self-help book author who performed a rap about Jesus at the events. The Lowes divorced in April.</div>
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Johnson paid $11.75 million for Get Motivated, with $4.75 million up front and the rest in promissory notes, according to documents filed in the divorce. Though Johnson is behind in payments, “he is working very, very hard to make everything as successful as possible,” Peter Lowe said. “I would like all those people, including myself, to get paid.”</div>
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Lowe said he has filled arenas for 20 years and is confident he could do it again.</div>
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“Get Motivated is about learning how to deal with the twists and turns of life -- when you’re beat down, how to get up,” said Lowe, 53. “This is probably a living example of that right now.”</div>
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<b>MITCH HUHEM LAWSUIT</b></div>
<h1 style="background-color: white; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 20px; line-height: 24px; margin: 10px 0px 5px; padding: 0px;">
Waterfall Victoria Master Fund v. Huhem et al</h1>
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<table><tbody>
<tr><th style="vertical-align: top; width: 160px;">Plaintiff:</th><td>Waterfall Victoria Master Fund </td></tr>
<tr><th style="vertical-align: top; width: 160px;">Defendants:</th><td>Brigham A. Huhem, Olympic Cove, Mitchell B. Huhem and America First Credit Union</td></tr>
<tr><td colspan="2"></td></tr>
<tr><th style="vertical-align: top; width: 160px;">Case Number:</th><td>2:2010cv00284</td></tr>
<tr><th style="vertical-align: top; width: 160px;">Filed:</th><td>April 1, 2010</td></tr>
<tr><td colspan="2"></td></tr>
<tr><th style="vertical-align: top; width: 160px;">Court:</th><td>Utah District Court</td></tr>
<tr><th style="vertical-align: top; width: 160px;">Office:</th><td>Central Office</td></tr>
<tr><th style="vertical-align: top; width: 160px;">Presiding Judge:</th><td>Dale A. Kimball</td></tr>
<tr><th style="vertical-align: top; width: 160px;">Presiding Judge:</th><td>Judge Dale A. Kimball</td></tr>
<tr><td colspan="2"></td></tr>
<tr><th style="vertical-align: top; width: 160px;">Nature of Suit:</th><td>Real Property - Foreclosure</td></tr>
<tr><th style="vertical-align: top; width: 160px;">Cause:</th><td>28:1332 Diversity-Contract Dispute</td></tr>
<tr><th style="vertical-align: top; width: 160px;">Jury Demanded By:</th><td>None</td></tr>
<tr><td colspan="2"></td></tr>
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<tr><th colspan="2">Plaintiff: Waterfall Victoria Master Fund </th></tr>
<tr><td class="representedby" colspan="2">Represented By: <a href="http://lawyers.justia.com/search?query=%C2%A0Lon+A.+Jenkins%C2%A0&match=any" style="color: #521f8e; text-decoration: none;"> Lon A. Jenkins </a></td></tr>
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<tr><th colspan="2">Defendant: Brigham A. Huhem</th></tr>
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<table><tbody>
<tr><th colspan="2">Defendant: Olympic Cove</th></tr>
<tr><td align="left" class="partysearches" width="110">Search Dockets</td><td class="partysearches">[ <a href="http://dockets.justia.com/search?q=Olympic+Cove" style="color: #521f8e; text-decoration: none;">Dockets</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search Blogs</td><td class="partysearches">[ <a href="http://blawgsearch.justia.com/search?query=Olympic+Cove" style="color: #521f8e; text-decoration: none;">Justia BlawgSearch</a> | <a href="http://www.blawg.com/NewBlawgSearch.aspx?search=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Blawg.com</a> | <a href="http://www.bloglines.com/search?q=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Bloglines</a> | <a href="http://blogsearch.google.com/blogsearch?hl=en&q=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google Blogsearch</a> |<a href="http://www.technorati.com/search/Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Technorati</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search News</td><td class="partysearches">[ <a href="http://news.google.com/news?hl=en&ned=us&q=%22Olympic+Cove%22" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google News</a> | <a href="http://www.marketwatch.com/search/?value=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Marketwatch</a> | <a href="http://online.wsj.com/public/search/page/3_0466.html?KEYWORDS=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Wall Street Journal</a> | <a href="http://search.ft.com/search?queryText=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Financial Times</a> |<a href="http://query.nytimes.com/search/query?query=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">New York Times</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search Finance</td><td class="partysearches">[ <a href="http://finance.google.com/finance?q=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google Finance</a> | <a href="http://finance.yahoo.com/search?type=&s=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Yahoo Finance</a> | <a href="http://www.hoovers.com/free/search/simple/xmillion/index.xhtml?which=company&query_string=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Hoovers</a> | <a href="http://www.sec.gov/cgi-bin/browse-edgar?company=Olympic+Cove&&owner=include&action=getcompany" rel="nofollow" style="color: #521f8e; text-decoration: none;">SEC Edgar Filings</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search Web</td><td class="partysearches">[ <a href="http://www.justia.com/search.py?cx=001017683474852908061:ghxovtgkt-8&q=Olympic+Cove+more%3Alegalweb&cof=FORID%3A11" rel="nofollow" style="color: #521f8e; text-decoration: none;">Legal Web</a> | <a href="http://www.google.com/search?q=%22Olympic+Cove%22" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google</a> | <a href="http://www.bing.com/search?q=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Bing</a> | <a href="http://search.yahoo.com/search?p=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Yahoo</a> | <a href="http://www.ask.com/web?q=Olympic+Cove" rel="nofollow" style="color: #521f8e; text-decoration: none;">Ask</a> ]</td></tr>
</tbody></table>
<table><tbody>
<tr><th colspan="2">Defendant: Mitchell B. Huhem</th></tr>
<tr><td align="left" class="partysearches" width="110">Search Dockets</td><td class="partysearches">[ <a href="http://dockets.justia.com/search?q=Mitchell+B.+Huhem" style="color: #521f8e; text-decoration: none;">Dockets</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search Blogs</td><td class="partysearches">[ <a href="http://blawgsearch.justia.com/search?query=Mitchell+B.+Huhem" style="color: #521f8e; text-decoration: none;">Justia BlawgSearch</a> | <a href="http://www.blawg.com/NewBlawgSearch.aspx?search=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Blawg.com</a> | <a href="http://www.bloglines.com/search?q=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Bloglines</a> | <a href="http://blogsearch.google.com/blogsearch?hl=en&q=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google Blogsearch</a> |<a href="http://www.technorati.com/search/Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Technorati</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search News</td><td class="partysearches">[ <a href="http://news.google.com/news?hl=en&ned=us&q=%22Mitchell+B.+Huhem%22" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google News</a> | <a href="http://www.marketwatch.com/search/?value=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Marketwatch</a> | <a href="http://online.wsj.com/public/search/page/3_0466.html?KEYWORDS=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Wall Street Journal</a> | <a href="http://search.ft.com/search?queryText=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Financial Times</a> |<a href="http://query.nytimes.com/search/query?query=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">New York Times</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search Finance</td><td class="partysearches">[ <a href="http://finance.google.com/finance?q=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google Finance</a> | <a href="http://finance.yahoo.com/search?type=&s=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Yahoo Finance</a> | <a href="http://www.hoovers.com/free/search/simple/xmillion/index.xhtml?which=company&query_string=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Hoovers</a> | <a href="http://www.sec.gov/cgi-bin/browse-edgar?company=Mitchell+B.+Huhem&&owner=include&action=getcompany" rel="nofollow" style="color: #521f8e; text-decoration: none;">SEC Edgar Filings</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search Web</td><td class="partysearches">[ <a href="http://www.justia.com/search.py?cx=001017683474852908061:ghxovtgkt-8&q=Mitchell+B.+Huhem+more%3Alegalweb&cof=FORID%3A11" rel="nofollow" style="color: #521f8e; text-decoration: none;">Legal Web</a> | <a href="http://www.google.com/search?q=%22Mitchell+B.+Huhem%22" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google</a> | <a href="http://www.bing.com/search?q=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Bing</a> | <a href="http://search.yahoo.com/search?p=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Yahoo</a> | <a href="http://www.ask.com/web?q=Mitchell+B.+Huhem" rel="nofollow" style="color: #521f8e; text-decoration: none;">Ask</a> ]</td></tr>
</tbody></table>
<table><tbody>
<tr><th colspan="2">Defendant: America First Credit Union</th></tr>
<tr><td align="left" class="partysearches" width="110">Search Dockets</td><td class="partysearches">[ <a href="http://dockets.justia.com/search?q=America+First+Credit+Union" style="color: #521f8e; text-decoration: none;">Dockets</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search Blogs</td><td class="partysearches">[ <a href="http://blawgsearch.justia.com/search?query=America+First+Credit+Union" style="color: #521f8e; text-decoration: none;">Justia BlawgSearch</a> | <a href="http://www.blawg.com/NewBlawgSearch.aspx?search=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Blawg.com</a> | <a href="http://www.bloglines.com/search?q=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Bloglines</a> | <a href="http://blogsearch.google.com/blogsearch?hl=en&q=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google Blogsearch</a> |<a href="http://www.technorati.com/search/America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Technorati</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search News</td><td class="partysearches">[ <a href="http://news.google.com/news?hl=en&ned=us&q=%22America+First+Credit+Union%22" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google News</a> | <a href="http://www.marketwatch.com/search/?value=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Marketwatch</a> | <a href="http://online.wsj.com/public/search/page/3_0466.html?KEYWORDS=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Wall Street Journal</a> | <a href="http://search.ft.com/search?queryText=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Financial Times</a> |<a href="http://query.nytimes.com/search/query?query=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">New York Times</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search Finance</td><td class="partysearches">[ <a href="http://finance.google.com/finance?q=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google Finance</a> | <a href="http://finance.yahoo.com/search?type=&s=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Yahoo Finance</a> | <a href="http://www.hoovers.com/free/search/simple/xmillion/index.xhtml?which=company&query_string=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Hoovers</a> | <a href="http://www.sec.gov/cgi-bin/browse-edgar?company=America+First+Credit+Union&&owner=include&action=getcompany" rel="nofollow" style="color: #521f8e; text-decoration: none;">SEC Edgar Filings</a> ]</td></tr>
<tr><td align="left" class="partysearches" width="110">Search Web</td><td class="partysearches">[ <a href="http://www.justia.com/search.py?cx=001017683474852908061:ghxovtgkt-8&q=America+First+Credit+Union+more%3Alegalweb&cof=FORID%3A11" rel="nofollow" style="color: #521f8e; text-decoration: none;">Legal Web</a> | <a href="http://www.google.com/search?q=%22America+First+Credit+Union%22" rel="nofollow" style="color: #521f8e; text-decoration: none;">Google</a> | <a href="http://www.bing.com/search?q=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Bing</a> | <a href="http://search.yahoo.com/search?p=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Yahoo</a> | <a href="http://www.ask.com/web?q=America+First+Credit+Union" rel="nofollow" style="color: #521f8e; text-decoration: none;">Ask</a> ]</td></tr>
</tbody></table>
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<a class="content-result-item-icon bc-lid_656_32 bc_sprite_source_32" href="http://www.intelius.com/redir.php?amp;adword=ps&search2=1-EBzt9QBQYUo7N5qGBEYM7PPH87-CBHMgsYayfbsDwCaEUIA2tpHBEMW22Qe9foZ3nVE5O05l5eWcKZU73Q&profileid=08SKX582K6G&refer=5430" rel="nofollow" style="background-image: url(data:image/png; background-repeat: no-repeat no-repeat; border: 0px; color: #0d0dcb; display: block; float: left; height: 32px; margin: 3px 7px 0px 0px; padding: 0px; text-decoration: none; width: 32px;" target="_blank" title="Intelius"></a><br />
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<a class="snippet-title orange" href="http://www.intelius.com/redir.php?amp;adword=ps&search2=1-EBzt9QBQYUo7N5qGBEYM7PPH87-CBHMgsYayfbsDwCaEUIA2tpHBEMW22Qe9foZ3nVE5O05l5eWcKZU73Q&profileid=08SKX582K6G&refer=5430" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black" style="border: 0px; color: black; margin: 0px; padding: 0px;">Intelius:</span> <b>Mitch</b> <b>Huhem</b> (Age: 43)</a></h3>
<div class="snippet-desc normalgray fs11" style="border: 0px; color: #888888; font-size: 11px; line-height: 15px; margin: 0px; max-height: 30px; min-height: 15px; overflow: hidden; padding: 0px;">
<span style="border: 0px; margin: 0px; padding: 0px;">84604 Provo UT m****m@___.com, m***h@___.com, h***m@___.com, m***********m@___.com, m***h@___.com, r***c@___.com, m****m@___.com, b*******s@___.com, m****h@___.com,...</span></div>
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<a class="content-result-item-icon bc-lid_656_32 bc_sprite_source_32" href="http://www.intelius.com/redir.php?amp;adword=ps&search2=1-aBiQ9AdQYUo7N5qGBEYM7PPH87-CBHMgsYayfbsDwCaEUIA2tpHBEMW22Qe9foZ3ndEiPOsCXjK4yLAMTrIxR0niYnmBqBbb&profileid=08SKX582K6G&refer=5430" rel="nofollow" style="background-image: url(data:image/png; background-repeat: no-repeat no-repeat; border: 0px; color: #0d0dcb; display: block; float: left; height: 32px; margin: 3px 7px 0px 0px; padding: 0px; text-decoration: none; width: 32px;" target="_blank" title="Intelius"></a><br />
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<a class="snippet-title orange" href="http://www.intelius.com/redir.php?amp;adword=ps&search2=1-aBiQ9AdQYUo7N5qGBEYM7PPH87-CBHMgsYayfbsDwCaEUIA2tpHBEMW22Qe9foZ3ndEiPOsCXjK4yLAMTrIxR0niYnmBqBbb&profileid=08SKX582K6G&refer=5430" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black" style="border: 0px; color: black; margin: 0px; padding: 0px;">Intelius:</span> <b>Mitch</b> <b>Huhem</b> (Age: 42)</a></h3>
<div class="snippet-desc normalgray fs11" style="border: 0px; color: #888888; font-size: 11px; line-height: 15px; margin: 0px; max-height: 30px; min-height: 15px; overflow: hidden; padding: 0px;">
<span style="border: 0px; margin: 0px; padding: 0px;">84003 American Fork UT m****m@___.com, m****m@___.com (801) 229-XXXX, (801) 371-XXXX, (801) 765-XXXX, (801) 225-XXXX, (801) 371-XXXX, (801) 221-XXXX, (801) 374-XXXX</span></div>
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<a class="content-result-item-icon bc-lid_656_32 bc_sprite_source_32" href="http://www.intelius.com/redir.php?amp;adword=ps&search2=1-aBiQ9AdQYUo7N5qGBEYM7PPH87-CBHMgsYayfbsDwCaEUIA2tpHBEMW22Qe9foZ3ndEiPOsCXjK4yLAMTrIxR0niYnmBqBbb&profileid=0A8FE1MPB6D&refer=5430" rel="nofollow" style="background-image: url(data:image/png; background-repeat: no-repeat no-repeat; border: 0px; color: #0d0dcb; display: block; float: left; height: 32px; margin: 3px 7px 0px 0px; padding: 0px; text-decoration: none; width: 32px;" target="_blank" title="Intelius"></a><br />
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<h3 style="border: 0px; font-size: 14px; font-weight: normal; margin: 0px; padding: 0px;">
<a class="snippet-title orange" href="http://www.intelius.com/redir.php?amp;adword=ps&search2=1-aBiQ9AdQYUo7N5qGBEYM7PPH87-CBHMgsYayfbsDwCaEUIA2tpHBEMW22Qe9foZ3ndEiPOsCXjK4yLAMTrIxR0niYnmBqBbb&profileid=0A8FE1MPB6D&refer=5430" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black" style="border: 0px; color: black; margin: 0px; padding: 0px;">Intelius:</span> <b>Mitch</b> <b>Huhem</b></a></h3>
<div class="snippet-desc normalgray fs11" style="border: 0px; color: #888888; font-size: 11px; line-height: 15px; margin: 0px; max-height: 30px; min-height: 15px; overflow: hidden; padding: 0px;">
<span style="border: 0px; margin: 0px; padding: 0px;">84003 American Fork UT i****p@___.com (800) 298-XXXX, (801) 223-XXXX, (800) 375-XXXX, (801) 619-XXXX, (801) 756-XXXX</span></div>
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<a class="content-result-item-icon bc-lid_1803_32 bc_sprite_source_32" href="http://www.peoplefinders.com/search/searchpreview.aspx?searchtype=people-name&fn=Mitch&mn=&ln=Huhem&city=&state=&utm_source=yasni&utm_campaign=tzr" rel="nofollow" style="background-image: url(data:image/png; background-repeat: no-repeat no-repeat; border: 0px; color: #0d0dcb; display: block; float: left; height: 32px; margin: 3px 7px 0px 0px; padding: 0px; text-decoration: none; width: 32px;" target="_blank" title=""></a><br />
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<h3 style="border: 0px; font-size: 14px; font-weight: normal; margin: 0px; padding: 0px;">
<a class="snippet-title-fake orange" href="http://www.peoplefinders.com/search/searchpreview.aspx?searchtype=people-name&fn=Mitch&mn=&ln=Huhem&city=&state=&utm_source=yasni&utm_campaign=tzr" rel="nofollow" style="border: 0px; color: #fb9a66; line-height: 18px; margin: 0px; padding: 0px; text-decoration: none;" target="_blank"><span class="black" style="border: 0px; color: black; margin: 0px; padding: 0px;"></span>4 entries for <b>Mitch</b> <b>Huhem</b> found on</a></h3>
<div class="snippet-desc-fake normalgray fs11 show1" style="border: 0px; color: #888888; font-size: 11px; line-height: 15px; margin: 0px; max-height: 30px; min-height: 15px; overflow: hidden; padding: 0px;">
<span style="border: 0px; margin: 0px; padding: 0px;"><a alt="peoplefinders_Nevada" href="http://www.peoplefinders.com/search/searchpreview.aspx?searchtype=people-name&fn=Mitch&mn=&ln=Huhem&city=&state=NV&utm_source=yasni&utm_campaign=tzr" rel="nofollow" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;" target="_blank">Nevada</a>, <a alt="peoplefinders_Utah" href="http://www.peoplefinders.com/search/searchpreview.aspx?searchtype=people-name&fn=Mitch&mn=&ln=Huhem&city=&state=UT&utm_source=yasni&utm_campaign=tzr" rel="nofollow" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;" target="_blank">Utah</a></span></div>
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www.peoplefinders.com</div>
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<h2 style="border: 0px; color: #888888; display: inline-block; float: left; font-size: 12px; font-weight: normal; margin: 0px 0px 5px; padding: 0px;">
Yellow Page contacts</h2>
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<div class="content-result-item" style="border: 0px; direction: ltr; margin: 5px 0px 0px; padding: 2px 0px 5px; width: 600px;">
<div class="content-result-item-icon icon-peoplesearch-company bc_relaunch_sprite_area" style="background-color: transparent; background-image: url(data:image/png; background-repeat: no-repeat no-repeat; border: 0px; display: inline-block; float: left; height: 16px; margin: 3px 7px 0px 0px; padding: 0px; width: 16px;" title="Other Service Mitch Huhem">
</div>
<div class="content-result-item-link-contact" style="border: 0px; float: left; font-size: 14px; margin: 0px; padding: 0px; width: 574px;">
<a class="orange bold" href="http://www.yasni.com/mitch+huhem/business+address" style="border: 0px; color: #fb9a66; font-weight: bold; margin: 0px; padding: 0px; text-decoration: none;">Other Service <span class="middlegray" style="border: 0px; color: #666666; margin: 0px; padding: 0px;">Mitch Huhem: </span></a><span class="fs12" style="border: 0px; font-size: 12px; margin: 0px; padding: 0px;"><a href="http://www.yasni.com/mitch+huhem/check+people/chief" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;">Chief</a>, <a href="http://www.yasni.com/mitch+huhem/check+people/executive" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;">Executive</a>, <a href="http://www.yasni.com/mitch+huhem/check+people/lifemax" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;">Lifemax</a>, <a href="http://www.yasni.com/mitch+huhem/check+people/officer" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;">Officer</a>, <a href="http://www.yasni.com/mitch+huhem/check+people/orlando" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;">Orlando</a></span></div>
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<a class="orange bold" href="http://www.spokeo.com/friends?g=import_yasni_yepa_tr01" rel="nofollow" style="border: 0px; color: #fb9a66; font-weight: bold; margin: 0px; padding: 0px; text-decoration: none;" target="_blank">Email <span class="middlegray" style="border: 0px; color: #666666; margin: 0px; padding: 0px;">to Mitch Huhem: </span></a><span class="fs12" style="border: 0px; font-size: 12px; margin: 0px; padding: 0px;"><a href="http://www.spokeo.com/friends?g=import_yasni_yepa_tr01" rel="nofollow" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;" target="_blank">Enter Email Addresses for Mitch Huhem, Get Their Hidden Online Profiles!</a></span></div>
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Network Profiles</h2>
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<a class="snippet-title orange pop-init" href="http://www.myspace.com/mitch-huhem" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black pop-init" style="border: 0px; color: black; margin: 0px; padding: 0px;">MySpace Profile:</span> <b>Mitch</b> <b>Huhem</b></a></h3>
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<span style="border: 0px; margin: 0px; padding: 0px;">male, 33, Encinitas, Select</span></div>
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<a href="http://www.myspace.com/mitch-huhem" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;" target="_blank"><img alt="MySpace Profile: Mitch Huhem at MySpace: userplaceholder" src="http://x.myspacecdn.com/modules/common/static/img/placeholders/userplaceholder.png" style="border: 0px none; height: 32px; margin: 0px; padding: 0px; width: 32px;" /></a></div>
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<a class="snippet-title orange pop-init" href="http://twitter.com/NewDNAco" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black pop-init" style="border: 0px; color: black; margin: 0px; padding: 0px;">Twitter Profile:</span> <b>Mitch</b> <b>Huhem</b> (NewDNAco)</a></h3>
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<a class="snippet-title orange pop-init" href="http://twitter.com/mitchhuhem" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black pop-init" style="border: 0px; color: black; margin: 0px; padding: 0px;">Twitter Profile:</span> <b>Mitch</b> <b>Huhem</b> (mitch<b>huhem</b>)</a></h3>
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<span style="border: 0px; margin: 0px; padding: 0px;"><b class="middlegray" style="color: #666666;">Mitch</b> <b class="middlegray" style="color: #666666;">Huhem</b> is a business executive and entrepreneur. <b class="middlegray" style="color: #666666;">Mitch</b> is currently the CEO of Genewize Life Sciences.</span></div>
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<a href="http://twitter.com/mitchhuhem" style="border: 0px; color: #0d0dcb; margin: 0px; padding: 0px; text-decoration: none;" target="_blank"><img alt="Twitter Profile: Mitch Huhem (mitchhuhem) at Twitter: mitch-huhem-pic_bigger" src="https://si0.twimg.com/profile_images/2219028586/mitch-huhem-pic_bigger.png" style="border: 0px none; height: 32px; margin: 0px; padding: 0px; width: 32px;" /></a></div>
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Business Profiles</h2>
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<a class="snippet-title orange pop-init" href="http://www.yasni.com/ext.php?url=http%3A%2F%2Fwww.corporationwiki.com%2FTexas%2FIrving%2Fgenewize-life-sciences-inc%2F107784733.aspx&name=Mitch+Huhem&cat=bprofile&showads=1" rel="nofollow" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black pop-init" style="border: 0px; color: black; margin: 0px; padding: 0px;"></span>Genewize Life Sciences, Inc. Company Profile - Located in ...</a></h3>
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<span style="border: 0px; margin: 0px; padding: 0px;">Genewize Life Sciences, Inc. has a location in Irving, TX. Active officers include <b class="middlegray" style="color: #666666;">Mitch</b> <b class="middlegray" style="color: #666666;">Huhem</b> and Karl Krummenacher. Genewize Life Sciences, Inc. filed as a Foreign</span></div>
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www.corporationwiki.com</div>
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<a class="snippet-title orange pop-init" href="http://www.yasni.com/ext.php?url=http%3A%2F%2Fwww.patentbuddy.com%2FInventor%2FHuhem-Mitch%2F12568473&name=Mitch+Huhem&cat=bprofile&showads=1" rel="nofollow" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black pop-init" style="border: 0px; color: black; margin: 0px; padding: 0px;">patentbuddy:</span> <b>Mitch</b> <b>Huhem</b></a></h3>
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<span style="border: 0px; margin: 0px; padding: 0px;">San Diego, CA, US</span></div>
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Private Homepages</h2>
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<a class="snippet-title orange pop-init" href="http://www.yasni.com/ext.php?url=http%3A%2F%2Fwww.mitchhuhem.com%2F&name=Mitch+Huhem&cat=homepage&showads=1" rel="nofollow" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black pop-init" style="border: 0px; color: black; margin: 0px; padding: 0px;"></span><b>Mitch</b> <b>Huhem</b> - Entrepreneur Speaker…</a></h3>
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<span style="border: 0px; margin: 0px; padding: 0px;">When <b class="middlegray" style="color: #666666;">Mitch</b> speaks, businesses and lives transform. A born driver with a strong desire to help others succeed, <b class="middlegray" style="color: #666666;">Mitch</b> has dedicated his life to building</span></div>
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www.mitchhuhem.com</div>
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Reports & Statements</h2>
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<a class="snippet-title orange pop-init" href="http://groups.google.com/g/17c7fefc/t/36fe551e9f5dc52b/d/a042a488964ed5ca%3Fq%3D%2522Mitch%2BHuhem%2522%23a042a488964ed5ca&ei=iGwTS6eaOpW8Qpmqic0O&sa=t&ct=res&cd=1&source=groups&usg=AFQjCNEEketlhxlscjErY4VifTYdyDsA3Q" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black pop-init" style="border: 0px; color: black; margin: 0px; padding: 0px;">Google Groups:</span> TRUE TIME FREEDOM AND FINANCIAL INDEPENDENCE</a></h3>
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<span style="border: 0px; margin: 0px; padding: 0px;">10.08.1995: <b class="middlegray" style="color: #666666;">Mitch</b> <b class="middlegray" style="color: #666666;">Huhem</b> is a talented and powerful entrepreneur who, while attending Brigham Young ... HIS STORY: Hi, I'm <b class="middlegray" style="color: #666666;">Mitch</b> <b class="middlegray" style="color: #666666;">Huhem</b>, and as you can see from the brief ...</span></div>
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Miscellaneous</h2>
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<a class="snippet-title orange pop-init" href="http://www.yasni.com/ext.php?url=http%3A%2F%2Fthednamatrix.com%2F&name=Mitch+Huhem&cat=other&showads=1" rel="nofollow" style="border: 0px; color: #fb9a66; display: block; height: 19px; line-height: 18px; margin: 0px; max-height: 19px; overflow: hidden; padding: 0px; text-decoration: none;" target="_blank"><span class="black pop-init" style="border: 0px; color: black; margin: 0px; padding: 0px;"></span>The Genewize Wealth Matrix, Creating a Network of Social ...</a></h3>
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<span style="border: 0px; margin: 0px; padding: 0px;">Superstar CEO – <b class="middlegray" style="color: #666666;">Mitch</b> <b class="middlegray" style="color: #666666;">Huhem</b>. The Other Players Behind Genewize; The Science Board; Genewize Company; About the Products; Genewize pdf. Files; Dallas Wealth Mastery</span></div>
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thednamatrix.com</div>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://2.bp.blogspot.com/-oobsK6GYYZI/UGkhkSGgZWI/AAAAAAABDIU/8ITSnKtRxQw/s1600/Bill+Cosby+at+Get+Motivated+for+Robert+Paisola.jpg&exactW=602&exactH=392&AlignV=top" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="208" src="http://2.bp.blogspot.com/-oobsK6GYYZI/UGkhkSGgZWI/AAAAAAABDIU/8ITSnKtRxQw/s320/Bill+Cosby+at+Get+Motivated+for+Robert+Paisola.jpg&exactW=602&exactH=392&AlignV=top" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="background-color: white; color: #999999; font-family: Georgia, 'Times New Roman', Times, serif; line-height: 19px; text-align: start;">Bill Cosby was among speakers at Get Motivated seminar June 12 at First Niagara Center, along with former presidential candidate Steve Forbes and Apple co-founder Steve Wozniak. </span></td></tr>
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<a href="http://1.bp.blogspot.com/-8APTif_1Ffs/UEwhs7l0k7I/AAAAAAABDIE/4OsDMa9m7Ys/s1600/Joe+Johnson+Wealthrock+CEO" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="227" src="http://1.bp.blogspot.com/-8APTif_1Ffs/UEwhs7l0k7I/AAAAAAABDIE/4OsDMa9m7Ys/s320/Joe+Johnson+Wealthrock+CEO" width="320" /></a></div>
JOE JOHNSON, WEALTHROCK CEO, NOW OUT OF BUSINESS<br />
<div class="article_font entry-content">
<span class="story_dateline">TAMPA --</span>
Peter and Tamara Lowe pack arenas with their "Get Motivated Seminars."<br />
You could also call their shows the Ex-Politicians Retirement Fund.<br />
Consider that former New York Mayor Rudy Giuliani collected $1.8
million in 2006-2007 for appearing at the couple's motivational powwows,
according to financial disclosures from Giuliani's failed 2008
presidential run.<br />
But now the Tampa-based operation is in turmoil, tied up in the couple's ugly divorce.<br />
Tamara accuses Peter of selling Get Motivated Seminars out from under
her to an Apollo Beach man. Peter counters that Tamara's company
ransacked his offices, carting off cubicles and chairs, stealing
computer files and leaving a web of phone lines dangling from walls —
all so she could carry on the business without him.<br />
Peter Lowe has seen his business model fall on hard times before — 11
years ago, when the motivational company Success Events International
collapsed amid millions of dollars in debt.<br />
For now, their star-studded events continue without a hitch — in Las
Vegas, Honolulu, and elsewhere. What the future holds for the seminars
and operation's estimated 150 workers in Tampa likely will be left to a
judge.<br />
<br />
* * * * *<br />
<br />
<br />
<br />
<header style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;"><span style="font-size: xx-small;"><b>Buffalo was end of line for Get Motivated seminars</b></span><br /><div class="clearfix">
By Peter Robison<br />
Bloomberg News<br />
<div class="date marginR right" style="color: #666666; float: right !important; font-size: 0.8em; margin-bottom: 1em; margin-left: 0em; margin-right: 1em !important; margin-top: 0em;">
<span class="time" style="color: #9e0700; font-size: 0.8em;"> Published: </span>September 5, 2012, 12:01 AM</div>
<div class="date right" style="color: #666666; float: right !important; font-size: 0.8em; margin: 0em 0em 1em;">
<span class="time" style="color: #9e0700; font-size: 0.8em;">Updated: </span>September 6, 2012, 02:55 PM</div>
</div>
</header><br />
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
The Buffalo show was the last for the Get Motivated seminar series.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
The Florida company that hired celebrities including Rudy Giuliani and Colin Powell for motivational events that filled arenas around the U.S. has closed, leaving lawsuits complaining of unpaid bills.<br />
The closing came after the seminar failed to draw a door-buster crowd in Buffalo in June.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
The seminars has drawn as many as 400,000 people a year, selling tickets starting at $1.95 for daylong pageants featuring fireworks and confetti. The seminars were actually vehicles for investment firms to sell courses in stock options and other trading tactics from the same stage where luminaries held forth, according to a Bloomberg News report.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
Commercial presenters promoted annual returns of as much as 25 percent. A Michigan pastor said he lost $11,500 trading options after paying $12,000 for classes advertised at a Get Motivated seminar.<br />
After the sparsely attended event in Buffalo, starring former Republican presidential candidate Steve Forbes, comedian Bill Cosby and Apple Inc. co-founder Steve Wozniak, Get Motivated canceled seminars scheduled for Michigan and Kentucky. The Tampa-based company shut down July 2, said Rick Nash, a spokesman. A sister firm that sold financial courses, WealthRock LLC of Draper, Utah, also terminated most of its staff, Nash said. The companies employed more than 250.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
"It's a hard business to make a profit," said John LaRosa, research director at Marketdata Enterprises Inc. in Tampa. "We really haven't seen anybody else doing this kind of format, where you have six or more big-name people that require large speaking fees."</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
The Washington Speakers Bureau was owed $1.7 million for speeches made between November 2011 and February 2012, according to claims in legal documents. The bureau represents well-known people who spoke at the events, including Giuliani, a former New York mayor; Powell, a former U.S. secretary of state; and former first lady Laura Bush, who made their last Get Motivated appearances on Feb. 16. Michael Menchel, the bureau's senior vice president, declined to comment.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
Speakers were supposed to earn $35,000 to $125,000 an appearance, according to the documents. Most speeches lasted 20 minutes. Giuliani netted $1.8 million from January 2006 to February 2007 for more than 20 Get Motivated events, according to disclosures he filed while running for president in 2008.<br />
At Get Motivated's last stop in Buffalo on June 12, the 18,690-seat First Niagara Center was less than half full. Cosby, in a blue University at Buffalo sweatshirt and sweatpants, mixed one-liners with an appeal for seminargoers to listen to the speakers selling financial instruction.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
"All these millionaires are coming up and telling you how to make it," he said. "Come on, understand what they're saying. Get up."</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
<b>Until February, Get Motivated had a partnership with Investools, a unit of discount broker TD Ameritrade Holding Corp. that offered options training costing as much as $20,000. The Buffalo courses were to be taught by WealthRock, which is owned by Joseph Johnson, a resident of Apollo Beach, Fla., who bought Get Motivated in January.</b></div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
Buffalo ticket holders were entered in a raffle, and Jerry Petrotto won the $10,000 grand prize. He said he hasn't received a check and the company hasn't returned calls or emails. A Get Motivated Facebook page still promotes him as the winner.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
"It's just disappointing they disappear right after my moment," said Petrotto, 53, a design engineer from Williamsville.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
Johnson is named in a lawsuit in Hillsborough County, Fla., alleging he defaulted on a $12 million loan from an investor that he used to buy and operate Get Motivated. Laurence Pino, a lawyer representing the investor, said he couldn't comment on the case. Companies that handled advertising, Web design and other services for the Tampa company have filed suits for allegedly unpaid bills.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
Johnson is working with Get Motivated's founder, Peter Lowe, to raise money to "relaunch" the seminars, Nash said. He said debts incurred since Johnson took control will be repaid once funding is secured and events resume. Johnson is in negotiations to resolve the lawsuit, according to Nash.</div>
<div class="articleBody clearfix" style="background-color: white; color: #222222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 19px;">
<br />
"Joe's a really good guy and his intentions were the best," Nash said. Johnson didn't return telephone calls.<br />
Peter Lowe, the son of a missionary, started Get Motivated 10 years ago, after the collapse of another celebrity seminar series he ran, called Success. Get Motivated also featured his wife, Tamara, a self-help book author who performed a rap about Jesus at the events. The Lowes divorced in April.</div>
<br />
--<br />
<br />
<b>It's hard to</b> miss the Lowes' extravaganzas.<br />
Full-page newspaper ads scream of bargains — $1.95 per person to get
pumped up by the likes of Giuliani, former Secretary of State Colin
Powell and former first lady Laura Bush.<br />
Even Republican presidential front-runner Mitt Romney jumped in two
years ago, earning nearly $30,000 for speaking to a Salt Lake City crowd
via satellite, his recent financial disclosure forms show.<br />
Tamara Lowe said in an e-mail that some speakers donate their honorariums to charity, but she couldn't provide details.<br />
The work leading up to each daylong climax in arenas across the
country is done in a one-story, white-and-blue-trim business park across
from Tampa International Airport, Eisenhower Technology Park.<br />
People here sell tickets to the nationwide powwows and coordinate with speakers' bureaus.<br />
Giuliani and Powell just attract the crowds; the company makes its
money by referring attendees to investment advisory firms that offer
follow-up workshops and courses. The extravaganzas, in other words, are
star-studded sales-lead generators.<br />
Investools, a unit of TD Ameritrade, and Utah-based Wealthrock pay
Get Motivated Seminars an undisclosed fee for the leads, said Joe
Johnson, an Apollo Beach man who recently purchased Get Motivated
Seminars and a related company, Life Win Inc., from Lowe.<br />
Johnson also owns Wealthrock, which he purchased from real estate investment speaker James Smith in 2010.<br />
People who attend a Get Motivated seminar can expect to get a sales pitch or two in return for a super-low ticket price.<br />
"I'm sure they're going to get the name and emails and phone numbers
of the people who attend, and that's when the real marketing begins,"
said John LaRosa, research director for Marketdata Enterprises, a Tampa
market research firm that follows the self-help industry.<br />
The Lowes' divorce after 24 years of marriage, though, has thrown it all into doubt.<br />
Peter and Tamara Lowe are themselves motivational speakers who share a
spiritual message at Get Motivated events. He is the son of
missionaries; she does a Christian rap performance that draws a crowd on
YouTube.<br />
"I don't care if you're JLo or Leno or Bono, one day you're gonna
die, Bro. Then where you gonna go," she raps in one YouTube video.<br />
<br />
* * * * *<br />
<br />
<b>Religion notwithstanding</b>, the Lowes have lobbed some very un-Christian allegations against each other.<br />
She alleges Peter was going to sell Get Motivated Seminars and Life
Win Inc. to her own motivational seminar company, Take Action Media.
Instead, he "secretly" sold the company at a discount to Johnson, the
Apollo Beach man, according to a statement provided by Tamara Lowe's
attorney.<br />
What's more, Johnson has a history of financial and legal trouble,
according to their statement. How can Peter entrust the motivation
companies to him, they ask.<br />
In 2010, the Tribune wrote about a failed charity that Johnson ran
called the SeedAmerica Foundation. Manufacturers would donate abandoned
industrial buildings to SeedAmerica, which would renovate and find new
tenants for them.<br />
Instead, the nonprofit agency declared bankruptcy and didn't make
good on its plan to revitalize many of its empty industrial buildings in
places such as Salem, Ill., and Medina, N.Y.<br />
Today, Johnson, 36, said SeedAmerica got caught up in the national
real estate downturn, but he has been successful in other real estate
ventures.<br />
"When the financing dried up, there was nothing we could do," Johnson said.<br />
For his part, Peter Lowe said he had every right to sell Get Motivated Seminars and Life Win.<br />
He sued Tamara Lowe's company last month in Hillsborough circuit
court, claiming Take Action Media representatives sabotaged his
companies' headquarters. They stole trade secrets and even recruited his
employees for her company, the lawsuit says.<br />
Today, his company's offices appear gutted, while her company is
operating the Get Motivated Seminars from offices just two doors away
inside the same airport business park.<br />
Lowe dropped his lawsuit against his wife a couple weeks ago when he
completed the company's sale to Johnson, he said. As his successor,
Johnson immediately filed a lawsuit in U.S. District Court in Tampa
alleging the same things.<br />
Until the couple works out their differences, all sides seem to
understand that the show must go on. The Lowes' divorce case is playing
out in Palm Beach County, where they both live.<br />
Recent shows in Las Vegas and Honolulu went on as planned with no
noticeable hiccups, convention center managers from both cities told the
Tribune.<br />
Get Motivated's website, at <a href="http://www.getmotivated.com/">www.getmotivated.com</a>, even touts that it has lined up a new superstar for upcoming shows: Tour de France champion Lance Armstrong.<br />
True to its penchant for hype, Get Motivated Seminars labels him, "The Greatest Athlete of All Time."</div>
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<br />
ELIZABETH ARDEN, a California Corporation d/b/a/ Complaintsboard.com,; KHANSAMA PUBLICATIONS, Inc., a New York corporation d/b/a Artvoice.com; AUTOMATTIC a California Corporation d/b/a Xenophilius.wordpress.com,; and DOES 1-10, individuals,<br />
<br />
Defendants.<br />
<br />
COMPLAINT<br />
Civil No. _____________________<br />
Judge _______________________<br />
JURY DEMANDED<br />
[FILED ELECTRONICALLY]<br />
COMES NOW Plaintiff, by and through the undersigned counsel, and hereby complains of Defendants as follows:<br />
<br />
PARTIES, JURISDICTION AND VENUE<br />
<br />
1. Plaintiff James Smith is a resident of the State of Florida, Seminole County, and has a secondary residence in Utah. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 1 of 18<br />
2. James Smith is an owner of The Coaching Company, LLC, (hereinafter “The Coaching Co.”) a Utah limited liability company.<br />
3. James Smith is an owner of Real Estate Investment Support, LLC, (hereinafter “REIS”) a Utah limited liability company.<br />
4. Defendant Khansama, d/b/a artvoice.com (hereinafter “Artvoice”) is a New York corporation.<br />
5. Through the website known as artvoicedaily.com, Artvoice published defamatory statements about Plaintiff James Smith and his entities, thereby causing tortious injury.<br />
6. Defendant Elizabeth Arden, d/b/a complaintsboard.com (hereinafter “Complaintsboard) is a resident of the State of California, and the owner or controlling member of Complaintsboard.<br />
7. The website known as complaintsboard.com is published worldwide via the internet. Through the website known as complaintsboard.com, Complaintsboard has published defamatory information about Plaintiff and his entities, thereby causing tortious injury.<br />
8. Defendant Automattic, d/b/a Wordpress, d/b/a Xenophilia (hereinafter “Xenophilia”) is a California corporation doing business worldwide via the internet.<br />
9. Defendant Xenophilia runs a website known as Wordpress. Wordpress provides free blog hosting for its users. One such user is the Xenophilia blog located at xenophilius.wordpress.com. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 2 of 18<br />
10. Jurisdiction is proper in the above-entitled court pursuant to 28 U.S.C. §§ 1331 and 1332.<br />
11. Venue is proper in the above-entitled court pursuant to 28 U.S.C. § 1391 (b) and (c).<br />
MATERIAL FACTS<br />
12. Plaintiff James Smith is a real estate and financial success speaker.<br />
13. Plaintiff, Coaching Co. and REIS provide real estate investment advice via seminars, products, and other programs.<br />
14. Plaintiff has been a featured speaker on the popular Get Motivated seminar series.<br />
15. Plaintiff’s reputation is vital to his business interests.<br />
16. Beginning in early 2010 defamatory and slanderous comments and posts about James Smith were made to blogs at Complaintsboard.com, Arvoice.com and Wordpress.xenophilia.com causing Plaintiff James Smith tortious injury.<br />
17. At least one unknown Doe has illegally obtained information from Plaintiff James Smith’s cell phone and/or computer and/or by intercepting text and/or phone messages. Said Doe also tracked Plaintiff’s location using digital GPS or other confidential and private information.<br />
18. Said Doe published text messages and confidential and private information about the Plaintiff’s and his schedule on Defendants’ websites. Defendants indexed and/or edited the comments.<br />
19. In addition, said Doe published false and defamatory information about James Smith, alleging his involvement in extramarital affairs with public figures and Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 3 of 18<br />
escorts, and that he and his entities are dishonest, deceitful, untrustworthy, and who fleece investors.<br />
20. Plaintiffs, through counsel and through his entities, notified the websites of the slanderous information and requested that the blogs be pulled, and that the identity, contact information and IP address of the person(s) registered with the blog and responsible for the posts be revealed. Despite repeated demands, the posts were not fully removed.<br />
21. At the request of one blog editor Plaintiffs provided an affidavit and/or declaration under penalty of perjury that the information in the blogs was untrue.<br />
22. In August 2010 Plaintiffs sent a draft complaint to the editors of the three websites demanding that the posts be removed and that the identity of the bloggers be revealed. Upon information and belief, by late August 2010 Artvoice.com and Wordpress.xenophilia.com removed the offending posts. Complaintsboard.com continues to have offending posts, including new posts on prior threads.<br />
23. Neither Complaintsboard.com, Arvoice.com or Wordpress.xenophilia.com has revealed the contact information and identity of the bloggers, despite the fact that such information is not protected when the bloggers use the blog for illegible purposes. In addition, two of the blogs have confirmed that the registration information for one or more Doe blogger is false and that one or more of the persons who signed up on these websites used multiple fictitious names to make these posts. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 4 of 18<br />
24. Both of these circumstances violate the conditions and terms of use employed by the blogs.<br />
25. Defendants have committed tortious wrongs through their respective websites.<br />
Artvoice Daily<br />
26. Defendant Artvoice publishes the Artvoice Daily blog (hereinafter “Artvoice”) online.<br />
27. On or about 19 August 2009, Artvoice posted a local interest story written by an Artvoice correspondent.<br />
28. On or about 18 February 2010, a user posted a defamatory comment in response to the local interest story. The user referred to a Kari Michaelson as the “mistress” of James Smith.<br />
29. On or about 12 March 2010 another user posted a comment to the same story, stating he was “surprised that James Smith has Kari Michaelson for a mistress.”<br />
30. On or about 29 March 2010 a third user posted a comment asserting that James Smith hired Kari Michaelson in order to facilitate his ongoing extramarital affair with her.<br />
31. On or about 25 May 2010 a fourth Artvoice user posted a comment alleging that James Smith was carrying on an extramarital affair and had irreparably damaged his marriage.<br />
Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 5 of 18<br />
Complaintsboard<br />
32. On 13 April 2010 a Complaintsboard user posted a lengthy complaint which included portions of numerous other comments, all asserting that James Smith carried on an extramarital affair with Kari Michaelson.<br />
33. On or about 17 April 2010 a Complaintsboard user alleged that James Smith and Kari Michaelson were in Hawaii together without their respective spouses, and they “looked like any other honeymooning couple.”<br />
34. On or about 6 May 2010 a Complaintsboard user posted a complaint insinuating that James Smith stayed with Kari Michaelson at a Fort Lauderdale, Florida, hotel.<br />
35. On or about 20 May 2010 a Complaintsboard user copied and posted to Complaintsboard the 29 March 2010 Artvoice comment.<br />
36. A second complaint posted on or about 20 May suggests that James Smith has carried on extramarital affairs, and therefore has lied about being “happily married.” The complaint implies that James Smith is neither trustworthy nor honest.<br />
37. On or about 27 May 2010 another Complaintsboard user posted a complaint calling James Smith a liar and asserting that he is carrying on an extramarital affair with Kari Michaelson.<br />
38. On or about 30 May 2010, Complaintsboard users alleged that James Smith and one Paula White are “in a romantic relationship that is adultery for James Smith. To trust a company that we pay only based on faith since they do not sell a product Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 6 of 18<br />
but a service, it is very important to have FAITH and TRUST. Both are impossible in light of these facts.”<br />
39. On or about 15 June 2010 a Complaintsboard user posted that “Pastor Paula White of Without Walls and James Smith of James Smith Company are in a relationship that has come to public notice” and accused James Smith of immorality.<br />
40. On or about 20 June 2010 another Complaintsboard user referred to James Smith as Paula White’s “new boyfriend” and alleged that “[i]f the leader is guilty of all that James Smith has been doing and that people have listed WITH dates places and happenings, then his own company can NEVER be trusted.” The user reasserted that James Smith could never be trusted.<br />
41. On or about 21 June 2010, the same Complaintsboard suggested that James Smith was trying to become Paula White’s third husband in order to take her congregants’ money.<br />
42. On or about 23 June 2010 another Complaintsboard user alleged that James Smith is carrying on at least two extramarital affairs. The user claims that to have James Smith “speak to people is a crime”, and he is unfit to conduct business and provide investment advice based on his “problem with sleeping around.”<br />
43. On or about 24 June 2010, another Complaintsboard user claims that “James Smith has been sleeping around for years,” has had several hundred mistresses, and hires escorts. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 7 of 18<br />
44. On or about 24 June 2010, another user referred to James Smith’s alleged adultery as “repeated deceitful acts” and claimed “the public believes him and pays him and gets fooled.”<br />
45. On or about 25 June 2010, a Complaintsboard user posted what he/she alleges are “texts from James M. Smith’s phone to [Kari Michaelson’s] phone.”<br />
46. On or about 27 June 2010, a Complaintsboard user accused James Smith of carrying on an extramarital affair with Paula White.<br />
47. On or about 27 June 2010, another Complaintsboard user asserted that, that James Smith and Kari Michaelson were “dishonest and cunning” and carrying on an extramarital affair.<br />
48. On or about 4 July 2010, a Complaintsboard user posted a complaint calling James Smith a “snake oil salesman” and alleging that his carrying on extramarital affairs with both Kari Michaelson and Paula White.<br />
49. On or about 7 July 2010, a Complaintsboard user claimed that Paula White and James Smith were “devious”, engaged in an extramarital relationship, and “fleecing believers and investors.”<br />
50. On or about 8 July 2010, a Complaintsboard user posted a complaint alleging that James Smith is carrying on extramarital affairs with two different women, and lying to his family.<br />
51. On or about 9 July 2010, a Complaintsboard user argued that James Smith was in the Caribbean with a mistress rather than on business, and called James Smith and his employees “scum bags.” Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 8 of 18<br />
52. On or about 12 July 2010, a Complaintsboard user posted information detailing travel itineraries and scheduled flights for James Smith, Kari Michaelson, and Paula White.<br />
53. Upon information and belief, Does 1 through 10 have used a GPS tracking program to track the location of Plaintiff Smith’s cellular telephone, to intercept and forward private messages, and to uncover proprietary information related to Plaintiff’s business.<br />
54. Complaintsboard users continue to post false, defamatory, and private statements, and Complaintsboard continues to publish and index these statements.<br />
55. The Complaintsboard Terms of Use state that posted messages may be indexed by internet search engines. See http://www.complaintsboard.com/terms-conditions.html.<br />
56. The Terms of Use state that members may not “[d]efame, abuse, harass, stalk, or otherwise violate the legal rights (such as rights of privacy and publicity) of others,” nor may they “[p]ublish, distribute or disseminate any inappropriate, profane, defamatory” material information.<br />
57. Complaintsboard.com “reserves that right at all times to monitor, review, retain and/or disclose any information necessary to satisfy any applicable law, regulation, legal process or government request.” Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 9 of 18<br />
58. Complaintsboard.com stores and archives members’ registration information, the contents of their posts, and messages sent in regard to posts. See Complaintsboard.com Privacy Policy.<br />
59. Complaintsboard.com may “disclose information about its users if required to do so by law or in the good faith belief that such disclosure is reasonably necessary” to respond to claims that a listing violates the rights of a third party or to respond to a legal process.<br />
Xenophilia<br />
60. On 25 March 2009, Xenophilia posted a review entitled “Get Motivated Seminar, Colin Powell, Michael Phelps, others live @ Arco arena”.<br />
61. On 29 March 2010, Anne Waldon posted a comment alleging James Smith is engaged in an extramarital affair.<br />
62. On 3 May 2010, a user called Giddy posted defamatory messages copied from the Complaintsboard site.<br />
63. On 5 May 2010, a user called KNC asserted that James Smith is carrying on an extramarital affair with Kari Michaelson, and that Smith’s wife would force him to fire Michaelson.<br />
64. On 25 May 2010, a user called CindyS posted defamatory comments about James Smith regarding a non-existent extramarital relationship.<br />
65. On 22 June 2010, a user called Candy alleged that James Smith is carrying on an extramarital affair with a Pastor Paula White. Candy further alleged travel<br />
Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 10 of 18<br />
itinerary information that would not be available to an individual without access to James Smith’s cell phone.<br />
66. On 24 June 2010, a user called CandyJS posted a comment stating that James Smith was benefiting from Pastor White’s congregants’ funds.<br />
67. In August 2010, attorneys representing Plaintiffs contacted Defendants Artvoice, Complaintsboard, and Xenophilia, requesting that the defamatory comments be removed. In response, some of the defamatory and slanderous comments were removed by Defendants Artvoice, Complaintsboard, and Xenophilia.<br />
68. Since that time, additional defamatory comments have been posted on Defendant Complaintsboard’s website. Defendant Complaintsboard has not removed those comments.<br />
FIRST CAUSE OF ACTION<br />
Defamation and Libel<br />
69. Plaintiffs re-allege paragraphs 1 through 68 as though fully contained herein.<br />
70. Defendant Does 1 through 10 made false statements which impeach the honesty, integrity, and virtue of Plaintiff James Smith and his companies.<br />
71. Defendant Does 1 through 10 named James Smith, an ascertainable person, in making the false and defamatory statements.<br />
72. Defendant Does 1 through 10 lacked sufficient knowledge to make these defamatory statements or reasonable belief that the statements were true.<br />
73. Defendant Does’ false statements thereby exposed Plaintiffs to public hatred, contempt, and ridicule. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 11 of 18<br />
74. Defendant Does 1 through 10 intended to cause this kind of harm, and were reckless as to whether such harm would occur, and were aware that the actions posed substantial risk of causing this harm. Defendant Does’ actions entitle Plaintiffs to punitive damages.<br />
75. Defendants Artvoice, Complaintsboard, and Xenophilia have published these slanderous and defamatory statements.<br />
SECOND CAUSE OF ACTION<br />
Defendants Artvoice’s, Complaintsboard’s, and Xenophilia’s Liabilities under §230 of the Communications Decency Act of 1996<br />
76. Plaintiffs re-allege paragraphs 1 through 75 as though fully contained herein.<br />
77. As internet content providers or facilitators, Defendants Artvoice, Complaintsboard, and Xenophilia are not providers or users of an interactive computer service.<br />
78. Defendants Artvoice, Complaintsboard, and Xenophilia developed and disseminated online posts containing defamatory and harmful information.<br />
79. Defendants Artvoice, Complaintsboard, and Xenophilia failed to exercise their right—pursuant to their respective Terms of Use agreements—to remove or edit defamatory and otherwise offensive content.<br />
80. Defendants Artvoice, Complaintsboard, and Xenophilia encouraged and facilitated defamation of Plaintiffs.<br />
81. Defendants Artvoice, Complaintsboard, and Xenophilia lacked any reasonable belief the defamatory statements were true. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 12 of 18<br />
82. Defendants Artvoice, Complaintsboard, and Xenophilia failed to exercise reasonable care in disseminating defamatory statements. Said failure entitles Plaintiffs to the remedies permitted under the statute.<br />
THIRD CAUSE OF ACTION<br />
Interference with Prospective Economic Advantage<br />
83. Plaintiffs re-allege paragraphs 1 through 82 as though fully contained herein.<br />
84. Defendants intentionally, fraudulently, maliciously and/or recklessly interfered with Plaintiffs’ present and future economic relations.<br />
85. Defendants interfered with Plaintiffs’ economic relations by defamatory, untrue, and improper means.<br />
86. Defendants’ interference has caused substantial injury to Plaintiff Smith and to his companies. Defendants’ actions entitle Plaintiffs to punitive damages.<br />
FOURTH CAUSE OF ACTION<br />
Intentional Infliction of Emotional Distress<br />
87. Plaintiffs re-allege paragraphs 1 through 86 as though fully contained herein.<br />
88. Defendant Does 1 through 10 intentionally, fraudulently, maliciously and/or recklessly defamed the Plaintiffs.<br />
89. Defendant Does 1 through 10 intended to inflict emotional distress on Plaintiff Smith. They either knew or should have known that this outcome would result from their publication of false and defamatory statements. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 13 of 18<br />
90. The false and defamatory statements are outrageous and intolerable, and offensive to generally accepted standards of decency and morality.<br />
91. Plaintiff suffered distress and injury due to Defendants’ outrageous and intolerable behavior towards Plaintiff Smith.<br />
FIFTH CAUSE OF ACTION<br />
Negligent Infliction of Emotional Distress<br />
92. Plaintiff re-alleges paragraphs 1 through 91 as though fully contained herein.<br />
93. On their respective websites, Defendants Artvoice, Complaintsboard, and Xenophilia edited and indexed false and defamatory statements directed at Plaintiff Smith.<br />
94. Defendants Artvoice, Complaintsboard, and Xenophilia either knew or should have known the statements violated Plaintiff’s rights and inflicted emotional distress on Plaintiff Smith.<br />
95. Defendants Artvoice, Complaintsboard, and Xenophilia failed to exercise reasonable care in editing, administering, and indexing the statements contained in their respective websites.<br />
96. The refusal by Defendants Artvoice, Complaintsboard, and Xenophilia to remove the offensive statements is—particularly in light of their respective Terms of Use—outrageous and intolerable, offensive to normal standards of decency and morality. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 14 of 18<br />
97. Plaintiff Smith suffered distress and injury due to Defendants’ outrageous and intolerable behavior.<br />
SIXTH CAUSE OF ACTION<br />
Invasion of Privacy<br />
98. Plaintiff re-alleges paragraphs 1 through 97 as though fully contained herein.<br />
99. Defendants publicly disclosed and disseminated statements, facts, and private personal information about Plaintiff Smith throughout the world, via the websites of Artvoice, Complaintsboard, and Xenophilia.<br />
100. The facts—including information stolen from the private telephone of Plaintiff Smith—are all private.<br />
101. The facts deal with alleged extramarital affairs and impugn Plaintiff Smith’s character and morality. They are highly offensive to an ordinary person of reasonable sensibilities.<br />
102. Defendants’ invaded Plaintiff’s privacy, thereby injuring Plaintiff Smith, his business, and his reputation. These intentional acts were done intentionally, fraudulently, maliciously by Does 1 through 10. In the case of the websites it was done recklessly.<br />
SEVENTH CAUSE OF ACTION<br />
Violation of Utah’s Unfair Competition Act<br />
103. Plaintiffs re-allege paragraphs 1 through 102 as though fully contained herein. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 15 of 18<br />
104. At least one Defendant Doe has illegally obtained information from Plaintiff Smith’s cell phone, and has willfully communicated this information without Plaintiff’s authorization by posting the information on the websites of Defendants Artvoice, Complaintsboard, and Xenophilia.<br />
105. Defendant Doe’s actions constitute malicious cyber activity as defined by Utah Code Ann. § 13-5a-102(3)(c).<br />
106. Defendant Doe’s actions were intentional, unlawful, unfair, and fraudulent, entitling Plaintiffs to punitive damages.<br />
107. Defendant Doe’s actions have lead to a material diminution in the value of Plaintiffs’ businesses and intellectual property and loss of reputation.<br />
EIGHTH CAUSE OF ACTION<br />
Negligence/Negligence Per Se<br />
108. Plaintiffs re-allege paragraphs 1 through 107 as though fully contained herein.<br />
109. Defendants Artvoice, Complaintsboard, and Xenophilia were notified that the information posted on their websites was defamatory and slanderous.<br />
110. Upon receipt of notice, Defendants Artvoice, Complaintisboard, and Xenophilia had a duty to investigate the nature of the comments posted about Plaintiffs, to ensure that Plaintiffs were not further defamed, and to make sure that bloggers using their websites were complying with the terms of use.<br />
111. Defendants Artvoice, Complaintsboard, and Xenophilia have not investigated the nature of the comments made about Plaintiffs, have left some of the comments remaining on their websites, have failed to timely remove said comments, have Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 16 of 18<br />
failed to remove/ban bloggers who used false registration information, have failed to prohibit bloggers from using their site for illegal means, and/or have allowed additional defamatory comments to be posted on their websites, all of which are breaches of their duties.<br />
112. Plaintiffs have been injured as a result of the failure of Defendants Artvoice, Complaintisboard, and Xenophilia to comply with their duties.<br />
113. Defendants violations of the statutes above is negligence per se.<br />
PRAYER FOR RELIEF<br />
WHEREFORE, Plaintiffs hereby respectfully requests the following relief:<br />
a. Injunctive relief to stop and prohibit further illegal actions of the Defendants;<br />
b. Injunctive relief to force the Defendant companies to reveal the identity, contact information and IP addresses of Does 1 through 10 who made defamatory statements;<br />
c. Damages, including general, special, direct, indirect, consequential, etc. for the causes of action noted above in an amount to be proven at trial, but no less than $200,000.00;<br />
d. Punitive damages in an amount to be proven at trial;<br />
e. An award of reasonable costs and attorney’s fees;<br />
f. Such other and further relief as this Court deems just and proper.<br />
Plaintiffs request a jury decide this matter once all issues are joined. Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 17 of 18<br />
DATED this 2nd day of December, 2010.<br />
s:/ David B. Stevenson<br />
David B. Stevenson<br />
Brad C. Smith<br />
Attorneys for Plaintiffs<br />
Case 2:10-cv-01181-DB Document 2 Filed 12/02/10 Page 18 of 18<br />
<h1>
Tampa-based Get Motivated stiffs prominent speakers</h1>
<h1>
Get Motivated Seminars Inc., with offices on West Waters Avenue
in Tampa, has closed, leaving a host of celebrity speakers, unpaid,
according to <i>Bloomberg</i>.</h1>
The company’s sister firm, WealthRock LLC of Draper, Utah, has
also terminated most of its staff. The two entities employed some 250
people.<br />
<br />
“It’s a hard business to make a profit,” <a href="http://www.bizjournals.com/tampabay/search/results?q=John%20LaRosa">John LaRosa</a>, research director at Tampa’s <a class="ct saveLink" href="http://www.bizjournals.com/profiles/company/us/fl/tampa/marketdata_enterprises/933063/">Marketdata Enterprises</a>,
is quoted as saying. “We really haven’t seen anybody else doing this
kind of format, where you have six or more big-name people that require
large speaking fees.”<br />
<br />
The Washington Speakers bureau was owed $1.7 million for
speeches made between November 2011 and February 2012, according to
claims in legal documents. The bureau represents well-known people who
spoke at events, including <a href="http://www.bizjournals.com/tampabay/search/results?q=Rudi%20Giuliani">Rudi Giuliani</a>, former mayor of New York City, <a href="http://www.bizjournals.com/tampabay/search/results?q=Colin%20Powell">Colin Powell</a>, and former first lady <a href="http://www.bizjournals.com/tampabay/search/results?q=Laura%20Bush">Laura Bush</a>, who made their last Get Motivated appearances on Feb. 16.<br />
<br />
At Get Motivated’s last stop in Buffalo in June, the
18,690-seat First Niagra Center was less than half full. Speakers at
that event included <a href="http://www.bizjournals.com/tampabay/search/results?q=Bill%20Cosby">Bill Cosby</a>.<br />
<br />
The Buffalo courses were to be taught by WealthRock, which is owned by <a href="http://www.bizjournals.com/tampabay/search/results?q=Joseph%20Johnson">Joseph Johnson</a>, an Apollo Beach resident who bought Get Motivated in January.<br />
<br />
Johnson is named in a lawsuit in Hillsborough County alleging
that he defaulted on a $12 million loan from an investor that he used to
buy and operate Get Motivated.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://3.bp.blogspot.com/-KIVdBTnXAhM/UErMVcownCI/AAAAAAABDH0/4PZcO9kOjsg/s1600/logo.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="88" src="http://3.bp.blogspot.com/-KIVdBTnXAhM/UErMVcownCI/AAAAAAABDH0/4PZcO9kOjsg/s400/logo.png" width="400" /></a></div>
<br />
<span style="font-size: large;"><b>WEALTHROCK... ANOTHER COMPANY NAME TO RUN JAMES SMITH / PETER LOWE IS OVER!</b></span><br />
<span style="font-size: large;"><b> <a href="http://www.wealthrock.com/pdf/WealthRockPressRelease11-20-11.pdf">http://www.wealthrock.com/pdf/WealthRockPressRelease11-20-11.pdf</a></b></span><br />
By MICHAEL SASSO | The Tampa Tribune <br />
Published: July 22, 2012<br />
» Comments | Post a Comment<br />
TAMPA --<br />
The collapse of Get Motivated Seminars, which packed arenas with its
tips on success and spirituality, has thrown out of work at least a
hundred people and lef<br />
<div class="text_exposed_show">
t millions in bills unpaid.</div>
<div class="text_exposed_show">
<br />
The Tampa company for years promoted its powerhouse lineup of speakers,
including Colin Powell and former first lady Laura Bush, in full-page
newspaper ads and drew attendees with dirt-cheap tickets — $1.95 a pop.</div>
<div class="text_exposed_show">
<br />
But Get Motivated's suppliers are stumped by the last eight months.</div>
<div class="text_exposed_show">
<br />
Since winter, it has been sold to a little-known Apollo Beach man with a
troubled business history, its staff shuffled among at least three
offices and its operations eventually shut down. Lawsuits are flying.<br />
"I've heard stories and rumors, but none of it seems to make any
sense," said Bill Fries, whose Tampa staffing company, Hiregy, supplied
workers to Get Motivated.</div>
<div class="text_exposed_show">
<br />
Its glamorous seminars got all the
attention, but Get Motivated Seminars actually was a marketing company
that generated sales leads for investment advisory firms.</div>
<div class="text_exposed_show">
<br />
Its real
corporate name was Life Win Inc., and until recently it operated out of a
technology park across from Tampa International Airport. There, more
than 100 people sold tickets to Get Motivated powwows in arenas and
convention centers nationwide. They tempted customers with $1.95 tickets
but eventually tried to upsell them with pricier tickets.</div>
<div class="text_exposed_show">
<br />
Company
agents also steered customers to at least two firms that offered classes
and advice on financial investing, a Utah firm called WealthRock and a
TD Ameritrade affiliate called Investools.<br />
At its events, big-name
politicians and sports stars such as Rudy Giuliani and Joe Montana
earned five-figure fees for their talks. Every show also featured at
least a few minutes of Christian inspiration.</div>
<div class="text_exposed_show">
<br />
Life Win's founding
couple, Peter and Tamara Lowe, were known for their Christian faith. He
once ran the Rev. Billy Graham's crusade in Tampa; she can be spotted on
YouTube performing a Christian rap song.</div>
<div class="text_exposed_show">
<br />
But things seemed to go downhill quickly.</div>
<div class="text_exposed_show">
<br />
The Lowes are going through a nasty divorce in Palm Beach County, where
they both have separate houses, and their motivational seminar business
appears to have been caught in the middle.<br />
Life Win Inc. shut its
last known office on West Waters Avenue sometime early this month and
laid off dozens of employees. Since then, the company's suppliers and
investors and their lawyers have tried to piece together what happened.</div>
<div class="text_exposed_show">
<br />
Among the curious events are:</div>
<div class="text_exposed_show">
<br />
Allegations of theft. Peter Lowe claimed in court papers filed in
January that Tamara sabotaged his company's former offices, stole
intellectual property and essentially set up a rival motivational
speaking company.</div>
<div class="text_exposed_show">
<br />
Tamara shot back that Peter sold the company out
from under her to a little-known 36-year-old Apollo Beach man named Joe
Johnson. What's more, Johnson had a shaky business history with a failed
charity called SeedAmerica Foundation.</div>
<div class="text_exposed_show">
<br />
Johnson promised to help
small Midwestern towns revitalize their dilapidated industrial
buildings, but instead SeedAmerica filed bankruptcy and never fulfilled
its promises. The Tribune has been unable to reach Johnson or his lawyer
in recent weeks.</div>
<div class="text_exposed_show">
<br />
Mysterious moves. Since the fall, Life Win's staff
of more than 100 has moved in and out of at least three offices on
Eisenhower Boulevard near the airport and Waters Avenue. The owner of
the Eisenhower property won a $226,000 judgment against Life Win in
April.</div>
<div class="text_exposed_show">
<br />
Sudden shutdown. Having closed on his purchase of Life Win,
Johnson had been running the seminar company in recent months. However,
he canceled powwows scheduled for this month in Louisville, Ky., and
East Lansing, Mich.</div>
<div class="text_exposed_show">
<br />
He eventually shut the company altogether around
the beginning of this month. Former employees declined to comment for
this story, but Fries, the staffing agency executive, said they've come
to his company looking for jobs.</div>
<div class="text_exposed_show">
<br />
Even if the company has disappeared, Life Win's debts haven't, and former vendors and creditors are trying to collect.</div>
<div class="text_exposed_show">
<br />
A Naples woman, Amy Wolfe, claims in one lawsuit that she loaned
Johnson $12 million to help him buy the seminar company from the Lowes,
but Johnson has defaulted. Her attorneys did not return the Tribune's
calls.</div>
<div class="text_exposed_show">
<br />
Meanwhile, the company that lined up many of those political
and sports figures, the Washington Speakers Bureau, claims in court
papers that Life Win owes it more than $1.7 million in speaking fees
plus interest and attorneys fees. And Fries has sued for $19,518 in
unpaid staffing services.<br />
This is not the first time Life Win or a
predecessor company has collapsed amid a mountain of debt. Eleven years
ago, a motivational seminar company Peter Lowe ran called Success Events
International shut down owing money to dozens of vendors. Lowe has not
returned the Tribune's calls in recent weeks.</div>
<div class="text_exposed_show">
<br />
For now, those arena-packing Get Motivated powwows have gone dark, and it's not clear if they will return.</div>
<div class="text_exposed_show">
<br />
Aaron Osmond, a member of Utah's famous Osmond family, in April left
WealthRock, the investment firm that got referrals from the seminars. He
hasn't been in touch with anyone from Get Motivated Seminars or Life
Win since and said he doesn't know where they are.</div>
<div class="text_exposed_show">
<br />
"I think they've got a lot of work bringing that company back," Osmond said.</div>
<h1>
<span class="n fn" id="name">
<span class="full-name"><span class="given-name">Aaron</span> <span class="family-name">Osmond</span></span>
</span>
</h1>
<div class="headline-title title" style="display: block;">
Vice President, North America Region at Certiport
</div>
<dl class="demographic-info adr" id="headline"><dd><span class="locality">
Greater Salt Lake City Area
</span>
</dd><dd class="industry">Education Management
</dd></dl>
<div class="join-linkedin">
<div class="header">
<h2>
<a href="https://www.linkedin.com/reg/join-pprofile?_ed=0_dHB8G4tKSI1eNkyEd3uBk2dzQE2AkVU1r9kHbXjxPZGWJlD5Jt4ZMf87SacJnJbVF6hMxbzrKmFYj_9-t53dqLhvc5Bmt15mDvDn8NAEEQo&trk=pprof-0-ts-view_full-0" rel="nofollow">
Join LinkedIn and access Aaron Osmond’s full profile.
</a>
</h2>
</div>
<div class="content">
As a LinkedIn member, you'll join 175 million other professionals
who are sharing connections, ideas, and opportunities. And it's free!
You'll also be able to:<br />
<ul>
<li>See who you and <b>Aaron Osmond</b> know in common</li>
<li>Get introduced to <b>Aaron Osmond</b></li>
<li>Contact <b>Aaron Osmond</b> directly</li>
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</div>
<h2 class="section-title">
Aaron Osmond's Overview </h2>
<dl id="overview">
<dt class="summary-current" id="overview-summary-current-title" style="display: block;">
Current
</dt>
<dd class="summary-current" style="display: block;"><ul class="current">
<li>
Vice President, North America Region
<span class="at">at </span>
<a class="company-profile-public" href="http://www.linkedin.com/company/certiport?trk=ppro_cprof"><span class="org summary">Certiport</span></a>
</li>
<li>
Senator - District 10
<span class="at">at </span>
<a class="company-profile-public" href="http://www.linkedin.com/company/state-of-utah?trk=ppro_cprof"><span class="org summary">State of Utah</span></a>
</li>
<li>
Owner
<span class="at">at </span>
Osmond Capital
</li>
</ul>
</dd>
<dt class="summary-past" id="overview-summary-past-title" style="display: block;">
Past
</dt>
<dd class="summary-past" style="display: block;"><ul class="past">
<li>
CEO
<span class="at">at </span>
WealthRock
</li>
<li>
Sr. Director of Product Management
<span class="at">at </span>
<a class="company-profile-public" href="http://www.linkedin.com/company/microsoft?trk=ppro_cprof"><span class="org summary">Microsoft</span></a>
</li>
<li>
Vice President of Training Services
<span class="at">at </span>
<a class="company-profile-public" href="http://www.linkedin.com/company/novell?trk=ppro_cprof"><span class="org summary">Novell, Inc.</span></a>
</li>
</ul>
<div class="seeall showhide-link" style="display: block;">
<a href="http://www.linkedin.com/in/aosmond#" id="morepast-show">see all</a></div>
</dd>
<dt class="summary-education" id="overview-summary-education-title" style="display: block;">
Education
</dt>
<dd class="summary-education" style="display: block;"><ul>
<li>
University of Phoenix
</li>
<li>
Brigham Young University
</li>
</ul>
</dd>
<dt>
Recommendations
</dt>
<dd><b>2</b> people have recommended Aaron
</dd>
<dt>
Connections
</dt>
<dd class="overview-connections"><b>500+</b> connections
</dd></dl>
<br />
<br />
<div class="left">
<h1 class="home">
<b>"The WealthRock offices have closed their doors.</b></h1>
<h3>
The WealthRock offices have closed their doors and the phones are no longer functioning.</h3>
WealthRock students who are attempting to email or call the
WealthRock office asking about the status of purchased programs,
refunds, or events will need to send your email to: <a href="mailto:wealthrock.questions@gmail.com">wealthrock.questions@gmail.com</a>. <br />
The WealthRock President, Joe Johnson, has a point person who will
contact you regarding responsibilities for fulfilling your WealthRock
purchases, refunds, or events.</div>
<h2>
Here are lines of communication that are still being handled for
Wealth Rock students who have refund issues or questions about purchased
programs:</h2>
<h3>
Please voice your questions regarding WealthRock to: <a href="mailto:wealthrock.questions@gmail.com">wealthrock.questions@gmail.com</a></h3>
<br />
<h4>
Asset Protection Hotline & Summit: (866) 502-0712 </h4>
Asset Protection Questions: <a href="mailto:donp@assetfoundation.com">donp@assetfoundation.com</a>
Hours: Monday to Friday 9:00 AM to 5:00 PM (MDT) <br />
<br />
<h4>
Tax Lien Student Support: (801) 661-6574 </h4>
Email: <a href="mailto:taxlienadvantage@gmail.com">taxlienadvantage@gmail.com</a>
Hours: Monday to Friday 9:00 AM to 5:00 PM (MDT) <br />
<br />
<h4>
Phil Towns Rule #1 Customer Service Line: (855) 417-8537 </h4>
All Phil Towns Rule #1 events and products will be fulfilled by the Towns offices. Please contact them for registration. <br />
<br />
<div class="smallfont">
<b>James Smith</b>
</div>
<hr size="1" style="color: #d1d1e1;" />
<div id="post_message_1032145">
any word on James Smith Financial Success Seminars?</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1033829&postcount=2" id="postcount1033829" name="2" rel="nofollow" target="new"><b>2</b></a>
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<a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" name="post1033829"><img alt="Old" border="0" class="inlineimg" src="http://www.scam.com/images/statusicon/post_old.gif" /></a>
04-01-2011, 11:45 PM
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<a class="bigusername" href="http://www.scam.com/member.php?s=638500da2c8f99d32a331a06aeb324df&u=135683">taxguy</a>
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Junior Member</div>
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<div>
Join Date: Sep 2009</div>
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Posts: 19
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<b>Re: James Smith</b>
</div>
<hr size="1" style="color: #d1d1e1;" />
<div id="post_message_1033829">
Yes, stay away.</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1037225&postcount=3" id="postcount1037225" name="3" rel="nofollow" target="new"><b>3</b></a>
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<a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" name="post1037225"><img alt="Old" border="0" class="inlineimg" src="http://www.scam.com/images/statusicon/post_old.gif" /></a>
04-12-2011, 10:56 AM
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<a class="bigusername" href="http://www.scam.com/member.php?s=638500da2c8f99d32a331a06aeb324df&u=178592">LauraTodd</a>
<img alt="LauraTodd is offline" border="0" class="inlineimg" src="http://www.scam.com/images/statusicon/user_offline.gif" />
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<div class="smallfont">
Junior Member</div>
</td>
<td width="100%"></td>
<td nowrap="nowrap" valign="top"><div class="smallfont">
<div>
Join Date: Apr 2011</div>
<div>
Posts: 4
</div>
<div>
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<td class="alt1" id="td_post_1037225"><div class="smallfont">
<b>Re: James Smith</b>
</div>
<hr size="1" style="color: #d1d1e1;" />
<div id="post_message_1037225">
I attended the 3-day financial
success seminar in San Diego last week, and I was completely blown away.
I have 13 pages of notes, and have already made 4 offers on investment
properties using the knowledge I gained. I think it is in everyone's
best interest to be as educated as possible. I am sorry that some people
have had a bad experience. For myself, I will be taking every
opportunity to work with this company again in the future.</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1037291&postcount=4" id="postcount1037291" name="4" rel="nofollow" target="new"><b>4</b></a>
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<a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" name="post1037291"><img alt="Old" border="0" class="inlineimg" src="http://www.scam.com/images/statusicon/post_old.gif" /></a>
04-12-2011, 04:47 PM
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<a class="bigusername" href="http://www.scam.com/member.php?s=638500da2c8f99d32a331a06aeb324df&u=157406">BeenDuped</a>
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Junior Member</div>
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<div>
Join Date: Jul 2010</div>
<div>
Posts: 1
</div>
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<b>Re: James Smith</b>
</div>
<hr size="1" style="color: #d1d1e1;" />
<div id="post_message_1037291">
Laura did you pay the $4000 - $25,000
to them to be able to go to the advanced seminars, or did you just take
notes on keywords & concepts at the bait & switch $49 weekend
session? Speaking of which I didn't get my pre-paid visa to compensate
me back at the end of the seminar... did anyone else get their $49
debit mastercard?</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1038947&postcount=5" id="postcount1038947" name="5" rel="nofollow" target="new"><b>5</b></a>
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<a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" name="post1038947"><img alt="Old" border="0" class="inlineimg" src="http://www.scam.com/images/statusicon/post_old.gif" /></a>
04-18-2011, 08:25 AM
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<a class="bigusername" href="http://www.scam.com/member.php?s=638500da2c8f99d32a331a06aeb324df&u=178592">LauraTodd</a>
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Junior Member</div>
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<div>
Join Date: Apr 2011</div>
<div>
Posts: 4
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<b>Re: James Smith</b>
</div>
<hr size="1" style="color: #d1d1e1;" />
<div id="post_message_1038947">
I did attend the Real Estate Core
Strategies seminar this last weekend, and it totally blew the first one
out of the water. I can't begin to express how valuable those 3 days
were. They handed out evaluation forms at the end asking what we liked
most (among other questions) and my response was, "so much <u>useful</u> information!" I am so grateful for what the Smith family offers. <br />
<br />
I'm sorry you saw it as a bait and switch. I guess that depends on what
your expectations were. I would assume that no one is going to rent a
hotel ballroom, fly out and teach us for free, with no hope of making
money. I was expecting a sales pitch. I was just hoping that I would get
information I could put to use immediately, rather than just teasers
for their 5-figure educational packages, like some others give you
(*cough*RichDadEducation*cough*). They exceeded my expectations by far,
which is why I'm comfortable doing business with them.<br />
<br />
The $49 gift card is offered by Get Motivated and will supposedly be
mailed 6-8 weeks after attending Financial Success. Their customer
service number is 800-431-8337, if that helps. That company I'm not so
sure about, since they specifically say that you can safely leave your
checkbook at home, because there's nothing to buy at Get Motivated. <i>That</i> is a bait and switch. It worked out fine for me I guess, but I wish they had more integrity.</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1060319&postcount=6" id="postcount1060319" name="6" rel="nofollow" target="new"><b>6</b></a>
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<a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" name="post1060319"><img alt="Old" border="0" class="inlineimg" src="http://www.scam.com/images/statusicon/post_old.gif" /></a>
06-25-2011, 04:44 AM
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<a class="bigusername" href="http://www.scam.com/member.php?s=638500da2c8f99d32a331a06aeb324df&u=186201">MCGLYPH</a>
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Junior Member</div>
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<div>
Join Date: Jun 2011</div>
<div>
Posts: 2
</div>
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<b>Re: James Smith</b>
</div>
<hr size="1" style="color: #d1d1e1;" />
<div id="post_message_1060319">
I went to the 3 day free seminar.
Fell for the assertion they could turn my 15K into, "a fortune". I
signed up for the cash flow seminar=$3995. For whatever reason, a few
days later I was, then "selected" to be in their special program to be
mentored, one on one, for the low price of 7K, which would be for real
estate training. One, this so called program is really nothing more than
a couple of days to make sure the mark actually can pay the 7K
required. I've talked to a few people, who are actually some of the
hired guns the James Smith Company employs, and they were unaware of
this program. One Kerry Lucas did at first pretend he was going to
figure this out for me, but in reality only wanted to sell his program,
which he asserted, "was much cheaper than I had paid". I'm looking for
as many individuals as I can to start a class action lawsuit against
this company. I have much more information, and a longer list of
complaints, than I want to type right now. If you have found this post
and are wondering about JSC, I can tell you some things. Please contact
me at <a href="mailto:mcglyph@gmail.com">mcglyph@gmail.com</a> soonest.
Stay away from the James Smith Company, do not buy into the very high
priced program they offer, as there are no refunds, and a man named Nate
Day is seemingly for me at least the only one I can work things out
with. If you want to be successful, the tools are out there, you don't
need to go to this company for anything. If you want training in real
estate save your 10K or whatever, and find a real estate club (they are
every where). My coach had me do this exact thing, go to a real estate
club, that was his first pearl of advice. The people at the real estate
club told me I should have saved my money. Do not be like me, please
look elsewhere for training.</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1060322&postcount=7" id="postcount1060322" name="7" rel="nofollow" target="new"><b>7</b></a>
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06-25-2011, 04:52 AM
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<b>Re: James Smith</b>
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<hr size="1" style="color: #d1d1e1;" />
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Methinks that everyone gets
"selected" for the (S)pecial (H)igh (I)ntensity (T)raining (mentoring)
and I also believe that old-time member 2-post Laura just might be a
shill.<br />
<br />
Just my opinion...</div>
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Last edited by PatrickinGa : 06-25-2011 at <span class="time">05:57 AM</span>.
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1060903&postcount=8" id="postcount1060903" name="8" rel="nofollow" target="new"><b>8</b></a>
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06-27-2011, 11:29 AM
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<a class="bigusername" href="http://www.scam.com/member.php?s=638500da2c8f99d32a331a06aeb324df&u=178592">LauraTodd</a>
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<b>Re: James Smith</b>
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<hr size="1" style="color: #d1d1e1;" />
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I was not selected for mentoring, but
I'm sure it was clear to them that I couldn't have afforded it. It
makes sense that their selection criteria would be "Are you good for
it?" Everyone wants to feel special, to be part of an exclusive group,
so they're going to present the selection in that way. Maybe it's
because I worked in sales for a couple of years out of college, but I'm
pretty understanding about things like that. Presenting your case in
such a way that it gets your audience's attention and makes them feel
good is not the same as being dishonest. <br />
That said, some people definitely are dishonest, and they give all
salespeople a bad name. I want to believe that people like that would
not be welcome at James Smith's company. I'm really not in a position to
say. I can say that all my interactions with the company and its
representatives were overwhelmingly positive. I'm sure there is no
company in the world with zero complaints posted about it. When I search
for James Smith without specifically looking for complaints or scams, I
still find more positive comments than negative, which is impressive
considering that people are more likely to share a negative experience
than a positive one (think of the last 5 conversations you had). In a
forum like this, of course you would expect to find more negative
comments, which is why I made it a point to share my positive point of
view here. <br />
Believe what you like about me. Not everyone will have a positive
experience with a given company, and not everyone will have a negative
experience. I believe that your concerns are valid, I hope that they are
resolved asap, and most of all I hope that yours is a rare case. <br />
Respectfully,<br />
Laura</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1060929&postcount=9" id="postcount1060929" name="9" rel="nofollow" target="new"><b>9</b></a>
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06-27-2011, 01:37 PM
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<b>Re: James Smith</b>
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<hr size="1" style="color: #d1d1e1;" />
<div id="post_message_1060929">
Just got off the phone with Dan
Heaton VP of customer service at James Smith Company. After continually
indicating my dissatisfaction, they are going to be crediting me a
little over half of my money. I'm very pleased and applaud this
company's eventual mostly positive action. <br />
<br />
Thank you <br />
<br />
Bryan</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1060935&postcount=10" id="postcount1060935" name="10" rel="nofollow" target="new"><b>10</b></a>
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06-27-2011, 01:52 PM
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<b>Re: James Smith</b>
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Quote:</div>
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Originally Posted by <b>MCGLYPH</b>
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<div style="font-style: italic;">
Just got off the phone with Dan
Heaton VP of customer service at James Smith Company. After continually
indicating my dissatisfaction, they are going to be crediting me a
little over half of my money. I'm very pleased and applaud this
company's eventual mostly positive action. <br />
<br />
Thank you <br />
<br />
Bryan</div>
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Telling you that you will be getting a refund, and your actually getting one, are two totally different things.<br />
<br />
They may be telling you that to stall or buy time for now, or just to
get you off the phone right now, hope you get your money, but don't
spend it before you get it.</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1076392&postcount=11" id="postcount1076392" name="11" rel="nofollow" target="new"><b>11</b></a>
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08-16-2011, 10:17 AM
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<b>Re: James Smith</b>
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<hr size="1" style="color: #d1d1e1;" />
<div id="post_message_1076392">
I have to add my experience with
James Smith. I too was entertained at the James Smith seminar when I
attended April 8, 9 and 10 in Portland, OR. I was impressed with the Tax
Lien program so paid $3,999 (discounted rate for seminar!) in order to
get the one on one training and software that was promised. A month
goes ** and I had not heard a word from anyone at James Smith. I finally
called and was told that there were so many people who signed up for
the various programs offered, they were behind in getting contact
information downloaded. Ok, I gave them the benefit of the doubt.
Another 3 weeks go ** and I get a phone call about a webinar on tax
liens that was 2 days away and was I interested. I'm a working girl and
part of my job is organizing webinars. Webinars are scheduled weeks in
advance! Once the webinar is over, attendees are notified within two
days and given a link plus password to view the webinar as many times as
they wish! I was not able to attend James Smith's webinar because it
was scheduled during my work hours. I thought no problem, I would get a
link and view when I could. I never received any kind of communique'
giving me this option after the webinar was over! What I've learned
about tax liens I've been able to get off the itnernet and trips to the
library. On August 10th, I had a conference call with a <b style="background: #ffff66; color: black;">Ryan</b> <b style="background: #66ffff; color: black;">Trimble</b> of <b style="background: #ffcc99; color: black;">Wealthrock</b>
(formerly James Smith Companies). For additional funds and fees, I
could continue my 'learning' experience. He wanted to know if my husband
and I had a good credit rating which we do. He then wanted to know what
the credit limits were on our cards. I told him about one (limit only
not card number). He then suggested as an 'option' to use (borrow) the
credit limit in order to purchase tax liens and the proceeds from the
liens would make the payments on the credit card. This really disturbed
me to say the least. A significant amount would be used to purchase a
lien and fees would also be deducted using our credit card limit! Dollar
amounts were not specially mentioned but after reading the comments
above, I can only imagine what <b style="background: #ffff66; color: black;">Ryan</b> had in mind! <b style="background: #ffff66; color: black;">Ryan</b>
also wanted me to fill out a questionnaire that would give him a better
picture of our financial situation. I asked him to call back when my
husband was present. This was done the evening of August 15th. During
the course of the conversation, <b style="background: #ffff66; color: black;">Ryan</b>
behaved in a very unprofessional manor when he discovers we were not
immediately jumping into his program and that we wanted answers to
further questions. The poor guy probably had many conversations similar
to ours and was getting frustrated because he wasn't meeting his quota
so he took it out on us. Our intentions are to still invest in tax liens
but it won't be through James Smith's organization ** any stretch of
the imagination! I am in the process of contacting Jame Smith's
organization for a refund. I may or may not get one but I do want others
to beware! Do go to the seminars as they are entertaining but leave
your money at home! Be diligent and investigate other learning tools!
Don't get caught up in the soft sales techniques that promise a better
life. . . they come with hefty fees. You can do better elsewhere! <br />
<br />
Best regards,<br />
Diane</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1089511&postcount=12" id="postcount1089511" name="12" rel="nofollow" target="new"><b>12</b></a>
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09-28-2011, 10:52 AM
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<b>Re: James Smith</b>
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Quote:</div>
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Originally Posted by <b>LauraTodd</b>
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<div style="font-style: italic;">
I did attend the Real Estate Core
Strategies seminar this last weekend, and it totally blew the first one
out of the water. I can't begin to express how valuable those 3 days
were. They handed out evaluation forms at the end asking what we liked
most (among other questions) and my response was, "so much <u>useful</u> information!" I am so grateful for what the Smith family offers. <br />
<br />
I'm sorry you saw it as a bait and switch. I guess that depends on what
your expectations were. I would assume that no one is going to rent a
hotel ballroom, fly out and teach us for free, with no hope of making
money. I was expecting a sales pitch. I was just hoping that I would get
information I could put to use immediately, rather than just teasers
for their 5-figure educational packages, like some others give you
(*cough*RichDadEducation*cough*). They exceeded my expectations by far,
which is why I'm comfortable doing business with them.<br />
<br />
The $49 gift card is offered by Get Motivated and will supposedly be
mailed 6-8 weeks after attending Financial Success. Their customer
service number is 800-431-8337, if that helps. That company I'm not so
sure about, since they specifically say that you can safely leave your
checkbook at home, because there's nothing to buy at Get Motivated. <i>That</i> is a bait and switch. It worked out fine for me I guess, but I wish they had more integrity.</div>
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Have you attempted to use any of the training and was it successful.Dis you make any money.</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1092290&postcount=13" id="postcount1092290" name="13" rel="nofollow" target="new"><b>13</b></a>
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<a class="bigusername" href="http://www.scam.com/member.php?s=638500da2c8f99d32a331a06aeb324df&u=178592">LauraTodd</a>
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<b>Re: James Smith</b>
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I'm sorry to say I'm one of the many
who don't follow through. I started with a lot of enthusiasm, then got
sidetracked with helping my husband in his business and have not come
back to real estate yet. I will let you know if/when I use what I know
and get results. I still believe it works for those who have the time,
optimism, and persistence to see it through. I definitely want to be one
of those people.</div>
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#<a href="http://www.scam.com/showpost.php?s=638500da2c8f99d32a331a06aeb324df&p=1141445&postcount=14" id="postcount1141445" name="14" rel="nofollow" target="new"><b>14</b></a>
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<a class="bigusername" href="http://www.scam.com/member.php?s=638500da2c8f99d32a331a06aeb324df&u=231044">2005SeminarAttendant</a>
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<b>Re: James Smith</b>
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<hr size="1" style="color: #d1d1e1;" />
<div id="post_message_1141445">
I attended a couple seminars back in
2005 at an Orlando hotel. It was the same bait and switch scam. Yes I
call it a scam. A legal scam. You hear a very well trained motivational
speaker talk about how he has bought so many homes he can not count them
all. I had already been buying foreclosures for 8 years, so I checked
up on the information about himself that he provided at the seminar. I
could only find less than 10 or 12 confirmed properties that he had
purchased. Yes, I drove to the properties that he owned and sure enough
it was the same as the pictures he provided on the big screen.<br />
Classic Real Estate seminar bait and switch. He motivates you to buy the
$4000 program and of course everyone gets the call to be offered the
premium package for $20,000 PLUS. I talked to <b style="background: #ffff66; color: black;">Ryan</b>
back then at the end of the seminar. He told me about the further
opportunities that would be available to their students, The high priced
programs. That seminar was a couple of days. I went to the first one
and did my research later that night. I went back the next day to hear
more on the subjects for that day. It is just a long info-mercial with
the final moment of HURRY!!! Buy today, We only have 20 packages left.
What they teach about at the seminars is so elementary its pathetic. I
could do better than that with no preparation. It was insulting to my
intelligence that James was speaking on Foreclosures and tax Deeds while
getting $4,000 a pop. I clearly had more experience and knowledge
regarding the subject material. I don't remember <b style="background: #ffff66; color: black;">Ryan</b>
speaking during the event. He was quite young. He has been trained to
be a speaker like his father. Do your own research on them. I am a
research pro and I did mine, the picture did not look at all like what
they painted. James is in Seminole County FL. and <b style="background: #ffff66; color: black;">Ryan</b> is in Orange county FL. <br />
There is a lot of money in doing what James and <b style="background: #ffff66; color: black;">Ryan</b>
Smith do verses messing around with buying property. Its less work and a
whole lot more respect. 20 people X $4,000 ($80K). 20 people X $20,000.
= $400,000. Total Purse $480,000 for a weekend. Not to shabby. No
fixing a dumpy home, no tenants just a big snow shovel to scoop in the
cash. THAT IS JUST 20 PEOPLE FOLKS. There are a heck of a lot more
suckers than that. Not to insult those of that are reading and have been
hooked. We all have been hooked by some one in our lives. Just don't go
and swallow the hook line and sinker. Please email me. I will talk to
you. I have bought, pre-foreclosures, at auctions, bank owned, from
individuals etc.. etc....</div>
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<h1 class="home">
<a href="http://www.wealthrock.com/pdf/WR_GMS_Dissolved.pdf" target="_blank">http://www.wealthrock.com/pdf/WR_GMS_Dissolved.pdf</a></h1>
<h1 class="home">
<b><a href="http://www.aaronosmond.com/" target="_blank">HERE WE GO AGAIN! COME ON AARON OSMOND</a>.... <a href="http://www.utahsenate.org/aspx/senmember.aspx?dist=10" target="_blank">YOU ARE A UTAH STATE SENATOR</a>.. GET IT RIGHT! <a href="http://ia700307.us.archive.org/8/items/gov.uscourts.utd.78144/gov.uscourts.utd.78144.2.0.pdf" target="_blank">JAMES SMITH... O M G ! </a></b></h1>
<h1 class="home">
<b>The WealthRock offices have closed their doors.</b></h1>
<h3>
The WealthRock offices have closed their doors and the phones are no longer functioning.</h3>
WealthRock students who are attempting to email or call the
WealthRock office asking about the status of purchased programs,
refunds, or events will need to send your email to: <a href="mailto:wealthrock.questions@gmail.com">wealthrock.questions@gmail.com</a>. <br />
The WealthRock President, Joe Johnson, has a point person who will
contact you regarding responsibilities for fulfilling your WealthRock
purchases, refunds, or events.</div>
<h2>
Wealth Rock is in the business of making millions by selling programs they claim will make YOU millions within 5 years. <br />
<br />
Is this possible? Yes, to a select few who are willing (and able) to
spend $$$$$ (thousands) on and never ending lists of classes, workshops
and training. If you have the money to spend they are more than excited
to take it and ask for more.<br />
<br />
I'll take responsibility for "buying into their stories and "investing"
over $40, 000 with the guarantee that they would "stay with me" through
whatever it took to get me started and make back the $40, 000. <br />
<br />
THAT WAS A LIE. <br />
<br />
I felt like the prodigal son who was popular as long as he had money. When the money ran out the "friends" ran away. <br />
<br />
Sure, they will stick with you but you'll need to spend more...and more...and more in order to get the training you need.<br />
<br />
They will tell you one story, gladly take your money and ask for more at
the next workshop/seminar. But, they WILL NOT stay with you.<br />
<br />
Their guarantee is FALSE! <br />
<br />
I post this so YOU don't make the mistake I did and lose $40, 000+.
Don't be fooled. There will always be something else you need to buy in
order to "succeed." As long as you have MORE money they will be there.
When your funds and credit cards are maxed they are gone.<br />
<br />
Give me a call. I'll tell you about it. It's cheaper. Oh, and I will sell you nothing.<br />
<br />
Dennis Schwarm<br />
541-521-0826<br />
pursuinghim@gmail.com </h2>
<h2>
This company is one HUGE scam that preys on good people by lying to them and doing so in the name of God.<br />
<br />
My wife went to the Get Motivated event in Miami a few months back
because she was excited about the speakers. She saw James Smith and Phil
Town speak bought both of their programs. Initially I was mad at how
much money she spent at the conference but I decided to support her and
went to hear what these "experts" had to say.<br />
<br />
When we attended the first event, instead of seeing Phil Town, we
listened to Ryan Smith. He stated that he was the son of James Smith,
one of the two speakers that my "sold" my wife at the Get Motivated
event. Ryan Smith essentially spent most of the first day bragging about
how great he is, how much money he has, how charitable he is and how
stupid other people are. He is extremely arrogant and abrasive. He
claimed that he was a professional baseball player. The only problem for
him is that he never made a professional roster because I am a
religious baseball fanatic. I know every team and practically every
player. He never played major league ball, or AAA or even AA for that
matter. Why someone would claim to be a professional athlete when they
verifiably were not is pretty brazen. Ryan also claimed that Donal Trump
asked him to teach his kids how to invest in real estate. Although I
cannot dispute this fact because I do not know Donald Trump, I did
research and find that Donald Trumps kids went to University of
Pennsylvania, the same school that Donal went to and Ivanka graduated
with a specialty in real estate. Trump also donated millions to that
school. Why would Donal Trump pay Ryan Smith, who was (and still is) a
kid, to train his children when he is one of the wealthiest real estate
investors in the world and sent them to a preeminent school that he
obviously believes in because he supports it financially.<br />
<br />
On day 2, the tone of the seminar drastically changed. We were invited
to meet with "coaches" in the back of the room who would help us figure
out a game plan to start investing. As it turns out the coaches wanted
to know how much money I had and they asked me if I had credit cards,
cash and other assets. I did not know any of these people and yet they
were asking me for my personal financial information. This should be a
red flag... run.<br />
<br />
Toward the end of the day, it became very clear to me why they asked if I
had credit cards or cash: they were selling training courses for almost
$30, 000. Ryan became very aggressive and spouted off that if we wanted
to be prosperous and basically good people, then we would "invest" in
ourselves. I don't see how spending tens of thousands of dollars on a
program that I have to "buy now" positions me for success in life. If
the company that Ryan and all of the other seminar monkeys work for is
so reputable and will be around for the long haul, then why do I have to
buy now. Why such pressure? We did not return for day 3, even though I
was told by one of the "coaches" (read: high pressure salesmen) Nikko
that God would be in the room on Sunday and therefore I didn't need to
go to church.<br />
<br />
I was so upset from the event that I didn't want to go to the next
seminar. My wife was very embarrassed as well. Despite the first event,
my wife wanted to hear James Smith speak and she said that he was much
different from his son Ryan. I decided to go with her to the next event.
To my dismay and her horror, the next event which was supposed to
feature James Smith actually featured Ryan Smith and his wife Jamie and
all of his goons. They told the same stories, tried to tell the same
jokes and basically repeated what we paid for just a few days earlier. <br />
<br />
The event was an exact copy of what we had just listened to. Why did my
wife pay two fees for the same classes that had two different names.
Makes no sense. <br />
<br />
To sum it up, we left and demanded a refund. Wealth Rock was terrible to
deal with because they sounded shocked that we weren't happy with the
event and pretended like we were the only customers who wanted their
money back. I knew that we were the only ones wanting refunds because at
the second event, we sat with 3 other couples that we met at the first
event. We all decided to leave at lunch on the first day and we all
asked for our money back. I spoke with several other people at the event
who had similar complaints.<br />
<br />
Three months have passed and they still haven't refunded my money. I
called Wealth Rock last week to see when my refund was coming. The phone
rep couldn't answer my questions and I asked for the manager. I was
told that I couldn't speak with anyone else because Wealth Rock's staff
was on "furlough". I had to look up the word and it means a "temporary
unpaid leave of absence". Wealth Rock has apparently let their staff go
on an unpaid leave for some reason.<br />
<br />
Watch out for Wealth Rock, Phil Town, James Smith, Ryan Smith and the
rest of these clowns. They will tell you anything and make up lies just
to get a sale. Oh and they will do everything in the name of Jesus.
<a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" name="c1204581"></a>
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<td class="comments"><img src="http://www.complaintsboard.com/img/A.gif" style="vertical-align: middle;" /> 5th of May, 2012 by <img height="18" src="http://www.complaintsboard.com/img/panel/girl.gif" style="border: 1px solid #CBCBCB; vertical-align: middle;" width="18" /> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=940063">CMLosA</a>
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<tr><td class="compl-text" colspan="2" style="padding-left: 10px;">Wealth
Rock took over $50, 000 from my husband and I and we now have nothing
to show for it. If you read nothing else, read this...<br />
<br />
Run for your financial life!<br />
<br />
We went to the Get Motivated Seminar because my husband is a huge Joe
Montana fan. We both grew up in the bay area but move to LA about 10
years ago. When Montana spoke at the Get Motivated conference, my hubby
had to be there. The Get Motivated event was long but fun. It was at the
Staples center and was a neat event. We listened to lots of great
speakers. We didn't know what to expect but by the end of the day, we
listened to, and were really impressed by, James Smith. We signed up for
his event just to hear him more. In the days leading up to the
conference that we bought from James, we should have known something was
wrong. Two companies, both posing as the company that is officially
with James began calling me. I probably received 5 emails and just as
many autodials each days asking me to come to different locations on the
same day. When we got to the event, we felt good because James was
actually there and so was his son Ryan and his daughter in law Jamie and
lots of other coaches. At the event, Ryan Smith was the main presenter
and he talked about all of the mobile home parks that he owns and he
showed pictures of his porsche and of the vacations he went on. It was
over the top, even for LA, but we were still impressed and signed up for
a $23, 000 (we negotiated a discount) set of classes on trading the
stock market and on buying real estate.<br />
<br />
We were told that if we signed up for this level of training that we had
all that we needed and that we were part of Wealth Rocks inner circle.
The first class that we attended was supposed to teach us how to buy and
sell residential real estate and provide us with all of the in's and
outs of investing. We were also told that we would receive all of the
contracts that we would need to be investors. The teacher was a person
named Bob Thornton and he had a helper in the back of the room who was
another one of James Smith's daughter in laws. We were told that the
people at these classes were going to be experts. We asked James'
daughter in law several pretty elementary questions and she could not
answer a single one. Bob on the other hand was knowledgeable but this
class didnt accomplish nearly what we were told that it would. We didn't
learn the ins and outs of foreclosures and we didn't receive any
contracts. We were merely given a set of books that are very basic and
in my opinion, below the grade of what you would receive from an off the
self book on real estate from Barnes and Noble. <br />
<br />
After we left the first class on real estate investing, we were a little
disheartened. This coincided with the time that our phone started to
get called repeatedly. When we answered, we were told that James Smith
had asked the company to call us to invite us to be part of a select
team. They claimed that James wanted to build a select group of highly
motivated people that he could train and turn into success stories. We
were told that we had to qualify to be a part of the team. We were asked
to state our goals and to describe the resources we would use to
achieve them. We were asked specific details about our credit cards and
bank balances. We believed that because James was part of the company
that it had to be good. We gave this information naively. After giving
our personal information, another person got on the phone and told us to
join James' team, it would require a personal investment. We were told
that this investment would prove our commitment and that it would James'
team would personally mentor us once a week through the phone and that
they would hold our hands through our first deal. We were also going to
be joining James for a week long mentorship where he would personally
mentor us and a few other people. We foolishly fell for this scam and
changed another $25, 000 on our credit card. <br />
<br />
The calls with our mentor were an absolute joke. The person we spoke
with told us that he had never met James and had never done a deal with
him. I am not sure how someone could be a part of James' team when they
have never met him. Our mentor also basically told us to run ads for
property that we did not yet own in order to find potential buyers. We
spent two weeks just talking about running craigslist ads and putting
out cardboard signs. The cost of those sessions was $2, 000 by
themselves. We were also told that if we wanted to find investors, that
we could run ads in craigslist for investors. I later learned that this
tactic was outright illegal and my mentor, whom I paid a HUGE amount of
money for was telling me to do this!!!<br />
<br />
We then attended the M5 event in San Diego. This event was supposed to
feature James. We were told that he would teach much of the course.
James only spoke in front of the room for two brief moments. We actually
had a chance to meet and speak with him privately. We told him that we
were real excited to get to know him better at the group mentoring
course that we were taking right after the M5. James surprised us when
he said that he wasn't going to be there!!! He said that Wealth Rock had
been sold and that the new owner did not want him to be at the group
mentoring course and that he was not welcome to speak at the M5 other
than what he did. How could this be? We were sold on James. We were told
that he would teach the group mentorship and he wound up telling us
that he was not going to be there. James was right, he was not at the
mentorship. <br />
<br />
Wealth Rock is a huge scam. James Smith is just a paid speaker. He is so
nice and hilarious but he has nothing to do with the company and its
training other than speaking at the Get Motivated seminar. Do not fall
for lying phone reps who call you and invite you to be part of their
inner circle. Its all a lie. <br />
<br />
We have asked and now demanded a refund but nothing has happened. We got
so mad that we spoke to the CEO Aron Osmond who told us that he
understood our anger and that he would look into our situation. For
several weeks we waiting to hear back and when we didn't we called
Wealth Rock and asked to again speak with Osmond. When we were told that
he wasn't available, my husband became irate. We later found out that
Osmond was no longer with the company. <br />
<br />
Take it from me, when a company lies to get sales, won't issue refunds and they are firing key staff, there is a problem. <br />
<br />
Please google Wealth Rock and Get Motivated before making any decision.
Wealth Rock set us back 2 years in our savings. Dont make the same
mistake as we did and decide to enroll in their classes just because you
like James or you have a gut feeling. Do your research. These guys are
high pressure sales people.</td></tr>
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<td class="comments"><img src="http://www.complaintsboard.com/img/A.gif" style="vertical-align: middle;" /> 6th of May, 2012 by <img height="18" src="http://www.complaintsboard.com/img/panel/girl.gif" style="border: 1px solid #CBCBCB; vertical-align: middle;" width="18" /> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=940063">CMLosA</a>
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<td style="padding-left: 10px;"><table cellpadding="0" cellspacing="0">
<tbody>
<tr>
<td class="small"><br /></td>
<td class="small"><br /></td>
</tr>
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</tbody></table>
</td>
</tr>
<tr><td class="compl-text" colspan="2" style="padding-left: 10px;">After
one year, my husband and I are still trying to get a refund from this
company. These snake oils salesmen lied to us about the training that
they would provide, about who would be at our training and about the
refund policy that backed our investment decision. They use God and
faith as a hook. <br />
<br />
We were told that if we signed up for the M5 that we would receive the
blue prints for success in mobile home park. Ryan Smith said that
investing was about following a check list and that checklist would be
given to us at the M5. I was told that Ryan and Jamie would personally
be there. <br />
<br />
All lies. <br />
<br />
Ryan and Jamie did not come to the M5 in San Diego. Instead, there were
over a dozen salesmen trying to get my husband and I to buy more
trainings. We were not taught how to invest in mobile home parks - the
company tried to sell us live on site mentoring from someone who would
teach us. We were not taught how to invest in senior living homes - the
company tried to sell us on a bootcamp that would teach us how to invest
in care facilities. On and on the company pitched at least a dozen
classes. It was an endless sales event. Almost no meat or substance. I
learned from one of the instructors named Jared Osmond but he only spoke
a few hours a day. The rest was terrible. Jared told us that his
brother was the CEO of the company. We recently learned that his brother
quit. Thats right... the CEO quit. <br />
<br />
My husband and I also bought one on one coaching. We were promised the
opportunity to work with a seasoned investor. The person we spoke with
on the phone taught us strategies that conflicted with what we were
taught at the Core Strategies class. One coach admitted that he had
never attended the class that we paid $4000. Apparently Wealth Rocks
feels that it is important to train customers but not their own staff!!<br />
<br />
My husband and I are about to sue Wealth Rock if they don't refund our
money. The lied about what they would provide. Not one class has met our
expectations except for the first 3-day event when we signed up for
everything. The level of service dissappears as soon as they have your
money. <br />
<br />
Wealth Rock also tried to claim that they did not owe use anything
because the company recently changed hands. From my attorneys research,
this company has used about 6 different names in the past 4 years. A
company that changes names that much is doing it for a reason. <br />
<br />
Stay away.</td></tr>
</tbody></table>
<h2>
</h2>
Reverend Rick Christy’s story about
how he lost $11,500 trading options starts in a Michigan sports
stadium with <a href="http://topics.bloomberg.com/colin-powell/">Colin Powell</a>, <a href="http://topics.bloomberg.com/rudy-giuliani/">Rudy Giuliani</a> and Terry Bradshaw. <br />
They were headliners at an event called Get Motivated! in
Grand Rapids a year ago that cost Christy $4.95 for a ticket and
a few bucks for a concession-stand soda. He was looking for
inspiration, and he said they delivered in speeches that brought
the crowd of 12,000 in Van Andel Arena to its feet. <br />
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<img alt="TD Ameritrade Class Pitched at Get Motivated! Event " class="small_img img_keep_size" src="http://www.bloomberg.com/image/iwl3lCvKpGCI.jpg" />
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<a href="http://www.bloomberg.com/video/91780033-td-ameritrade-class-pitched-at-get-motivated-event.html"><span class="duration">2:48</span>
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<div class="caption">
May 2 (Bloomberg) --
Bloomberg's Peter Robison reports on his experience at a Get Motivated!
seminar in Oklahoma City and attending a TD Ameritrade Holding Corp.
investing class promoted at the event. (Source: Bloomberg) </div>
</div>
</div>
</div>
It was a <a class="web_ticker" href="http://www.bloomberg.com/quote/AMTD:US" title="Get Quote">TD Ameritrade Holding Corp. (AMTD)</a> representative who
left a lasting impression. Bob Kittell, a square-jawed athlete,
delivered a pitch he’s honed across the country: A photo of a
Corvette flashes on a screen, and he asks, wouldn’t you like
one? Articles about secretaries and steelworkers who got rich in
the stock market scroll by, and he asks, wouldn’t you like 17
percent returns? He suggests it’s possible with options trades. <br />
Christy was lured by the bait of celebrity and hooked by
the promise of easy money at a road show that’s been traveling
the U.S. for a decade, drawing as many as 400,000 people a year.
What’s billed as a chance to hear upbeat lectures from the
famous is actually a vehicle for companies to sell investing
tactics, with the implicit promise of high returns, on the same
stage as luminaries like Powell. <br />
The pastor said he stepped forward when Kittell urged
people to buy a $99 course from TD Ameritrade’s Investools. A
few hours later he signed up for more investing lessons sold by
another company. Soon he was buying call and put options and
using a complicated strategy known as the “Iron Condor.” His
accounts shrank to $8,500 from $20,000. <br />
<h2>
Easy Marks </h2>
“I feel taken,” said Christy, 49, senior pastor at Voice
of Hope Church in Wayland outside <a href="http://topics.bloomberg.com/grand-rapids/">Grand Rapids</a>. “I really
thought I was going to turn my life around financially, and I’m
actually worse off a year later.” <br />
Americans are easy marks, particularly at a time of
economic uncertainty and a see-sawing stock market, said <a href="http://topics.bloomberg.com/lynn-turner/">Lynn Turner</a>, the U.S. Securities and Exchange Commission’s chief
accountant from 1998 to 2001. <br />
“People are so hungry for an investment that will give
them enough to retire on,” Turner said. “If someone from a
well-known firm stands up, and people have just heard this
speech by a celebrity and got their adrenalin pumping -- this is
a place where you can sell an Eskimo a refrigerator.” <br />
Until a change of ownership at Get Motivated Seminars Inc.
earlier this year, Investools, a TD Ameritrade unit since 2009,
was the largest source of income for the events, said Richard
Nash, a spokesman for the Tampa, Florida-based seminar series.
The partnership with <a href="http://www.getmotivated.com/" rel="external" title="Open Web Site">Get Motivated</a> ended in February. <br />
<h2>
Former First Lady </h2>
Before former First Lady <a href="http://topics.bloomberg.com/laura-bush/">Laura Bush</a> took the stage at a Get
Motivated assembly in Oklahoma City Feb. 16, a speaker named
Kory Thurston asked people to wiggle their index fingers. <br />
“You just proved you can make money on the Internet,”
Thurston said, as the crowd in Chesapeake Energy Arena clapped. <br />
By purchasing a $29.95 class in Web marketing, he said,
almost anyone could learn to make $1,000 a month clicking a
mouse. He represented National Marketing Resources LLC, another
company that paid to appear on Get Motivated programs. <br />
Billboards and ads in cities ahead of Get Motivated events
tout ticket prices as low as $1.95 for lessons on success and
leadership, without disclosing the sales pitches sandwiched
between the stars. A website says attendees will “be sold on
the value of continuing education” and that “follow-on
workshops may be offered.” People should consult with “tax,
legal, financial, accounting or other advisors before
implementing any views, opinions or advice given during the
seminars,” fine print on the back of a ticket says. <br />
<h2>
Shooting Flames </h2>
The commercial speakers have been fully part of the
pageantry. When Kittell bounded up the steps in <a href="http://topics.bloomberg.com/oklahoma-city/">Oklahoma City</a>,
flames shot from corners of the stage. <br />
At the next Get Motivated, in Des Moines, Iowa, May 8, real
estate and investing workshops will be sold. Comedian Bill Cosby
and Republican strategist Karl Rove are among the billed stars. <br />
The seminars were started in 2002 by Peter Lowe, the son of
a missionary who spent time in <a href="http://topics.bloomberg.com/india/">India</a>, and his ex-wife Tamara
Lowe, a self-help book author who writes Christian rap. The
events, which have filled stadiums in more than 30 cities a
year, give Americans a chance to enjoy a show and see prominent
people in person, said Nash, the spokesman. <br />
TD Ameritrade was happy with its Get Motivated partnership,
according to Ted Bloomberg, the Omaha, Nebraska-based
brokerage’s managing director of investor education. He declined
to say why it ended. <br />
<h2>
Nothing ‘Irrational’ </h2>
“I would dispute the notion that there’s a hard-sell
environment in a 10,000-person arena,” said Bloomberg, who has
no relationship to Bloomberg News. “We were always very pleased
with the way they presented our product.” <br />
Get Motivated provided as many as 300,000 of the 500,000
students who took Investools classes over 10 years, according to
Nash. Bloomberg called it a “significant portion.” <br />
The collaboration continued after Investools agreed to pay
$3 million in 2009 to settle SEC allegations it let instructors
mislead students into thinking they could make “extraordinary
profits,” and to claim they were expert options traders when
their income really came from selling more courses. Investools
didn’t admit or deny wrongdoing in the case, which covered 2004
to 2007, before TD Ameritrade’s purchase. <br />
Investools teachers disclose all risks and don’t make
guarantees, the broker’s Bloomberg said. “One of the things
we’re very concerned about is people having an irrational view
of what’s possible from a return perspective,” he said. <br />
<h2>
Flag-Draped Arena </h2>
At an Investools course in February, the teacher told
students that options, contracts to trade a security at a set
price by a certain date, could yield 18 percent annually. That
is a performance achieved by fewer than 1 percent of about
41,000 mutual funds over the past five years, according to data
compiled by Bloomberg. <br />
Before dawn in Oklahoma City on Feb. 16, hundreds were
already filing into the 16,591-seat stadium for Get Motivated.
People said they came because their bosses bought tickets, or as
members of a church or charity, or to see someone they admired.
Carol Snow, visiting from Maine, carried a hand-made welcome
banner for Bush and waited nine hours to raise it. <br />
Inside the flag-draped arena, retired Pittsburgh Steelers
quarterback Bradshaw strode in to the theme from Fox Sports’ NFL
Sunday broadcast. Bush offered updates on her family. (“Memo to
the ex-president: turmoil in East Timor is no longer an excuse
not to pick up your socks.”) Former <a href="http://topics.bloomberg.com/new-york/">New York</a> Mayor Giuliani
told people to read, write and have goals. <br />
<h2>
Buying Corvettes </h2>
A speaker introduced as Mark Larson promoted courses in
what he called tax-lien investing that he said could offer 18 to
25 percent annual returns. “And listen closely to the last part
of this: guaranteed,” he said. <br />
Larson and Thurston, who had people wiggle their fingers,
both represented National Marketing Resources of Kearney,
Missouri, according to Nash. It sells online coaching and also
specializes in <a href="http://topics.bloomberg.com/credit-card/">credit card</a> processing, marketing and direct
mail, according to its website. Telephone calls and e-mails to
National Marketing weren’t returned. The speakers couldn’t be
reached for comment. <br />
Tamara Lowe talked about her rise from a drug-addicted
youth and performed rap she wrote, with lyrics including, “You
can shop nonstop or pop a pill/but the void won’t fill and the
pain won’t kill/until you love the one that hung on the hill.” <br />
Powell, a former U.S. secretary of state, confided it was
hard returning to private life after having met kings and prime
ministers. “The solution became obvious, it was perfect: I
bought a Corvette,” he said, to laughter. <br />
<h2>
‘Secret Weapon’ </h2>
Most speeches lasted about 20 minutes. TD Ameritrade’s
Kittell took an hour, revving up the crowd with a photo of the
same model Powell said he owned. He talked about covered <a href="http://topics.bloomberg.com/call-options/">call
options</a>, in which someone who owns a stock sells to another
investor the option to buy it. The stockowner pockets the option
payment no matter what happens to the stock, he said. <br />
“How many of you would like to get a brand-new car and
have the premiums take care of it from your covered calls?”
Kittell asked, to whoops. <br />
He closed with a special deal. The Investools course
Investing Foundation, usually $2,245, was $99. Lights came on in
the walkways. He told people to head toward the light -- and
hurry, “it’s going to get crazy.” Hundreds streamed down. <br />
For TD Ameritrade, the largest U.S. discount broker by
daily trades, Investools is a “secret weapon,” Chief Financial
Officer Bill Gerber said at an investor forum in Miami in
February. “We have an education business that I think is very
unique and helps differentiate us, that really talks about how
to invest mostly in options,” he said. <br />
<h2>
Super Bowl Wager </h2>
Unlike stocks, options expire, so traders often place new
orders. TD Ameritrade charges $9.99 for an order plus 75 cents
for every 100 shares involved. Stock trades are $9.99. Options
customers average 30 options trades and 31 stock trades a year
compared with 24 stock trades for others, according to a survey
released in 2010 by the Options Industry Council trade group. <br />
<a href="http://topics.bloomberg.com/andrew-stoltmann/">Andrew Stoltmann</a>, a Chicago securities lawyer, called
Investools courses “the holy grail for a brokerage firm”
because “they get people to pay large sums of money to trade
one of the most profitable investment products around.” <br />
While lucrative for brokers, options are risky for
amateurs, said Mark Sebastian, a former floor trader at the
<a href="http://topics.bloomberg.com/chicago-board-options-exchange/">Chicago Board Options Exchange</a> who teaches at Option Pit
Mentoring, which charges $1,800 for a 14-week seminar. <br />
They’re not unlike a <a href="http://topics.bloomberg.com/super-bowl/">Super Bowl</a> wager with a point spread:
you have to get both the magnitude and the direction right.
Sebastian said about 10 percent of his students make more
trading options than they would leaving their money in the bank. <br />
<h2>
Opening Accounts </h2>
Eight days after Get Motivated in Oklahoma City, 300 people
sat in a suburban conference room for the Investools Investing
Foundation course. Instructor Rob Lant, 42, said he would level
with them: Trading isn’t as simple as Kittell made it seem. <br />
Lant said he had no intention of getting into the market
until taking the same Investools class seven years ago, which
changed his life and has “blessed everybody” in his family. He
showed pictures of his wife and children and their mountainside
home, talked about their recent vacation at the Wynn resort in
Las Vegas and shared his love of horseback riding. <br />
He started with basics -- how a broker handles trades, how
banking and brokerage accounts can be linked -- and noted TD
Ameritrade representatives were there to help open accounts. He
asked students to bring in financial statements. Then he had
everyone write down two words: <a href="http://topics.bloomberg.com/option-trading/">option trading</a>. <br />
“This is not an options class; this is a stock class,” he
said. “But at the same time, I personally like to trade
advanced options strategies.” <br />
<h2>
‘Highly Regulated Industry’ </h2>
He said most people hand their money to mutual fund
managers and pay fees. “What if we could get 1.5 percent return
on your money every month?” he said. “That would be 18 percent
a year. Do you guys think this is possible?” <br />
It is, he said. Lant said he aims for 3 percent to 5
percent a month -- 36 to 60 percent a year -- trading options. <br />
In an interview after class, Lant said he couldn’t say
whether he hit his objective. “I don’t say what my returns
are,” he said. “It’s a highly regulated industry. I can tell
you my goal.” <br />
Stevie Wonder’s “Signed, Sealed, Delivered I’m Yours”
sent students off to a break. Later, Lant told them about stock
and options courses that cost $5,999 and a Complete Investor
class at $19,999, marked down from $28,999. <br />
<h2>
Better Than Professionals </h2>
Many students are happy with the instruction, according to
TD Ameritrade. It provided the name of Evie Petrikkou, a
Colorado Springs photographer who said she has paid $30,000 for
Investools classes. She and her husband now handle most of their
money themselves after watching professionals miss warnings of
the 2008 crash, she said. <br />
“We’re learning so we can actually do at least as well as
what these guys are doing,” Petrikkou said. She declined to say
what her returns have been. <br />
In <a href="http://topics.bloomberg.com/michigan/">Michigan</a>, Christy took the two-day Investools course and
put $4,000 on a credit card to pay for options trading. He said
he learned the drawbacks of the covered call strategy Kittell
heralded. For one thing, he had to buy stock so he could sell
options on it, and he said could only afford second-rate shares
that lost value, wiping out the options premiums he was paid. <br />
“Nobody tells you that,” he said. <br />
The pastor said he also signed up during Get Motivated for a
workshop offered by James Smith Companies, now called WealthRock
LLC. He later bought $12,000 in more WealthRock courses, he
said, financing them at them at $300 a month. <br />
<h2>
‘Better Than Reality’ </h2>
A WealthRock instructor showed him the Iron Condor, which
requires buying four options on one security with four strike
prices and two spreads; it takes its name from the payout
diagram resembling a bird with outstretched wings. <br />
Christy said he complained to WealthRock after the
strategies didn’t work as advertised. A representative offered
to reduce the debt by $2,000 and provide more coaching, said
Christy, who hasn’t given up on trading. <br />
“I know I have been gullible,” he said, blaming himself
and “the ones who made it all sound so easy. They didn’t
outright lie. They just made it sound way better than reality.” <br />
WealthRock is owned by Get Motivated’s new owner and former
CFO, Joseph Johnson of Apollo Beach, Florida. He said WealthRock
stands by the quality of its classes, which cost up to $25,000.
Nash said Johnson paid $11.75 million for Get Motivated. The
business had $4 million in net income in the first nine months
of 2011, according to filings in the Lowes’ divorce, which
became final last month. <br />
<h2>
Wire Transfers </h2>
The Lowes reached agreements that would let them remain
involved in the events, he as a $1 million-a-year consultant
and she as a $25,000-per-appearance speaker, according to
documents filed in the divorce. They declined to comment. <br />
Johnson said it wasn’t necessary to continue the Investools
partnership now that WealthRock and Get Motivated are under the
same management, though he didn’t rule out reviving it. <br />
Until he took over, Investools made wire transfers based on
revenue-sharing that were Get Motivated’s largest source of
funds for most of its history, according to spokesman Nash.
Bloomberg declined to elaborate on the financial terms. Gerber,
TD Ameritrade’s CFO, said April 17 that ending the “vendor
relationship” would have little effect on earnings. The broker
is now marketing Investools through “other channels,”
Bloomberg said. <br />
Among Johnson’s tasks will be resolving a dispute with the
Washington Speakers Bureau, which is owed $1.7 million for Get
Motivated appearances its clients made between November and
February, according to legal documents filed April 6. The bureau
represents Bush, Powell and others, its website says. <br />
<h2>
Romney Via Satellite </h2>
Johnson had pledged in an e-mail to pay the company “over
time,” saying the new business model “makes the Get Motivated
Seminars more profitable than ever before,” the documents show.
Officials with the bureau, a unit of New York-based <a class="web_ticker" href="http://www.bloomberg.com/quote/OMC:US" title="Get Quote">Omnicom
Group Inc. (OMC)</a>, didn’t respond to e-mails and telephone calls. <br />
The celebrity speakers from Oklahoma City declined to be
interviewed. Peggy Cifrino, a spokeswoman for Powell, said, “He
goes in and speaks and leaves. He has nothing to do with any
other speakers.” <br />
Giuliani netted $1.8 million for more than 20 Get Motivated
speeches from January 2006 to February 2007, according to
disclosures he filed while running for president. Republican
presidential candidate <a href="http://topics.bloomberg.com/mitt-romney/">Mitt Romney</a> was paid $29,750 to speak via
satellite in 2010 to a Get Motivated event, his disclosures
show. Andrea Saul, a Romney spokeswoman, didn’t respond to e-
mails or telephone calls. <br />
At Get Motivated in Des Moines -- where former CBS News
anchor Dan Rather and <a href="http://topics.bloomberg.com/robert-gibbs/">Robert Gibbs</a>, President <a href="http://topics.bloomberg.com/barack-obama/">Barack Obama</a>’s
former press secretary, are on the bill -- one commercial
presenter will be Phil Town, an investment-book author who
represents WealthRock. <br />
After Bloomberg News asked why Town and James Smith,
another WealthRock representative, weren’t advertised, Get
Motivated put them on its website. <br />
“In terms of disclosure, we’re making lots of changes in
the organization,” Johnson said, “and that’s one of them.”<br />
<br />
<br />
<div class="article_font entry-content">
<span class="story_dateline">TAMPA --</span>
The collapse of Get Motivated Seminars, which packed arenas
with its tips on success and spirituality, has thrown out of work at
least a hundred people and left millions in bills unpaid.<br />
The
Tampa company for years promoted its powerhouse lineup of speakers,
including Colin Powell and former first lady Laura Bush, in full-page
newspaper ads and drew attendees with dirt-cheap tickets — $1.95 a pop. <br />
But Get Motivated's suppliers are stumped by the last eight months. <br />
Since
winter, it has been sold to a little-known Apollo Beach man with a
troubled business history, its staff shuffled among at least three
offices and its operations eventually shut down. Lawsuits are flying.<br />
"I've
heard stories and rumors, but none of it seems to make any sense," said
Bill Fries, whose Tampa staffing company, Hiregy, supplied workers to
Get Motivated.<br />
Its glamorous seminars got all the attention, but
Get Motivated Seminars actually was a marketing company that generated
sales leads for investment advisory firms. <br />
Its real corporate
name was Life Win Inc., and until recently it operated out of a
technology park across from Tampa International Airport. There, more
than 100 people sold tickets to Get Motivated powwows in arenas and
convention centers nationwide. They tempted customers with $1.95 tickets
but eventually tried to upsell them with pricier tickets. <br />
Company
agents also steered customers to at least two firms that offered
classes and advice on financial investing, a Utah firm called WealthRock
and a TD Ameritrade affiliate called Investools. <br />
At its events,
big-name politicians and sports stars such as Rudy Giuliani and Joe
Montana earned five-figure fees for their talks. Every show also
featured at least a few minutes of Christian inspiration. <br />
Life
Win's founding couple, Peter and Tamara Lowe, were known for their
Christian faith. He once ran the Rev. Billy Graham's crusade in Tampa;
she can be spotted on YouTube performing a Christian rap song. <br />
But things seemed to go downhill quickly.<br />
The
Lowes are going through a nasty divorce in Palm Beach County, where
they both have separate houses, and their motivational seminar business
appears to have been caught in the middle. <br />
Life Win Inc. shut its
last known office on West Waters Avenue sometime early this month and
laid off dozens of employees. Since then, the company's suppliers and
investors and their lawyers have tried to piece together what happened. <br />
Among the curious events are:<br />
<ul>
<li>Allegations
of theft. Peter Lowe claimed in court papers filed in January that
Tamara sabotaged his company's former offices, stole intellectual
property and essentially set up a rival motivational speaking company. </li>
</ul>
Tamara
shot back that Peter sold the company out from under her to a
little-known 36-year-old Apollo Beach man named Joe Johnson. What's
more, Johnson had a shaky business history with a failed charity called
SeedAmerica Foundation. <br />
Johnson promised to help small Midwestern
towns revitalize their dilapidated industrial buildings, but instead
SeedAmerica filed bankruptcy and never fulfilled its promises. The
Tribune has been unable to reach Johnson or his lawyer in recent weeks.<br />
<ul>
<li>Mysterious
moves. Since the fall, Life Win's staff of more than 100 has moved in
and out of at least three offices on Eisenhower Boulevard near the
airport and Waters Avenue. The owner of the Eisenhower property won a
$226,000 judgment against Life Win in April. </li>
</ul>
<ul>
<li>Sudden
shutdown. Having closed on his purchase of Life Win, Johnson had been
running the seminar company in recent months. However, he canceled
powwows scheduled for this month in Louisville, Ky., and East Lansing,
Mich.</li>
</ul>
He eventually shut the company altogether around the
beginning of this month. Former employees declined to comment for this
story, but Fries, the staffing agency executive, said they've come to
his company looking for jobs.<br />
Even if the company has disappeared, Life Win's debts haven't, and former vendors and creditors are trying to collect.<br />
A
Naples woman, Amy Wolfe, claims in one lawsuit that she loaned Johnson
$12 million to help him buy the seminar company from the Lowes, but
Johnson has defaulted. Her attorneys did not return the Tribune's calls.
<br />
Meanwhile, the company that lined up many of those political and
sports figures, the Washington Speakers Bureau, claims in court papers
that Life Win owes it more than $1.7 million in speaking fees plus
interest and attorneys fees. And Fries has sued for $19,518 in unpaid
staffing services.<br />
This is not the first time Life Win or a
predecessor company has collapsed amid a mountain of debt. Eleven years
ago, a motivational seminar company Peter Lowe ran called Success Events
International shut down owing money to dozens of vendors. Lowe has not
returned the Tribune's calls in recent weeks.<br />
For now, those arena-packing Get Motivated powwows have gone dark, and it's not clear if they will return. <br />
Aaron
Osmond, a member of Utah's famous Osmond family, in April left
WealthRock, the investment firm that got referrals from the seminars. He
hasn't been in touch with anyone from Get Motivated Seminars or Life
Win since and said he doesn't know where they are.<br />
"I think they've got a lot of work bringing that company back," Osmond said.<br />
<br />
Wealth Rock Financial Systems. Stocks, Real Estate, Legal, Tax Liens,
Ryan Smith, Jamie Smith, Mark Walters, Phil Town, Aaron Osmond Selling
Dreams for 99 dollars / or Retail $65, 895 dollars. But if you call
before Midnight it is only $26, 995. deal. Saved $38, 900 . Miami, fort
lauderdale, Florida<br />
<br />
I attended the get motivated seminar in
Miami. I Heard Phil Town (rule one investing) and Jamie Smith of
(Wealthrock). As a single mother with 3 kids what they were saying was
interesting to me. I make 26k a year so I was a Prospect... I signed up
for the 99 dollar 3 day course.<br />
<br />
Ryan Smith Jamies son was
teaching the class. He told us he Taught Donald Trumps Kids how to be
Rich stories of how he was worth hundreds of millions of dollars but was
broke? did not own any thing in his name all through the companys
names. I will show you how to be broke. I am Part of the 99% he joked.
(i am part of that in real way not a joke) I drive a Porsche, live in
Mansion, I was a pro baseball player. Showed pictures of his wife and
staff with 50, 000 dollars bundle of money. He said that he took to
dinner a deal finder lady and her negative husband and on way home that
night threw the cash 5k at a time on man till it hit 50k Now the ladys
husband will not be negative and believe.. Wow I thought this is
incredible I have found my dream this is to good to be true. Lady made
50 k in one deal with him. <br />
<br />
So they brought a team of 40 people
with them. Each one stood in the front and told of there success with
wealth rock system. Easy, take chance, do it they said. Then gave me a
goals sheet they meet with you in back and sell you a course they know
my debt/ net worth . avial credit Goals (dreams and hopes to exploit) .
My adviser told me that it will be easy to make 5 million in 5 years.
Think of your kids she said. You dont want them to see a old broke lady
in the future do you. I asked what she made she said I can not tell you.
I thought wow i just told you everything about me<br />
<br />
The Costs of
the Courses Tax Liens with Mark Walter $4995, Stocks with Phil Town
Basic $4995, Intermediate $7995, Symposium $9999, Advanced $15, 999,
Real Estate with Ryan Smith Basic $4995, Intermediate $7995, M5 mega
$9995, Advanced 15, 995, Asset Protection with Lawyer $4995, Bonds
master $4995. The way it works is, if you buy the upper tier packages,
you get the lower tiers thrown in for the price. Thank God for the Elite
I can get all for $26, 995 was $65, 895 Save 38, 900. I bought this one
for $26, 995 my salary per year is $26000.<br />
<br />
He also told a story
that Donnie and Marie Osmonds cousin wanted to make record but donny and
Marie would not support him with money he came to Ryan Smith learned
the real estate and bought 3 mobile home parks. He also gave us the name
and number of Credit Repair guy Greg Tilly. Told us no affiliation to
him at all. Aron Osmond (the cousin) is the CEO of wealth rock, And
vhesse financial credit repair is listed as a partner with him. Lies
lies and more lies... I am trying to get my money back but they my
Representative said paper work lost. <br />
<br />
Do not go to Get Motivated
seminar they lead you to these guys...Fast talking, slick, Rip off
artists sprinkle, Christian values, Be Broke the99% (but secretly rich),
helping the poor, while fleecing the poor. Nobody in there right mind
would let a lady with 3 kids charge $26, 000.00 to her credit card that
makes $26000 per year. My Representative said 28 people who bought elite
packages. $755, 860 in Sales not a bad weekend Seminar total. <br />
<br />
The
FTC has been active in policing real-estate seminar operators in the
past. " Eleven states brought 18 legal cases against seminar operators
selling a variety of business and investment schemes.<br />
<br />
The Tax
Lien ScamAnother popular ploy used to hook potential investors is buying
tax lien properties. You need the help of the course or system or
seminar to do this, so the sellers of such items would have you believe.
In truth however, you can call your local tax assessor or pay them a
visit and get the same information for free.<br />
<br />
"These seminars are
fascinating from a sociological perspective, " says Stephen Roulac, a
professor of real estate at Stanford University, and a real-estate
investment consultant for the past 30 years."They play to people's greed
and fear."<br />
<br />
Real estate seminar speakers and their ilk prey on
the innocent, the greedy and the naive and, quite frankly, many of us,
if we looked deeply inside ourselves, might find one or two of those
targeted traits, so nobody is really immune from these shysters<br />
<br />
IN CONCLUSION<br />
<br />
I'm saying:<br />
<br />
Don't trust them<br />
<br />
Don't do business with them<br />
<br />
Run far, far away from them.<br />
<br />
P.T. Barnum were alive today, he would be a real estate seminar speaker. </div>
<br />
<a href="http://www.mitfinancial.com%20/" target="_blank">www.MITFinancial.com </a><a href="http://3.bp.blogspot.com/_E-ibziE1a7w/SvatXMMyhZI/AAAAAAABEcY/zj9Mi4v4K9E/s1600-h/newsroom.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="300" src="http://3.bp.blogspot.com/_E-ibziE1a7w/SvatXMMyhZI/AAAAAAABEcY/zj9Mi4v4K9E/s400/newsroom.jpg" width="400" /></a><br />
<br />
To our friends and clients around the world:<br />
<br />
Many of you have contacted our offices asking about the current lawsuit that has been filed by people who state that they are "Victims" of The James Smith Real Estate Organization. As members of the national media, we are compelled to provide you with the raw information that is available on this site and many others. In the interest of justice we present the original filing that was filed in the Third Judicial District Court in Salt Lake City, Utah.<br />
<br />
We are going to provide you with the legal filing data, however, we are not going to comment on the current legal proceedings because of a confidentiality agreement that we have with this company. Please understand that we know and have known many of the defendants in this lawsuit, and as a media organization, it is our obligation to simply provide you, the American Public, with the facts of the current case.<br />
<br />
To your Success,<br />
Robert Paisola<br />
CEO<br />
<a href="http://www.robertpaisola.com/">www.RobertPaisola.com</a><br />
<br />
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<a href="http://docs.google.com/gview?a=v&pid=gmail&attid=0.1&thid=124cbab3ff2478b4&mt=application%2Fpdf&url=http%3A%2F%2Fmail.google.com%2Fmail%2F%3Fui%3D2%26ik%3Db1d0e59a76%26view%3Datt%26th%3D124cbab3ff2478b4%26attid%3D0.1%26disp%3Dattd%26realattid%3D0.1%26zw&sig=AHBy-hbbESosBvWyiBu2mxQoD6t-5lNlNg">Download the full case here: </a></div>
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<br />
James Smith NRI, Darel Snyder PSI group<br />
Posted: 2007-01-23 by Hovsep A [send email] <br />
<br />
Took their advice and lost $65,000!<br />
Complaint Rating: 80 % with 56 votes<br />
I was one of James Smith's students. Two years ago I went to a seminar in Burbank CA with my brother in-law and we decided to purchase the entry real estate package which was $5,000. At the real estate entry course we were offered a special deal for the entire real estate package (M5, foreclosure workshop, commercial workshop, mentor program and analysis software) which was additional $17,000 dollars for both of us. We were also offered an opportunity at M5 workshop, a profitable property which in return will have high return. So $22,000 which we spent will be covered. We bought the entire package. We took all the workshops except commercial workshop. We meet with other investors and the concept was good. We also talked with successful investors. Over all it was okay, we met interesting people. James has the right concept I thought.<br />
<br />
At M5 workshop we were afford to purchase Edge luxury condo in Scottsdale AZ. We couldn't miss the opportunity. The condo that I purchased at that time the value was $350,000. The properties were discovered by PSI Group (http://www.psigrouponline.com/), which is run by Darel and Brycen Snyder. I personally spoke with Darel few times and he told me the Edge property is a sweet deal. I did some research and it looked like a good deal at that time. Plus given their expertise in real estate who am I to argue.<br />
<br />
I signed an agreement with the builder that I can't sell the property for 18 months. Every month I did do diligence to make sure the value is going up. That specific zip code was always appreciating. I knew there were condos being built but I had no idea that it will impact the value of my condo. Plus I called the builder office few times to make sure my condo was appreciating, the answer to my question was always yes it's appreciating. 18 months is over now I'm trying to sell the condo and guess what my condo value down to $320,000. My total loss including negative cash flow is $65,000 dollars. I tried to contact PSI Group, they were going to get back to me in few days, and it’s been 3 weeks now. I paid $11,000 dollars to get an advice from real estate expert and this is what I get. It's very disappointing. That’s my story.<br />
[Complaint comments] Comments [Complaint country] United States [Complaint category] Real Estate <br />
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2007-03-03 by Cheryl Schaumburg [send email] 0 Votes<br />
<br />
Are you aware that the market has changed? I don't feel that we can blame James Smith for that!<br />
<br />
Is that purchase the only one you made after attending the seminar? Perhaps you weren't putting much effort in to what you were taught!<br />
<br />
I had an opportunity to buy at the Edge also. That property wasn't one I chose to invest in. That's not to say that I haven't purchased 2 properties in Waikiki, 3 in Butte, Mt., 5 in San Diego, & quite a few other ones after attending M5. I think James Smith is fantastic as well as many of the other instructors I had an opportunity to learn from.<br />
<br />
Yes, I did buy investment property before I met James Smith. You sometimes get busy with life & become a bit complacent. He gave investing a different twist & also got us off our butts to get back out there to continue to look for investment properties. I feel my money was well spent.<br />
2007-03-17 by Kelvin [send email] 0 Votes<br />
<br />
For those who want to interact with others who have either heard of james smith, taken james smith courses, or just want to learn/share their knowledge and experience about James Smith OR real estate investing... please come and join us here:<br />
<br />
http://finance.groups.yahoo.com/group/James-Smith-Real-Estate-Guru/<br />
<br />
Is he the real deal?? Ha... it depends whom you ask. This list has been around since 2004... w/over 800+ members and growing!<br />
2007-03-29 by Jim [send email] 0 Votes<br />
<br />
I am familiar with the Edge project and Darel and Brycen Snyder. I am a student of James Smith's and the experience has been life changing and worth every penny. To date, I have purchased over 200 units in 7 states through what I learned through his courses. Worth every cent. Through these classes I met Darel and Brycen and they are two of the most quality individuals out there. I have a hard time believing they have not contacted the person posting here as they are great about getting back to you when you need something. If you have doubts, go to their website and ask a question, see how long it takes. Anyways, love the training, love the PSI Group, and love James Smith.<br />
2007-04-23 by Hovsep A [send email] 0 Votes<br />
<br />
I was the one who wrote the complaint regarding PSI group. I just have to make few clarifications.<br />
<br />
I liked the James Smith's training; it has a lot of potential. I just had higher expectations then what I got from M5. If you are serious about real estate I HIGHLY recommend James Smith's training. Like I wrote in my first message, he has the right concept. Just you have to go out there and do it.<br />
<br />
I got a phone call from Darel Snyder regarding my Edge property and he was VERY SUPPORTIVE and honest. We have our differences, which is fine. I respect his different perspective.<br />
<br />
At the beginning my vision was the following: hold the property for 18 months, sell it and make a quick cash. But the condo market has changed. Give my financial situation I can not hold on to the condo for a long time. And if I sell it right now I will loss money on it. If I can hold on to it, over time the price will go high for sure.<br />
<br />
From my financial STRESS I was blaming PSI group, which was a wrong thing to do. It's my responsibility. THE LESSON FROM THIS IS THE FOLLOWING: Next time I will add following variables into my equation: changes of my financial situation and the real estate market fluctuation. WILL I DO BUSINESS WITH PSI GROUP NEXT TIME? YES. Given Darel's SUPPORT AND HONESTY. YES I WILL.<br />
<br />
Regards,<br />
Hovsep A<br />
2008-04-29 by Dave F [send email] 0 Votes<br />
<br />
My hat's off to you for your honesty and owning your situation. I listened to a James Smith seminar today for the first time, and must admit, was totally blown away by the guy. While in real estate exam school for my KY sales license one of my instructors was commenting on how her daughter's home value had plummeted in Az. since the Scottsdale area market had gone belly-up, just like all the rest of the rediculously over priced properties in California, Mich, and Florida. See a parrallel to the Tech Crash here? Unfortunately, and as you know all too well, you bought in to the top of one of the most over priced markets in the country. Once again, thanks for your honesty. I plan on attending a follow up session soon. I only hope I can take some advantage of Smith's knowledge and motivation without shelling out a boatload of cash. I am still a little troubled however, about the late or total lack of feedback or follow up between some students and NRI/PSI. Thanks.<br />
2008-06-16 by Michael M [send email] 0 Votes<br />
<br />
While I understand the disappointment that accompanies a failed investment, I can't feel bad for someone who doesn't do their own due dilligence. In response to Jim's post, I strongly disagree. Daryl Snyder is not a good person and is excellent at scamming the public through James' bravado. These guys pocketed commissions north of 10% on many of their bogus deals and pretended that they offered an "amazing deal" to students. It is so easy to prey on seminar students who bank on appreciation. You want to find a real investment - CASHFLOW IS KING! If it doesn't make sense now, then it probably won't in a few years. If it does make sense now and at least breaks even, the chances are much higher that you'll make money. James is an arrogant hypocrite and Daryl has gotten rich off his coattails.<br />
2008-10-04 by Dan [send email] -1 Votes<br />
<br />
I too was taken in by Darel Snyder and PSI Group. I bought into the Phoenix condo (Trilium project), and it was fine for the first 2 years during the "guarantee" period. But after that, everything went wrong. The market in Phoenix has totally tanked, NOTHING has sold in that complex in the last 2 years, we're trying to do a short sale to avoid foreclosure, but we would have to sell a $220, 000 condo for $110, 000 to even get any offers, and it might not even sell at that price. We're losing over $1, 000 per month on this, and can't afford it any longer. Darel used his relationship to James Smith to give his project credibility and get lots of buyers for the condo project, then he sold out at the top of the market. I saw the same thing happen at his project in Roseville, CA, but fortunately that is near my home so I was aware of the changing market and didn't fall for it there. Darel was pitched as a Real Estate expert who sold $1Billion (with a B) worth of Real Estate in TX, so he should have known that prices don't go up forever, and condos are the first to tank. Maybe if he had sat in on some of those Real Estate classes instead of just selling to the students he would've known.<br />
2008-10-20 by Mimi [send email] -1 Votes<br />
<br />
The trouble with the whole organization, for one thing, is who's on first? The lack of communication is troublesome. We are the Clients. We have hired them to teach us.<br />
As Platinum student, a $16, 000 program at least, I resent the failure of the organization to let clients know about operational changes possibily affecting their sizable (at least it is to me) investment in education. Why do students have to call and request information about MP5 and/or other upcoming events - we should be the ones being kept informed. Why are some students being given terrible advice by mentors and essentially end up so frustrated they give up? I know of at least two other people in the small area where I live who are as annoyed as I am. One is a Platinum participant, and one took the supplemental mentoring program.<br />
The organization, as I understand it, made some changes and we now have JamesSmithSeries Coaching, supposedly (?) a break away from the REIS/Success Group, and whatever else they call themselves.<br />
PSI is not familiar to me except today I received a solicitatioin from them. The email was from Brycen Snyder who was with the Smith organization as recently as August 2008 that I know of.<br />
It is true the training is good, and the knowledge base is there. James is brilliant and miles ahead of most of us. I believe he really does want us to be successful and independently wealthy. However, it seems his organization needs someone who is an operations-total picture person and can manage the somewhat seemingly predatory nature of some staff and outside providers.<br />
Part of the Platinum program affords access to a team of "experts". Sorry, that, for me ended up in being referred to an outside entity wanting to sell me an expensive accounting package. My question related to Asset Protection.<br />
Less than six months into the Platinum program, I was approached/invited to join the Elite program. Price tag: $19, 995. At first, I said yes and then cancelled within the 72 hour timeframe. The program overlaps the Platinum; uses some of the same materials, includes the "experts", and offers some other services including a guarantee.<br />
The recruiter was provided my credit card information. The charges were applied after I cancelled. A few days later he called saying the charges were being removed that day. Later in the conversation, as before mentioned the OPM emphasis of the program, the proposed quick turnaround on profit, he convinced me to accept the offer again saying I could use my credit cards to leverage for time, and keep my equity line for investing needs. He calculated what he thought would be the monthly interest due on the credit cards, stating also my credit score would not be adveresely affected. He did not ask for my credit card information again.<br />
Since I pay off my cards 100% each month, I felt uneasy and checked with my credit card companies who said my credit rating would be seriously affected if the balances remained open. Also, additional interest would accrue, and the monthly payments would escalate putting me at risk. Bottom line, the recruiter failed to be truthful.<br />
Again, I notified these people within the 72 hour cancllation timeframe. Notification was sent to the recruiter and to James himself. Along with the cancellation, and request for removal of the charges immediately, some of the factors mentioned above were included in my letter/email. That was October 4, 2008.<br />
There was no response so I contacted "customerhelp" and received a note from the CEO he was going to look into the matter. A week later, October 17, 2008, after several emails and phone calls, I received an email apologizing for the delay and yet no satisfaction. It seems the CEO has some type of difficulty comprehending the seriousness of the situation.<br />
Over the weekend, I received a FICO notification my credit rating dropped by 28 points. It had been 804.<br />
It is curious to me why after only being in a program less than six months, I was approached for another program. In light of that, in my letter/email I also mentioned some consideration, a rebate, or cost reduction should be offered to "Elite" recruits at the outset as an appropriate way to do business.<br />
Because there was no mention of how the tuition was structured, I posed this question also: Is tuition based on a per student basis or was this another opportunity for single people to subsidize dual income couples.<br />
2008-10-28 by Jamie Bailey [send email] -1 Votes<br />
<br />
Dishonest Practices! I signed up for a Las Vegas event. I called to find out if I needed to bring any notepads, etc and was informed that the event had been cancelled due to a conflict with Mr. Smith's schedule. I sincerely think that if I wouldn't have called I would have went on to Vegas to find out in a bad way the event was cancelled. I paid $6, 495.00 for myself, my spouse and my kids (28, 25, 17, 16) to attend. Believe me it was hard to be able to get all 4, one of which has a wife to be able to go on an exact date. So they offered me a date in June for Vegas and it conflicted with 2-3 schedules. They offered several more dates and locations, which also conflicted. We just are not able to get everyone there at the same time. (in the meantime one son took a job with the Dept. of Defense and moved to Northern Virginia). So I asked for a refund on the basis that my Las Vegas Date was cancelled by their firm and not me. I was told that there was a 3 day cancel provision and that was it. The point is they cancelled the even more than 3 days after I signed the agreement...not me! Then I was told by Nate Bay that he only wanted to discuss it over the phone . I requested to discuss it via e-mail or written mail and of course haven't heard a word back from them. I really like James Smith, he cracks me up and I probaly would have scheduled another Summit when the time was right but to have them sitting on my 6k and then get all this jack and not have good business values and morals makes me think that I shouldn't attempt it again.<br />
2009-04-13 by pink -1 Votes<br />
<br />
I have to totally agree that the James Smith organization should be responsible for keeping attendees (students) informed of schedule changes especially when charging so much money to attend their training. I called to verify the location for an event and was tranfered four times to ever get the correct location where the training was being held (which had changed from the orignal advertised location by the way). When I finally was transfered to the fourth person, I also had to listen to another sales spill about joining a select group for training at a cost of $19, 000 which I did not appreciate.<br />
2009-11-16 by CNJ -1 Votes<br />
<br />
The fraud committed by NRI - James Smith, Jolee Tibbitts, Roger Williams, Aaron Asmond has personally effected me. I paid 20K to learn how to lose 200k cash. I am a single mom with 8th grade education. The properties were presented as GREAT investments and leveraged my home and bought each one out of trust and presentation. The Personal Coach processed all 11 of the Utah loans through his comapany. Broke confused and struggling...Jolee Tibitts offered to sell me a no-brainer home to flip from her sister to save me from the horrible situation, ("Stop the bleeding" they call it), only to find out, the house was not worth what I paid, but that NRI personal coach got it appraised and funded somehow. I reached out again to James Smith, Roger, Jolee who all stated I had bought horrible homes. Only to be offered another seminar. The embarrassment and the humiation of trusting the many years of expertise represented is my payment for investing in " guarentee satisfaction", "learning the ropes from the 20yrs experienced investment experts and coaches", seminar.<br />
206 days ago by Salt Lake City -1 Votes<br />
<br />
I must disagree with all the negative things I am hearing. I am a single Mom and invested the last pennies I had into James Smith company with little to no knowledge of how the real estate system worked. My Mentor was fabulous! and today I'm a living testimonial that if you do your DO Diligence, it works! I personally know Aaron Osmond is not scammer.<br />
<br />
You know? anyone can get on here and write whatever they want. The Internet is not regulated, in fact, the BBB is not even a government/state entity. Maybe the truth of the matter is, that you are actually disappointed because you did not succeed. Many people pass the buck and do not take responsibility for their lack action.<br />
<br />
<br />
Salt lake City, Utah<br />
74 days ago by Mr. W. Brown 0 Votes<br />
<br />
Dear Salt Lake City,<br />
<br />
You sound like someone from the company. Especially since the company is based in Utah.<br />
<br />
Signed,<br />
<br />
Another Dissatisfied Student<br />
71 days ago by Brad Weiss 0 Votes<br />
<br />
I am a potentionally a new student. I have put a 5k down payment with the rest due tomorrow, 20k. I am alarmed by the some of the comments I am reading. I agree they are good salespeople and believe in the premise, "if it seems to good to be true it is". Is it a scam? Do the programs work if you do you homework? Should I get our now before I mortgage myself to the hilt?<br />
<br />
Confused recruit,<br />
<br />
Burlington, Iowa<br />
69 days ago by Sean O'M Sr. 0 Votes<br />
<br />
Hi Brad Weiss,<br />
<br />
<br />
I have not attended the seminar I bought at the Get Motivated show yet. I too have been trying to find out more about James Smith and his real estate investing program.<br />
<br />
I found several comments on the internet and they are both good and bad. My wife and I will be going to the 3 day class in Raleigh and make a decision about further education after that.<br />
<br />
Hope this helps.<br />
<br />
You can try running similar searches yourself if you ned more information.<br />
<br />
God Bless.<br />
James Smith Real Estate / Net Marketing, LC Complaints - Celebrity conference is a rip off!<br />
Review all James Smith Real Estate / Net Marketing, LC complaints<br />
James Smith Real Estate / Net Marketing, LC<br />
Posted: 2006-12-21 by Erica [send email]<br />
Celebrity conference is a rip off!<br />
Complaint Rating:<br />
My Boyfriend and I attended the Celebrity Conference in Orlando Florida this December. We found out about it through a mailing from Donald Trump's company, which also touted that his right hand man, George Ross would be there to speak. So we signed up for the seminar, really excited to hear the man speak, and figured we'd get some great information on real estate investing.<br />
<br />
Needless to say, it was one big sales pitch from one speaker to the next with price tags of $2, 000 to $6, 000 for their seminars. We fell for two of the seminars, with their big promises of making big money and learning how to break out of the rat race. Once we left, we still felt good about our purchase, until I researched the Internet the next morning. To my chagrin, there were unlimited complaints easily found on this company. It took more research to find out who they actually did business as (Net Marketing, LC) and figure out how we were going to cancel these seminars.<br />
<br />
It seemed it would be easy, since they provide telephone numbers to call and cancel with, but after those sales pitches and big price tags, neither he nor I trusted this company one bit. So we researched on the Better Business Bureau's web sites, which had complaints on this company and how to handle your cancellations. Immediately, I drew up cancellation letters, signed them and sent them certified mail to the company's address, also copying our credit card companies and the Better Business Bureau in Utah.<br />
<br />
So far, we've been able to cancel one of the seminars, only because my boyfriend got a hold of a squeamish sales person in that department, and was able to get a return authorization number from him. The other department, the real estate department, had been nothing but extremely difficult in getting hold of and verifying our cancellation. We've since left 2 messages for the return department, awaiting a return authorization number.<br />
<br />
In my experience, it is not even worth going to these so called seminars, and if you do, do NOT purchase their seminars. It's not what they promise, and they're only going to up sell more expensive services to you.<br />
<br />
If this company ends up charging our credit cards anyway, they're going to have a real problem!<br />
Comments United States Education<br />
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Comments Sort by: Date | Rating<br />
300 days ago by Anonymous Z 0 Votes<br />
Okay, so I have attended one day at this seminar, and so far I have enjoyed it. Ryan is the main speaker it seems, but does not seem arrogant as some have said. He quotes a lot of references like movies and culture, but still knows his stuff when talking about his own deals. I'm a skeptic, but feel I have gotten just as much out of one day at this seminar as the Get Motivated seminar, or any 'self-help' text.<br />
<br />
This is not a charity, I would be surprised not to see other pricetags and seminars from any 2 day seminar. So you're not going to get rich overnight? SO WHAT! One of Ryan's big early comments was that he didn't like to read books and showed a book cover, telling us to read just that specifically the word THINK.<br />
<br />
Success is about hard work, knowledge, and the mutual application of such. end of story. If you attend this and pay $3k understand that you're paying that much weigh your risks, either do it or don't and blame no one but yourself.<br />
<br />
Oh, and here's a cute statistic Ryan gave us, 80% of people that paid for the seminar didn't even show up for the first day. I can only guess on the percentage of people that complain about something and never did squat to apply the principle.<br />
<br />
There is no quick witted, simple way to wealth.<br />
289 days ago by themoneyviews732 0 Votes<br />
I have taken many courses in Real Estate and they were never cheap they will usually run aroung 3000.00 for the seminar and course.<br />
<br />
Yes I did learn a lot, but that was like 6 years ago, in todays market real estate has changed, people need to know what they are up against and they should have some kind of training under their belts before doing any deals.<br />
<br />
I started the Real Estate Buyers Club because I wanted to give people some up front and free info, you are free to review my info and ask questions, the best thing it remember you can always find out for free. I have even loan out my courses so that our Club can grow and help more people get out there and either buy their first home or rental property.<br />
<br />
There are so many aspects of real estate:<br />
<br />
Note buying and selling<br />
tax sales<br />
multi family<br />
rehabbing houses<br />
buying your first home<br />
<br />
and so much more there is a plce for anyone who wants to make money even if you have no money its simple just never give up!<br />
<br />
themoneyviews at yahoo<br />
280 days ago by Mark C. See 0 Votes<br />
I just finished the $49 three day seminar in Denver. I took my 17 year old son, Ryan, with me and was very impressed with the entire event. To be honest I was very skeptical at the start but after seeing James Smith at the Get Motivated event earlier I was willing to give them a hearing.<br />
<br />
The information came "hot and heavy" and sometimes Ryan Smith was a little hard to follow but I came away with over 50 pages of notes. I found all the presenters to be credible and caring as were all the one-on-one coaches. "Thanks Jordan for all your help"<br />
<br />
I signed up for the Advanced training and I am looking forward to what Ryan and I will learn. This is more for him than me and we will walk this path together.<br />
<br />
I have a difficult time understanding some of the negative comments I've read over the past hour or so. This is part of my due dilligence and if I found that this was not something for me I would simply explain my reasons and leave it at that. No name calling, etc. I suffer from chronic cluster headaches that are triggered by flourescent lights and I was in quite a bit of pain during the seminar but I'm not about to complain about the lighting - it is what it is. You get out of something only what you are willing to put into it.<br />
<br />
I have to say that the three days invested was time well spent!<br />
<br />
Mark C. See<br />
256 days ago by I'd like to see real results! 0 Votes<br />
Does anyone that actually followed through with the personal mentor/coaching training programs have an opinion. There are a lot of complaints from people who haven't really went through with the program(s) full force...does anyone who went through the total experience have an opinion? That is what would give the picture of the true capabilities of the company...not the stuff they use to lure you in (that's what they're supposed to do...Americans are natural skeptics, we always need bait...and they bait very well; it doesn't always mean we get conned though!) So if there's anyone out there that truly paid their $25, 000 fee and ended up with the short end of the stick, let us know.<br />
255 days ago by diligent 0 Votes<br />
As to what "Sunshine is good" posted<br />
<br />
I don't believe a word. I trade paper money on Thinkorswim, and I have accessed it at work. It is one of the best platforms for trading. That comment alone leaves me to believe that your post is not credible, and that any research you attempted was poorly done.<br />
212 days ago by Pastor Rich W 0 Votes<br />
Preacher Rich Here...<br />
I just ordered my james smith series and hoping it works for me. I am a pastor full time and times are hard for everybody. when in the public eye every soul and every life is nothing more than a glass house. But the perfect house will never be seen. When you have humans involved you will never find it to be perfect. Only two men I know were perfect. One was translated (enoch) and the other was crucified (Jesus). So if one good thing will come out of this series for our church and my ministry, it will be worth the $50 i just spent. Don't know what the M5 is or any other thing you are talking about, however, i am sure i will find out very soon. Good luck God bless and do good to others as you would have them do to you... Rich W Troy, OH. 937-339-8624 Cell #<br />
131 days ago by Bob Bluhm 0 Votes<br />
MYLOTHORNTON (my friend from 2 comments prior)<br />
<br />
I agree with your comment that Jesus forgave a prostitute and forgiveness will make the world go round. WELL SAID!! With that being said, those who stand up to advise others should first look at themselves. Does not EVERY religion preach that as well?<br />
<br />
I have spent $3000 with James Smith Company and is it a scam? I do not know.<br />
<br />
Yes I met Kari Michaelsen at the $99 seminar and was lured into buying the 3 day workshop.<br />
She turns on her tears real well when she gives the sob story of her parents and how they died leaving her alone. She said that my wife and I reminded her of her parents and she would love to help us and feel good. Later we heard her use the same story for a young girl who also attended telling her how she reminded Kari of herself and how her parents had died...<br />
She REALLY turns on the taps and is unscrupulous about using her 'dead parents' story.<br />
<br />
We are happy that we attended the core strategies because we are real estate agents and it is always good to grow and stay current. James Smith had some real good tips. His son Justin who taught our class was very good too. His knowledge and vocabulary are AMAZING.<br />
<br />
Friends of ours signed up for platinum and are happy too. They met Kari Michaelsen when she was MC at the M5." Not impressive but very involved" is what they said about her.<br />
<br />
Kari Michaelsen and James Smith were to teach a Leadership Mastery class for $9999 in the summer of 2009.and my friend signed up for it. No information was forthcoming from James Smith Company so my friend called to ask about the dates and location etc. and was told that Kari Michaelsen did NOT work for the company anymore. He got a refund!<br />
<br />
Further questioning revealed that Kari Michaelsen was fired and her interviews with successful students used as testimonials were taken off the company website. Also her testimonial for how James was her true "GURU" and how she had found "HER TRUE MENTOR" in him on the James Smith Series was removed as well.<br />
<br />
At the Hawaii M5 in October 2009 it was common knowledge that James Smith had to fire Kari Michaelsen because his wife demanded it.<br />
<br />
Several students since have seen them traveling together over the country...<br />
<br />
I found other comments on the Get Motivated Seminar websites and am pasting some here.<br />
<br />
Complaintsboard.com Get Motivated<br />
<br />
I attended the seminar in LA. I agree that the emcee in her 4 inch heels is garbled and unclear. I found out her name. She is an LA resident. Kari Michaelson working for Get Motivated. Googled her and this is what I found. Wow the Lowes made some choice!!<br />
Google:<br />
1... probably wouldn't have noticed if the scene didn't keep going and going, with plenty of close-ups on Kari Michaelson removing each piece of clothing ... that kept the camera off Michaelson here and there during her strip tease. ... were so damn hot that yes, kids were trading used stickers with each other. ...<br />
www.brandedinthe80s.com/?search=1&search_string=rific - Cached<br />
2...Andy Gibb (March 5, 1958 – March 10, 1988) was an English-born Australian ... ( He was actually engaged to actress Kari Michaelson, a star of the former, ...<br />
tripatlas.com/Andy_Gibb - Cached<br />
3...Kari Michaelsen on the highwire on Circus of the Stars (1983 - video clip - 31MB ) · Where are they now? type article on Kari Michaelson (and Matthew ...<br />
www.sitcomsonline.com/gbreakwhere.html<br />
4..Kari met James Smith in early 2004 when she attended a “Financial Success” ... James Smith I knew I had found someone who really practices what he preaches. ...<br />
www.jamessmithseries.com/index.php?option=com...view..<br />
5.. James Smith should practice what he preaches. Talking of respect for women and family an himself having a married woman Kari Michaelson working in his ...<br />
www.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc- c3195.html?... - Cached<br />
<br />
What an emcee! and Colin Powell, Rudy Juliani, Conduleeza Rice are speaking for Get Motivated?<br />
Peter and Tamara Lowe need to do some thinking!<br />
<br />
Blogs Artvoice.com<br />
<br />
I attended the Get MotivatedSeminar at Phoenix a few weeks ago and was very impressed. Especially by Tamara Lowe who came across as an honest person, a good mother, and a role model for many.<br />
<br />
I also bought the 3 day real estate seminar with James Smith Real Estate Company. I will be going to it from April 23-25. They have not given me information on the venue yet!!I have very high hopes from what James Smith promised it would do for me. I sounded very convincing for sure.<br />
<br />
I actually boarded the flight with from Phoenix to Los Angeles on March 10 with James Smith and Kari Michaelsen the woman who introduced speakers at the seminar. Since they were real busy with each other my wife would not let me approach James Smith. I really wanted to talk to the man. He seems like a good and genuine guy.<br />
<br />
James Smith Was interesting, funny, and very motivating in encouraging me to get out of my comfort zone and make it big. THe 3 day financial seminar will be great. My friends who already attended one say that he came to speak and was comic as well as educative.<br />
<br />
Kari Michaelsen seems to be such a pinched, worn out, old looking hag!! She came as a real surprise. She had been unimpressive on stage while screaming out the introductions anyway. Looking at her up close when she was with James Smith was kind of weird. Her strip tease role in Saturday the 14th was the reason the movie was rented over and over and watched at our sleepovers. We got away with it since the movie was a teen horror. What we really watched was her hot undressing and bathing scene.Everybody did! She did quite a number with taking off each item of clothing. Taking off her panties and exposing her bubble covered breasts was the best . She looked real good in the bath towel too.<br />
<br />
I was surprised that James Smith has Kari Michaelsen for a mistress. A man of his magnetic personality and good looks could have had his pick. More so with being such a success at real estate and motivation.But she DID do a real number in the 80’s. Ask any boy growing up in those years. Branded in the 80’s is a website to check it out if you missed it (you could NOT have) or were born later .<br />
<br />
Comment by Eric MM — March 12, 2010 @ 4:13 pm<br />
<br />
<br />
Read more: http://blogs.artvoice.com/avdaily/2009/08/19/get-motivated-and-get-out/#ixzz0jsb9Jq7A<br />
<br />
Blogs Artvoice.com<br />
<br />
<br />
Of course the motivation is money and nothing else.<br />
Tamara Lowe preaches goodness family and Christian values and has James Smith as an infomercial that rakes in money. She has now hired his mistress Kari Michaelson to emcee . The married woman was working for him for years and was fired when his wife threatened divorce. Get Motivated hired her and now the two can be together again.<br />
<br />
One would think that Tamara being a wife and a loving mother would have made a wise judgement. It is obvious that money and keeping those that bring it in happy is the goal.<br />
<br />
We pray that Jesus gives shows her the right path and gives her the strength to make the right decision. One that supports her book and what she preaches.<br />
<br />
Comment by Megan Maxwel — February 18, 2010 @ 5:13 pm<br />
<br />
<br />
Read more: http://blogs.artvoice.com/avdaily/2009/08/19/get-motivated-and-get-out/#ixzz0jsbTTSab<br />
<br />
I GOT WHAT I NEEDED OUT OF THE WORKSHOP I PAID FOR AND AM GLAD I DID NOT PAY OR SIGN UP FOR MORE. That sums it up for me!!<br />
113 days ago by Saxon35 0 Votes<br />
I paid $25, 000.00 for four different seminars and packages from James Smith one year ago and have not made a single dollar off of them. However, I do not hold James Smith completly responsible for that. When I signed up for his $10, 000.00 boot camp I was asked if I was willing to put forth 8-10 hrs a week towards the program. Of course my wife and I said yes. As soon as the program started and my wife realized that she would have to provide a pitch to real estate sellers, she was out. I got busy with my other job and never put forth the effort needed. My mentor was awesome and did everything he was suppossed to do.<br />
<br />
American's by nature are lazy and I'm no different. I was lured in by the money to be made and didnt follow through on any program. That's how most of these guys get rich.<br />
<br />
James Smith is responsible for one mislead when they present their pitch. In order for the program's to be tax deductible you must already be in the real estate business. These seminars are not deductible as a new business (career) start up costs. The credit spreads seminar is not deductible unless you are a trader, not an investor. Contact your tax person to understand the difference.<br />
<br />
I've learned a bunch from my experience with James Smith, both from him and about the seminar world in general. Don't shy away from these opportunities because you think they are a scam, they are not; but don't go blindly into them with your credit card out thinking you'll get rich without putting forward the effort doing something that may take you out of your comfort zone. Hope this helps!!<br />
99 days ago by Gildy 0 Votes<br />
I found the post below about James Smith of James Smith Company and Kari Michaelsen the emcee of Get Motivated.<br />
It is a shame that Tamara Lowe is running a show with these scandals.<br />
<br />
There should be a boycott of this seminar by all the respected speakers.<br />
<br />
James Smith just sells his classes and is definitely not a speaker.<br />
<br />
Kari Michaelsen is only an announcer.<br />
<br />
But to have them anywhere on the show is an insult to Colin powel, Rudy Guiliani, Krish dhanam, Sara Palin etc.<br />
<br />
Obviously there are no morals at Get Motivated!!<br />
<br />
READ THESE POSTS!!<br />
<br />
<br />
2 days ago by giggly<br />
<br />
This is crazy.<br />
<br />
James Smith was a speaker at the Luxury Homes seminar in Vancouver on April 23 2010 and Kari Michaelsen flew in with him and stayed with him.<br />
<br />
I found the below post on another website.<br />
<br />
Debbie C said<br />
<br />
March 18, 2010 at 7:17 pm<br />
Fort Lauderdale<br />
My boyfreiend and I attended the seminar in Fort Lauderdale. We found it real cool with Collin Powell ans Tamara Lowe. I really liked Tamara. She was very motivating telling us about her own hard growing up. I found inspiration in that as I am also from a family that went through hard times.<br />
<br />
Kari Mikelson stayed at the hotel in Weston that my boyfriend works the late night shift at for 2 nights. She announces at the seminar.But we did not see her at the seminar when we went.<br />
<br />
We were so excited!<br />
My boyfriend said that the real speakers would come and stay there too.He said that the names were not on the list for security reasons maybe. I really wanted to talk to Tamara after I heard her that day.<br />
Nobody came and stayed.<br />
<br />
Only the tall real estate guy James Smith came both the nights but did not actually check in at the hotel.<br />
Later we found out that the others stayed at the fancy resort hotel a couple of miles away.<br />
I was SO disapointed!!!<br />
The speakers should realy let people meet them and talk to them. Specialy Tamara Lowe.<br />
<br />
AND WE ARE SUPPOSED TO PAY JAMES SMITH OUR HARD EARNED MONEY?<br />
<br />
True the James Smith Company website and he say that there is honesty and integrity. They also say that he is a happily married man. Check the page that is about James Smith. He has a wife and three sons and is happily married.<br />
<br />
NOW do you believe him?<br />
99 days ago by Gildy 0 Votes<br />
Found this post on another website. Very interesting!!<br />
<br />
Comment by Anne Waldon — March 29, 2010 @ 4:58 pm<br />
<br />
Tamara Lowe- Her Actions Make Her Words in her book “Motivational DNA” and her motivational speeches in Get Motivated Seminars a LIE!!!<br />
<br />
Westlake Village, Los Angeles<br />
<br />
Our book club and Friends of the Library Organization picks a book that allows for self-improvement and growth, enabling people to live better lives by continuously improving their quality of interaction through the experiences, insight, and advice of authors of repute. While we are not a religious organization, we do uphold the values of the scriptures.<br />
<br />
Our club just concluded a reading, analysis, and debates on Governor Palin’s “Going Rogue”. A more unpretentious, honest, forthright, and unbiased recounting of personal experiences, strife, dreams, fears, and emotional struggles we would be hard pit to find. Congratulations, Sarah!<br />
<br />
The next pick was to be “Motivational DNA” by Tamara Lowe. Having researched her background, we were certain that her undoubted success and her willingness to give and share set her in a class above most others.To make her book our next reading would most certainly allow for inspiration and positive growth.<br />
<br />
Get Motivated Seminar was hosted in Los Angeles recently and many of us attended it enthusiastically.<br />
<br />
We came away shocked, bewildered, and angry.<br />
<br />
The emcee was Kari Michaelson or Kari Michaelsen(both spellings are used by her).<br />
<br />
Since Tamara Lowe has hired Kari Michaelsen, she obviously meets or exceeds the qualifications and standards Tamara use for someone who represents Tamara Lowe herself!! Hiring, as all of us who are in corporations, school districts, or even in caregiving know, is a process that entails scrutiny and careful checks before decisions are made. Therefore, Kari Michaelsen represents Tamara Lowe completely!<br />
<br />
This raises a question. Does Tamara Lowe really have worthy principles, high moral standards, follow the Christian teachings she preaches and claims to live by?<br />
<br />
FACTS:<br />
Public knowledge and easily verifiable.<br />
1. Kari Michaelsenis most famous for her strip tease act on screen. She shamelessly took off every last undergarment in her career in public eye. In addition, revealing and suggestive pictures of her are on the web.<br />
<br />
2.Kari Michaelsen was in a long term relationship with Andy Gibb who was a drug addict and died of overdose while Kari was engaged to him.<br />
<br />
3. Kari Michaelsen was a college dropout who was unable to settle in any relationship, job, or field. She finally married David Waldock in her 40’s.<br />
<br />
4. Kari Michaelsen’s marraige and the birth of her son Nickolas did not prevent her from having affairs with other men.She has worked for and been the mistress of James Smith the real estate speaker for Get Motivated who owns James Smith Company and James Smith Series.<br />
<br />
5. Kari Michaelsen works for James Smith and Get Motivated which allow her to be in close contact with him.<br />
<br />
6. James Smith and Kari Michaelsen are both married people with families of their own who are suffering due to their cheating.<br />
<br />
7.Kari Michaelsen is playing the unworthy role of being a marraige wrecker.Kari Michaelsen has not been known to have any stability in the past and has also broken James Smith’s marraige of 30 years.<br />
<br />
8. Kari Michaelsen’s son Nickolas is a neglected boy who is struggling through crucial growing years without his mother’s care and love. His caregivers and teachers vouch for the trauma he is undergoing.<br />
<br />
Tamara Lowe has hired Kari Michaelsendespite ALL of these facts and MORE.WHY?<br />
<br />
Because Tamara did not run background checks on Kari Michaelsen?<br />
<br />
Because Tamara does not know that she is providing James Smith and Kari Michaelsen with expenses, time, and hotel rooms at every Get Motivated seminar to enjoy each other and wreck their marriages further?<br />
<br />
Because James Smith brings in so much money to Get Motivated that Tamara is willing to compromise her morals and keep him happy and satisfied?<br />
<br />
Because Tamara’s principles do not include FAMILY even though she boasts about 20 years of marriage and two beautiful sons?<br />
<br />
Tamara Lowe:<br />
<br />
The Bible reads:<br />
<br />
Timothy5:3-8 All who live in pleasure are dead while they live, spiritually dead, dead in trespasses and sins………..If any men or women do not maintain their poor relations, they in effect, deny faith. If they spend upon their lusts and pleasures, what ……..they are worse than infidels. If professors of the gospel give way to any corrupt principle or conduct, they are WORSE than those who do not profess to believe in the doctrines of grace.<br />
<br />
Are you a true Christian?You showcase values that you do not uphold.Actions speak louder than words, Tamara.”Motivational DNA” might make good reading, but that is all it will do if the author, Tamara Lowe, cannot live by her own words, both written and printed.<br />
<br />
We are NOT recommending this book to the LA County libraries and rejecting it for our book club list<br />
<br />
<br />
Read more: http://blogs.artvoice.com/avdaily/2009/08/19/get-motivated-and-get-out/comment-page-1/#comment-7737#ixzz0jbOaEqth<br />
104 days ago by florida o-town 0 Votes<br />
First of all, this is a travesty that Get Motivated Seminars lets these snake oil salesman, so called faith-based get rich quick, pitch artists give their infomercials in between the real world renouned highly ethical faith based motivation speakers like Collin Powell, Tony Dungy, Zig Ziggler, etc. They leverage these big names and sneak in the snake oil salesman in between them not on the agenda.<br />
<br />
This is the oldest scam in book. Touted God an faith and getting rich, they lure people to these 3-day workshops for a one time only price for Get Motivated attendees of $29.99 instead of the regular price of $10, 000. Yeah right! First wedged in between the real motivational speakers that had some guy touting get rich quick day trading stock investing system and software. You can quit your job work 5 hours a week and make millions of dollars in just a few months. Then they had this James Smith guy, touting God and his get rich quick system in Real Estate, then they had a guy touting a home based internet system that will make you rich working 1 hour a day or less. He showed pictures of his 20, 000 sqft house and pictures of his actual pay checks from the business or thousands of dollars for a few hours work.<br />
<br />
Are you kidding me? After all the scam artists that have been busted selling these pipe dreams, how can any possible fall for these scams. If these systems were so great and they made so much money from them, why in the world would James Smith want to share their systems with the rest of the free world. Oh wait. I know, because they love God and their fellow man and they want to share the wealth. If you believe that I have some prime land to sell you in the Lousiana buyoo. Mr. Smith would not be wasting his time peddling workshops and training systems if he had some great secrets system. He would be keeping his system a secret.<br />
<br />
Listen folks, there is no get rich system that you are going to learn at any workshop. The only true faith based financial system to get rich that I recommend is this: work hard, spend less, and save more. Live below your means, don't go into consumer debt, pay off your house early, invest in simple low cost equity index funds and don't fall for anything that sounds too good to be true. The only workshop that I recommend is Dave Ramsey's Total Money Makeover and/or Financial Peace University. It's about $30 for a full day and they will not try to sell u anything more than maybe a $10 book. I do not work for Dave but I have been thru his system and he teaches simple to understand steps to change your financial family tree. He teaches you how to spend less, make more, budget, pay off debt, save for your kids college, save more for retirement, and give more to charity. But it does involve some tough choices, budgeting, cutting back, maybe getting an extra job, saving, etc. He say's "live like nobody else today, so you can live like nobody else tommorrow". Unfortunately, there is no get rich quick system where you can work less, spend more, and get rich quick. Thats what everyone wants. That's why so many people fall for guys like James Smith and even after they attend his scamimars, they justify the 10K they spent on his workshops.<br />
<br />
And for those of you who look at these websites and see that maybe 3o% to 50% of the reviews are somewhat positive with actual real people sharing how they attending the seminars and made great money, keep in mind that Mr. Smith is well aware of web sites likes this one that can have a huge effect on this bottom line. I am positive that he has all of his staff, post hear and to other review and complaint sites regularly from their personal computers acting as if they were satified customers. The on-line world is not what it seems in many cases. Just the same as that teenage girl that you've been secretly sex chatting with on0line is instead probably a 350 pound 60 year man.<br />
<br />
Tamara and Peter Lowe should be ashamed of themselves for bringing in these scam artists to these Get Motivated Events and praying on unsuspecting people coming to see motivational speakers. The real speakers like Dungy, Collin Powell and others should be more carefull with who they are associating themselves with and putting their names on. It is not long before the FCC and/or some trial lawyers decide that too many little old church ladies have been scammed out of their last $10, 000 after attending seminars from the likes of Mr. Smith, and they decided to sue Mr. Smith, Mr an Mrs. Lowe and Collin Powell and Tony Dungy for being apart of this whole ponzy scheme.<br />
<br />
If you are thinking of going to a Get Motivated Seminar, its a good value for the $9 that I paid to see the big name speakers, but DO NOT pay any attention to anyone trying to sell you a dream of getting rich quick and then signing you up for another 3-day seminar for the one-time only low low price of $29.99 regulary $20, 000. Please run as fast as you can the other way. Go buy Dave Ramsey's book for $10 and do what he says. It's not glamorious and its not easy at times and its not a way to work less and get rick quick over night, but it will change your financial life for the better and change your financial family tree.<br />
102 days ago by giggly 0 Votes<br />
This is crazy. James Smith was a speaker at the Luxury Homes seminar in Vancouver on April 23 2010 and Kari Michaelsen flew in with him and stayed with him.<br />
I found the below post on another website.<br />
<br />
Debbie C said<br />
<br />
March 18, 2010 at 7:17 pm<br />
Fort Lauderdale<br />
My boyfreiend and I attended the seminar in Fort Lauderdale. We found it real cool with Collin Powell ans Tamara Lowe. I really liked Tamara. She was very motivating telling us about her own hard growing up. I found inspiration in that as I am also from a family that went through hard times.<br />
<br />
Kari Mikelson stayed at the hotel in Weston that my boyfriend works the late night shift at for 2 nights. She announces at the seminar.But we did not see her at the seminar when we went.<br />
<br />
We were so excited!<br />
My boyfriend said that the real speakers would come and stay there too.He said that the names were not on the list for security reasons maybe. I really wanted to talk to Tamara after I heard her that day.<br />
Nobody came and stayed. Only the tall real estate guy James Smith came both the nights but did not actually check in at the hotel.<br />
Later we found out that the others stayed at the fancy resort hotel a couple of miles away.<br />
I was SO disapointed!!!<br />
The speakers should realy let people meet them and talk to them. Specialy Tamara Lowe.<br />
101 days ago by JAMES SMITH BLOWS 0 Votes<br />
IT'S A SCAM! IT'S A SCAM! one more time, IT'S A SCAM! do NOT spend a cent on it. As many people have pointed out, why would they be sharing these "secrets" for so little. "Hmmm...sell a magical financial secret for $3, 000 or utilize it and make millions?" I don't know about the rest of you, but I'm Jewish and financial fraud is in my blood; whether or not I choose to exploit it is entirely up to me. This immediately set off a major bullshit censor in my head, they will take your money and not follow up on you. They don't care. Once they have their money from you, they don't care. You must think to yourself, is this too good to be true? If it was THAT amazing, why doesn't everyone do it?<br />
97 days ago by Eduardo M 0 Votes<br />
May 5 @ 4:58PM<br />
<br />
The famous couple is right here WITH ME at Atlanta airport in the Delta terminal. Yes, my friends! James Smith and Kari Michaelsen are right here right NOW.<br />
<br />
The Delta staff tell me that they are 'regulars' here and come together every few days and sometimes a couple of times a week.<br />
<br />
So THIS is the hub!!<br />
<br />
iPhones are the way to go!! They connected me right in!!<br />
96 days ago by EMD 2010 0 Votes<br />
Eduardo M FROM THE POST ABOVE!!!<br />
<br />
NOTE: The date on the above post is yesterdays. This post was written on April 17 2010.<br />
<br />
There might be confusion about the date as the POSTING date was May 5.<br />
<br />
To add to the provided information about James Smith and Kari Michaelsen:<br />
<br />
Delta staff told me that they were at the airport Delta terminal traveling together 4 times between March 23 and March 30 2010.<br />
77 days ago by CindyS 0 Votes<br />
James Smith and James Smith Company are nothing but liars. They take people's hard earned money with false promises and LIES.<br />
<br />
PROOF of there lies is on their OWN website. Jamessmithcompany.com has testimonials that are LIES. T testimonial should be all TRUTH. They mislead people. Do not give him your money. He lies.<br />
<br />
A testimonial on the website is by Kari Waldock saying she and her husband learn from James Smith. She says that her husband and James Smith are like long lost brothers who bonded immediately.<br />
<br />
LIES LIES LIES!!<br />
<br />
Her name is Kari Michaelsen. Her EX husband is David Waldock who divorced her soon after he married her in 2002 when Kari was almost 42 years old and they had a son Nickolas.<br />
<br />
Ask David Waldock or check public records to find out the truth. She is divorced and has said in the testimonial on April 12, 2010 that she is married and her name is Kari Waldock.<br />
<br />
ALL LIES!!!<br />
<br />
Kari Michaelsen has been in NO legal relationship other than a few years of being married to David and he divorced her too.<br />
<br />
Kari Michaelsen worked for James Smith Company<br />
Kari Michaelsen works for Get Motivated Seminars Tampa Florida and<br />
Kari Michaelsen now works for Gregg Amerman ofPure EdgeUtainment<br />
1005 Alderman Drive Suite 203. Alpharetta, GA 3000<br />
<br />
Kari Michaelsen is MC of Get Motivated and that shows the Peter and Tamara LOwe couple do not care about morals!!!<br />
<br />
Kari Michaelsen will be a speaker for Gregg Amerman and teach WHAT???<br />
<br />
How to have lots of broken relationships or never keep one or giving her son Nickolas a broken home or breaking James Smith's marriage of 30+ years and making his family hurt????<br />
<br />
Any other lesson from a person who lies without any shame about being married when she is divorced.<br />
<br />
BEWARE!! The testimonial video on the Jamessmithcompany.com website will be removed right NOW. This is how they hide and cheat and take people's money!!<br />
75 days ago by aosmond 0 Votes<br />
Cindy,<br />
<br />
My name is Aaron Osmond. I am the CEO of the James Smith Company. James is both my business partner and close friend. I am also a friend and professional associate of Kari Michaelson.<br />
<br />
I feel it is important for the reputation of our company and for the thousands of students we serve, to share some important facts to end this ridiculous slander of both our company, James Smith, and Kari Michaelson:<br />
<br />
Here are the facts I want to share to the public:<br />
<br />
1) Almost all of the instructors, mentors, staff, and road crew at our company are former students. To us that is a reflection of our success and our commitment to our students.<br />
2) Kari Michaelson and David Waldock were in-fact students of our classes, training, and mentoring.<br />
3) In May of 2008, I personally invited Kari and David (her husband) to share their testimonials as part of our new success story infomercial that we were filming that year.<br />
4) At that time, Kari and David (as a married couple) provided evidence of their real estate success with documentation as part of that testimonial process.<br />
5) The testimonial video now showing on www.JamesSmithCompany.com is the exact same testimonial that we filmed in 2008.<br />
6) We will NOT remove that testimonial from our website, as it was accurate, true, and verifiable at the time we filmed it and we stand behind it.<br />
7) I later hired Kari as a member of our event staff. She worked at many of our Financial Success events and M5 Conferences in 2008/2009.<br />
8) Because of Kari's skills as a speaker/presenter, she was offered a position at Get Motivated Seminars in 2009 and still works there today (where she has excelled and is respected by the staff at Get Motivated).<br />
9) Our company works closely with Get Motivated Seminars and we know their owners and the staff to be people of integrity and commitment to helping our joint students.<br />
10) James and Loree Smith are still married today. I know and respect them both. They are working through their own challenges and deserve privacy and respect when it comes to their marriage.<br />
11) Kari Michaeson is a colleague, friend, and professional working at many of the same events at James. That is all. Nothing more. There is no story, no drama, no deception.<br />
<br />
To any current or potential student of our company that has read these forum posts, I extend the following offer:<br />
<br />
If you have any concerns relative to James Smith, our company, our training products, our our business practices, I will personally speak with you. You may contact me directly at the following e-mail address: aaron@jamessmithcompany.com. I will contact you from there and set up an appt to talk. I am confident that we have done and will do the right thing. That is how James works. That is how I work, that is how our company works.<br />
<br />
Finally, I ask those that have posted these misleading and hurtful statements to contact me directly. I will happily speak with you about the truth, the facts, and reset your perspective if you will exercise the courage to contact me.<br />
<br />
Sincerely,<br />
Aaron Osmond<br />
CEO<br />
The Coaching Company, LLC<br />
800-270-3357<br />
aaron@jamessmithcompany.com<br />
www.jamessmithcompany.com<br />
72 days ago by MarkST 0 Votes<br />
Distressed Friend<br />
<br />
I am writing this because I feel that it is very unfair to Kari Michaelsen to be made to look bad. Kari and James Smith have a very special friendship.<br />
<br />
Kari and James respect each other and care about each other very much. It is not right to make Kari look bad. She is a sweet spirited woman and is very caring and kind. She loves her son a lot.<br />
She does everything she can to give him a good family life. Kari has not even let her divorce affect his growth.<br />
<br />
Kari goes out of her way to fall in with James's plans and follows his itinerary even when it is very difficult to match flights and makes longer journeys all the time just for him. Multiple times she has made last minute changes or plans and never complains to him.<br />
<br />
Even when James Smith came for the classes to LA in March Kari was very flexible. She picked him up at the airport on March 6 night and went with him to his hotel. On March 7 she moved in with her bags and took the early flight to El Paso next morning. James joined her there fr the Get Motivated. On March 9 she left El Paso by an early flight but they met in Phoenix and flew back here together and he stayed in his hotel. She came home on March 11 morning and then went back that night to the hotel. James left on March 12.<br />
<br />
All of these took a lot of trouble on her part to organize and plan. Kari is always trying her best to make things easy for James since he is always traveling for shows or classes. She neds appreciation and not accusing.<br />
<br />
Kari has always put James's family before her own. She stayed on in Jacksonville for the eve and morning of her birthday and left only on November 4 noon when James left to drive to Orlando. She did this because James wanted to spend time with her.<br />
<br />
Kari did not complain when James's son Justin went to Denver for the Get Motivated seminar on October 13 in 2009. Justin shared James's room and that meant no privacy for James and Kari as James did not visit her room as usual. Kari had to fly with James to Springfield the next day and she did that so that they could get their time together.<br />
<br />
Kari was great when James asked her to stay on in Orlando after the Get Motivated seminar on November 10 2010. She waited till early morning for James to spend time with her because he was with his son Brynson for the evening.<br />
<br />
On March 11 this year (2010) James took his son Ryan out for dinner to celebrate Ryan's birthday and Kari had to wait till about midnight before she could go to James's hotel.<br />
<br />
Never has Kari complained and she always tries to spend an extra day at the Get Motivated locations to suit James Smith.<br />
<br />
Please appreciate her loving and giving nature and stop making her look bad. That is all I as for.<br />
71 days ago by MarkST 0 Votes<br />
Distressed Friend<br />
<br />
FOR PREVIOUS POST<br />
<br />
There is a mistake in the date that Kari MIchaelsen and James Smith left El Paso It was March 10 NOT March 9. Kari left earlier and then waited for James to join her in Phoenix. They flew to LA together and she went to his hotel because he asked her to. Then she came home next morning on March 11.<br />
<br />
Corrected Post below.<br />
<br />
MarkS said<br />
<br />
May 30, 2010 at 8:42 pm<br />
Distressed Friend<br />
<br />
I am writing this because I feel that it is very unfair to Kari Michaelsen to be made to look bad. Kari and James Smith have a very special friendship.<br />
<br />
Kari and James respect each other and care about each other very much. It is not right to make Kari look bad. She is a sweet spirited woman and is very caring and kind. She loves her son a lot.<br />
She does everything she can to give him a good family life. Kari has not even let her divorce affect his growth.<br />
<br />
Kari goes out of her way to fall in with James’s plans and follows his itinerary even when it is very difficult to match flights and makes longer journeys all the time just for him. Multiple times she has made last minute changes or plans and never complains to him.<br />
<br />
Even when James Smith came for the classes to LA in March Kari was very flexible. She picked him up at the airport on March 6 night and went with him to his hotel. On March 7 she moved in with her bags and took the early flight to El Paso next morning. James joined her there fr the Get Motivated. On March 10 she left El Paso by an early flight but they met in Phoenix and flew back here together and they stayed in his hotel. She came home on March 11 morning and then went back that night to the hotel. James left on March 12.<br />
<br />
All of these took a lot of trouble on her part to organize and plan. Kari is always trying her best to make things easy for James since he is always traveling for shows or classes. She neds appreciation and not accusing.<br />
<br />
Kari has always put James’s family before her own. She stayed on in Jacksonville for the eve and morning of her birthday and left only on November 4 noon when James left to drive to Orlando. She did this because James wanted to spend time with her.<br />
<br />
Kari did not complain when James’s son Justin went to Denver for the Get Motivated seminar on October 13 in 2009. Justin shared James’s room and that meant no privacy for James and Kari as James did not visit her room as usual. Kari had to fly with James to Springfield the next day and she did that so that they could get their time together.<br />
<br />
Kari was great when James asked her to stay on in Orlando after the Get Motivated seminar on November 10 2010. She waited till early morning for James to spend time with her because he was with his son Brynson for the evening.<br />
<br />
On March 11 this year (2010) James took his son Ryan out for dinner to celebrate Ryan’s birthday and Kari had to wait till about midnight before she could go to James’s hotel.<br />
<br />
Never has Kari complained and she always tries to spend an extra day at the Get Motivated locations to suit James Smith.<br />
<br />
Please appreciate her loving and giving nature and stop making her look bad. That is all I ask for.<br />
70 days ago by New Students 0 Votes<br />
Mr.Aaron Osmond<br />
CEO<br />
James Smith Company<br />
South Sandy, Utah<br />
<br />
Dear Sir:<br />
<br />
It is with great respect that we request some clarification and assurance with regard to the business intention and student support of James Smith company.<br />
<br />
Some of us have attended the Financial Success Summit in Tampa, Florida in the last two weeks. Ryan Smith, a very fine and respect- worthy gentleman, was the main speaker at some of the venues and many of us were able to hear and learn from him.<br />
<br />
We were not allowed to form a list of attendees for contact purposes as desired by many of us. So it is impossible to have a common consensus from all, but some of us who are in contact have concerns regarding our position. We have already paid for a real estate class offered June 11-13 in Tampa.<br />
<br />
Since the 72 hour cancellation period has passed we are unable to demand a refund but request you to make a special allowance for those Tampa residents who request you to waive this policy with concerns similar to ours.<br />
<br />
Upon doing our due diligence and finding out about James Smith Company we read the RIP OFF REPORTs and your company's response in a statement of commitment and promise to all students. That is reassuring.<br />
<br />
We have read the statement of the ongoing lawsuit against the company by Robert Pasiola's law firm and request more information on the same as it may pertain to the students of the company.<br />
<br />
On Complaints Board we have read that multiple times James Smith Company has promoted an investment opportunity and students have put in their money based on this advice. However, all indications show that they have suffered financially and the loss has not been made up to them. Since the transactions are based on advice from the James Smith Company representatives the students have in fact, been ripped-off and received no reimbursement.<br />
<br />
We are seeking publicly stated assurance on this forum of public voice that poor investment advice and any misleading will not occur in the future.<br />
<br />
Tampa residents have ben involved in or witness to many cases of fraud and deception in matters of real estate and finance pertaining to Without walls International Church owned and operated by Pastor Paula White and her divorced second husband (in 2008)Pastor Randy White. Without Walls and Pastor Paula White have been subjected to Senate and CNN enquiries for their financial dealings. Without Walls faced foreclosure at the same time that the Whites who own and operate it in entirety made tens of millions of dollars personally. Many innocent people have sad and proven stories to tell and despite exposure of the White's deception have received no compensation.<br />
<br />
With all due respect we ask what James Smith Company's business partnership and intent (as far as it affects us students) is with Without Walls International Church 2511 N.Grady Avenue, Tampa, FL 33607. As paying students who are doing their due diligence and are aware of caveat emptor / let the buyer beware, that puts the responsibility on the buyer we are doing what will educate us to make a decision.<br />
<br />
We do not want to continue with your company without a clear picture and transparency of the dealings between James Smith Company and Without Walls International Church / Paula White Ministries.<br />
<br />
Pastor Paula White's several unscheduled itinerary changes for her private jet in the last several weeks have been made for meetings with Mr. James Smith, President of James Smith Company. Also her taping of her regular shows on Paula White.tv in advance in advance to accommodate a business meeting with Mr.James Smith himself this Memorial Day weekend are indications of business dealings and / or a partnership in business intent between the entities, James Smith Company and Without Walls International Church and / or Paula White Ministries.<br />
<br />
In case of a formation of any business partnership between the two above mentioned entities, we, as prospective part of James Smith Company humbly request an option for immediate cancelation and full refund beyond the 72 hour designated period as per policy stated. These payments were made when the complete information had not been revealed.We further request that the same option be made available to all Tampa, FL residents with similar fears.<br />
<br />
On the other hand, if we get an assurance from you on this public forum, we will continue with the fine education your company obviously offers to its students.<br />
<br />
Thanking you,<br />
Yours Sincerely,<br />
New James Smith Company Students<br />
<br />
cc: Get Motivated Complaints Board<br />
<br />
Previous | 1 | 2 | 3 | 4 | 5 | 6 | Next<br />
<br />
Now consider this: Living out of a suitcase, traveling from one venue to another, organizing, recruiting, missing deadlines, coping with frustrating last-minute guest cancellations, having to constantly adjust your promos to different locales, watching your blood pressure shoot sky-high when the opening hour is upon you and things aren't nearly set up yet, then steeling yourself to get out there on stage and start whipping up a crowd...etc. ...with barely time to catch your breath before re-packing and running through an airport terminal before they close the gate to your plane out - to start all over again.<br />
<br />
Does any of that sound like the kind of life a "savvy investor, " one who possesses the real inside dope on how to make millions, would put himself through to make sure his mortgage and car payments are covered this month? I suspect that if these guys really had any more clue than ANY of the rest of us, they wouldn't be out on the road, beating their brains out, hoping to eke out a living by running hit & miss scams.<br />
<br />
But just like the rest of us schmoes, they're still stuck in that same job, the one they've done for years, same routine - just a different town with a different batch of rubes.<br />
187 days ago by OldBill 0 Votes<br />
Thanks, decline! Very aptly put. Even more to the point would be ...don't go unless you want to CONFUSE your religion with opening your wallet to predators. I can envision these hypocrites just as easily quoting from the Talmud Torah in front of a Jewish audience, or the from the Holy Quran in front of an Islamic crowd. Whatever it takes to reel in the suckers.<br />
<br />
Ghandi warned us ... “Corruption and hypocrisy ought not to be inevitable products of a free society, as they undoubtedly are today”<br />
176 days ago by optimistic in houston 0 Votes<br />
i can see both sides of the coin here...i wouldnt call this a motivational seminar cause i wasnt motivated to do much of anything. while it was a little over the top with the bad music and fireworks, it offered me the opportunity to hear Gen. Colin Powell and Coach Lou Holtz speak, who in my opinion were the highlights of the whole thing! well except for the crazy guy who could teach u how to buy a house for next to nothing! he was actually entertaining! the seminar was very unorganized and poorly planned, which seemed odd cause i know this is not their first rodeo! while it was much like sitting in front of my tv listening to infomercials, i have to admit, the weath magazine opportunity did sound appealing, so i signed up, knowing that they offer a complete money back guarantee. and yes i have done my research and know that i can attend and decide if this is really something for me and if it is not i dont loose a thing, except for some time, but hey i might learn something in the process. while i do agree the religious slant was a bit much, the one i attended was at a church, i am a christian so it was somthing that i alredy believe, but i feel that it is not something that should be forced down anyones throat. i was a little disapointed that zig ziglar was dragged out when it was painfully obvious that he has passed his prime for speaking. while i enjoyed seeing the clips from the past is was a little sad and uncomfortable to see how he has deteriorated with time. i'm not sure if this is for effect, and i sure hope its not, but he sure was a powerful and passionate speaker in his day and i'm sure he has motivated many a people but it just saddened me to see him try to speak and be as powerful as he once was but not really accomplishing that goal. i hope in the future they just show the clips instead. while it didnt cost me a thing to attend, i doubt i would pay in the future to attend. but i do have one thought, will they in the future invite President Obama to speak?<br />
177 days ago by pearl of the orient 0 Votes<br />
So, who among all of you who wrote these comments still save the old fashioned way: in a savings account, CD or under the mattress. You are probably still stuck in the same job for years. AND have a daily routine which you've done for ages...Then you all don't fit the profile of a SAVVY INVESTOR. The world of making money TODAY is not your arena for living.<br />
<br />
And that's all good. Everybody is different, just as YOU are different from your parents, siblings, cousins, friends, and strangers. So, invest they way YOU want to: snail's pace as it is or not. And attend seminars if you want to or forced to based on what you need to fulfill. But don't put comments that have no substance behind it, only emotions. Thank you.<br />
169 days ago by Marylouise 0 Votes<br />
The motivational speakers were exceptional, if only I could hear them! Why pick a venue like Honda Center, which mainly used for is sports? I thought it was my hearing, but my younger kids said they struggled to hear. This is my 4th time at one of these seminars and I never had any trouble hearing in the other venues. The voices were just bouncing off the walls with a horrible echo. This will be my last time attending. What a total waste of time...<br />
151 days ago by Eric MM 0 Votes<br />
I attended the Get MotivatedSeminar at Phoenix a few weeks ago and was very impressed. Especially by Tamara Lowe who came across as an honest person, a good mother, and a role model for many. I also bought the 3 day real estate seminar with James Smith Real Estate Company. I will be going to it from April 23-25. They have not given me information on the venue yet!!I have very high hopes from what James Smith promised it would do for me. I sounded very convincing for sure. I actually boarded the flight with from Phoenix to Los Angeles on March 10 with James Smith and Kari Michaelsen the woman who introduced speakers at the seminar. Since they were real busy with each other my wife would not let me approach James Smith. I really wanted to talk to the man. He seems like a good and genuine guy. James Smith Was interesting, funny, and very motivating in encouraging me to get out of my comfort zone and make it big. THe 3 day financial seminar will be great. My friends who already attended one say that he came to speak and was comic as well as educative. Kari Michaelsen seems to be such a pinched, worn out, old looking hag!! She came as a real surprise. She had been unimpressive on stage while screaming out the introductions anyway. Looking at her up close when she was with James Smith was kind of weird. Her strip tease role in Saturday the 14th was the reason the movie was rented over and over and watched at our sleepovers. We got away with it since the movie was a teen horror. What we really watched was her hot undressing and bathing scene.Everybody did! She did quite a number with taking off each item of clothing. Taking off her panties and exposing her bubble covered breasts was the best . She looked real good in the bath towel too. I was surprised that James Smith has Kari Michaelsen for a mistress. A man of his magnetic personality and good looks could have had his pick. More so with being such a success at real estate and motivation.But she DID do a real number in the 80's. Ask any boy growing up in those years. Branded in the 80's is a website to check it out if you missed it (you could NOT have) or were born later .<br />
<br />
Read more: http://blogs.artvoice.com/avdaily/2009/08/19/get-motivated-and-get-out/#ixzz0hzlTeMhI<br />
156 days ago by 76andupset 0 Votes<br />
I attended the seminar in LA. I agree that the emcee in her 4 inch heels is garbled and unclear. I found out her name. She is an LA resident. Kari Michaelson working for Get Motivated. Googled her and this is what I found. Wow the Lowes made some choice!!<br />
Google:<br />
1... probably wouldn't have noticed if the scene didn't keep going and going, with plenty of close-ups on Kari Michaelson removing each piece of clothing ... that kept the camera off Michaelson here and there during her strip tease. ... were so damn hot that yes, kids were trading used stickers with each other. ...<br />
www.brandedinthe80s.com/?search=1&search_string=rific - Cached<br />
2...Andy Gibb (March 5, 1958 – March 10, 1988) was an English-born Australian ... ( He was actually engaged to actress Kari Michaelson, a star of the former, ...<br />
tripatlas.com/Andy_Gibb - Cached<br />
3...Kari Michaelsen on the highwire on Circus of the Stars (1983 - video clip - 31MB ) · Where are they now? type article on Kari Michaelson (and Matthew ...<br />
www.sitcomsonline.com/gbreakwhere.html<br />
4..Kari met James Smith in early 2004 when she attended a “Financial Success” ... James Smith I knew I had found someone who really practices what he preaches. ...<br />
www.jamessmithseries.com/index.php?option=com...view..<br />
5.. James Smith should practice what he preaches. Talking of respect for women and family an himself having a married woman Kari Michaelson working in his ...<br />
www.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc- c3195.html?... - Cached<br />
<br />
What an emcee! and Colin Powell, Rudy Juliani, Conduleeza Rice are speaking for Get Motivated?<br />
Peter and Tamara Lowe need to do some thinking!<br />
156 days ago by OldBill 0 Votes<br />
Now add up how much it must cost them to get people like Colin Powell, Robert Schuller, Rudy Giuliani, Laura Bush, Sean Payton, Drew Brees, Lou Holtz, Sarah Palin, and (the shell of) Zig Ziglar - at THOUSANDS of dollars each - to show up there and shill for them... Then ask how they could possibly afford that at $5 per person.<br />
<br />
Maybe they do it by saving all of that expensive door prize money, since those ghost winners never seem to be there to claim any of it.<br />
152 days ago by OldBill 0 Votes<br />
Good luck, Unmotivated. That just bought a round of Starbucks for the crew - your 99 bucks are long gone.<br />
Perhaps you could turn their duplicitous gimcrackery back onto themselves: Try reminding them that the Lord God is watching them, and wants them to do right by you...and see how far that gets y0u.<br />
160 days ago by JulieofNewOrleans 0 Votes<br />
Hey, I just signed up for one of these seminars today, in New Orleans. I saw a full page advertisement in the newspaper. It looked very exciting. I'm looking at it now. It says Get Motivated! "The super bowl of success! Then there's 2 inch photos in a line of Colin Powell, Robert Schuller, Zig Ziglar, Rudy Giuliani, and Laura Bush. With Lines under each person saying what they will address: Take charge leadership by Colin Powell, Tough times never last by Schuller, How to stay motivated by Ziglar, The tenacity to persevere by Giuliani, and The keys to stability by Laura Bush.<br />
I really am glad I came online to look into this event. I had no idea that it was a seminar made to sell things. I thought it was truly to motivate business men and women to achieve success.<br />
Along the side it says "You will Learn: Customer Service, business skills, communication, time management, productivity, goal achievement, people skills, Management skills, sales and marketing, negotiation skills, organization, MORE MONEY (????????????), Leadership, Team building.<br />
The last I checked, "MORE MONEY" is not a business skill, but that is just my opinion.<br />
I called 2 hours ago to get my ticket, thinking I would love just to hear Zig Ziglar speak, as I remember he wrote great books on motivation and career. I called and they got my credit card info, which I felt uncomfortable giving over the phone, and had a bad feeling when I was giving it. But I thought, " It's just 5$. Why do I have such a bad feeling right now?"<br />
Then he said, there is the option of going to another center where there will be free workbook and food, if you take that option. But if you go to the live presentation, you will not get the workbook and food (that was my understanding). So I took a minute to decide, because I didn't expect to be faced with that decision. I thought I was going to see them live, only.<br />
So I asked, "Must I make this decision now, or can I wait till later?" and he said I should decide<br />
42 days ago by Dani DiVito 0 Votes<br />
<br />
Comments about James Smith Company.<br />
<br />
Dallas Get Motivated made me sign up for James Smith Company seminar for 3 days. But this is what I found on line. And many other really nasty comments too. If anyone knows more about the truth or falsehood of these people please let us know.<br />
<br />
<br />
Thank You Kari Michaelsen for EXPOSING yourself well and truly for ALL to see.<br />
<br />
You have done the whole world a favor by taking precious time from your "trip" with James Smith to Arizona to write 3 posts is amazing.<br />
<br />
Pretending to be David Waldock? I hope he knows that you used HIS name as ALIAS!!<br />
<br />
ALL the writing you have done simply exposed you COMPLETELY. Thanks!!<br />
<br />
David Waldock DIVORCED you in early 2009. You are a single woman! California divorce records are public information anyone can get for $15. You are not very intelligent, are you? School drop out?<br />
<br />
Next, David Waldock HIMSELF told Aaron Osmond, CEO of James Smith Company this truth about having divorced you in a phone conversation in April, 2010 when Aaron Osmond called him to ask for some help and advice. David Waldock did NOT want to help / work / partner with James Smith Company and is NOT your husband.<br />
<br />
About flight records and evidence?<br />
Remember January 1, 2010 when you waited at Honolulu airport for James Smith to fly in from Lanai? He had checked out of Four Seasons Manele Bay where he had been with Ryan and Jamie Smith and was waiting to board the 7:10pm flight to Honolulu for your "vacation" with him? James sent you texts telling you how excited he was about the fun time both of you would have from Jan. 1 to Jan. 3, 2010.<br />
<br />
Here are a couple of the texts from James M. Smith's phone to yours.<br />
<br />
01/01/2010, 6:32pm (Hawai time)<br />
<br />
:0...^...<br />
<br />
01/01/2010, 6:43pm (Hawai time)<br />
<br />
MORE MORE MORE MORE MORE...LOVE YOU ANGEL WOMAN<br />
<br />
<br />
Want one from April 22, 2010 @ 10:57pm ?<br />
<br />
(the day before you were in Vancouver WITH him)<br />
<br />
I LOVE YOU AND I MISS YOUR SMILE<br />
<br />
If you need more just ask. It will be easy to make them public. Might jog your memory too. Also flight details should be easy to put up here if you don't remember.<br />
<br />
Try explaining THESE texts to your son Nicky or Nickolas Waldock after you buy him the next McDonald's Happy Meals that you supply him with to keep him happy.<br />
<br />
Kari Michaelsen, stop pretending to be a married forgiving woman of God. You have been exposed! Justice and truth ALWAYS win.<br />
has<br />
And by the way, dragging David Waldock's name in will not help. He already divorced you. Even if he WANTED to help for old times sake, the SUBPOENA finds ALL evidence including cell phone conversations, travel records and computer IP addresses!!!<br />
<br />
But again, THANKS for exposing yourself completely<br />
<br />
<br />
Here is another one<br />
<br />
<br />
.Miche Chabonaire<br />
<br />
You are a loyal friend of James Smith of James Smith Company. He is lucky to have you.<br />
<br />
Michel you are wasting your time here.<br />
<br />
The TRUTH is ALREADY OUT. Kari Michaelsen PROVED what a LIAR and what a DIHONEST woman she is HERSELF on THIS website.<br />
<br />
Did you read the post by "David Waldock" (actually Kari M. ) saying that he is 'spending quality time with Kari and their son' and that she is someone he 'loves'?<br />
<br />
Did you read Kari M.'s posts saying that she and DAVID are upset and wish James and Loree well?<br />
<br />
Did you KNOW that David Waldock officially DIVORCED Kari Michaelsen in 2009? (Divorce records are public property available at the Department of Public Health, Freedom of Information Act 1966 and are available online.<br />
<br />
David Waldock makes NO secret of the divorce. He even told Aaron Osmond this FACT in April 2009 in a phone conversation.He is an honest man. Kari M. PRETENDS to be a married woman!<br />
<br />
Kari is a divorced single woman who is loose and wrecks marriages like James Smith's.<br />
Being divorced is not a crime but PRETENDING to be married and lying about it IS.<br />
<br />
All the RUBBISH she has written in the long posts trying to give a picture of a happy family in California is just garbage from a woman who has been exposed.<br />
<br />
Actually Kari Michaelsen EXPOSED herself BETTER than ANYONE could by all the writing as a happily married woman. No other proof could be MORE clear and strong.<br />
<br />
ALSO, Michel. If you WERE in Arizona with James Smith for business it does NOT matter. Even if you were in his ROOM it does not matter. Because:<br />
<br />
First, James Smith visits Kari Michaelsen's room every morning and night at the Get Motivated locations. All the speakers and staff are in the SAME hotel. That Does not stop James and Kari.<br />
<br />
Second, James Smith stayed in New Orleans for 3 days during the Get Motivated Show, April 11-14, 2010. Of course Kari stayed ALSO. James had Andrew IN HIS ROOM staying the nights. But James STILL visited Kari and spent the evenings and mornings with her till both checked out on April 14. Having Andrew in the room changed NOTHING. So having you there means nothing.<br />
<br />
Third, In El Paso James had to spend March 28 with Justin Smith as it was a day with no FS seminar. James had Kari fly into El Paso in the morning of March 29 around 11am. She came to his hotel room. That is why James was late reaching the FS to speak that day. He reached at about 3pm and Justin and Donna kept calling him to see why he was late. James went back to his hotel and Kari after speaking and both of them flew to Atlanta the next day.<br />
Having his own son and sister right there in a nearby hotel changed nothing.<br />
<br />
James Smith and Kari Michaelsen are SO dishonest and cunning and are like vipers that simple and honest people cannot understand HOW their minds can be so devious. THAT is what they use as their trick. It is SO messed up that it seems hard to believe.<br />
<br />
Fact is, Can You Understand That The Truth Has Been Exposed By Kari Herself? Do you believe government records? Do you need ANYTHING more?<br />
<br />
Truth wil find you, James Smith and Kari Michaelsen, it already HAS. And justice will win.<br />
24 days ago by Rick Perry 0 Votes<br />
<br />
WE did NOT sign up for the Atlanta Financial Summit offered by James Smith Company. And bless the Lord! The comments on this speaker of Get Motivated and president of James Smith Company the man himself are shocking and sick.<br />
Many many other details are also available on line when you do a search. There should be a warning for innocent believers who want to get money in this bad economy and sign up for classes and waste more money instead.<br />
James Smith is definitely known for having a affair with a married woman who works and travels with him And he has another mistress who is very like James Smith's own dad. People of the church.<br />
James is always taking advantage of innocent people and has many lawsuits against him. He says he is married and his CEO Aron Osmond says he is working on his marriage but he is really having at least two affairs and is with women EVERY night in his or their room.<br />
He hired a private plane to Take him and his mistress Kari Michalsen from LA to Talahasee on January 24, 2010, then he began to fly in another NEW mistress's private plane. Yes. Even on November 4, 2010 he flew with her from Arizona to Florida. So who is lying and who are people believing and giving their money to? There needs to be a lot of explaining and transparent facts given.<br />
<br />
Pasting one of the comments I found below. Please make INFORMED decisions. All of us should. Do not be like cattle and be led blindly.<br />
Good luck and hopefully it will be good learning for those people who do still sign up.<br />
<br />
<br />
47 days ago by Trashman407 -1 Votes<br />
James will be James, he has been sleeping around for years, Kari did not wreck his marrige, she is about # 200+ on his mistress list. Ask him about the cute escort from Phoenix or the 5-day instructor he had an affair with, that is the one that killed his marrige. James has women in most cities who come onto him, he picks the one he wants, the rest is history. If Kari or Paula think they are the one, Ha Ha ladies you are being played. I know he has incredible charm, makes you think he is all about you but the truth is he is only about himself in all things, love and business.<br />
19 days ago by Bob Bowen 0 Votes<br />
<br />
All these comments are clearly saying that there is a LOT of dishonesty and sickness in James Smith Company and in JAMES SMITH.<br />
<br />
38 days ago by JMarcellaJ<br />
3) You have mentioned the names of James Smith's sons, his wife, Kari's son, her husband (before his own posting in her defense), and that James is the godfather to their son. How close are you to James to know these personal details of his life that not just everyone would know?<br />
<br />
4) You have stated Kari is divorced, Paula is divorced and twice mentioned that James Smiths' wife "will not consider reconciliation". Therefore, it is a safe assumption that he is...at the very least...separated. While Paula White seems an unlikely candidate for a girlfriend for James, doesn't that fall into the category of his business? How do you know all this pertinent information about his wife?<br />
<br />
<br />
THIS MAN IS FACEBOOK FRIEND OF JAMES M SMITH, PAULA WHITE AND KARI MICHAELSEN>>>> so HE probably know WHO JAMES SMITH IS WITH AND WHEN!!!<br />
51 days ago by Ken Hartley +3 Votes<br />
If everyone will read the previous post by "Candy JS"... (LOL... that's a REALLY clever name, btw)... You'll see the blogger sniper's (who is also "bozo" and all the rest) REAL name. The blogger actually just posted their real name in this previous post (to throw you off) but most people (contrary to what the blogger believes) are SMART ENOUGH to see through it. Again, read the post. Their real name is there.<br />
<br />
They are nothing more than a jealous, bitter person. Kari was NOT in Arizona. She was in Los Angeles. I KNOW she was. I talked to her. I know Kari. Also, Kari didn't do that post. DAVID DID. I know. You care so little about truth. Reread Kari’s post. She NEVER said she was married in that post. You know Kari and David are a divorced couple working diligently to co-parent their child. (not that any of this is your business) You only care about people thinking you are right. You are a classic narcissist and insist on imposing your own perfectionistic tendencies on everyone else that you, yourself, are not willing to keep. It's absolutely astounding that you would accuse Kari of posting under a different name when you KNOW that's what YOU'RE doing.<br />
15 days ago by JMarcellaJ 0 Votes<br />
<br />
Here we go again. I am only posting on this ridiculous subject because I was quoted in part. I want to point out all of the posts (both good and bad) about Mr. Smith's personal life had been removed from this and other websites several weeks ago. One website had a comment pertaining to a defamation of character lawsuit and under protest had removed all of the postings about Mr. Smith. In the comment, the "webmaster" or whatever you call the person who runs a website, had stated each and every negative post had come from the same IP address. I would be willing to bet "Rick Perry" and "Dani DeVito" posted from the same place. (It's safe to assume that "Rick Perry" isn't the governor of Texas nor is "Dani DeVito" the short actor married to Rhea Perlman.)<br />
<br />
As I read back through all of the "cut and paste" done prior to Bob Bowen's post, I found it interesting that only the negative comments were posted and none of the positive ones made the cut. Apparently this blogger just can't let it go. I wonder why that is? In my one and only post, I stated I had absolutely no connection to James Smith, Kari Michaelsen or the "new mistress". I questioned the validity of all the dates and times of meetings, rendevous, texts, missed meetings, flights, etc. I also asked (as shown above) the blogger to state their real identity if he/she wanted to be taken seriously. I wrote my post without any underlying emotion or agenda because there was none. I made many points (two of which are quoted verbatim) and oddly enough...there was NEVER a response to my post. NOTHING. It sat there ignored for many days until everything was taken down from the website. It's obvious there was no proof. Now...it's all back up again.<br />
<br />
So...I pose the same questions. Who are you? You began each of the posts as though you had attended a Get Motivated Seminar and was doing research, but you ended it with details (flight times, dates, etc.). How would you know that? Why do you care? James Smith seems to be a very smart man, but he wouldn't be the first guy to fall for a nipped, sucked, tucked, lifted, implanted bottle blonde. The most famous real estate tycoon in America is brilliant in business, but is known for his weird hair, trading one pretty wife for another one who is younger and has his own TV show. You can question his personal decisions, but when it comes to real estate, he knows his stuff. The same is probably true with Mr. Smith. The mistress who is "people of the church" like his father is most likely a phony, but she'll have to answer to God for that. Even hypocritical preachers (who have no theology training) can lead people to God. Why do you worry about such trivial matters that have absolutely no impact on you?<br />
<br />
When you write character attacks on a person whose ability to continue in their vocation depends upon their personal reputation of honesty, you should state who you really are. Anyone can tell you have a vested interest in destroying James Smith. Why? If you want credibility, back up your claims with actual proof and sign your name.<br />
12 days ago by zmk 0 Votes<br />
<br />
James Smith Company / Get Motivates Seminars Scam News<br />
<br />
<br />
Utah woman going to prison for scamming dozens, including widow ...<br />
Oct 28, 2010 ... Professed real estate expert Jolee M. Tibbitts told Joyce ... about half from Utah &amp;amp;mdash; lost a total of $1.2 million in Tibbitts&amp;amp;#039; scam, ...<br />
www.deseretnews.com/.../Utah-woman-going-to-prison-for-scamming- dozens-including-widow-Iraq-solider.html - Cached<br />
<br />
Robinson v. Tibbitts et al :: Justia Dockets &amp;amp;amp; Filings<br />
Dec 29, 2009 ... Tibbitts et al - Justia Federal Dockets and Filings. ... Torts to Land, - Tort Product Liability, - All Other Real Property ... Torts - Property, - Other Fraud, - Truth in Lending ... Under Equal Access to Justice, - Constitutionality of State Statutes ... Defendants: Jolee Tibbitts and JMT Concepts ...<br />
dockets.justia.com/docket/utah/utdce/2:2009cv01149/73394/ - Cached<br />
<br />
GOING GLOBAL - EAST MEETS WEST - ARTICLES OF INTEREST: Utah woman ...<br />
Oct 28, 2010 ... Professed real estate expert Jolee M. Tibbitts told Joyce ... Tibbitts, of Herriman, earlier pleaded guilty to one count of wire fraud in ...<br />
articlesofinterest-kelley.blogspot.com/.../utah-woman-going-to-prison-for- scamming.html - Cached<br />
<br />
Utah woman going to prison for scamming dozens, including widow ...<br />
Professed real estate expert Jolee M. Tibbitts told Joyce Robinson she owned. ... Finance, fraud and foreclosure. 2 days ago. In the book, &amp;amp;#039;Too Big to Fail&amp;amp;#039; ...<br />
topics.npr.org/article/03LybbF98Y3KX - Cached<br />
<br />
Utah woman going to prison for scamming dozens, including widow ...<br />
Oct 27, 2010 ... Professed real estate expert Jolee M. Tibbitts told Joyce Robinson ... CA - OCTOBER 11: Socialite Kathy Hilton and real estate broker Rick ...<br />
mma.msg.com/article/03LybbF98Y3KX?q=Hawaii - Cached2009-11-16<br />
<br />
by CNJ -1 Votes Utah<br />
The fraud committed by NRI - James Smith, Jolee Tibbitts, Roger Williams, Aaron Asmond has personally effected me. I paid 20K to learn how to lose 200k cash. I am a single mom with 8th grade education. The properties were presented as GREAT investments and leveraged my home and bought each one out of trust and presentation. The Personal Coach processed all 11 of the Utah loans through his comapany. Broke confused and struggling...Jolee Tibitts offered to sell me a no-brainer home to flip from her sister to save me from the horrible situation, (&amp;amp;quot;Stop the bleeding&amp;amp;quot; they call it), only to find out, the house was not worth what I paid, but that NRI personal coach got it appraised and funded somehow. I reached out again to James Smith, Roger, Jolee who all stated I had bought horrible homes. Only to be offered another seminar. The embarrassment and the humiation of trusting the many years of expertise represented is my payment for investing in &amp;amp;quot; guarentee satisfaction&amp;amp;quot;, &amp;amp;quot;learning the ropes from the 20yrs experienced investment experts and coaches&amp;amp;quot;,<br />
<br />
California<br />
&amp;amp;quot;I attended the M-5 in Salt Lake City; this was immediately after attending the three day.<br />
We found ourselves exhausted at the end of 5 days, as I think most people are following an M-5; however we were totally committed to Real Estate investing. We were so touched by the &amp;amp;ldquo;passion&amp;amp;rdquo; that we saw in many of the presenters. The emotion and tears shared and shed by attendees and presenters was incredible. One of the most passionate presenters was a woman by the name of Jolee Tibbitts.&amp;amp;quot;<br />
<br />
RE Success Group James Smith | RIP OFF REPORT: 249594<br />
May 21, 2007 ... James Smith and the James Smith Real Estate Coaching Company strongly ... Use our complaint form to report a scam. Site problems? ... the pressured purchase involving Jolee Tibbitts, a then presenter for NRI). James&amp;amp;#039; ...<br />
www.ripoffreport.com/.../national-real-estate-investors-mxba2.htm - Cached -<br />
<br />
James Smith Real Estate / Net Marketing, LC Complaints - Celebrity ...<br />
We backed out of several deals and were told by Jolee Tibbitts one of their ...<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc- c3195.html<br />
<br />
Jolee Tibbitts Sentenced to 4 years in Federal Prison.<br />
<br />
WORKED MENIAL JOBS TILL JAMES SMITH HIRED HER:<br />
<br />
&amp;amp;quot;&amp;amp;ldquo;Theft is one thing. Lying is another. You did them both, &amp;amp;rdquo; said Judge Dee Benson, of the U.S. District Court in Salt Lake City. &amp;amp;ldquo;And you did it for an awfully long time.&amp;amp;rdquo;<br />
<br />
Tibbitts&amp;amp;rsquo; attorney, Daphne Oberg, said Tibbitts worked menial jobs until she was suddenly promoted to a real-estate training and motivational speaking job that quintupled her income. Later, when hard times hit, Oberg said Tibbitts&amp;amp;rsquo; life spun out of control.<br />
<br />
&amp;amp;ldquo;She kind of became involved in this fast-moving life, trying to keep up this public image, &amp;amp;rdquo; Oberg said. &amp;amp;ldquo;But it wasn&amp;amp;rsquo;t an image based in reality.&amp;amp;rdquo;<br />
<br />
During Wednesday&amp;amp;rsquo;s sentencing, a handful of victims spoke of the medical problems, failed marriages and shortened retirements they said came as a result of their investments. &amp;amp;quot;<br />
<br />
Comment from<br />
http://www.sltrib.com/sltrib/home/50552405-76/tibbitts-court-estate-million.html.csp<br />
<br />
James Smith NRI, Darel Snyder PSI group<br />
Posted: 2007-01-23 by Hovsep A [send email] <br />
<br />
Took their advice and lost $65,000!<br />
Complaint Rating: 80 % with 56 votes<br />
I was one of James Smith's students. Two years ago I went to a seminar in Burbank CA with my brother in-law and we decided to purchase the entry real estate package which was $5,000. At the real estate entry course we were offered a special deal for the entire real estate package (M5, foreclosure workshop, commercial workshop, mentor program and analysis software) which was additional $17,000 dollars for both of us. We were also offered an opportunity at M5 workshop, a profitable property which in return will have high return. So $22,000 which we spent will be covered. We bought the entire package. We took all the workshops except commercial workshop. We meet with other investors and the concept was good. We also talked with successful investors. Over all it was okay, we met interesting people. James has the right concept I thought.<br />
<br />
At M5 workshop we were afford to purchase Edge luxury condo in Scottsdale AZ. We couldn't miss the opportunity. The condo that I purchased at that time the value was $350,000. The properties were discovered by PSI Group (http://www.psigrouponline.com/), which is run by Darel and Brycen Snyder. I personally spoke with Darel few times and he told me the Edge property is a sweet deal. I did some research and it looked like a good deal at that time. Plus given their expertise in real estate who am I to argue.<br />
<br />
I signed an agreement with the builder that I can't sell the property for 18 months. Every month I did do diligence to make sure the value is going up. That specific zip code was always appreciating. I knew there were condos being built but I had no idea that it will impact the value of my condo. Plus I called the builder office few times to make sure my condo was appreciating, the answer to my question was always yes it's appreciating. 18 months is over now I'm trying to sell the condo and guess what my condo value down to $320,000. My total loss including negative cash flow is $65,000 dollars. I tried to contact PSI Group, they were going to get back to me in few days, and it’s been 3 weeks now. I paid $11,000 dollars to get an advice from real estate expert and this is what I get. It's very disappointing. That’s my story.<br />
[Complaint comments] Comments [Complaint country] United States [Complaint category] Real Estate <br />
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12 days ago by zmk 0 Votes<br />
<br />
James Smith Company / Get Motivates Seminars Scam News<br />
<br />
<br />
Utah woman going to prison for scamming dozens, including widow ...<br />
Oct 28, 2010 ... Professed real estate expert Jolee M. Tibbitts told Joyce ... about half from Utah &amp;amp;mdash; lost a total of $1.2 million in Tibbitts&amp;amp;#039; scam, ...<br />
www.deseretnews.com/.../Utah-woman-going-to-prison-for-scamming- dozens-including-widow-Iraq-solider.html - Cached<br />
<br />
Robinson v. Tibbitts et al :: Justia Dockets &amp;amp;amp; Filings<br />
Dec 29, 2009 ... Tibbitts et al - Justia Federal Dockets and Filings. ... Torts to Land, - Tort Product Liability, - All Other Real Property ... Torts - Property, - Other Fraud, - Truth in Lending ... Under Equal Access to Justice, - Constitutionality of State Statutes ... Defendants: Jolee Tibbitts and JMT Concepts ...<br />
dockets.justia.com/docket/utah/utdce/2:2009cv01149/73394/ - Cached<br />
<br />
GOING GLOBAL - EAST MEETS WEST - ARTICLES OF INTEREST: Utah woman ...<br />
Oct 28, 2010 ... Professed real estate expert Jolee M. Tibbitts told Joyce ... Tibbitts, of Herriman, earlier pleaded guilty to one count of wire fraud in ...<br />
articlesofinterest-kelley.blogspot.com/.../utah-woman-going-to-prison-for- scamming.html - Cached<br />
<br />
Utah woman going to prison for scamming dozens, including widow ...<br />
Professed real estate expert Jolee M. Tibbitts told Joyce Robinson she owned. ... Finance, fraud and foreclosure. 2 days ago. In the book, &amp;amp;#039;Too Big to Fail&amp;amp;#039; ...<br />
topics.npr.org/article/03LybbF98Y3KX - Cached<br />
<br />
Utah woman going to prison for scamming dozens, including widow ...<br />
Oct 27, 2010 ... Professed real estate expert Jolee M. Tibbitts told Joyce Robinson ... CA - OCTOBER 11: Socialite Kathy Hilton and real estate broker Rick ...<br />
mma.msg.com/article/03LybbF98Y3KX?q=Hawaii - Cached2009-11-16<br />
<br />
by CNJ -1 Votes Utah<br />
The fraud committed by NRI - James Smith, Jolee Tibbitts, Roger Williams, Aaron Asmond has personally effected me. I paid 20K to learn how to lose 200k cash. I am a single mom with 8th grade education. The properties were presented as GREAT investments and leveraged my home and bought each one out of trust and presentation. The Personal Coach processed all 11 of the Utah loans through his comapany. Broke confused and struggling...Jolee Tibitts offered to sell me a no-brainer home to flip from her sister to save me from the horrible situation, (&amp;amp;quot;Stop the bleeding&amp;amp;quot; they call it), only to find out, the house was not worth what I paid, but that NRI personal coach got it appraised and funded somehow. I reached out again to James Smith, Roger, Jolee who all stated I had bought horrible homes. Only to be offered another seminar. The embarrassment and the humiation of trusting the many years of expertise represented is my payment for investing in &amp;amp;quot; guarentee satisfaction&amp;amp;quot;, &amp;amp;quot;learning the ropes from the 20yrs experienced investment experts and coaches&amp;amp;quot;,<br />
<br />
California<br />
&amp;amp;quot;I attended the M-5 in Salt Lake City; this was immediately after attending the three day.<br />
We found ourselves exhausted at the end of 5 days, as I think most people are following an M-5; however we were totally committed to Real Estate investing. We were so touched by the &amp;amp;ldquo;passion&amp;amp;rdquo; that we saw in many of the presenters. The emotion and tears shared and shed by attendees and presenters was incredible. One of the most passionate presenters was a woman by the name of Jolee Tibbitts.&amp;amp;quot;<br />
<br />
RE Success Group James Smith | RIP OFF REPORT: 249594<br />
May 21, 2007 ... James Smith and the James Smith Real Estate Coaching Company strongly ... Use our complaint form to report a scam. Site problems? ... the pressured purchase involving Jolee Tibbitts, a then presenter for NRI). James&amp;amp;#039; ...<br />
www.ripoffreport.com/.../national-real-estate-investors-mxba2.htm - Cached -<br />
<br />
James Smith Real Estate / Net Marketing, LC Complaints - Celebrity ...<br />
We backed out of several deals and were told by Jolee Tibbitts one of their ...<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc- c3195.html<br />
<br />
Jolee Tibbitts Sentenced to 4 years in Federal Prison.<br />
<br />
WORKED MENIAL JOBS TILL JAMES SMITH HIRED HER:<br />
<br />
&amp;amp;quot;&amp;amp;ldquo;Theft is one thing. Lying is another. You did them both, &amp;amp;rdquo; said Judge Dee Benson, of the U.S. District Court in Salt Lake City. &amp;amp;ldquo;And you did it for an awfully long time.&amp;amp;rdquo;<br />
<br />
Tibbitts&amp;amp;rsquo; attorney, Daphne Oberg, said Tibbitts worked menial jobs until she was suddenly promoted to a real-estate training and motivational speaking job that quintupled her income. Later, when hard times hit, Oberg said Tibbitts&amp;amp;rsquo; life spun out of control.<br />
<br />
&amp;amp;ldquo;She kind of became involved in this fast-moving life, trying to keep up this public image, &amp;amp;rdquo; Oberg said. &amp;amp;ldquo;But it wasn&amp;amp;rsquo;t an image based in reality.&amp;amp;rdquo;<br />
<br />
During Wednesday&amp;amp;rsquo;s sentencing, a handful of victims spoke of the medical problems, failed marriages and shortened retirements they said came as a result of their investments. &amp;amp;quot;<br />
<br />
Comment from<br />
http://www.sltrib.com/sltrib/home/50552405-76/tibbitts-court-estate-million.html.csp<br />
<br />
<br />
rinsfo 2 weeks ago<br />
&amp;amp;quot;Tibbitts&amp;amp;rsquo; attorney, Daphne Oberg, said Tibbitts worked menial jobs until she was suddenly promoted to a real-estate training and motivational speaking job that quintupled her income.&amp;amp;quot;...<br />
Promoted by James Smith and his org that&amp;amp;#039;s still very active in UT. Run, don&amp;amp;#039;t walk to the nearest exit when you come across these grifters.&amp;amp;quot;<br />
11 days ago by RGW1 0 Votes<br />
<br />
James Smith Company's instructor/ motivational speaker / main M5 presenter Jolee Tibbitts is sentenced to prison for investment scams and stealing innocent students money. 4 years in Federal prison.<br />
<br />
<br />
Utah woman sentenced in $1.2 million real estate scheme<br />
BY AARON FALK<br />
The Salt Lake Tribune<br />
Published Oct 27, 2010 05:13PM<br />
Updated Nov 1, 2010 03:45PM<br />
<br />
Tibbitts’ attorney, Daphne Oberg, said Tibbitts worked menial jobs until she was suddenly promoted to a real-estate training and motivational speaking job that quintupled her income. Later, when hard times hit, Oberg said Tibbitts’ life spun out of control.<br />
<br />
“Theft is one thing. Lying is another. You did them both, ” said Judge Dee Benson, of the U.S. District Court in Salt Lake City. “And you did it for an awfully long time.”<br />
<br />
We were also offered an opportunity at M5 workshop, a profitable property ... The fraud committed by NRI - James Smith, Jolee Tibbitts, ...<br />
www.complaintsboard.com/.../james-smith-nri-darel-snyder-psi-group-<br />
<br />
<br />
Dec 7, 2007 ... Jolee Tibbitts, JMT Concepts Jolee Tibbitts-Took money for an investment ... My husband and I attended an NRI M5 in August 2006 in Salt Lake City, UT. ... of a class action civil suit against Jolee, NRI, and James Smith. ...<br />
<br />
<br />
Mar 25, 2009 ... The fraud committed by NRI – James Smith, Jolee Tibbitts, Roger Williams, Aaron Asmond has personally effected me. I paid 20K to learn how ...xenophilius.wordpress.com/.../phelps-speaking-live-arco-arena/<br />
<br />
<br />
Jolee Tibbitts worked and traveled WITH JAMES SMITH COMPANY till 2008. Scammed many people. MANY COMPLAINTS involving Jolee Tibbitts and James Smith on Complaints Board. Investors and people considering business with these people and the company BEWARE. The court has ordered that Jolee Tibbitts pay BACK the victims at the rate of $250 a month. And the total is $1.2million!! So WHAT are the chances of getting your money back even if a lawsuit goes in your favor?<br />
<br />
A lot of lying and cunning is involved in this company. James Smith SEEMS very honest and sincere. But is what he SAYS really what he DOES? HAVE YOU SEEN HIM DO AND FOLLOW THROUGH AND THE RESULTS? ASK people before you make decisions. WHAT IS THE TRUTH? ARE THEY ALL HONEST OR DO THEY PLAY WITH EMOTIONS AND TRUST? People file lawsuits against this man and his company. Why? Ask them. Do NOT rely on the Customer Advisory Board that has some women calling James Smith MY MENTOR and MY GURU. Even their contact information is NOT there. WHY? Because of SPECIAL FRIENDSHIP? Can you TRUST people like that in what they say about James Smith. If he is SO HONEST then why ALL the other truths that are PROVED. Some examples below.<br />
<br />
James Smith's mistress Kari Michaelsen ALSO worked menial job in road shows for James Smith Company in 2008-20009 till she suddenly became an emcee of M5 and began to teach a Leadership Mastery class with James Smith!!! Till James Smith's wife demanded she be fired. But then James Smith got her a job with Get Motivated Seminars so they could travel together regularly and LOTS of OTHER times too. AND THEY DO!!<br />
<br />
FACT: Even now James Smith is a MARRIED MAN and is WORKING ON HIS MARRIAGE (according to him AND his CEO Aaron Osmond, see below for statement by Aaron Osmond) but has at least two mistresses. Let him PROVE otherwise.Almost EVERY NIGHT HE IS WITH ONE or BOTH.<br />
<br />
Dallas Get motivated BOTH Kari Michaelsen AND the the new one. Indianapolis GM Kari 3 nights. Washington DC Financial Success the New one 3 nights. Atlanta GM Kari 3 nights. 3rd November was Kari's 49th birthday. Eve of birthday and breakfast with Kari and then to the New one that same night for 4 nights. Then Kari.. then new one..then Kari.. etc. etc.<br />
<br />
Kari is the old regular one who abandons her little son Nickolas ALL the time ( his godfather and "UNCLE" is James Smith) to fly to James Smith when the NEW BEAUTIFUL RICH FAMOUS one cannot be available since she is in high demand and very busy being successful. She is like a super model. See her amazing photos on facebook. And then see Kari Michaelsen's more than a decade old and VERY HEAVILY paint brush touched up picture. Looks like a painting not a photo. And also her latest old and PAST IT photos from Get Motivated. Getting married at 42, having a son, getting divorced, having affairs, and waiting in hotel rooms for James Smith to come when he wants is something she does ALL the time and has not helped those looks at all.<br />
<br />
But Kari Michaelsen does a bikini circus act on a high rope(youtube.com) real well. Also a strip tease (Saturday the 14th). James Smith should know those well from his PRIVATE shows with her. All the company needs to do is put a high rope and give her a bikini. All the 7 minute breaks will be fun for free. She'll do the splits up high in the skimpy 'nothing' like she does in the circus act, or the strip tease.Maybe Get Motivated should have her throw in those acts too. All in the $4.99 / ticket price.<br />
<br />
At least the new mistress has HUGE following, BEAUTY, and is SO rich she can give James Smith the best life and luxury he can dream of. And she will not have to perform like a circus monkey either. She moves HUGE crowds by actually TALKING not just screaming names in a high pitched nasal voice with the Ladieeeees and Gentlemeeeeen that sounds like Fran Fine from the Nanny which is ALL Kari Michaelsen can do.No wait. She can also have NO morals, lie, be cunning and cheat. Also forget her son Nickolas at home all the time to be with James Smith.<br />
Alibis and classes / M5 / Group mentoring / Seminars are cover ups for EVERY day with women who are NOT the WIFE James Smith is WORKING on his marriage with. Holiday season is here and that means LOTS of time. But what about alibis? Who will lie this time?<br />
<br />
<br />
James Smith, Kari Michaelsen, Aaron Osmond, Ken Hartley, Kevin Reynolds. These people lie and should be held accountable. Example of lies by James Smith, Company CEO Aaron Osmond and student / friend /supporter Ken Hartley, instructor and partner Kevin Reynolds.<br />
<br />
Read the CONTRADICTING statements THEY have made themselves. They SAY IT ALL. Can you believe these people?<br />
<br />
Cheats! Dishonesty all around!They LIE LIE LIE!<br />
<br />
PROOF:<br />
<br />
James Smith goes on TRIPS with his mistresses and then has his INNOCENT son or employees lie and say he was with THEM instead:<br />
<br />
1) A trip with a mistress Kari Michaelsen in Hawaii, Honolulu from January 1, 2010 8PM to January 3, 2010 11AM ( Kari left for LAX), James left for Orlando at 6PM and the cover story was being with a son and daughter-in-law in Lanai.<br />
<br />
2) A trip with ANOTHER mistress to St.Croix<br />
<br />
Get Motivated Seminars Complaints - Online scam<br />
June 2010 ... Other Qivana members who were IN St.Thomas and can vouch for the fact... James Smith being with **** **** in St.Croix, Virgin Islands ...<br />
www.complaintsboard.com/.../get-motivated-seminars-c156138<br />
<br />
Kevin Reynolds ( the foreclosure and Real Estate 3 day class instructor) first wrote that James Smith was with HIM on 6/17and later wrote that James was with him on St.Thomas for a Qivana event from 6/13 to 6/18 TO COVER UP FOR A TRIP WITH A MISTRESS.<br />
<br />
FALSE. James Smith went to St.Thomas only on 6/17 and left on 6/18 for Utah M5 in Salt Lake City.The REST of the time he was on a TRIP with his mistress in St.Croix.<br />
<br />
For TRUTH and confirmation of the above information contact:<br />
<br />
Derek Hall, CEO Qivana<br />
<br />
@ (801)-610-4600<br />
<br />
HOW THEY LIE ABOUT KARI MICHAELSEN NOT being divorced and actually one of James Smith's mistresses<br />
<br />
Get Motivated Seminars Comments - Online scam<br />
<br />
... Did you KNOW that David Waldock officially DIVORCED Kari Michaelsen in 2009? ...<br />
www.complaintsboard.com/.../get-motivated-seminars-c156138.html?sort...<br />
<br />
Ken Hartley said<br />
<br />
xenophilius.wordpress.com/.../phelps-speaking-live-arco-arena/<br />
<br />
May 26, 2010 at 12:43 pm<br />
Again, you’re making accusations as facts and you have none. Kari and David were not divorced in 2002. I know. I was at an event with them TOGETHER in 2009. I know them. They’re married. You’re wrong. Get your facts straight.<br />
<br />
Aaron Osmond said<br />
<br />
xenophilius.wordpress.com/.../phelps-speaking-live-arco-arena/<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195<br />
<br />
<br />
May 28, 2010 at 2:37 pm<br />
Cindy,<br />
My name is Aaron Osmond. I am the CEO of the James Smith Company. James is both my business partner and close friend. I am also a friend and professional associate of Kari Michaelson.<br />
3) In May of 2008, I personally invited Kari and David (her husband) to share their testimonials as part of our new success story infomercial that we were filming that year.<br />
4) At that time, Kari and David (as a married couple) provided evidence of their real estate success with documentation as part of that testimonial process.<br />
5) The testimonial video now showing on http://www.jamessmithcompany.com/ is the exact same testimonial that we filmed in 2008.<br />
10) James and Loree Smith are still married today. I know and respect them both. They are working through their own challenges and deserve privacy and respect when it comes to their marriage.<br />
11) Kari Michaeson is a colleague, friend, and professional working at many of the same events at James. That is all. Nothing more. There is no story, no drama, no deception.<br />
<br />
<br />
FALSE. IT IS NOT. THERE ARE 2 INFOMERCIALS / testimonials WITH KARI. ONE HAS Kari Michaelsen ( looking like a hippie) and her EX HUSBAND DAVID WALDOCK ALSO. THAT is the earlier one from 2008. The NEW one says Kari Waldock but was filmed AFTER she got divorced. She is wearing the brown sparkly business suit she bought to emcee the June 2009 M5 in Hard Rock Hotel in Las Vegas. The infomercial is taped AFTER that M5 and uploaded on April 12, 2010. ALSO the CEO Aaron Osmond was told by the ex husband David Waldock himself on the phone. But he (Aaron Osmond) did NOT give that information.<br />
<br />
James Smith Real Estate / Net Marketing, LC Complaints - Celebrity<br />
<br />
... Kari Michaelsen OR Kari Michaelson OR Kari Waldock and James ... If you WERE in Arizona with James Smith for business it does NOT matter. ...<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195.html?...<br />
<br />
<br />
CandyJS June 24, 2010<br />
Thank You Kari Michaelsen for EXPOSING yourself well and truly for ALL to see.<br />
David Waldock DIVORCED you in early 2009. You are a single woman! California divorce records are public information anyone can get for $15. You are not very intelligent, are you? School drop out? Next, David Waldock HIMSELF told Aaron Osmond, CEO of James Smith Company this truth about having divorced you in a phone conversation in April, 2010 when Aaron Osmond called him to ask for some help and advice. David Waldock did NOT want to help / work / partner with James Smith Company and is NOT your husband.<br />
<br />
Ken Hartley said<br />
<br />
xenophilius.wordpress.com/.../phelps-speaking-live-arco-arena/<br />
<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195<br />
<br />
June 2, 2010 at 1:34 pm<br />
<br />
Now here are some facts: I am also a student of James Smith. I spent a lot of money investing in his educational system. I received instruction from James, his sons, and many other teachers with the James Smith Company.<br />
<br />
Last of all, I am a pastor. That is what I do full time. I’m putting my integrity on the line by doing this post. I have nothing to gain by posting this reply other than the truth being known. The person doing these posts is lying. I’m telling you the truth. Those are the facts. Now decide for yourself.<br />
Ken Hartley<br />
James Smith Real Estate / Net Marketing, LC Complaints - Celebrity ...<br />
<br />
<br />
... AND JAMES SMITH AND KARI MICHAELSEN ARE IN ARIZONA RIGHT NOW. YES, for June 23rd and June 24th, 2010 ... 45 days ago by Michel Charbonnier, +2 Votes ...<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195<br />
<br />
<br />
Ken Hartley<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195.htm<br />
<br />
June 25, 2010<br />
<br />
<br />
They are nothing more than a jealous, bitter person. Kari was NOT in Arizona. She was in Los Angeles. I KNOW she was. I talked to her. I know Kari. Also, Kari didn't do that post. DAVID DID. I know. You care so little about truth. Reread Kari’s post. She NEVER said she was married in that post. You know Kari and David are a divorced couple working diligently to co-parent their child. (not that any of this is your business) You only care about people thinking you are right. You are a classic narcissist and insist on imposing your own perfectionistic tendencies on everyone else that you, yourself, are not willing to keep. It's absolutely astounding that you would accuse Kari of posting under a different name when you KNOW that's what YOU'RE doing.<br />
<br />
<br />
Do we need more proof when we have the company's supporter and a 'pastor' giving two OPPOSITE facts???.. Kari Michaelsen Not Divorced ( May 26, 2010) and Kari is divorced and co parenting (June 25, 2010).<br />
<br />
And the divorce was finalized and recorded in 2009 in California.<br />
<br />
<br />
A divorce is a legal public proceeding. If these people LIE SO MUCH about something that is a public proven FACT just to cover a lie about a divorce and affairs, then what about their honesty in financial and personal matters that are based ONLY on FAITH?? Beware and be careful. Do not lose money and sleep for a lifetime.Read about Jolee Tibbitts victims to get a picture of what might be many other trusting people. Know what you are doing. CAVEAT EMPTOR. Let the buyer beware!<br />
2 days ago by CathyST 0 Votes<br />
<br />
James Smith is thankful for 2/3?? women who jump to his call. New mistress ( beautiful young RICH accommodating) for almost the WHOLE week of Thanksgiving! She has a private plane and flies as the bird flies. LOTS of times at night AFTER being in the HOUSE of the Lord or BEFORE being there. MORE chances of fun! Kari Michaelsen is a LITTLE bound by Nicki. JUST for appearances, of course. The CPA????<br />
Arizona and group mentoring? Kari is USED to being there for James. But Orlando M5 had the new one NEAR James Smith's house EVERY night from Oct. 10 to the day he flew to Dallas and then BOTH were there to oblige.<br />
So will Kari be left out in the cold? New one is just SO ready.<br />
Both James and SHE are in Florida...<br />
Kari, be ready to jump in when New mistress is a LITTLE too busy to oblige.<br />
<br />
Liars ?? What? James Smith? But he cries and cares for people!<br />
1 days ago by Raf351 0 Votes<br />
<br />
And here we go again...the phantom poster, who wants the readers to think he/she knows all kinds of personal details of James Smith's life! Readers are so sick of your postings! You are obviously a very sick, vindictive, sad, miserable individual, who was either ignored, snubbed, or dumped! Well guess what - life doesn't always go the way we would like! So get over it, move on, and get a life of your own & get off the Internet!<br />
45 mins ago by RaymondCS 0 Votes<br />
<br />
SUNDAY, NOVEMBER 8, 2009<br />
The James Smith Real Estate Organization Lawsuit, Robert Paisola Reports<br />
<br />
http://seminarwatchlawsuit.blogspot.com/2009/11/james-smith-real-estate-organization.html<br />
To our friends and clients around the world:<br />
<br />
Many of you have contacted our offices asking about the current lawsuit that has been filed by people who state that they are "Victims" of The James Smith Real Estate Organization. As members of the national media, we are compelled to provide you with the raw information that is available on this site and many others. In the interest of justice we present the original filing that was filed in the Third Judicial District Court in Salt Lake City, Utah.<br />
<br />
We are going to provide you with the legal filing data, however, we are not going to comment on the current legal proceedings because of a confidentiality agreement that we have with this company. Please understand that we know and have known many of the defendants in this lawsuit, and as a media organization, it is our obligation to simply provide you, the American Public, with the facts of the current case.<br />
<br />
http://seminarwatchlawsuit.blogspot.com/2009/11/james-smith-real-estate-organization.html<br />
<br />
<br />
James Smith Company's instructor/ motivational speaker / main M5 presenter Jolee Tibbitts is sentenced to prison for investment scams and stealing innocent students money. 4 years in Federal prison.<br />
<br />
<br />
Utah woman sentenced in $1.2 million real estate scheme<br />
BY AARON FALK<br />
The Salt Lake Tribune<br />
Published Oct 27, 2010 05:13PM<br />
Updated Nov 1, 2010 03:45PM<br />
<br />
Tibbitts’ attorney, Daphne Oberg, said Tibbitts worked menial jobs until she was suddenly promoted to a real-estate training and motivational speaking job that quintupled her income. Later, when hard times hit, Oberg said Tibbitts’ life spun out of control.<br />
<br />
“Theft is one thing. Lying is another. You did them both, ” said Judge Dee Benson, of the U.S. District Court in Salt Lake City. “And you did it for an awfully long time.”<br />
<br />
We were also offered an opportunity at M5 workshop, a profitable property ... The fraud committed by NRI - James Smith, Jolee Tibbitts, ...<br />
www.complaintsboard.com/.../james-smith-nri-darel-snyder-psi-group-<br />
<br />
<br />
Dec 7, 2007 ... Jolee Tibbitts, JMT Concepts Jolee Tibbitts-Took money for an investment ... My husband and I attended an NRI M5 in August 2006 in Salt Lake City, UT. ... of a class action civil suit against Jolee, NRI, and James Smith. ...<br />
<br />
<br />
Mar 25, 2009 ... The fraud committed by NRI – James Smith, Jolee Tibbitts, Roger Williams, Aaron Asmond has personally effected me. I paid 20K to learn how ...xenophilius.wordpress.com/.../phelps-speaking-live-arco-arena/<br />
<br />
<br />
Jolee Tibbitts worked and traveled WITH JAMES SMITH COMPANY till 2008. Scammed many people. MANY COMPLAINTS involving Jolee Tibbitts and James Smith on Complaints Board. Investors and people considering business with these people and the company BEWARE. The court has ordered that Jolee Tibbitts pay BACK the victims at the rate of $250 a month. And the total is $1.2million!! So WHAT are the chances of getting your money back even if a lawsuit goes in your favor?<br />
<br />
A lot of lying and cunning is involved in this company. James Smith SEEMS very honest and sincere. But is what he SAYS really what he DOES? HAVE YOU SEEN HIM DO AND FOLLOW THROUGH AND THE RESULTS? ASK people before you make decisions. WHAT IS THE TRUTH? ARE THEY ALL HONEST OR DO THEY PLAY WITH EMOTIONS AND TRUST? People file lawsuits against this man and his company. Why? Ask them. Do NOT rely on the Customer Advisory Board that has some women calling James Smith MY MENTOR and MY GURU. Even their contact information is NOT there. WHY? Because of SPECIAL FRIENDSHIP? Can you TRUST people like that in what they say about James Smith. If he is SO HONEST then why ALL the other truths that are PROVED. Some examples below.<br />
<br />
James Smith's mistress Kari Michaelsen ALSO worked menial job in road shows for James Smith Company in 2008-20009 till she suddenly became an emcee of M5 and began to teach a Leadership Mastery class with James Smith!!! Till James Smith's wife demanded she be fired. But then James Smith got her a job with Get Motivated Seminars so they could travel together regularly and LOTS of OTHER times too. AND THEY DO!!<br />
<br />
FACT: Even now James Smith is a MARRIED MAN and is WORKING ON HIS MARRIAGE (according to him AND his CEO Aaron Osmond, see below for statement by Aaron Osmond) but has at least two mistresses. Let him PROVE otherwise.Almost EVERY NIGHT HE IS WITH ONE or BOTH.<br />
<br />
Dallas Get motivated BOTH Kari Michaelsen AND the the new one. Indianapolis GM Kari 3 nights. Washington DC Financial Success the New one 3 nights. Atlanta GM Kari 3 nights. 3rd November was Kari's 49th birthday. Eve of birthday and breakfast with Kari and then to the New one that same night for 4 nights. Then Kari.. then new one..then Kari.. etc. etc.<br />
<br />
Kari is the old regular one who abandons her little son Nickolas ALL the time ( his godfather and "UNCLE" is James Smith) to fly to James Smith when the NEW BEAUTIFUL RICH FAMOUS one cannot be available since she is in high demand and very busy being successful. She is like a super model. See her amazing photos on facebook. And then see Kari Michaelsen's more than a decade old and VERY HEAVILY paint brush touched up picture. Looks like a painting not a photo. And also her latest old and PAST IT photos from Get Motivated. Getting married at 42, having a son, getting divorced, having affairs, and waiting in hotel rooms for James Smith to come when he wants is something she does ALL the time and has not helped those looks at all.<br />
<br />
But Kari Michaelsen does a bikini circus act on a high rope(youtube.com) real well. Also a strip tease (Saturday the 14th). James Smith should know those well from his PRIVATE shows with her. All the company needs to do is put a high rope and give her a bikini. All the 7 minute breaks will be fun for free. She'll do the splits up high in the skimpy 'nothing' like she does in the circus act, or the strip tease.Maybe Get Motivated should have her throw in those acts too. All in the $4.99 / ticket price.<br />
<br />
At least the new mistress has HUGE following, BEAUTY, and is SO rich she can give James Smith the best life and luxury he can dream of. And she will not have to perform like a circus monkey either. She moves HUGE crowds by actually TALKING not just screaming names in a high pitched nasal voice with the Ladieeeees and Gentlemeeeeen that sounds like Fran Fine from the Nanny which is ALL Kari Michaelsen can do.No wait. She can also have NO morals, lie, be cunning and cheat. Also forget her son Nickolas at home all the time to be with James Smith.<br />
Alibis and classes / M5 / Group mentoring / Seminars are cover ups for EVERY day with women who are NOT the WIFE James Smith is WORKING on his marriage with. Holiday season is here and that means LOTS of time. But what about alibis? Who will lie this time?<br />
<br />
<br />
James Smith, Kari Michaelsen, Aaron Osmond, Ken Hartley, Kevin Reynolds. These people lie and should be held accountable. Example of lies by James Smith, Company CEO Aaron Osmond and student / friend /supporter Ken Hartley, instructor and partner Kevin Reynolds.<br />
<br />
Read the CONTRADICTING statements THEY have made themselves. They SAY IT ALL. Can you believe these people?<br />
<br />
Cheats! Dishonesty all around!They LIE LIE LIE!<br />
<br />
PROOF:<br />
<br />
James Smith goes on TRIPS with his mistresses and then has his INNOCENT son or employees lie and say he was with THEM instead:<br />
<br />
1) A trip with a mistress Kari Michaelsen in Hawaii, Honolulu from January 1, 2010 8PM to January 3, 2010 11AM ( Kari left for LAX), James left for Orlando at 6PM and the cover story was being with a son and daughter-in-law in Lanai.<br />
<br />
2) A trip with ANOTHER mistress to St.Croix<br />
<br />
Get Motivated Seminars Complaints - Online scam<br />
June 2010 ... Other Qivana members who were IN St.Thomas and can vouch for the fact... James Smith being with **** **** in St.Croix, Virgin Islands ...<br />
www.complaintsboard.com/.../get-motivated-seminars-c156138<br />
<br />
Kevin Reynolds ( the foreclosure and Real Estate 3 day class instructor) first wrote that James Smith was with HIM on 6/17and later wrote that James was with him on St.Thomas for a Qivana event from 6/13 to 6/18 TO COVER UP FOR A TRIP WITH A MISTRESS.<br />
<br />
FALSE. James Smith went to St.Thomas only on 6/17 and left on 6/18 for Utah M5 in Salt Lake City.The REST of the time he was on a TRIP with his mistress in St.Croix.<br />
<br />
For TRUTH and confirmation of the above information contact:<br />
<br />
Derek Hall, CEO Qivana<br />
<br />
@ (801)-610-4600<br />
<br />
HOW THEY LIE ABOUT KARI MICHAELSEN NOT being divorced and actually one of James Smith's mistresses<br />
<br />
Get Motivated Seminars Comments - Online scam<br />
<br />
... Did you KNOW that David Waldock officially DIVORCED Kari Michaelsen in 2009? ...<br />
www.complaintsboard.com/.../get-motivated-seminars-c156138.html?sort...<br />
<br />
Ken Hartley said<br />
<br />
xenophilius.wordpress.com/.../phelps-speaking-live-arco-arena/<br />
<br />
May 26, 2010 at 12:43 pm<br />
Again, you’re making accusations as facts and you have none. Kari and David were not divorced in 2002. I know. I was at an event with them TOGETHER in 2009. I know them. They’re married. You’re wrong. Get your facts straight.<br />
<br />
Aaron Osmond said<br />
<br />
xenophilius.wordpress.com/.../phelps-speaking-live-arco-arena/<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195<br />
<br />
<br />
May 28, 2010 at 2:37 pm<br />
Cindy,<br />
My name is Aaron Osmond. I am the CEO of the James Smith Company. James is both my business partner and close friend. I am also a friend and professional associate of Kari Michaelson.<br />
3) In May of 2008, I personally invited Kari and David (her husband) to share their testimonials as part of our new success story infomercial that we were filming that year.<br />
4) At that time, Kari and David (as a married couple) provided evidence of their real estate success with documentation as part of that testimonial process.<br />
5) The testimonial video now showing on http://www.jamessmithcompany.com/ is the exact same testimonial that we filmed in 2008.<br />
10) James and Loree Smith are still married today. I know and respect them both. They are working through their own challenges and deserve privacy and respect when it comes to their marriage.<br />
11) Kari Michaeson is a colleague, friend, and professional working at many of the same events at James. That is all. Nothing more. There is no story, no drama, no deception.<br />
<br />
<br />
FALSE. IT IS NOT. THERE ARE 2 INFOMERCIALS / testimonials WITH KARI. ONE HAS Kari Michaelsen ( looking like a hippie) and her EX HUSBAND DAVID WALDOCK ALSO. THAT is the earlier one from 2008. The NEW one says Kari Waldock but was filmed AFTER she got divorced. She is wearing the brown sparkly business suit she bought to emcee the June 2009 M5 in Hard Rock Hotel in Las Vegas. The infomercial is taped AFTER that M5 and uploaded on April 12, 2010. ALSO the CEO Aaron Osmond was told by the ex husband David Waldock himself on the phone. But he (Aaron Osmond) did NOT give that information.<br />
<br />
James Smith Real Estate / Net Marketing, LC Complaints - Celebrity<br />
<br />
... Kari Michaelsen OR Kari Michaelson OR Kari Waldock and James ... If you WERE in Arizona with James Smith for business it does NOT matter. ...<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195.html?...<br />
<br />
<br />
CandyJS June 24, 2010<br />
Thank You Kari Michaelsen for EXPOSING yourself well and truly for ALL to see.<br />
David Waldock DIVORCED you in early 2009. You are a single woman! California divorce records are public information anyone can get for $15. You are not very intelligent, are you? School drop out? Next, David Waldock HIMSELF told Aaron Osmond, CEO of James Smith Company this truth about having divorced you in a phone conversation in April, 2010 when Aaron Osmond called him to ask for some help and advice. David Waldock did NOT want to help / work / partner with James Smith Company and is NOT your husband.<br />
<br />
Ken Hartley said<br />
<br />
xenophilius.wordpress.com/.../phelps-speaking-live-arco-arena/<br />
<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195<br />
<br />
June 2, 2010 at 1:34 pm<br />
<br />
Now here are some facts: I am also a student of James Smith. I spent a lot of money investing in his educational system. I received instruction from James, his sons, and many other teachers with the James Smith Company.<br />
<br />
Last of all, I am a pastor. That is what I do full time. I’m putting my integrity on the line by doing this post. I have nothing to gain by posting this reply other than the truth being known. The person doing these posts is lying. I’m telling you the truth. Those are the facts. Now decide for yourself.<br />
Ken Hartley<br />
James Smith Real Estate / Net Marketing, LC Complaints - Celebrity ...<br />
<br />
<br />
... AND JAMES SMITH AND KARI MICHAELSEN ARE IN ARIZONA RIGHT NOW. YES, for June 23rd and June 24th, 2010 ... 45 days ago by Michel Charbonnier, +2 Votes ...<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195<br />
<br />
<br />
Ken Hartley<br />
www.ww.complaintsboard.com/.../james-smith-real-estate-net-marketing-lc-c3195.htm<br />
<br />
June 25, 2010<br />
<br />
<br />
They are nothing more than a jealous, bitter person. Kari was NOT in Arizona. She was in Los Angeles. I KNOW she was. I talked to her. I know Kari. Also, Kari didn't do that post. DAVID DID. I know. You care so little about truth. Reread Kari’s post. She NEVER said she was married in that post. You know Kari and David are a divorced couple working diligently to co-parent their child. (not that any of this is your business) You only care about people thinking you are right. You are a classic narcissist and insist on imposing your own perfectionistic tendencies on everyone else that you, yourself, are not willing to keep. It's absolutely astounding that you would accuse Kari of posting under a different name when you KNOW that's what YOU'RE doing.<br />
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<br />
Do we need more proof when we have the company's supporter and a 'pastor' giving two OPPOSITE facts???.. Kari Michaelsen Not Divorced ( May 26, 2010) and Kari is divorced and co parenting (June 25, 2010).<br />
<br />
And the divorce was finalized and recorded in 2009 in California.<br />
<br />
<br />
A divorce is a legal public proceeding. If these people LIE SO MUCH about something that is a public proven FACT just to cover a lie about a divorce and affairs, then what about their honesty in financial and personal matters that are based ONLY on FAITH?? Beware and be careful. Do not lose money and sleep for a lifetime.Read about Jolee Tibbitts victims to get a picture of what might be many other trusting people. Know what you are doing. CAVEAT EMPTOR. Let the buyer beware!<br />
<br />
Get Motivated speakers want to inspire you and take your money<br />
The Lowes enlist celebrities—like Brett Favre—at a hefty price<br />
By Nick Pinto<br />
published: May 19, 2010<br />
<br />
You know what they say about a fool and his money...<br />
You know what they say about a fool and his money...<br />
<br />
When the Get Motivated Seminar takes over the Target Center on May 26, it will bring with it a star-studded lineup of politicians and sports giants. For weeks, full-page advertisements in the Star Tribune have heralded the arrival of the national tour and its celebrity speakers: Sarah Palin, Colin Powell, Rudy Giuliani, Steve Forbes, Brett Favre, and Twins manager Ron Gardenhire.<br />
<br />
But the famous names are really there to lure the desperate and the unsuspecting into a hothouse of sales pitches for overpriced and questionable products, critics say. Get Motivated survives by fleecing fools, and the money Favre, Gardenhire, and the Strib are taking from the seminar comes out of the pockets of suckers.<br />
<br />
For the better part of a decade, Get Motivated seminars have offered their unique mixture of self-help pablum and celebrity razzle-dazzle. The organization's public face and executive vice president, Tamara Lowe, is most famous for her best-selling Get Motivated! book and YouTube clips of the Christian rap she delivers at the seminars. Her husband, Peter, ran a similar seminar series for years, but let his wife take the foreground after his venture collapsed amid complaints of fraud, leaving investors out millions of dollars.<br />
<br />
The Lowes' new venture bills itself as an inexpensive day of inspiration and self-improvement, but it doesn't take a Timothy Geithner to see that the numbers don't add up.<br />
<br />
As with any event, the promoters have to rent the stadium and foot the costs of production. The celebrities on the marquee command huge speaking fees—a financial disclosure by Giuliani reveals he earns $100,000 per event. Add in the other speakers, some who are also likely earning six figures per appearance, and the tab adds up fast.<br />
<br />
Favre, whose speaking fees start at $50,000, couldn't be reached for comment on his involvement with Get Motivated. Neither could Gardenhire, but Twins spokesman Dustin Morse says the coach's participation is no big deal.<br />
<br />
"Gardy doesn't have anything to say about this," Morse says. "They approached him to do a Q&A. He does speaking engagements all the time. This one's no different. I don't think he knows that much about them, honestly."<br />
<br />
Beginning in April, Get Motivated has been running full-page ads several times a week in the front section of the Star Tribune. The paper's advertising department won't discuss the terms of the ad buy, but say a single full-page ad typically sells for more than $21,000.<br />
<br />
At its maximum capacity, the Target Center can seat 20,500 people. At $5 a head, ticket revenue barely covers the speaking fee for just one of the top-dollar celebrity speakers. So how does the company make up the difference?<br />
<br />
Though you wouldn't know it from the newspaper advertisements or the website, the celebrity speakers aren't the only ones who will take the stage. After the star power has whipped the crowd into a motivational frenzy, slick hucksters follow up with seemingly spectacular, one-of-a-kind offers.<br />
<br />
Steven Garner, a 36-year-old real estate professional from Arizona, attended a Get Motivated seminar in Phoenix, and was appalled when a salesman started pitching an incredible new strategy to pay off your mortgage in half the time.<br />
<br />
"To a lot of people there, it might have sounded too good to be true," Garner says. "I'm in real estate: I knew it was too good to be true."<br />
<br />
Another Get Motivated speaker is Phil Town, "America's #1 investing trainer," who pitches a stock-trading computer program called Investools. At the seminars, Town invites audience members up on stage to show them just how easy it is to make money with Investools. If the arrow on screen shows red, they're supposed to sell. If green, they buy. It's just that easy, Town says, before mentioning that while the software usually sells for thousands of dollars, today you can buy it for as little as $99.<br />
<br />
When Ted Canto, a 40-year-old Phoenix salesman, fell for the pitch, the price was steeper. "It was $500 or $600 dollars, which was a lot of money for me at the time, because I wasn't really bringing anything in," Canto says. "But they were preying on my desire to make a change in my life, and I fell for it. I was hoping that it would get me out of the hole."<br />
<br />
The next day at work, Canto mentioned his new purchase to some professional traders who worked in his office building. They laughed at him.<br />
<br />
"They said the software I'd bought wasn't that good," he says.<br />
<br />
When buyers realize that successful stock trading actually requires some expertise, Town is ready to sell that to them, too. Investools offers two-day workshops on how to make the most of the software for $2,000.<br />
<br />
Last December, the Securities and Exchange Commission filed a complaint against Investools, alleging that members of its seminar sales force had lied to their audiences for years. The SEC's suit was settled when Investools paid a fine and promised to adhere to the rules.<br />
<br />
The Target Center and the Star Tribune say it's not their business what happens at Get Motivated seminars. Both organizations say they have guidelines on accepting clients, and Get Motivated evidently qualifies.<br />
<br />
For her part, Get Motivated's Tamara Lowe denies the seminar series is a racket.<br />
<br />
"We're about inspiring our audience," she says. "This isn't some giant infomercial."<br />
<br />
Lowe says it's true that her company loses money on the seminars and makes it back by "introducing people to other parts of our business." But she denies that Phil Town and the other unlisted "skills speakers" are selling products.<br />
<br />
"What the skills speakers do is make our audience aware of opportunities for their continuing education and improvement," she says. "And everything offered at the Get Motivated seminars is backed by a 100 percent money-back guarantee." Right..<br />
<br />
Name: Real Estate Investor Support, LLC<br />
Phone: (866) 496-8006<br />
Address: 14039 South Minuteman Dr<br />
Draper, UT 84020<br />
Website: www.jamessmithcompany.com<br />
Original Business Start Date: November 2005<br />
Principal: Mr. James Smith, President<br />
Customer Contact: Mr. Dan Heaton, Resolution Manager - (866) 496-8006<br />
Entity: Limited Liability Company<br />
Incorporated: November 2005, NV<br />
Type of Business: Training Program Companies, Educational Consultants, Financial Consultants, Investment Seminars<br />
BBB Accreditation: Real Estate Investor Support, LLC is not a BBB Accredited business.<br />
Additional DBA Names: James Smith Organization<br />
James Smith Company<br />
JamesSmithCompany.com<br />
<br />
<br />
Business Management<br />
<br />
Additional company management personnel include:<br />
<br />
Ms. Loree Smith - Owner<br />
Mr. Aaron Osmond - CEO<br />
<br />
James Smith and Aaron Osmond are also listed as principals of the Coaching Company LLC. A separate BBB report is available for the Coaching Company LLC.<br />
<br />
Take a century-old magazine noted for its inspirational business success stories. Add a well-known motivational-speaking business. Mix with a nationally popular tennis tournament.<br />
<br />
To organizers and investors, it sounded like a recipe for a multimedia business bonanza. Instead, it made for a financial disaster, leaving scores of creditors with unpaid bills topping $5 million and radically altering the fortunes of the three organizations:<br />
<br />
Success magazine, the financial bible for small-business entrepreneurs that began publishing in the 1890s, no longer exists.<br />
Success Events International, the firm that Florida entrepreneur Peter Lowe used to stage speeches by former presidents George Bush, Bill Clinton and other political and business figures, is out of business.<br />
And the Champions Tour, which featured matches by senior tennis greats such as John McEnroe and Jimmy Connors, is out a national sponsor and smaller in size as it prepares for Florida matches scheduled this week. <br />
<br />
"It's a very unfortunate saga of some very good companies," says Peter Frugone, a New York investor who says he got burned by the crash. And, he adds, "This story doesn't lack for characters."<br />
<br />
And like the parties in a bad marriage, the central characters disavow blame for what one called "a train wreck that's the size of Chernobyl."<br />
<br />
Lowe, the self-styled "America's Success Strategist," during the '90s, emerged as a star on the self-help entrepreneurial circuit, a rival of motivational guru Tony Robbins. He headlined events at which thousands of wannabe successes paid up to $200 to hear big-name speakers, product sales pitches and religious exhortations.<br />
<br />
Another figure is Stanley Van Etten, a North Carolina businessman. He's best known as a former financial broker against whom the Securities and Exchange Commission won a federal court judgment on charges he ran a pyramid scheme. Van Etten accepted the settlement of that case without admitting or denying wrongdoing.<br />
<br />
Getting started<br />
<br />
The byzantine saga began in late 1999 in New York bankruptcy court, where Success magazine had crashed after more than a century of publication. Van Etten, working through a new firm called The Success Companies, says he organized a group of investors who paid $4.75 million for the magazine at an asset sale.<br />
<br />
He moved the publication to his base in Raleigh, N.C., and prepared to relaunch it for readers made eager for business success stories by the go-go '90s. Victoria Conte, head of a media-consulting business that had previously worked with the magazine, hired on as publisher.<br />
<br />
Van Etten hoped to cross-brand the resurrected Success with new online and broadcast subsidiaries, and with a live events component: Tampa-based Peter Lowe International. Named for its founder, the firm drew tens of thousands to hear such speakers as George and Barbara Bush and motivational guru Zig Ziglar.<br />
<br />
"There were tremendous cross-promotional opportunities," says Van Etten. "The customers who were buying event tickets were the same demographic we wanted" for Success.<br />
<br />
Lowe, whose operation until then had been a non-profit, agreed to join The Success Companies in August 2000. He headed a new subsidiary called Success Events International. He called it "a match made in heaven" when the deal was announced.<br />
<br />
At about the same time, Van Etten added a third element to the cross-branding mix. Since 1993, the senior men's tennis tour had drawn crowds still eager to see McEnroe, Bjorn Borg and others past Grand Slam prime. But the tour lacked a national sponsor that would provide guaranteed income.<br />
<br />
Why not link Success magazine and Success Events to the tournament, and cross-promote all three to subscribers, arena-goers and tennis fans? Henry Brehm, an initial organizer of the tour, says The Success Companies approved a three-year, seven-figure deal for the magazine to serve as national sponsor of the matches.<br />
<br />
All the pieces fit into place by the end of 2000. The combined ventures produced roughly $2.3 million in profit during the first quarter of 2001, Van Etten says.<br />
<br />
Cancellations<br />
<br />
But the company, in need of at least several million dollars of new venture capital to grow, faced a suddenly tanking economy. Moreover, says Van Etten, personality, financial and management problems were emerging.<br />
<br />
In an April 2001 Success story, Lowe wrote that "in my business, organization is everything." But his new company seemed disorganized at best. Vendors weren't paid. Contracts with top speakers were canceled — though their names still were used to sell seats.<br />
<br />
Last September, "Peter Lowe's Success 2001" sold thousands of tickets for speeches by Clinton, TV show host Montel Williams, Mrs. Fields Cookies founder Debbi Fields and others in Chicago's United Center. But the star attractions were no-shows. And the event was shifted to the smaller Odeum Sports & Expo Center with little advance warning.<br />
<br />
The result? Angry ticket buyers and a major traffic jam.<br />
<br />
"They had canceled all the speakers, but they didn't tell anybody," says Jim Keppler, whose Virginia-based speaking agency is seeking arbitration over more than $1 million in alleged contract breaches by Success Events. "That's when it became clear to me that there was unprofessional, if not fraudulent, conduct."<br />
<br />
Jack Bohlken is typical of the disillusioned. He says he paid $165 for tickets to a Lowe-organized event in Atlanta that was canceled last year. He says he's also owed $35 for motivational tapes he never received. When he sought a refund, he says, he was told he could only get credit for yet-to-be-scheduled seminars.<br />
<br />
"The way this is being handled, with no communication with people like myself, is just the opposite of the values they espoused," says Bohlken.<br />
<br />
The Better Business Bureau of West Florida has logged dozens of complaints against Lowe's old and new companies from customers seeking refunds for arena events and motivational tapes they say weren't worth the cost.<br />
<br />
Van Etten, meanwhile, had problems of his own.<br />
<br />
Last May, the SEC sought a contempt order against him for delaying payment of $25,000 owed in a settlement involving International Heritage Inc., a separate North Carolina business. SEC investigators said the now-bankrupt firm was a pyramid scam that raised more than $150 million from investors through misleading promotional materials.<br />
<br />
And retired Georgia businessman Charles Curcio sought arbitration last October in a bid to recover $650,000 he had invested with venture capital funds organized by Van Etten. Curcio contended he didn't know some of his money would be invested in Success magazine. An arbitrator for the National Association of Securities Dealers recently rejected the claims.<br />
<br />
Van Etten says his SEC battles and Curcio's claims had nothing to do with his next strategic business move. Last summer, he bowed out of The Success Companies. "I was very frustrated with the personalities," and "the venture capital markets were drying up," he says.<br />
<br />
Confusion grows<br />
<br />
His legal departure only increased the turmoil. Since mid-2001, the company has had a tangled web of ownership.<br />
<br />
The first was The Nobility Group, a Nashville company headed by Ryan Wuerch. According to Van Etten and Conte, he shut down Success magazine, fired the publishing staff and disavowed the sponsorship deal with the Champions Tour.<br />
<br />
Preparing for this week's scheduled Champions Tour stop in Naples, Fla., tour official Brehm says the cancellation has meant layoffs and economic strain.<br />
<br />
For his part, Wuerch says he had been misled into buying a company heavily burdened with hidden debts.<br />
<br />
Wuerch's successor was Frugone, who runs New York-based Empire Capital. Frugone says he envisioned plowing venture capital in to revitalize The Success Companies.<br />
<br />
But Lowe, with creditor claims mounting, unexpectedly resigned in December. Around the same time, Van Etten's former attorney, Brent Wood, gained control of some assets. Frugone withdrew from the purchase agreement. Wood, who said he was owed more than $200,000 in legal fees, subsequently won control of some assets.<br />
<br />
Who bears legal responsibility for the mounting debts left by the collapse of the magazine, speaking business and tennis sponsorship?<br />
<br />
According to Lowe, he became merely an employee when he sold his firm to The Success Companies. Van Etten and the parent firm made all the decisions, he says.<br />
<br />
"I wish I had enough money to pay all the people The Success Companies should have paid. But I can't do that," says Lowe, who has launched a new motivational speaking firm called Life Win. "That's something The Success Companies is going to have to answer to."<br />
<br />
Van Etten calls that response "absolutely not accurate." He says Lowe served as CEO of the speaking events subsidiary and held day-to-day control, an assertion echoed by many former company employees and vendors.<br />
<br />
"I wasn't responsible for the crash," says Van Etten. "That's like saying Boeing is responsible for the jet that flew into the World Trade Center," he says.<br />
<br />
Wood, who owns some of what's left of The Success Companies, declines to comment on the record.<br />
<br />
Several of those involved predict the tangled dispute and mounting debts will return to the place the story began: bankruptcy court.<br />
<br />
"We want to know where is the money, who's got assets, what happened to the company," says Mark Kelly, lawyer for a Tampa printer trying to collect $141,134 in unpaid bills. "Everyone's running for cover like cockroaches when the light goes on."<br />
<br />
<br />
<div class="post_content">
What do you know about James Smith? Is he legit?
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<div class="edited post_meta">
Edited: 06/26/2010 at 09:09AM
by Karen Poles
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<a href="http://www.biggerpockets.com/users/Mr_Investor">James Hiddle</a></h3>
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Real Estate Investor
· Altus, Oklahoma
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<ul>
<li><a href="http://www.biggerpockets.com/posts/user/Mr_Investor">2,574 posts</a></li>
<li>7 awards</li>
<li>50 influence</li>
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Jul 28 '09, 10:53 AM</div>
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Never heard of him and I usually know who most of the guru's are.
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Edited: 06/26/2010 at 09:09AM
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<a href="http://www.biggerpockets.com/users/VanessaB">Vanessa Brostovski</a></h3>
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Real Estate Investor
· Lincoln, California
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<a href="http://www.biggerpockets.com/users/VanessaB"><img alt="Forum_avatar_avatar-vanessab" border="0" class="avatar" src="https://bp-v-newproduction.s3.amazonaws.com/uploads/social_user/user_avatar/32543/forum_avatar_avatar-vanessab.jpg" /></a>
<br />
<ul>
<li><a href="http://www.biggerpockets.com/posts/user/VanessaB">28 posts</a></li>
<li>2 awards</li>
<li>50 influence</li>
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Jul 30 '09, 06:34 AM</div>
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I am a student of James Smith and I have found it to be the most
legit, open company I've seen in real-estate investing. I have been to a
3-day residential core training and also the M5 (a 5 day intensive
covering several aspects of real-estate including commercial). The
wonderful thing about James Smith is that he does not advertise or try
to sell books--in other words, he has not "sold" off his name like other
programs I could mention. James will talk personally to ANYONE who
comes out, and his son Ryan has been awesome at answering my questions.
These people are not concerned whether you have paid them tons of money
or not. There are programs and mentoring you can sign up for, but it
is not pushed upon you and you can ask tons of questions at any event
without being ignored because you haven't paid for more programs, etc.
The people who teach for James are NOT snake-oil salesmen and they ARE
students themselves. What really convinced me to stay in touch with
them is that one of their speakers Robert Johnston is NOT good at public
speaking or presentation making! I say this not to insult him-he is a
student who is a genius at creative financing, but I have seen so many
trained salespeople at other companies' events. Don't be afraid to look
into James Smith's company, it's unique to the genre of programs!
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Edited: 06/26/2010 at 09:10AM
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<a href="http://www.biggerpockets.com/users/VanessaB">Vanessa Brostovski</a></h3>
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Real Estate Investor
· Lincoln, California
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<a href="http://www.biggerpockets.com/users/VanessaB"><img alt="Forum_avatar_avatar-vanessab" border="0" class="avatar" src="https://bp-v-newproduction.s3.amazonaws.com/uploads/social_user/user_avatar/32543/forum_avatar_avatar-vanessab.jpg" /></a>
<br />
<ul>
<li><a href="http://www.biggerpockets.com/posts/user/VanessaB">28 posts</a></li>
<li>2 awards</li>
<li>50 influence</li>
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Jul 30 '09, 06:38 AM</div>
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One more thing-- Mr. Investor-- I had heard of several gurus
myself as well and never heard of James. I'd like to re-emphasize that
it is simply because James keeps his company his business without
selling off his name or products in a commercial way--he loves investing
and teaching, so he's not going to write books or get in newspapers to
make profit. And I'm not paid in any way by them to give positive
reviews...its simply been my personal experience hands down.
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Edited: 06/26/2010 at 09:10AM
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<a href="http://www.biggerpockets.com/users/1mission">Dwight Droze</a></h3>
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Real Estate Investor
· citrus heights, California
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<a href="http://www.biggerpockets.com/users/1mission"><img alt="Forum_avatar_avatar-1mission" border="0" class="avatar" src="https://bp-v-newproduction.s3.amazonaws.com/uploads/social_user/user_avatar/29432/forum_avatar_avatar-1mission.jpg" /></a>
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<ul>
<li><a href="http://www.biggerpockets.com/posts/user/1mission">138 posts</a></li>
<li>2 awards</li>
<li>50 influence</li>
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Jul 30 '09, 06:44 AM</div>
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Yes i know James and his kids. Ryan bough us dinner in Vegas on
night so i owe him one! We are in his program right now and so far its
pretty good! Aaron the CEO helped us out alot actually too! <br />
i not some person he pays to come on boards and say this crap either.
I can say i went through Robert Kiyosaki's coaching and, well, it was
ok but it just felt like the lady would beat around the bush and
literally read off notes. I got enough help to ge my first place so i
cant complain.<br />
Right now im in james coaching program and i can say for SURE they
KILL Roberts program. The info is great and even when you get very
creative with ideas they have answers. Their first 3 days seminar thats
like $50 KILLS trump and kiyosaki and you really see how crappy their
programs are compared to james. I mean 50 bucks? TOTALLY worth it if you
are new i would reommend you call his company and see if there is one
where you live that cost $50. <br />
James even gave me his personal email, Ryan (his son) and even his
wife Jamie respond to my emails and questions as well. Very helpful and
if you dont have the money, ask them if they can help you out and if you
REALLY dont have the money to spend but you have room on credit cards,
sometimes they will even tell people no because they dont want them to
be in some horrible situation . <br />
I dont know, thats what i feel and i think its great. You cant help
but have a good time because he is so unpolitically correct and i dont
even know if i spelled that right
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Edited: 06/26/2010 at 09:10AM
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<a href="http://www.biggerpockets.com/users/aksin1">Alicia Ortiz</a></h3>
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Real Estate Investor
· Portage, Indiana
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<ul>
<li><a href="http://www.biggerpockets.com/posts/user/aksin1">27 posts</a></li>
<li>50 influence</li>
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Aug 28 '09, 01:36 AM</div>
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I totally agree with Vanessa and Dwight. The Smith family is
awesome. They are down to earth people who want to help people be
successful. I have been a student of theirs for several years. I can
call Ryan on his cell and he actually returns the call, not a
representative like most of the gurus out there.
</div>
<div class="edited post_meta">
Edited: 06/26/2010 at 09:31AM
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<h3>
<a href="http://www.biggerpockets.com/users/1mission">Dwight Droze</a></h3>
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<div class="smaller">
Real Estate Investor
· citrus heights, California
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<a href="http://www.biggerpockets.com/users/1mission"><img alt="Forum_avatar_avatar-1mission" border="0" class="avatar" src="https://bp-v-newproduction.s3.amazonaws.com/uploads/social_user/user_avatar/29432/forum_avatar_avatar-1mission.jpg" /></a>
<br />
<ul>
<li><a href="http://www.biggerpockets.com/posts/user/1mission">138 posts</a></li>
<li>2 awards</li>
<li>50 influence</li>
</ul>
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Aug 28 '09, 03:55 AM</div>
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yea i feel bad sometimes because i was sending Ryan ALOT of
emails with questions LOL. I stopped cause it was prolly driving him
nuts. I wish they were here more often cause i could sit there all day
and listen.
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<div class="edited post_meta">
Edited: 06/26/2010 at 09:31AM
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<h3>
<a href="http://www.biggerpockets.com/users/rbross">Roger Ross</a></h3>
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<li>50 influence</li>
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Oct 23 '09, 12:58 PM</div>
<div class="post_content">
Dwight, are you in the mentor coaching program where you get a
personal mentor assigned to you? They contacted me after I went to their
$50 seminar. I thought it was very good. I just want to know if this
investment is worth it and they will do what they say they will do
before I give them $9990.00! They say dependin gon how much time you put
in each week you should be able to make 6 figures your first year. Can
you confirm or deny this? I just want to talk to a few people that have
worked with these mentors and get their feed back before I make the
final decision. After alI I am just doing MY Due Diligence, they have to
appreciate that right!<br />
Thanks for any feed back on the course.
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<div class="edited post_meta">
Edited: 06/26/2010 at 10:13AM
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<h3>
<a href="http://www.biggerpockets.com/users/MRFDMO">Tim Lewis</a></h3>
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<li>50 influence</li>
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Dec 17 '09, 06:53 AM</div>
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I hear a lot about how great the Smith's are, but I haven't been
able to find anyone who is making money. I went to a seminar, and am
considering purhcasing the mentoring program, but I want to be more
comfortable with the investment. Has anyone found succes with the
program?
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<div class="edited post_meta">
Edited: 06/26/2010 at 10:53AM
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<h3>
<a href="http://www.biggerpockets.com/users/10Worlds">Karen Poles</a></h3>
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Real Estate Investor
· Philadelphia, Pennsylvania
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<li><a href="http://www.biggerpockets.com/posts/user/10Worlds">5 posts</a></li>
<li>2 awards</li>
<li>50 influence</li>
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Dec 28 '09, 10:46 PM</div>
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I have had 2 lengthy conversations with a Smith recruiter. One
in July and another in November. They ask for all the money you have to
put you in their mentoring program. I can not empty my pockets to pay
for more education. The last conversation I had with the Smith
recruiter, prompted me to explore tax liens on my own. I bought 3 books
for under $100. THAT, I can afford. :cool:
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<div class="edited post_meta">
Edited: 06/26/2010 at 11:00AM
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<h3>
<a href="http://www.biggerpockets.com/users/lauratodd">Laura Todd</a></h3>
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Apr 12 '11, 06:55 AM</div>
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I attended the 3-day financial success seminar in San Diego last
week, and I was completely blown away. I have 13 pages of notes, and
have already made 4 offers on investment properties using the knowledge I
gained. I think it is in everyone's best interest to be as educated as
possible. I am sorry that some people have had a bad experience. For
myself, I will be taking every opportunity to work with this company
again.<br />
Here is the best review I've read on the James Smith Company:
<br />
http://www.shanehunter.org/james-smith-financial-success-review/
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<h3>
<a href="http://www.biggerpockets.com/users/lawholesaler">Stephen Moore</a></h3>
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Real Estate Investor
· america
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<li><a href="http://www.biggerpockets.com/posts/user/lawholesaler">200 posts</a></li>
<li>4 awards</li>
<li>50 influence</li>
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Apr 12 '11, 07:06 AM</div>
<div class="post_content">
i've heard of him but if i were you to save your money i'd read
the wholesaling forum on here,almost any question their is for
wholesaling is already answered on here and if you can post questions
that you have. Theres also people on here that will mentor you as well
thats very much credible,and if you insist on a coaching program i know
of several people that will mentor you at cheap cost,theres one i would
put the website on here but its not allowed..just look at the
advertising on here
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<h3>
<a href="http://www.biggerpockets.com/users/macproperty">Ben Wilson</a></h3>
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Real Estate Investor
· Cincinnati, Ohio
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<li><a href="http://www.biggerpockets.com/posts/user/macproperty">72 posts</a></li>
<li>50 influence</li>
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Apr 12 '11, 07:26 AM</div>
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<fieldset class="quoted">
<legend>Originally posted by Roger Ross</legend><br />
<blockquote>
...before I give them $9990.00! </blockquote>
</fieldset>
smh
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<h3>
<a href="http://www.biggerpockets.com/users/mcglyph">Bryan Forsythe</a></h3>
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<li>50 influence</li>
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Jun 25 '11, 06:21 AM</div>
<div class="post_content">
I went to the 3 day free seminar. Fell for the assertion they
could turn my 15K into, "a fortune". I signed up for the cash flow
seminar=$3995. For whatever reason, a few days later I was, then
"selected" to be in their special program to be mentored, one on one,
for the low price of 7K, which would be for real estate training. One,
this so called program is really nothing more than a couple of days to
make sure the mark actually can pay the 7K required. I've talked to a
few people, who are actually some of the hired guns the James Smith
Company employs, and they were unaware of this program. One Kerry Lucas
did at first pretend he was going to figure this out for me, but in
reality only wanted to sell his program, which he asserted, "was much
cheaper than I had paid". I'm looking for as many individuals as I can
to start a class action lawsuit against this company. I have much more
information, and a longer list of complaints, than I want to type right
now. If you have found this post and are wondering about JSC, I can tell
you some things. Please contact me at [EMAIL REMOVED] soonest. Stay
away from the James Smith Company, do not buy into the very high priced
program they offer, as there are no refunds, and a man named Nate Day is
seemingly for me at least the only one I can work things out with. If
you want to be successful, the tools are out there, you don't need to go
to this company for anything. If you want training in real estate save
your 10K or whatever, and find a real estate club (they are every
where). My coach had me do this exact thing, go to a real estate club,
that was his first pearl of advice. The people at the real estate club
told me I should have saved my money. Do not be like me, please look
elsewhere for training.
</div>
<div class="edited post_meta">
Edited: 06/25/2011 at 09:21AM
by Moderator
: <i>email in signature, please</i>
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<h3>
<a href="http://www.biggerpockets.com/users/elhg">Leticia Hahn</a></h3>
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Real Estate Investor
· NY
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Jul 08 '11, 01:07 PM</div>
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I am sad to read about Bryan Forsythe's experience with JSC. Let
me tell you about my own experience. In 1997, I went to an event in
which James Smith spoke in Miami, FL. I was very impressed and
purchased the Tax Liens product for $2,000. Some months after that,
they convinced me to purchase a whole program for $20,000 (yes, a LOT of
money) and I did. Due to my moving to another state, my full-time job
(which I love), and numerous family problems, I did not do anything with
it until 2009. Since then, they have been delivering everything that
they promised, and the best coaching imaginable. They DO make sure that
you make money... and their strategies work. There is absolutely no
way I would have been able to learn all this on the internet. JSC has
totally changed my life forever. Also, when I went to the 5M conference
(totally included in what I had paid to them), I was able to interact
with James Smith and confirm that he is an honest and down to earth
person who truly wants to help people. At that conference, I also met
many people who have been very successful at implementing what they have
learned from JSC. My experience with this company has been very
positive.
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<h3>
<a href="http://www.biggerpockets.com/users/roseacre">James Beachy</a></h3>
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<div class="smaller">
Real Estate Investor
· Estacada, Oregon
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Jul 15 '11, 11:11 PM</div>
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I am currently working with the JSC and have a personal mentor
that I work with. They have not once gone back on their word and have
delivered above and beyond what their agreement was. I too have
personally met different ones of his students who are making big money
following his program. They take time to work with any and all the
questions you have. I would go with the JSC again if I would have the
choice to go back and start over again.
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<h3>
<a href="http://www.biggerpockets.com/users/kjcordell">Kevin Cordell</a></h3>
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<div class="smaller">
Note Investor
· Succasunna, New Jersey
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<li><a href="http://www.biggerpockets.com/posts/user/kjcordell">16 posts</a></li>
<li>1 award</li>
<li>50 influence</li>
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Jul 18 '11, 09:30 AM</div>
<div class="post_content">
I too signed up for James Smiths programs back in 2007 with the 3
day Real Estate course, followed with the 20k follow on that included
M-5, which we attended in Vegas in 2008, the Foreclosures and Commercial
boot camps and a paper course. By the time I attended the paper
course, I was already a default note buyer and was beyond the level and
scope of the course. I enjoyed all the events and all the instructors.
They are a nice bunch of guys and everyone is very polite.<br />
My question would be how many of you actually used the information to
launch a real estate career and are successful, in that you are not
working for anyone else, but fully independent and supporting yourself
on the knowledge you gained?
<br />
And beyond the knowledge, did you build a network of friend and business acquaintences?<br />
I can say yes to the networking. Although I took a different
direction, if I had not have spent the money, I wouldn't be in the note
business today.
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<h3>
<a href="http://www.biggerpockets.com/users/lori_herbert">Lori Herbert</a></h3>
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· Encinitas, California
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Aug 18, 04:21 PM</div>
<div class="post_content">
I just wanted to add some information to this forum. James Smith
Company was sold in 2010 to a corporation called Wealth Rock. From
that point forward James was not in any control of the company and was
only allowed limited involvement with students by the new company who
tried to make it seem as if nothing had changed. From 2010 forward,
James was simply an occasional speaker for the new company. Get
Motivated Seminars was purchased in 2012 by the same man, Joe Johnson,
who owned Wealth Rock. If you search Get Motivated lawsuit in Florida,
you can read all about it.<br />
As soon as James found out about the high pressure sales calls and
other complaints by students he cut all ties with Wealth Rock. <br />
I, too was a student who was signed up via a high pressure sales call
in 2011, after the sale of the company, told I was selected from a few
special people. After doing a lot of research, I found out the
information above. <br />
While James and his family did own the company, they treated their
students with nothing but respect and generosity. Things didn't change
until the company changed hands. Please search this online, you will
find it to be true!<br />
<br />
<table style="width: 100%px;"><tbody>
<tr><td class="complaint" colspan="5"><h1>
Wealth Rock</h1>
</td>
</tr>
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<tbody>
<tr>
<td class="small">Posted: 2012-05-05 by </td>
<td class="small" style="vertical-align: top;"><img height="18" src="http://www.complaintsboard.com/img/panel/boy.gif" style="border: 1px solid #CBCBCB;" width="18" /></td><td class="small" style="vertical-align: middle;"> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=940060">adampou</a></td>
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<td class="compl-text" colspan="2"><div>
<b>Lied to</b></div>
<div style="padding-bottom: 6px;">
<span class="small">Complaint Rating: </span> <img alt=" 100 % with 6 votes" src="http://www.complaintsboard.com/img/rating/rating_20.gif" title=" 100 % with 6 votes" /></div>
<span style="color: #999999;"><b>Company information:</b><br />Wealth Rock<br />15 West Scenic Parkway<br /><a href="http://www.complaintsboard.com/bycity/united-states/utah/draper.html">Draper</a>, <a href="http://www.complaintsboard.com/bystate/united-states/utah.html">Utah</a><br /><a href="http://www.complaintsboard.com/bycountry/united-states.html">United States</a><br />Phone: 8002703357<br /><a href="http://www.complaintsboard.com/byurl/wealthrock.com.html">wealthrock.com</a></span>
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This company is one HUGE scam that preys on good people by lying to them and doing so in the name of God. <br />
<br />
My wife went to the Get Motivated event in Miami a few months back
because she was excited about the speakers. She saw James Smith and Phil
Town speak bought both of their programs. Initially I was mad at how
much money she spent at the conference but I decided to support her and
went to hear what these "experts" had to say. <br />
<br />
When we attended the first event, instead of seeing Phil Town, we
listened to Ryan Smith. He stated that he was the son of James Smith,
one of the two speakers that my "sold" my wife at the Get Motivated
event. Ryan Smith essentially spent most of the first day bragging about
how great he is, how much money he has, how charitable he is and how
stupid other people are. He is extremely arrogant and abrasive. He
claimed that he was a professional baseball player. The only problem for
him is that he never made a professional roster because I am a
religious baseball fanatic. I know every team and practically every
player. He never played major league ball, or AAA or even AA for that
matter. Why someone would claim to be a professional athlete when they
verifiably were not is pretty brazen. Ryan also claimed that Donal Trump
asked him to teach his kids how to invest in real estate. Although I
cannot dispute this fact because I do not know Donald Trump, I did
research and find that Donald Trumps kids went to University of
Pennsylvania, the same school that Donal went to and Ivanka graduated
with a specialty in real estate. Trump also donated millions to that
school. Why would Donal Trump pay Ryan Smith, who was (and still is) a
kid, to train his children when he is one of the wealthiest real estate
investors in the world and sent them to a preeminent school that he
obviously believes in because he supports it financially. <br />
<br />
On day 2, the tone of the seminar drastically changed. We were invited
to meet with "coaches" in the back of the room who would help us figure
out a game plan to start investing. As it turns out the coaches wanted
to know how much money I had and they asked me if I had credit cards,
cash and other assets. I did not know any of these people and yet they
were asking me for my personal financial information. This should be a
red flag... run. <br />
<br />
Toward the end of the day, it became very clear to me why they asked if I
had credit cards or cash: they were selling training courses for almost
$30, 000. Ryan became very aggressive and spouted off that if we wanted
to be prosperous and basically good people, then we would "invest" in
ourselves. I don't see how spending tens of thousands of dollars on a
program that I have to "buy now" positions me for success in life. If
the company that Ryan and all of the other seminar monkeys work for is
so reputable and will be around for the long haul, then why do I have to
buy now. Why such pressure? We did not return for day 3, even though I
was told by one of the "coaches" (read: high pressure salesmen) Nikko
that God would be in the room on Sunday and therefore I didn't need to
go to church. <br />
<br />
I was so upset from the event that I didn't want to go to the next
seminar. My wife was very embarrassed as well. Despite the first event,
my wife wanted to hear James Smith speak and she said that he was much
different from his son Ryan. I decided to go with her to the next event.
To my dismay and her horror, the next event which was supposed to
feature James Smith actually featured Ryan Smith and his wife Jamie and
all of his goons. They told the same stories, tried to tell the same
jokes and basically repeated what we paid for just a few days earlier.
To sum it up, we left and demanded a refund. Wealth Rock was terrible to
deal with because they sounded shocked that we weren't happy with the
event and pretended like we were the only customers who wanted their
money back. I knew that we were the only ones wanting refunds because at
the second event, we sat with 3 other couples that we met at the first
event. We all decided to leave at lunch on the first day and we all
asked for our money back. I spoke with several other people at the event
who had similar complaints. <br />
<br />
Three months have passed and they still haven't refunded my money. I
called Wealth Rock last week to see when my refund was coming. The phone
rep couldn't answer my questions and I asked for the manager. I was
told that I couldn't speak with anyone else because Wealth Rock's staff
was on "furlough". I had to look up the word and it means a "temporary
unpaid leave of absence". Wealth Rock has apparently let their staff go
on an unpaid leave for some reason. <br />
<br />
Watch out for Wealth Rock, Phil Town, James Smith, Ryan Smith and the
rest of these clowns. They will tell you anything and make up lies just
to get a sale.</div>
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<tr><td colspan="2"><a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" name="c1205305"></a>
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<td class="comments"><img src="http://www.complaintsboard.com/img/D.gif" style="vertical-align: middle;" /> 7th of May, 2012 by <img height="18" src="http://www.complaintsboard.com/img/panel/girl.gif" style="border: 1px solid #CBCBCB; vertical-align: middle;" width="18" /> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=937777">HappyAtTelStar</a>
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<td class="comments" id="state1205305" style="text-align: right;"><img src="http://www.complaintsboard.com/img/agree_green.gif" style="cursor: pointer; vertical-align: middle;" />
<img src="http://www.complaintsboard.com/img/disaggree_red.gif" style="cursor: pointer; vertical-align: middle;" />
<span class="small">0 Votes</span>
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<tr><td class="compl-text" colspan="2" style="padding-left: 10px;">I
didn't see where the man said he expected or wanted to become a
millionaire over night that is an assumption your making without the
grounds in which you need to make that assumption on!! I also don't
recall him saying they were scammers, another assumption made on your
part, but I agree with adampou, why would he say he was a professional
ball player when that can so easily be checked out and furthermore to
have the gull to say Donald Trump wanted him to teach his children, come
on after that I'd want my money back to!!!</td></tr>
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<a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" name="c1246718"></a>
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<td class="comments"><img src="http://www.complaintsboard.com/img/A.gif" style="vertical-align: middle;" /> 9th of Aug, 2012 by <img height="18" src="http://www.complaintsboard.com/img/panel/boy.gif" style="border: 1px solid #CBCBCB; vertical-align: middle;" width="18" /> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=979147">Disappointed-Twice</a>
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<td class="comments" id="state1246718" style="text-align: right;"><img src="http://www.complaintsboard.com/img/agree_green.gif" style="cursor: pointer; vertical-align: middle;" />
<img src="http://www.complaintsboard.com/img/disaggree_red.gif" style="cursor: pointer; vertical-align: middle;" />
<span class="small">0 Votes</span>
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<tr><td class="compl-text" colspan="2" style="padding-left: 10px;">Perhaps
fortunately I could not afford the tuition. So now 1 month later, I get
a phone call by a guy telling me that for $500 - $1000 I could buy some
practical help actually doing paper trading, imitating Phil Smith's
trades, and they would walk me through the whole system so that I got it
and could do it on my own.<br />
<br />
Then one day later I got a phone call from another person who finally
after lots of sales-gibber-jab, told me that only $10, 000 would buy me a
year's handholding and help. What happened to the $500, the $1000. IN
sales, this is lowballing to keep you interested.<br />
<br />
Encouraging people to put $10, 000 on a credit card for a course that
does NOT guarantee any results is not a good plan in my estimation.</td></tr>
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<a href="http://www.complaintsboard.com/complaints/wealth-rock-florida-c594234.html#c1246738" target="_blank">Wealth Rock Florida</a></h4>
(Complaint Comment)</td><td align="right"><br /></td>
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<td class="small">Posted: 2012-08-09 by </td>
<td class="small" style="vertical-align: top;"><img src="http://www.complaintsboard.com/img/panel/boy.gif" style="border: 1px solid #CBCBCB;" /></td><td class="small" style="vertical-align: middle;"> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=979147">Disappointed-Twice</a> </td>
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<td class="compl-text" colspan="2"><div>
<b>Seminar Ripoff</b><br />
mind telling us HOW <b style="background-color: yellow;">Wealthrock</b> was a lifesaver for you?
I am sure we would all like to hear more...</div>
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<td class="complaint"><h4>
<a href="http://www.complaintsboard.com/complaints/wealthrock-buffalo-new-york-c624002.html" target="_blank"><span style="background-color: yellow;">Wealthrock</span> Buffalo New York</a></h4>
(Complaint)</td><td align="right"><br /></td>
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<td class="small">Posted: 2012-08-09 by </td>
<td class="small" style="vertical-align: top;"><img src="http://www.complaintsboard.com/img/panel/boy.gif" style="border: 1px solid #CBCBCB;" /></td><td class="small" style="vertical-align: middle;"> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=979147">Disappointed-Twice</a> </td>
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<b>Lowballing</b><br />
Just agreeing with others about how <b style="background-color: yellow;">Wealthrock</b>
makes it seem easy but leave out expenses which must be incurred,
mentions low prices and then raises them when they switch sales people.
Very disappointed with their advising to put their expensive tuition on
a credit card...</div>
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<td class="complaint"><h4>
<a href="http://www.complaintsboard.com/complaints/wealth-rock-draper-utah-c605100.html" target="_blank">Wealth Rock Draper Utah</a></h4>
(Complaint)</td><td align="right"><br /></td>
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<td class="small">Posted: 2012-05-05 by </td>
<td class="small" style="vertical-align: top;"><img src="http://www.complaintsboard.com/img/panel/boy.gif" style="border: 1px solid #CBCBCB;" /></td><td class="small" style="vertical-align: middle;"> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=940060">adampou</a> </td>
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<b>Lied to</b><br />
This company is one HUGE scam that preys on good people by lying to them and doing so in the name of God. <br />
<br />
My wife went to the Get Motivated event in Miami a few months back
because she was excited about the speakers. She saw James Smith and Phil
Town speak bought both of th...</div>
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<div id="s604583">
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<td class="complaint"><h4>
<a href="http://www.complaintsboard.com/complaints/wealth-rock-nevada-c604583.html" target="_blank">Wealth Rock Nevada</a></h4>
(Complaint)</td><td align="right"><br /></td>
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<td class="small">Posted: 2012-05-02 by </td>
<td class="small" style="vertical-align: top;"><img src="http://www.complaintsboard.com/img/panel/boy.gif" style="border: 1px solid #CBCBCB;" /></td><td class="small" style="vertical-align: middle;"> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=939069">Dennis Schwarm</a> </td>
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<b>Lied to</b><br />
Wealth Rock is in the business of making millions by selling programs they claim will make YOU millions within 5 years. <br />
<br />
Is this possible? Yes, to a select few who are willing (and able) to
spend $$$$$ (thousands) on and never ending lists of classes, workshops
and training....</div>
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<td class="complaint"><h4>
<a href="http://www.complaintsboard.com/complaints/wealth-rock-florida-c594234.html#c1187689" target="_blank">Wealth Rock Florida</a></h4>
(Complaint Comment)</td><td align="right"><br /></td>
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<td class="small">Posted: 2012-03-28 by </td>
<td class="small" style="vertical-align: top;"><img src="http://www.complaintsboard.com/img/panel/girl.gif" style="border: 1px solid #CBCBCB;" /></td><td class="small" style="vertical-align: middle;"> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=924493">Sabrina Laplante</a> </td>
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<b>Seminar Ripoff</b><br />
<b style="background-color: yellow;">Wealthrock</b>,
along witht heir whole crew and the many amazing mentors have been
nothing but a lifesaver for my family and I. Remember, in the end, you
were the one who made the decission to purchase that package. We were
not pressured at all, and even went home to think about it for a day.
My best advice to you is, go to the classes, and take action...</div>
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<td class="complaint"><h4>
<a href="http://www.complaintsboard.com/complaints/wealth-rock-florida-c594234.html" target="_blank">Wealth Rock Florida</a></h4>
(Complaint)</td><td align="right"><br /></td>
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<td class="small">Posted: 2012-03-12 by </td>
<td class="small" style="vertical-align: top;"><img src="http://www.complaintsboard.com/img/panel/girl.gif" style="border: 1px solid #CBCBCB;" /></td><td class="small" style="vertical-align: middle;"> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=917760">Seminarbuster</a> </td>
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<b>Seminar Ripoff</b><br />
and Jamie Smith of (<b style="background-color: yellow;">Wealthrock</b>).
As a single mother with 3 kids what they were saying was interesting
to me. I make 26k a year so I was a Prospect. I signed up for the 99
dollar 3 day course.
Ryan Smith Jamies son was teaching the class. He told us he Taught
Donald Trumps Kids how to be Rich stories of how he was worth hundreds
of millions of dollars but was broke? did not own any thing in his name
all through the companys names...</div>
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Wealth Rock</h1>
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<td class="small">Posted: 2012-05-05 by </td>
<td class="small" style="vertical-align: top;"><img height="18" src="http://www.complaintsboard.com/img/panel/boy.gif" style="border: 1px solid #CBCBCB;" width="18" /></td><td class="small" style="vertical-align: middle;"> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=940060">adampou</a></td>
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<b>Lied to</b></div>
<div style="padding-bottom: 6px;">
<span class="small">Complaint Rating: </span> <img alt=" 100 % with 6 votes" src="http://www.complaintsboard.com/img/rating/rating_20.gif" title=" 100 % with 6 votes" /></div>
<span style="color: #999999;"><b>Company information:</b><br />Wealth Rock<br />15 West Scenic Parkway<br /><a href="http://www.complaintsboard.com/bycity/united-states/utah/draper.html">Draper</a>, <a href="http://www.complaintsboard.com/bystate/united-states/utah.html">Utah</a><br /><a href="http://www.complaintsboard.com/bycountry/united-states.html">United States</a><br />Phone: 8002703357<br /><a href="http://www.complaintsboard.com/byurl/wealthrock.com.html">wealthrock.com</a></span>
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This company is one HUGE scam that preys on good people by lying to them and doing so in the name of God. <br />
<br />
My wife went to the Get Motivated event in Miami a few months back
because she was excited about the speakers. She saw James Smith and Phil
Town speak bought both of their programs. Initially I was mad at how
much money she spent at the conference but I decided to support her and
went to hear what these "experts" had to say. <br />
<br />
When we attended the first event, instead of seeing Phil Town, we
listened to Ryan Smith. He stated that he was the son of James Smith,
one of the two speakers that my "sold" my wife at the Get Motivated
event. Ryan Smith essentially spent most of the first day bragging about
how great he is, how much money he has, how charitable he is and how
stupid other people are. He is extremely arrogant and abrasive. He
claimed that he was a professional baseball player. The only problem for
him is that he never made a professional roster because I am a
religious baseball fanatic. I know every team and practically every
player. He never played major league ball, or AAA or even AA for that
matter. Why someone would claim to be a professional athlete when they
verifiably were not is pretty brazen. Ryan also claimed that Donal Trump
asked him to teach his kids how to invest in real estate. Although I
cannot dispute this fact because I do not know Donald Trump, I did
research and find that Donald Trumps kids went to University of
Pennsylvania, the same school that Donal went to and Ivanka graduated
with a specialty in real estate. Trump also donated millions to that
school. Why would Donal Trump pay Ryan Smith, who was (and still is) a
kid, to train his children when he is one of the wealthiest real estate
investors in the world and sent them to a preeminent school that he
obviously believes in because he supports it financially. <br />
<br />
On day 2, the tone of the seminar drastically changed. We were invited
to meet with "coaches" in the back of the room who would help us figure
out a game plan to start investing. As it turns out the coaches wanted
to know how much money I had and they asked me if I had credit cards,
cash and other assets. I did not know any of these people and yet they
were asking me for my personal financial information. This should be a
red flag... run. <br />
<br />
Toward the end of the day, it became very clear to me why they asked if I
had credit cards or cash: they were selling training courses for almost
$30, 000. Ryan became very aggressive and spouted off that if we wanted
to be prosperous and basically good people, then we would "invest" in
ourselves. I don't see how spending tens of thousands of dollars on a
program that I have to "buy now" positions me for success in life. If
the company that Ryan and all of the other seminar monkeys work for is
so reputable and will be around for the long haul, then why do I have to
buy now. Why such pressure? We did not return for day 3, even though I
was told by one of the "coaches" (read: high pressure salesmen) Nikko
that God would be in the room on Sunday and therefore I didn't need to
go to church. <br />
<br />
I was so upset from the event that I didn't want to go to the next
seminar. My wife was very embarrassed as well. Despite the first event,
my wife wanted to hear James Smith speak and she said that he was much
different from his son Ryan. I decided to go with her to the next event.
To my dismay and her horror, the next event which was supposed to
feature James Smith actually featured Ryan Smith and his wife Jamie and
all of his goons. They told the same stories, tried to tell the same
jokes and basically repeated what we paid for just a few days earlier.
To sum it up, we left and demanded a refund. Wealth Rock was terrible to
deal with because they sounded shocked that we weren't happy with the
event and pretended like we were the only customers who wanted their
money back. I knew that we were the only ones wanting refunds because at
the second event, we sat with 3 other couples that we met at the first
event. We all decided to leave at lunch on the first day and we all
asked for our money back. I spoke with several other people at the event
who had similar complaints. <br />
<br />
Three months have passed and they still haven't refunded my money. I
called Wealth Rock last week to see when my refund was coming. The phone
rep couldn't answer my questions and I asked for the manager. I was
told that I couldn't speak with anyone else because Wealth Rock's staff
was on "furlough". I had to look up the word and it means a "temporary
unpaid leave of absence". Wealth Rock has apparently let their staff go
on an unpaid leave for some reason. <br />
<br />
Watch out for Wealth Rock, Phil Town, James Smith, Ryan Smith and the
rest of these clowns. They will tell you anything and make up lies just
to get a sale.</div>
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<td class="comments"><img src="http://www.complaintsboard.com/img/D.gif" style="vertical-align: middle;" /> 7th of May, 2012 by <img height="18" src="http://www.complaintsboard.com/img/panel/girl.gif" style="border: 1px solid #CBCBCB; vertical-align: middle;" width="18" /> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=937777">HappyAtTelStar</a>
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<span class="small">0 Votes</span>
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<tr><td class="compl-text" colspan="2" style="padding-left: 10px;">I
didn't see where the man said he expected or wanted to become a
millionaire over night that is an assumption your making without the
grounds in which you need to make that assumption on!! I also don't
recall him saying they were scammers, another assumption made on your
part, but I agree with adampou, why would he say he was a professional
ball player when that can so easily be checked out and furthermore to
have the gull to say Donald Trump wanted him to teach his children, come
on after that I'd want my money back to!!!</td></tr>
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<td class="comments"><img src="http://www.complaintsboard.com/img/A.gif" style="vertical-align: middle;" /> 9th of Aug, 2012 by <img height="18" src="http://www.complaintsboard.com/img/panel/boy.gif" style="border: 1px solid #CBCBCB; vertical-align: middle;" width="18" /> <a href="http://www.complaintsboard.com/panel.php?action=profile&id=979147">Disappointed-Twice</a>
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<tr><td class="compl-text" colspan="2" style="padding-left: 10px;">Perhaps
fortunately I could not afford the tuition. So now 1 month later, I get
a phone call by a guy telling me that for $500 - $1000 I could buy some
practical help actually doing paper trading, imitating Phil Smith's
trades, and they would walk me through the whole system so that I got it
and could do it on my own.<br />
<br />
Then one day later I got a phone call from another person who finally
after lots of sales-gibber-jab, told me that only $10, 000 would buy me a
year's handholding and help. What happened to the $500, the $1000. IN
sales, this is lowballing to keep you interested.<br />
<br />
Encouraging people to put $10, 000 on a credit card for a course that
does NOT guarantee any results is not a good plan in my estimation.</td></tr>
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Did you get scammed by this company or any of the James Smith or Peter Lowe Organizations? If so watch this and let us know!<br />
-<br />
<br />
<h1 class="title" style="border: 0px; color: #557474; float: left; font-family: Arial, Helvetica, sans-serif; font: inherit; line-height: 20px; margin: 5px 0px 10px 10px; outline: 0px; padding: 0px 0px 5px; vertical-align: baseline; width: 450px;">
WealthRock<br /><span style="border: 0px; color: #aaaaaa; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Complaint 149303 Details</span></h1>
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<li style="background-color: #f1f1f1; background-position: initial initial; background-repeat: initial initial; border: 0px; float: left; font-size: 10px; font-weight: bold; font: inherit; margin: 0px 0px 5px 5px; outline: 0px; padding: 5px 8px; text-shadow: rgb(255, 255, 255) 1px 1px 0px; vertical-align: baseline;"><span style="border: 0px; font-size: 10px; font-weight: normal; font: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Date Occurred:</span>08/21/2012</li>
<li style="background-color: #f1f1f1; background-position: initial initial; background-repeat: initial initial; border: 0px; float: left; font-size: 10px; font-weight: bold; font: inherit; margin: 0px 0px 5px 5px; outline: 0px; padding: 5px 8px; text-shadow: rgb(255, 255, 255) 1px 1px 0px; vertical-align: baseline;"><span style="border: 0px; font-size: 10px; font-weight: normal; font: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Reported Damages:</span>$39,491.25</li>
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This Company is a money sucking machine. Little did I know that when I found out today that the company is closed down. I'm so so sad. Invested so much...come to know that all the unlimited bootcamp that is no longer going to be available? I was even given this certification that I was going to be able to make the money all back within a year. I understand that hard work needs to be done on my part. However, its the education that I was seeking more than anything??? I didn't feel that I got want I paid for PERIOD. I will file a consumer complaint. Money is money no matter what amount that was taken from people. It's sad that these companies come down to this!!!! High pressured calls...selectively chosen my cramp! PEOPLE DON't BELIEVE IN ANYTHING THEY SAY!</div>
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<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">I, like a lot of people, am finding it harder and harder to get by in this economy. That is why this type of scam works so well; when I went to a Financial success summit I was more than eager to buy the snake oil they were selling. Guess it just proves the old saying that a sucker is born every minute, guess that includes me.</span><br />
<br style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;" />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">I just wanted to post somewhere to let the buyer beware and hopefull keep someone else from making the biggest mistake of their financial lives and giving this group of con men you hard earned money. They are selling a dream and giving nothing - some old worn out information that has been around for 30 years and not only that - a lot of it can not even be done anymore because of new banking laws - but they are still putting out the information in the simanar as if it can.</span><br />
<br style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;" />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">Don't be drugg in by their scam of making tons of money and then giving to charties, it is like a diet pill that works for one person and not for the other 300 people who try it</span></div>
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<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">-</span></div>
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<span style="font-size: 12px;">Below you will find an email I sent to the CEO requesting my money back;</span><br />
<span style="font-size: 12px;">So here is the deal, I am a kidney dialysis patient on a waiting list (hoping & praying) for a transplant. This condition makes it impossible for me to work. At the seminar hosted by Ryan Smith I was not mesmerized by the promise of five million dollars in five years. What caught my attention was the ability that was promised to build a residual income very quickly and replace some of the earnings lost due to my illness. A program that no matter if the stock market goes up, down or sideways, we would make money. Better yet Mr Sykorsky promised us access to his live trades so according to Ryan Smith all we need to do is duplicate them. And by signing up for the elite program we would have access to training and guidance for three full years, also this program would begin to pay for itself almost immediately. This made the elite program very attractive and the fact that Wealthrock was seeking accreditation as a university helped to legitimize the program. So you can understand the frustration of everyone in attendance at the seminar when they were informed that Mr. Sykorsky was no longer associated with wealthrock. Furthermore the books sent to us were of no value and would not be used since the people hired to teach the seminar (options animals) do not use books or any other materials, but we would be entitled to access their web page for a period of three months and levels 1,2 and 3. The trades we were promised are level eight and would not be taught. People were furious with this bait and switch and so on the second day they abruptly altered their schedule to include this trade but insisted that this is a far advanced trade not taught by them until level eight and should not even be considered by inexperienced traders. Now keep in mind we only have access to levels 1-3, so how do we get to level eight? Furthermore the opportunity to view live trades is illegal and they had no idea why such a promise was ever made. On top of that they recommended NOT making trades with money. They recommend setting up virtual accounts and practicing for a minimum of six months, preferably longer. Thus the complete and utter turmoil that created the need for a conference call from you giving your email address and phone number and promising to do "what ever it takes to make it right for everyone". At this point the only thing that will make it right is for you to refund my money, unless your aim was to mislead and deceive everyone in attendance. </span><br />
<span style="font-size: 12px;">Julian Apodaca</span></div>
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<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/83362/Epeterson" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Epeterson</a> <a class="note-button" href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="What is SBID? SBID is a unique id code that identifies the user's computer and location. If the SBID is the same but the user account is different, it is likely that the user created multiple accounts to comment on a post. "><span class="subdue" style="border: 0px; color: #cccccc; font: inherit; margin: 0px; outline: 0px; padding: 0px 2px; vertical-align: baseline;">SBID #bcf2e15551</span></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">Posted 05/10/2012</li>
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<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/87073/Caroline" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Caroline</a> <a class="note-button" href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="What is SBID? SBID is a unique id code that identifies the user's computer and location. If the SBID is the same but the user account is different, it is likely that the user created multiple accounts to comment on a post. "><span class="subdue" style="border: 0px; color: #cccccc; font: inherit; margin: 0px; outline: 0px; padding: 0px 2px; vertical-align: baseline;">SBID #c064d96d2e</span></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">Posted 05/23/2012</li>
<div class="clear5" style="border: 0px; clear: both; font-size: 12px; font: inherit; height: 5px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
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<li class="comment" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; line-height: 20px; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 540px; word-wrap: break-word;">This is venture capitalism gone riot! Wealthrock leaders talk about God and about earning money to support charities, but all they are really interested in is taking advantage of people who are having a hard time financially. They want their students to borrow money and go out making "deals" with poor people who are losing their homes and businesses. Once you realize their true agenda, it is too late to get your money back. They will charge you $5000.00 for each set of materials they send you. Last year, they changed instructors in midstream. I was unable to access their webinars for months. Nobody put me on the list for the new stock market trading online classes; evidently I was just "forgotten." And, by the way, the Osmond family of Utah are deeply involved in this company. When they talk about doing good and serving god, they are talking about Mormonism. Just like Mitt Romney with his Bain vulture capitalists, they are out to get the last ounce of blood out of people who are drowning. Their "student satisfaction" program is a laugh. The guy just tells you you can't get any of your money back, but he will sell you more of their training programs. James Smith should be ashamed of himself. And by the way, he gave us his personal email address during the Get Motivated Seminar in case we needed assistance. Of course the emails come back as undeliverable.</li>
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<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/98583/LoriSD" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">LoriSD</a> <a class="note-button" href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="What is SBID? SBID is a unique id code that identifies the user's computer and location. If the SBID is the same but the user account is different, it is likely that the user created multiple accounts to comment on a post. "><span class="subdue" style="border: 0px; color: #cccccc; font: inherit; margin: 0px; outline: 0px; padding: 0px 2px; vertical-align: baseline;">SBID #1e7c00e73c</span></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">Posted 07/05/2012</li>
<div class="clear5" style="border: 0px; clear: both; font-size: 12px; font: inherit; height: 5px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
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<li class="comment" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; line-height: 20px; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 540px; word-wrap: break-word;">I wanted to clear up some serious misconceptions here. I am a fellow Wealth Rock student, and I agree that they are scam artists and have actually committed fraud against many of their students. The customer service is terrible, they have baited and switched vendors so many times it is not even funny! They have canceled most of their classes, and they haven't even come close to delivering what they have promised. This is fact. I'm happy to help anyone who is pursuing action against them, I am truly sorry for what you've been through, I've been through the same things with them and more personally.<br /><br />The one misconception I want to correct is regarding James Smith personally. James sold the company more than a year ago and has had nothing to do with the day to day management of the company since that day. He continued on as a speaker out of a true desire to help the students whom he cares for deeply! Wealth Rock turned off the email address James gave personally to students, James did not abandon you! James Smith is the real deal, not an act! He would never hurt anyone, and has done nothing but continue to support the students who have brought their complaints to him. Unfortunately Wealth Rock has severely limited his contact with the students.<br /><br />James is not the bad guy here, keep your focus on the real opportunists who took your money with no regard for you personally, they are the executives of Wealth Rock. They will promise you the moon to get your complaint to go away, but they will not deliver!<br /><br />I just beg that you stay focused on the correct people in your battle. If you would like help or info, feel free to contact me. </li>
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<li class="thumbs-up2" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -50px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">thumb up</span></a></li>
<li class="thumbs-down2" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-right-color: rgb(204, 204, 204); border-right-style: solid; border-width: 0px 1px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -68px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">thumb down</span></a></li>
<li class="flag flag-login" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/login" style="border: 0px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -114px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">flag</span></a></li>
</ul>
</li>
<li class="margin-top f14" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"></li>
<li class="side-image" style="border: 0px; color: #575757; display: inline; float: left; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: auto; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/98583/LoriSD" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="LoriSD" class="" src="http://www.scambook.com/file/avatar/default.png" style="border: 0px; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 15px;" /></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/98583/LoriSD" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">LoriSD</a> <a class="note-button" href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="What is SBID? SBID is a unique id code that identifies the user's computer and location. If the SBID is the same but the user account is different, it is likely that the user created multiple accounts to comment on a post. "><span class="subdue" style="border: 0px; color: #cccccc; font: inherit; margin: 0px; outline: 0px; padding: 0px 2px; vertical-align: baseline;">SBID #1e7c00e73c</span></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">Posted 07/05/2012</li>
<div class="clear5" style="border: 0px; clear: both; font-size: 12px; font: inherit; height: 5px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<li class="comment" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; line-height: 20px; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 540px; word-wrap: break-word;">Forgot to mention that we were called and told we were applying to be part of a "select few" to join their Platinum Membership, of course we were approved after they determined we had enough to pay the $55k membership fee! Since then they haven't held half of the classes we were promised and don't have a single one of the original vendors we signed up to learn from. We were also promised a certain person as our solo mentor, then later found out he never did solo mentorships. </li>
</ul>
<ul class="side-display post" style="border: 0px none; float: left; font-size: 12px; font: inherit; list-style: none; margin: 10px 0px; outline: 0px; padding: 0px 0px 10px; position: relative; vertical-align: baseline; width: 580px;">
<li class="rep-controls" style="background-color: #f1f1f1; background-position: initial initial; background-repeat: initial initial; border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 1px solid rgb(204, 204, 204); color: #575757; display: inline; float: right; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><ul id="comment-30010" style="border: 0px; font-size: 12px; font: inherit; list-style: none; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<li class="thumbs-up2" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -50px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">thumb up</span></a></li>
<li class="thumbs-down2" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-right-color: rgb(204, 204, 204); border-right-style: solid; border-width: 0px 1px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -68px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">thumb down</span></a></li>
<li class="flag flag-login" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/login" style="border: 0px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -114px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">flag</span></a></li>
</ul>
</li>
<li class="margin-top f14" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"></li>
<li class="side-image" style="border: 0px; color: #575757; display: inline; float: left; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: auto; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/100120/dpriest" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="dpriest" class="" src="http://www.scambook.com/file/avatar/default.png" style="border: 0px; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 15px;" /></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/100120/dpriest" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">dpriest</a> <a class="note-button" href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="What is SBID? SBID is a unique id code that identifies the user's computer and location. If the SBID is the same but the user account is different, it is likely that the user created multiple accounts to comment on a post. "><span class="subdue" style="border: 0px; color: #cccccc; font: inherit; margin: 0px; outline: 0px; padding: 0px 2px; vertical-align: baseline;">SBID #cf4bcc6a43</span></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">Posted 07/11/2012</li>
<div class="clear5" style="border: 0px; clear: both; font-size: 12px; font: inherit; height: 5px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<li class="comment" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; line-height: 20px; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 540px; word-wrap: break-word;">I too signed up for the elite package and because of extraordinary financial situations as a result of a family emergency, I need a refund on some of the courses. They are completely uncooperative and refusing to give me a refund at all. I can stop payment on my credit card and dispute. Has anyone actually received a refund from them or pursued this legally, realizing it cannot be done?</li>
</ul>
<ul class="side-display post" style="border: 0px none; float: left; font-size: 12px; font: inherit; list-style: none; margin: 10px 0px; outline: 0px; padding: 0px 0px 10px; position: relative; vertical-align: baseline; width: 580px;">
<li class="rep-controls" style="background-color: #f1f1f1; background-position: initial initial; background-repeat: initial initial; border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 1px solid rgb(204, 204, 204); color: #575757; display: inline; float: right; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><ul id="comment-32777" style="border: 0px; font-size: 12px; font: inherit; list-style: none; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<li class="thumbs-up2" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -50px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">thumb up</span></a></li>
<li class="thumbs-down2" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-right-color: rgb(204, 204, 204); border-right-style: solid; border-width: 0px 1px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -68px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">thumb down</span></a></li>
<li class="flag flag-login" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/login" style="border: 0px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -114px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">flag</span></a></li>
</ul>
</li>
<li class="margin-top f14" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"></li>
<li class="side-image" style="border: 0px; color: #575757; display: inline; float: left; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: auto; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/108316/theydonepaybills" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="theydonepaybills" class="" src="http://www.scambook.com/file/avatar/default.png" style="border: 0px; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 15px;" /></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/108316/theydonepaybills" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">theydonepaybills</a> <a class="note-button" href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="What is SBID? SBID is a unique id code that identifies the user's computer and location. If the SBID is the same but the user account is different, it is likely that the user created multiple accounts to comment on a post. "><span class="subdue" style="border: 0px; color: #cccccc; font: inherit; margin: 0px; outline: 0px; padding: 0px 2px; vertical-align: baseline;">SBID #0efee978c9</span></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">Posted 08/07/2012</li>
<div class="clear5" style="border: 0px; clear: both; font-size: 12px; font: inherit; height: 5px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<li class="comment" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; line-height: 20px; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 540px; word-wrap: break-word;">Wealth Rock is a joke of a company! They talk about being financially free! Well I'm here to tell you the People that run this company don't even know how to do that right. My family has a small printing business. We up until about three months ago were Wealth Rocks printing supplier( the people who printed all the material you payed thousands to buy). Well the reason we don't print for this company anymore is because the don't pay their bills! They owe almost 200,000 and now they just claimed bankruptcy! I'm not sure where all the money you all spent went but it didn't go to pay their vendors.</li>
</ul>
<ul class="side-display post" style="border: 0px none; float: left; font-size: 12px; font: inherit; list-style: none; margin: 10px 0px; outline: 0px; padding: 0px 0px 10px; position: relative; vertical-align: baseline; width: 580px;">
<li class="rep-controls" style="background-color: #f1f1f1; background-position: initial initial; background-repeat: initial initial; border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 1px solid rgb(204, 204, 204); color: #575757; display: inline; float: right; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><ul id="comment-36819" style="border: 0px; font-size: 12px; font: inherit; list-style: none; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<li class="thumbs-up2" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -50px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">thumb up</span></a></li>
<li class="thumbs-down2" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-right-color: rgb(204, 204, 204); border-right-style: solid; border-width: 0px 1px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -68px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">thumb down</span></a></li>
<li class="flag flag-login" style="border: 0px; display: inline; font: inherit; margin-bottom: 7px !important; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/login" style="border: 0px; color: #00a8a8; display: block; float: left; font-size: 12px; font: inherit; height: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-image: url(http://www.scambook.com/media/css/css-img/sprites.png); background-position: 0px -114px; background-repeat: no-repeat no-repeat; border: 0px; display: block; float: left; font-size: 12px; font: inherit; height: 20px; margin: 0px; outline: 0px; padding: 0px; text-indent: -9999px; vertical-align: baseline; width: 20px;">flag</span></a></li>
</ul>
</li>
<li class="margin-top f14" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"></li>
<li class="side-image" style="border: 0px; color: #575757; display: inline; float: left; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: auto; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/121889/karenh" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="karenh" class="" src="http://www.scambook.com/file/avatar/default.png" style="border: 0px; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 15px;" /></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;"><a href="http://www.scambook.com/profile/view/121889/karenh" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">karenh</a> <a class="note-button" href="http://www.blogger.com/blogger.g?blogID=569911244797122719" style="border: 0px; color: #00a8a8; font-size: 12px; font: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="What is SBID? SBID is a unique id code that identifies the user's computer and location. If the SBID is the same but the user account is different, it is likely that the user created multiple accounts to comment on a post. "><span class="subdue" style="border: 0px; color: #cccccc; font: inherit; margin: 0px; outline: 0px; padding: 0px 2px; vertical-align: baseline;">SBID #353a34a7ae</span></a></li>
<li style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">Posted 09/19/2012</li>
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<li class="comment" style="border: 0px; color: #575757; display: inline; font-size: 12px; font: inherit; line-height: 20px; margin: 0px 5px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 540px; word-wrap: break-word;">I just wanted to take time to post that I agree with LoriSD. James Smith sold his company way before this mess. He is just as hurt by this as we are and he does not deserve to have his name trampled. Please make sure you know who you are striking out against before you post something on the internet. Thanks.</li>
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<span style="background-color: #f5f5ff; color: black; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px; line-height: normal;">I went to the 3 day free seminar. Fell for the assertion they could turn my 15K into, "a fortune". I signed up for the cash flow seminar=$3995. For whatever reason, a few days later I was, then "selected" to be in their special program to be mentored, one on one, for the low price of 7K, which would be for real estate training. One, this so called program is really nothing more than a couple of days to make sure the mark actually can pay the 7K required. I've talked to a few people, who are actually some of the hired guns the James Smith Company employs, and they were unaware of this program. One Kerry Lucas did at first pretend he was going to figure this out for me, but in reality only wanted to sell his program, which he asserted, "was much cheaper than I had paid". I'm looking for as many individuals as I can to start a class action lawsuit against this company. I have much more information, and a longer list of complaints, than I want to type right now. If you have found this post and are wondering about JSC, I can tell you some things. Please contact me at </span><a href="mailto:mcglyph@gmail.com" style="background-color: #f5f5ff; color: #22229c; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px; line-height: normal;">mcglyph@gmail.com</a><span style="background-color: #f5f5ff; color: black; font-family: verdana, geneva, lucida, 'lucida grande', arial, helvetica, sans-serif; font-size: 13px; line-height: normal;"> soonest. Stay away from the James Smith Company, do not buy into the very high priced program they offer, as there are no refunds, and a man named Nate Day is seemingly for me at least the only one I can work things out with. If you want to be successful, the tools are out there, you don't need to go to this company for anything. If you want training in real estate save your 10K or whatever, and find a real estate club (they are every where). My coach had me do this exact thing, go to a real estate club, that was his first pearl of advice. The people at the real estate club told me I should have saved my money. Do not be like me, please look elsewhere for training.</span></div>
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<strong>Re: James Smith</strong></div>
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I was not selected for mentoring, but I'm sure it was clear to them that I couldn't have afforded it. It makes sense that their selection criteria would be "Are you good for it?" Everyone wants to feel special, to be part of an exclusive group, so they're going to present the selection in that way. Maybe it's because I worked in sales for a couple of years out of college, but I'm pretty understanding about things like that. Presenting your case in such a way that it gets your audience's attention and makes them feel good is not the same as being dishonest.<br />
That said, some people definitely are dishonest, and they give all salespeople a bad name. I want to believe that people like that would not be welcome at James Smith's company. I'm really not in a position to say. I can say that all my interactions with the company and its representatives were overwhelmingly positive. I'm sure there is no company in the world with zero complaints posted about it. When I search for James Smith without specifically looking for complaints or scams, I still find more positive comments than negative, which is impressive considering that people are more likely to share a negative experience than a positive one (think of the last 5 conversations you had). In a forum like this, of course you would expect to find more negative comments, which is why I made it a point to share my positive point of view here.<br />
Believe what you like about me. Not everyone will have a positive experience with a given company, and not everyone will have a negative experience. I believe that your concerns are valid, I hope that they are resolved asap, and most of all I hope that yours is a rare case.<br />
Respectfully,<br />
Laura</div>
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I have to add my experience with James Smith. I too was entertained at the James Smith seminar when I attended April 8, 9 and 10 in Portland, OR. I was impressed with the Tax Lien program so paid $3,999 (discounted rate for seminar!) in order to get the one on one training and software that was promised. A month goes ** and I had not heard a word from anyone at James Smith. I finally called and was told that there were so many people who signed up for the various programs offered, they were behind in getting contact information downloaded. Ok, I gave them the benefit of the doubt. Another 3 weeks go ** and I get a phone call about a webinar on tax liens that was 2 days away and was I interested. I'm a working girl and part of my job is organizing webinars. Webinars are scheduled weeks in advance! Once the webinar is over, attendees are notified within two days and given a link plus password to view the webinar as many times as they wish! I was not able to attend James Smith's webinar because it was scheduled during my work hours. I thought no problem, I would get a link and view when I could. I never received any kind of communique' giving me this option after the webinar was over! What I've learned about tax liens I've been able to get off the itnernet and trips to the library. On August 10th, I had a conference call with a Ryan Trimble of Wealthrock (formerly James Smith Companies). For additional funds and fees, I could continue my 'learning' experience. He wanted to know if my husband and I had a good credit rating which we do. He then wanted to know what the credit limits were on our cards. I told him about one (limit only not card number). He then suggested as an 'option' to use (borrow) the credit limit in order to purchase tax liens and the proceeds from the liens would make the payments on the credit card. This really disturbed me to say the least. A significant amount would be used to purchase a lien and fees would also be deducted using our credit card limit! Dollar amounts were not specially mentioned but after reading the comments above, I can only imagine what Ryan had in mind! Ryan also wanted me to fill out a questionnaire that would give him a better picture of our financial situation. I asked him to call back when my husband was present. This was done the evening of August 15th. During the course of the conversation, Ryan behaved in a very unprofessional manor when he discovers we were not immediately jumping into his program and that we wanted answers to further questions. The poor guy probably had many conversations similar to ours and was getting frustrated because he wasn't meeting his quota so he took it out on us. Our intentions are to still invest in tax liens but it won't be through James Smith's organization ** any stretch of the imagination! I am in the process of contacting Jame Smith's organization for a refund. I may or may not get one but I do want others to beware! Do go to the seminars as they are entertaining but leave your money at home! Be diligent and investigate other learning tools! Don't get caught up in the soft sales techniques that promise a better life. . . they come with hefty fees. You can do better elsewhere!<br />
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Best regards,<br />
Diane</div>
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<strong>Re: James Smith</strong></div>
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I'm sorry to say I'm one of the many who don't follow through. I started with a lot of enthusiasm, then got sidetracked with helping my husband in his business and have not come back to real estate yet. I will let you know if/when I use what I know and get results. I still believe it works for those who have the time, optimism, and persistence to see it through. I definitely want to be one of those people.</div>
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<strong>Re: James Smith</strong></div>
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I attended a couple seminars back in 2005 at an Orlando hotel. It was the same bait and switch scam. Yes I call it a scam. A legal scam. You hear a very well trained motivational speaker talk about how he has bought so many homes he can not count them all. I had already been buying foreclosures for 8 years, so I checked up on the information about himself that he provided at the seminar. I could only find less than 10 or 12 confirmed properties that he had purchased. Yes, I drove to the properties that he owned and sure enough it was the same as the pictures he provided on the big screen.<br />
Classic Real Estate seminar bait and switch. He motivates you to buy the $4000 program and of course everyone gets the call to be offered the premium package for $20,000 PLUS. I talked to Ryan back then at the end of the seminar. He told me about the further opportunities that would be available to their students, The high priced programs. That seminar was a couple of days. I went to the first one and did my research later that night. I went back the next day to hear more on the subjects for that day. It is just a long info-mercial with the final moment of HURRY!!! Buy today, We only have 20 packages left. What they teach about at the seminars is so elementary its pathetic. I could do better than that with no preparation. It was insulting to my intelligence that James was speaking on Foreclosures and tax Deeds while getting $4,000 a pop. I clearly had more experience and knowledge regarding the subject material. I don't remember Ryan speaking during the event. He was quite young. He has been trained to be a speaker like his father. Do your own research on them. I am a research pro and I did mine, the picture did not look at all like what they painted. James is in Seminole County FL. and Ryan is in Orange county FL.<br />
There is a lot of money in doing what James and Ryan Smith do verses messing around with buying property. Its less work and a whole lot more respect. 20 people X $4,000 ($80K). 20 people X $20,000. = $400,000. Total Purse $480,000 for a weekend. Not to shabby. No fixing a dumpy home, no tenants just a big snow shovel to scoop in the cash. THAT IS JUST 20 PEOPLE FOLKS. There are a heck of a lot more suckers than that. Not to insult those of that are reading and have been hooked. We all have been hooked by some one in our lives. Just don't go and swallow the hook line and sinker. Please email me. I will talk to you. I have bought, pre-foreclosures, at auctions, bank owned, from individuals etc.. etc....</div>
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<span style="color: #333333; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; line-height: 18px;">I have written in to owner / president / MIA head honcho Joe Johnson regarding the state of WealthRock and they way it is treating it's students who have paid a LOT of money to be left in the dark, and without fullfillment of promises and contractual obligations. </span><br />
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<span style="color: #333333; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; line-height: 18px;">Let this be a public notice to WealthRock and it's board of advisors - please have Joe - or someone of equal / comparable stature in t</span><br />
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he company respond to me by this Friday.<br />
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Otherwise, I have no choice but to use my 'special set of skills' to make this WHOLE thing go VERY public.<br />
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And just so you guys know... I know more truth regarding the state of this company than you would like me to. So please - no more lies like I received on the phone.<br />
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PS: This is NOT directed at the Smiths' or any of the mentors of this company. This is strictly for the officers of the company. The Smiths' and mentors of this company are being shoved under the bus just as much as the students. And I'm not one to take that lightly.<br />
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-Shane Hunter<br />
shane@shanehunter.org</div>
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<h1 id="newTitle" style="color: #402201; font-family: Arial, Helvetica, sans-serif; font-size: 1.4em; line-height: normal; margin-bottom: 0px; margin-top: 10px;">
State Records Committee Appeal Decision 2011-10</h1>
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<strong>BEFORE THE STATE RECORDS COMMITTEE OF THE STATE OF UTAH</strong></div>
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<strong>ERIC PETERSON, Petitioner, vs.</strong></div>
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<strong>UTAH ATTORNEY GENERAL’S OFFICE, Respondent.</strong></div>
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<strong>DECISION AND ORDER</strong></div>
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<strong>Case No. 11-10</strong></div>
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By this appeal, Petitioner, Eric Peterson, a reporter for the Salt Lake City Weekly, seeks access to e-mail and text messages from Respondent, the Utah Attorney General’s Office.</div>
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<strong>FACTS</strong></div>
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On March 6, 2011, Mr. Peterson filed a Government Records Access and Management Act (“GRAMA”) request with the Utah Attorney General’s Office (“AG’s Office”) for the following: (1) All e-mail correspondence between Attorney General Mark Shurtleff and Utah Representative John Dougall from 2010-present; (2) All e-mails between Mr. Shurtleff and Rocco Devilliers, or that mention “Rocco Devilliers,” from 2010 - present; (3) Text messages sent between Mr. Shurtleff and Tim Lawson from 2010- present; (4) All e-mail correspondence between Mr. Shurtleff and Rob Stahura from 2008- present; (5) Text messages between Mr. Shurtleff and Jeremy Johnson from 2010 – present; (6) E-mails between Mr. Shurtleff and Marc Jenson or any emails mentioning “Marc Jenson” from 2009 – present; (7) E-mails between Mr. Shurtleff and Jeremy Johnson, or e-mails mentioning Jeremy Johnson from Mr. Shurtleff’s account, from 2010 – present; and (8) Any e-mails mentioning “Brian Kitts” sent to or from Deputy Attorney General John Swallow between 2008 – present.</div>
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In a letter dated March 21, 2011, Paul Murphy, Director of Communications and Policy with the AG’s Office, partially granted and partially denied Mr. Peterson’s records request. Mr. Murphy stated that some records did not exist, some records were not records under GRAMA, and others were protected records pursuant to Utah Code Ann. § 63G-2-305(9) and -305(17). Mr. Peterson appealed this decision and in a letter dated April 6, 2011, Chief Deputy Attorney General Kirk Torgensen affirmed the decision to deny Mr. Peterson’s request to certain records.</div>
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Mr. Peterson appealed this decision to the State Records Committee (“Committee”). The Committee, having reviewed written arguments of the parties and having heard oral argument and testimony at hearings held on May 12, 2011 and June 9, 2011, now issues the following Decision and Order.</div>
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<strong>STATEMENT OF REASONS FOR DECISION</strong></div>
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1. The Government Records Access and Management Act (“GRAMA”) specifies that “all records are public unless otherwise expressly provided by statute.” Utah Code Ann. § 63G-2-201(2). Records that are not public are designated as either “private,” “protected,” or “controlled.” See, Utah Code Ann. §§ 63G-2-302, -303, -304 and -305.</div>
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2. Records prepared by or on behalf of a governmental entity that are records disclosing an attorney’s work product, including the mental impressions or legal theories of an attorney or other representative of a governmental entity concerning litigation, are considered protected records if properly classified by governmental entity. Utah Code Ann. § 63G-2-305(17). Under Utah law, opinion work product, which includes mental impressions, conclusions, opinions or legal theories of an attorney or party, is afforded higher protection than fact work product. S. Utah Wilderness Alliance v. Automated Geographic Reference Ctr., 2008 UT 88, 200 P.3d 643, ¶ 28, following Gold Standard Inc., v. Am. Barrick Res. Corp., 805 P.2d 164, 168 (Utah 1990).</div>
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3. Personal files of a state legislator, including personal correspondence to or from a member of the Legislature are considered protected records if properly classified. Utah Code Ann. § 63G-2-305(19)(a)(i).</div>
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4. Under GRAMA, the definition of a “record” does not include:<br />
(i) a personal note or personal communication prepared or received by an employee or officer of a governmental entity in the employee's or officer's private capacity;<br />
(ii) a temporary draft or similar material prepared for the originator's personal use or prepared by the originator for the personal use of an individual for whom the originator is working. [Utah Code Ann. § 63G-2-103(22)(b)]</div>
<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse; color: #626071; font-family: Arial, Helvetica, sans-serif; margin: 10px; text-align: left;"><tbody>
<tr><td style="vertical-align: top;" valign="top"><strong>BATES STAMPED</strong></td><td style="vertical-align: top;" valign="top"><strong>DOCUMENT </strong><br />
<strong>IDENTIFICATION</strong></td><td style="vertical-align: top;" valign="top"><strong>CLASSIFICATION OF DOCUMENT AS DETERMINED BY THE COMMITTEE</strong></td></tr>
<tr><td style="vertical-align: top;" valign="top">002-062</td><td style="vertical-align: top;" valign="top">Various Emails</td><td style="vertical-align: top;" valign="top"><strong>Protected</strong>, Utah Code Ann. §63G-2-305(19)(a)(i)</td></tr>
<tr><td style="vertical-align: top;" valign="top">063</td><td style="vertical-align: top;" valign="top">Text messages</td><td style="vertical-align: top;" valign="top"><strong>Non- Record</strong>, Utah Code Ann. §63G-2-103(22)(b)</td></tr>
<tr><td style="vertical-align: top;" valign="top">064</td><td style="vertical-align: top;" valign="top">Text messages</td><td style="vertical-align: top;" valign="top"><h3 style="font-size: 1.1em; margin-bottom: 0px; margin-top: 0px;">
Public</h3>
</td></tr>
<tr><td style="vertical-align: top;" valign="top">066-071</td><td style="vertical-align: top;" valign="top">Various emails</td><td style="vertical-align: top;" valign="top"><strong>Attorney Work Product</strong>, Utah Code Ann. §63G-2-305(17)</td></tr>
<tr><td style="vertical-align: top;" valign="top">073-077</td><td style="vertical-align: top;" valign="top">Various emails</td><td style="vertical-align: top;" valign="top"><strong>Drafts</strong>, Utah Code Ann. §63G-2-103(22)(b)(ii)</td></tr>
<tr><td style="vertical-align: top;" valign="top">078-081</td><td style="vertical-align: top;" valign="top">Various Emails</td><td style="vertical-align: top;" valign="top"><strong>Attorney Work Product</strong>, Utah Code Ann. §63G-2-305(17)</td></tr>
<tr><td style="vertical-align: top;" valign="top">083-the end</td><td style="vertical-align: top;" valign="top">Various Emails</td><td style="vertical-align: top;" valign="top"><strong>Public</strong>, and properly classified as a record, Utah Code Ann. §63G-2-103(22)(b)(i),<br />
<strong>NOTE:</strong> <em>Committee finds that record Bates Stamped <strong>086</strong> contains private information that should be redacted.</em></td></tr>
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5. Based upon the preponderance of the evidence, the arguments of the parties, and a review of the documents submitted by the AG’s Office in camera, the Committee finds the documents contain public and protected records, and that the protected records include: (1) Records disclosing an attorney’s work product, including mental impressions or legal theories of an attorney or other representative of a governmental entity concerning litigation pursuant to Utah Code. Ann. § 63G-305(17); (2) Drafts pursuant to Utah Code Ann. § 63G-2-305(22); and (3) Personal Files pursuant to Utah Code Ann. § 63G-2-305(19)(a)(i).</div>
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<strong>ORDER</strong></div>
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THEREFORE, IT IS ORDERED THAT: the appeal of Eric Peterson is: (1) DENIED in part pertaining to documents identified as protected records, non-records, and attorney work product in the table above; and (2) the appeal of Eric Peterson is GRANTED in part pertaining to documents identified as public records in the above table. The Utah Attorney General’s Office is hereby ordered to provide said public records to Mr. Peterson within ten (10) days.</div>
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<strong>RIGHT TO APPEAL</strong></div>
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Either party may appeal this Decision and Order to the District Court. The petition for review must be filed no later than thirty (30) days after the date of this order. The petition for judicial review must be a complaint. The complaint and the appeals process are governed by the Utah Rules of Civil Procedure and Utah Code Ann. § 63G-2-404. The court is required to make its decision de novo. In order to protect its rights on appeal, a party may wish to seek advice from an attorney.</div>
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<strong>PENALTY NOTICE</strong></div>
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Pursuant to Utah Code Ann. § 63G-2-403(14)(d), the government entity herein shall comply with the order of the Committee and, if records are ordered to be produced, file: (1) a notice of compliance with the records committee upon production of the records; or (2) a notice of intent to appeal. If the government entity fails to file a notice of compliance or a notice of intent to appeal, the Committee may do either or both of the following: (1) impose a civil penalty of up to $500 for each day of continuing noncompliance; or (2) send written notice of the entity's noncompliance to the Governor for executive branch entities, to the Legislative Management Committee for legislative branch entities, and to the Judicial Council for judicial branch agencies’ entities.</div>
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Entered this 20th day of June, 2011.</div>
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BY THE STATE RECORDS COMMITTEE</div>
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____________________________________<br />
BETSY ROSS, Chairperson<br />
State Records Committee</div>
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<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">Hello My name is Michael and like the rest of the poor souls i was one who fell for the bull of John Beck and there sales pitch. The sale rep. was a person in the Henderson Nevada location and she called me on labor day evening to make her sales pitch so after about two hours listening me and my wife reluctanly decided to try the program and like every one else they recorded us saying we except the program and that there are no refunds.</span><br />
<br style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;" />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">But approx. 30 minites after we hung up it hit me that if we try and do this and so call Incorporate in to a business we would both lose our retirement income and health benefits, this changed my mind real fast and I tried to call back and speak with Pam but no responce, but left 4 messages making sure they knew I was canceling.</span><br />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">The next day I called there customer service department in Utah and told them I am canceling and I am going to fax them a cancelation letter, I also sent them an express mail with a return signature request, on the advice of the credit card company so show a hard copy record that I canceled.</span><br />
<br style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;" />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">The next day I received a call from a different person other then Pam, his name was Robert and while speaking with him I asked the all important question what is that companys cancellation policey and he said that I have 3 days to cancel.</span><br />
<br style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;" />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">I just a little information to everyone that according to Utah law were i was reading about since there corporate office is there, there is a right to rescission law 13-26-5. and part of the laws say that if the solicitor repuired to be registered under this chapter fails to orally advise a purchaser of the right to cancel under this section at the time of any solicitation the purchaser's right to cancel shall be extended to 90 days. </span><br />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">and sub-section c says that if the solicitor required to be registerd under this chapter fails to orally advise the purchaser of his trun name, telephone number, and complete street address at teh time of the solicitation, the purchaser may cancel the sale at any time.</span><br />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">So Robert confirmed I could cancel.</span><br />
<br style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;" />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">Now during all of this I was speaking with the credit card company telling them what was going on and it seemed that they were trying to be helpfull and told me that they really could not do anything until my charge had come out of the temp status and get posted to my account.</span><br />
<br style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;" />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">I also filed a complaint with the FTC, California Attorney General, the Nevada Attorney General, and was going to file one with Utah but when I check to see what the status was on my charge I notice that the charge has just fallen off the account, so until I speak with the credit card company to make sure what happen to it, it just might be another VICTORY AGAINST JOHN BECK'S BULL.</span><br />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">I will update later to let you know if the charge is gone.</span><br />
<br style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;" />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">P.S. If you decide to cancel make sure you do it with in the 3 day right to cancel and make sure you leave a paper trail to prove you did it because faxes get lost or never seen in time.</span><br />
<br style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;" />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">Take care all and good luck.</span><br />
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<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">Michael</span><br />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">Sylmar, California</span><br />
<span style="color: black; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 13px; line-height: 18px;">U.S.A.</span></div>
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<span style="background-color: #f4f4f4; color: #222222; font-family: Arial, sans-serif; font-size: 16px;">Ahhh... Right...</span><br />
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James Smith was born and raised in Tucson, Arizona. Both of his parents were successful school teachers. They taught him the value of hard work, the value of service, and the power of teaching others to be successful. James developed his initial interest in real estate as a youth while helping to build church buildings in his home town.</div>
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James refined his people, negotiating, and business skills at an early age. At just 18 years of age, James bought and sold his first house resulting in a large profit. It was a pivotal moment in his life as he grasped the power and potential of real estate as a wealth building tool.</div>
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James attended Bethany Nazarene College currently Southern Nazarene University in Oklahoma and graduated with a Bachelor degree in Business Administration. He worked hard as roofer to put himself through college and completed his degree in just three years. This was a significant accomplishment, considering that James graduated dead last in High School class due to challenges with Dyslexia (which at the time was not well understood or diagnosed).</div>
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James has now been an active investor and entrepreneur for over 4-decades. His businesses have grossed more than $100 million just since 2005 and he has created jobs for hundreds of family throughout the United States. He understands the difficulties and complexities that face small business owners and he has prevailed in spite of these challenges. James is nationally known as an experienced, knowledgeable, and accomplished real estate investor with significant holdings in all types of real estate projects. James continues to actively invest in all types of real estate from single-family residences, to large multi-family apartment projects, to commercial developments, to low-income subdivision projects. His other passions are affordable housing projects and “green building” through partnerships with environmentally sensitive builders and building material providers.</div>
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James has also proven himself as a powerfully influential speaker, trainer, and mentor in the real estate industry. He has literally presented the potential of real estate to millions of people and personally trained thousands of students at events all over the world. James has spoken on stage with every living United States President and has shared the stage with such speakers as Donald Trump, Bill Clinton, Rudy Guiliani, Tony Robbins, Zig Ziglar, Tom Hopkins, John Walsh, Rick Belluzzo, Terry Bradshaw, Joe Montana, William Danko, George Foreman, Steve Young, The Duchess of York, Jane Seymour and many… many more.</div>
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James is actively involved in furthering the investing efforts of indigenous tribes throughout North America and other charitable projects around the world.</div>
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RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0Tampa, FL, USA27.950575 -82.457177627.726155000000002 -82.773034599999988 28.174995 -82.1413206tag:blogger.com,1999:blog-569911244797122719.post-4683585524043506882011-07-08T00:06:00.000-06:002011-07-08T00:06:22.140-06:00Update - Seminar Watch- Utah- Jeremy David Johnson Iworks.com In Utah - Pleads Not Guilty In Federal Court, Robert Paisola Reports<div id="storyTitle" style="clear: left;">St. George millionaire pleads not guilty to mail fraud charge</div><div id="storyDate">July 7th, 2011 @ 1:15pm</div><div id="storyAuthor">By Geoffrey Fattah</div><span class="storyBody">SALT LAKE CITY — A Utah philanthropist will get a chance next week to argue for his release from federal custody.<br />
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Meanwhile, federal prosecutors are talking about expanding charges against him.<br />
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During a hearing in federal court Thursday, Jeremy David Johnson pleaded not guilty to one count of mail fraud. If convicted, he could face up to 20 years in prison and a $250,000 fine.<br />
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<div class="mediaright"><a href="http://www.ksl.com/emedia/slc/2492/249244/24924482.jpg"><img alt="" border="0" src="http://www.ksl.com/emedia/slc/2492/249244/24924482.jpg?filter=ksl/img200" /></a> <br />
<div style="color: black; font-size: 12px; font-weight: bold; margin: 0px; padding: 0px; position: relative; top: -2px;">Jeremy David Johnson </div></div><span class="storyBody"></span><br />
<div style="padding: 0px;"></div><span class="storyBody">Johnson, who at one time was considered a multimillionaire, also declared to a federal magistrate judge that he could not afford to hire an attorney and asked for a public defense attorney to be appointed to him. Defense attorney Nathan Crane said all of his client's assets have been frozen.<br />
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<br />
Assistant U.S. attorney Brent Ward said it is likely that the government will seek an additional grand jury indictment against Johnson within the coming weeks, but they had yet to process hundreds of thousands of documents associated with Johnson's business dealings. Before being indicted on mail fraud last June, the Federal Trade Commission had filed a civil action against Johnson in Las Vegas in connection to his IWorks business.<br />
<br />
<br />
Crane asked Judge David Nuffer for a hearing to give his client a chance to argue for his release. Ward countered that given the fact that Johnson was arrested while trying to leave the country, plus additional evidence, Johnson should continue to be held in federal custody. Nuffer has scheduled a detention hearing for July 11.<br />
<br />
<br />
Johnson was <a href="http://www.ksl.com/index.php?nid=960&sid=15936232">arrested last month</a> at the Sky Harbor International Airport in Phoenix, Ariz., as we was en route to Costa Rica. Johnson had moved his wife and two children to Costa Rica earlier this year.<br />
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Federal investigators say Johnson fueled a lavish and attention-getting lifestyle through a fraudulent business scheme which netted him around $275 million.<br />
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<br />
The 35-year-old St. George man was known to have purchased expensive homes, a dozen helicopters and planes, gold and silver, even a Ferrari and Lamborghini. He also shared money with his family, friends and LDS Church ward.<br />
<br />
<br />
Johnson received international attention when he <a href="http://www.ksl.com/index.php?nid=&sid=9473798">flew one of his helicopters to Haiti</a> last year to provide food relief to starving earthquake victims and rush injured children to hospitals. He was also known to frequently fly search-and-rescue missions for the Washington County Sheriff's Office.<br />
<br />
<br />
But federal officials contend that Johnson had a dark side, gambling away millions of dollars at high-end casinos in Las Vegas. He also allegedly admitted to a federal agent that he also played online poker and that he had a gambling problem.</span>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-17163778478122583032011-04-05T20:39:00.000-06:002011-04-05T20:39:36.925-06:00Behind the Scenes: A Look into the Seminar Industry: James Malinchak, Robert Paisola reports<div class="reportAddress konafilter"> <h3> <b>Before you read this, I want you to understand that there are always two sides to every story, however, very seldom do we see a peer from our industry break down the "behind the scenes" of the seminar industry in such depth. This was forwarded to us from one of our associates who is on the Public Speaking Circuit, the same one that Robert Paisola deals with on a worldwide basis. We are not commenting on the data, but presenting it in it purest form. Send comments to comments@seminarwatch.com </b></h3><div class="separator" style="clear: both; text-align: center;"><a href="http://3.bp.blogspot.com/-3zWM9QUJ4sM/SSD6WO0wpFI/AAAAAAAAry8/Vdcxtu8heM8/s1600/ireport.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://3.bp.blogspot.com/-3zWM9QUJ4sM/SSD6WO0wpFI/AAAAAAAAry8/Vdcxtu8heM8/s1600/ireport.jpg" /></a></div><h3><b> </b></h3><h3><b>James Malinchak</b></h3><br />
Henderson Nevada 89012<br />
United States of America<br />
Phone: 702-497-2442<br />
<div style="overflow: hidden;"> Web Address: <a href="http://www.malinchak.com/" target="_blank">www.malinchak.com</a></div><br />
<h3> <b>Category:</b> <a href="http://www.ripoffreport.com/Services/Seminars/Search.aspx" id="ctl00_ctl00_cphBodyTemplate_cphLeftMasterReport_CategoryLink">Seminars</a></h3><br />
<h3> <b>Submitted:</b> Wednesday, March 23, 2011</h3>Posted: Wednesday, March 23, 2011 </div><div class="utility share_container konafilter"> <div class="sharethis"> <div class="addthis_toolbox addthis_default_style"> <a class="addthis_button_compact at300m" href="http://www.addthis.com/bookmark.php?v=250&username=xcentricventures"><span class="at300bs at15nc at15t_compact"></span>Share</a> </div></div><a href=""> <img alt="Print" height="22" src="http://www.ripoffreport.com/common/img/icons/buttonPrint_small.png" width="24" /></a> <a href=""> <img alt="Email" height="22" src="http://www.ripoffreport.com/common/img/icons/buttonEmail_small.png" width="24" /></a> </div><div> I own a fairly successful seminar company, and during the recession in 2008 I was looking for additional revenue streams. Malinchak sent me an <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink0" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">email</span></span></a> promoting his College Speaking Success Boot Camp saying that he could help people get started in the keynote speaking business. I took one of my vice-presidents to LA for the seminar in Dec. Initially, I was really impressed with James' speaking and the amount of content that he was delivering from the stage. It was actually pretty overwhelming, and some of the content seemed real promising. Throughout the event, though, he used manipulative techniques to convince people to join his Platinum group. <br />
<br />
Although his content seemed logical, his delivery was kind of slimy, but I looked around the room and saw a few people I respected who were sold on his process, and I also saw a few hundred people who each paid him over $1000 to attend the seminar. He had tons of video testimonials from people praising him. So when the he passed out the <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink1" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">applications</span></span></a> to join the Platinum club, I was skeptical, but I figured that with the following that he had (it was a big group of people, and Brian Tracey was his keynote speaking guest) that I must be missing out on something.<br />
<br />
Turns out, that was exactly what he counts on. He said, "Platinum Members get special behind-the-curtain access to all of the things that I'm doing to make <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink2" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">millions </span><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">of </span><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">dollars</span></span></a>." The fee was over $10,000 to join and included a day of coaching with him one-on-one, 5 phone coaching session, a whole bunch of books and tapes that he created, free seats in his seminars for a year, and some mastermind sessions with other members. Sounded great, but the price seemed really high. I waited a few hours and debated the pros and cons, and finally realized that it was a pretty good risk to take. (I mean if Brian Tracey and other celebrities liked him and all of the video testimonial people were telling the truth, there must be something to it.)<br />
<br />
A month later, I had my coaching session, and I flew to Las Vegas. He picked me up from the hotel, and when we got to his house, he looked at me and said, "So what do you want to talk about?" I was a little confused, because I thought he was supposed to be the expert. There was no structure, and we spent most of the time talking about his success and how great he was. His main advice during the session was for me to start a coaching group (like his Platinum group). I was thinking... "So I can charge people do do nothing for them?" At Noon, he took me back to the hotel for lunch, and a couple of other people that he knew were waiting for them. Turns out they were the other people getting their one-on-one coaching with him that day. After lunch, he excused himself telling me that my "day" of coaching was over and he took the other people to his house this time. At the time, I just thought it was odd, but I didn't really think much of it other than I was a little disappointed that my one-day of coaching was really only a half day. I felt like I had wasted a plane trip and a day of my life.<br />
<br />
Regardless, since I took great notes, I began to apply some of the "techniques" that he outlined in the seminar, and I created a coaching program for people who attended my seminars. The first month, the seminar part of my business dropped from about $60,000 in <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink3" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="background-color: transparent; border-bottom: 1px solid blue; color: blue ! important; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;">revenue</span></span></a> in December to less than $10,000 in revenue in January. My list of clients/prospects was about 10,000 people at the time, and I got a HUGE percentage of people who had been receiving our emails and newsletters who suddenly opted-out in January. For the next three months, I tried a ton of stuff from his seminar, and none of it worked. Most of it backfired with negative consequences. The more that I went back to what I was doing before I <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink4" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">met</span></span></a> James, the closer I got back to what I was making before. The more that I used his stuff, the more complaints I got and the less money I made. <br />
<br />
At this point, I knew that his stuff was working for him, but it wasn't working for me. My employees were getting disgruntled because sales had dropped dramatically during this experiment. I just figured that I had missed some important things so I went back over the material looking for how I was screwing up this so called, simple step-by-step formula.<br />
<br />
About that time, he debuted his new Big <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink5" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">Money</span></span></a> Speaker Seminar where he "Pulled the Curtain Back and gave away all his secrets." (Hhhhmmm.... Sounds familiar.) Since my membership included a ticket, I attended this one too. At least three hours of every day of the seminar was he (or some other speaker) trying to get the audience to part with another $3000, $5000, $10,000, or more. <br />
<br />
-- Now if I'm attending a free seminar or a low <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink6" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">cost</span></span></a> seminar, I expect a sales pitch, but tickets to this event were $2500 a head and over a quarter of it was a sales pitch! --<br />
<br />
There were times that I was angry enough that I just left the room. However, one of these speakers, Ed, was the guy who supposedly had put James' internet marketing program together. All the sudden, I thought that I had figured it out. It wasn't James that was getting these hundreds of people to the seminar, it was Ed. That's why James' stuff hadn't worked. Was it possible I had been listening to the wrong expert?<br />
<br />
James and Ed had a New Club (seriously? ...another behind-the-scenes group?) called the Done-For-You <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink7" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">Internet </span><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">Seminar</span></span></a> Marketing program or some-such thing. I figured that since I had tried his stuff and obviously I was screwing it up, if I could pay them (Ed) to do it for me, then that would make it work. The proof that the program would work was a testimonial from their first (and only) client for this new program who filled up his first seminar with 100+ people (if he's charging $1000 per person, that's $100K), and James' supposedly spoke at the meeting and sold dozens and dozens of his home study course to the group netting the client an additional $100K in one hour.<br />
<br />
The package included all of the templates for the internet marketing campaign, and they claimed that by the end of the two days that the whole program would be done for you. They, they would come and speak at the event as guests and give me 50% of anything they sold to the group. So I paid him another $10,000, and I waited until August when the two internet marketing gurus (James and Ed) were having the Done-For-You meeting at James' house again.<br />
<br />
In the meantime, the Mastermind Group met in Palm Springs (yup, another grand or so in expenses), and my group had about 40 or 50 of us. Now, I've been involved in a LOT of mastermind groups, but this was the oddest I've ever been to. Each person got to go in front of the group for 10 or 15 minutes and tell the group one problem that they were having. Then the group would try to solve the problem for them. It was two days long, and I got maybe 20 minutes of attention to my business. The rest of the two days, I gave away my experience to the rest of the group for free.<br />
<br />
By this time, I was getting really mad, and I was basically thinking that if this Done-For-You thing doesn't work, I've just wasted $25,000 and a year of my life. <br />
<br />
When I got to the meeting, I realized that they had greatly exaggerated the results that they got on that first "test" seminar they promoted at the previous event. Evidently, the entrance fee to this big seminar wasn't the $1000 that I had assumed (they never really talked about the fee, but subtly made us believe that the test seminar was similar to James regular seminars where he charges $1000 to $2000 per head.) The fee was actually less than $50 per person (barely enough to cover costs), and the attendees were folks from the local Chamber of Commerce. Just like in James' seminars the client/seminar creator put a few hours of people selling stuff into the agenda, and James confessed to me that NONE of them sold anything to anybody... except James, of course. He sold dozens and dozens of his home study course and saved the day. Now, I've spoken to a lot of Chamber of Commerces, and trying to get an attendee to part with $1500 for a bunch of <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink8" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">audio</span></span></a> tapes is next to impossible. All the sudden, I began to realize that pretty much everything that he says is a big lie. <br />
<br />
Then James confessed that when this success-story guy organized his second seminar, he couldn't get enough people to attend... What? I just paid you $10,000 based on a flat out lie. You jerk!<br />
<br />
I was still waiting for the Done-For-You part of the Done-For-You seminar. When it ended, I was no closer to increasing any revenue. However, I followed the step-by-step process that they were supposed to have done for me. After a month or so of disgruntled people replying back to my emails, I just went back to doing what I was doing before I met James. <br />
<br />
The five coaching calls finally got scheduled in September, (seven months after I paid the first fee) and each time I called him, it was the same thing... "So what do you want to talk about this week?" I'd tell him the struggles that I was having with his stuff, and he'd supposedly fine-tune it. Nothing ever really worked like he said it would, but despite the challenges, I worked really hard, and managed to get about 20 people registered in my seminar. (None of them came from James' stuff, though.) During one of the coaching calls, while I was asking him why more people weren't registering for my Done-For-You-Seminar like he said they would, he suggested that I apply for his "Marketer of the Year" award. I assumed that he was doing this as a way to help me get more people into my seminar (since that was the only partial success at all that I had had using anything he told me to do.) In reality, he was just changing the subject back to him.<br />
<br />
So I applied for the award, and I was given a 12 minute spot on his stage. I assumed that he'd want me to talk about the seminar that he and I created since that is all we had worked on for the past three months. I also assumed that since I was a very accomplished speaker, that he'd want me to give some value to the audience and make it worth their while. When the award contest started, the first two speakers got up and spent their entire twelve minutes blowing smoke up James' ass about how god-like he is and how the Platinum group is the greatest <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink9" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="background-color: transparent; border-bottom: 1px solid blue; color: blue ! important; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;">investment</span></span></a> that they ever made. The contest wasn't a showcase of his members like I had thought it was. Instead, it was a commercial to try to get more people to part with the $10,000. I wanted to back out, and I felt real uncomfortable, because I couldn't go up and praise him. I knew that my best move was to just give the audience the presentation that I prepared. The audience was loving it. About five minute in, though, James interrupts me from the back of the room confused about why I'm not talking about how much he's done for me. I could see that he was pissed because I wasn't praising his god-like presence like his other stooges. I was embarrassed and angry, but finished the presentation in a professional manner.<br />
<br />
Throughout the next hour of the seminar, he glared at me from the stage with his jaw clenched. He was pissed that I didn't do what he wanted me to do. I knew that I should try to smooth things over, so I went to all of the "behind the scenes get-togethers" in the evenings and before the seminar each morning trying to talk to James while he wasn't teaching. Anytime I'd get close to him, he'd dart away like he was ducking me. <br />
<br />
After a while, I couldn't stomach any more of the crap or the clenched jaw, so I skipped out on the rest of the seminar. I was sitting at a Starbucks getting caught up on work and trying to figure out how to get my <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink10" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">money </span><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">back</span></span></a>. I kept getting calls from James' minions who were ticked off because they needed me back for the "award ceremony." I was totally confused, because everything that he had done to me for the past 48 hours was vicious and angry. I figured that he didn't want me around. The minion told me that they had delayed the ceremony waiting for me to arrive and everyone was waiting for me. I knew that I didn't have a shot of winning, but I figured that at least he couldn't duck-out on me if we were on stage together. Imagine my surprise when James' best friend won the award. No one in the audience could see, but after he accepted the award, James was coaching him to make a video for the <a class="kLink" href="http://www.ripoffreport.com/seminars/james-malinchak/james-malinchak-james-malincha-8d2ea.htm#" id="KonaLink11" style="font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static; text-decoration: underline !important;"><span style="color: blue; font-family: inherit ! important; font-size: inherit ! important; font-weight: inherit ! important; position: static;"><span class="kLink" style="color: blue !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; position: static;">internet</span></span></a>. I could hear James whisper, "Aren't you ready for that thing?" and the "winner" went, "Oh yeah."<br />
<br />
The whole thing was planned from start to finish as a way for the two of them to promote each other. They picked me and some of their more popular (somewhat famous) attendees to compete again so that they could show his picture on stage as the "winner" over and above these other great speakers.<br />
<br />
I realized that they were just using me. I was disappointed and all of the sudden I started to see everything in a different light. Remember the movie Sixth Sense (the "I see dead people" movie)... How, at the end when you find out that Bruce Willis is a ghost, you can go back and watch the movie again and things that you thought were true were actually misrepresentations of reality. I started going back through everything I thought I knew about James and his stuff.<br />
<br />
James has tons of testimonial videos from people talking about how great he is and his seminars are. However, when you look around the room at his seminars, you hardly ever see those people. I think that it's because they give the testimonials during the phase when they believe everything, then once they realize it's crap, they stop coming. He has tons of pictures with himself and celebrities. Since going to his seminars, I've collected about a dozen or so pictures with me and celebrities as well (but I don't know any of them personally.) At every mastermind meeting and meeting at his house, he always offered to give video testimonials to any of us promoting our stuff if we would give him one that he could use. He encouraged everyone to do the same for each other. I saw people who just met each other giving video testimonials to people that they just met a couple of hours before. (I spent too many years building my reputation to vouch for someone that I don't know.)<br />
<br />
Some of the gems that James told me throughout the year when we were out of earshot of others (remember, I was on the inside)<br />
<br />
<ul>
<li>"When you're coaching people, you want to tell them WHAT to do but never tell them HOW to do it, and they will keep coming back. Uhhh... Uhhhh... Of course, that doesn't apply to you Platinums, because you get all of my 'behind the scenes stuff..."<br />
<br />
</li>
<li>"Most of the people who attend my seminars will never do anything. They are wanna-be-s... If they don't do what I tell them, then it's their fault, not mine."<br />
<br />
</li>
<li>"If you bombard people with information overload, then no one will ever complain that you didn't give them content... But they will now need you to sort through everything for them... that's when you hit them with the big fees." </li>
</ul><br />
That night, I saw James in the lobby. I started heading toward him, and before I got within 15 feet of him he screamed out, "Stay the F%^& away from me you %$#@!" at the top of his lungs. <br />
<br />
He is an evil person. He is a crooked businessman. He is manipulative and will push buttons to convince you that he has all of the answers. He will make promise after promise, but that REAL solution is always in the next seminar or next meeting or next coaching call. He is mean, and he is convinced that everyone is out to cheat him, so he's going to cheat you first. <br />
<br />
I sent him a letter asking for my money back after he cussed me out. He sent me a response saying how he was still willing to come speak at my seminar as he agreed, and that I had missed my last three coaching calls with him, so it was my fault that I didn't get the results that he promised. <br />
<br />
Seriously? He ducked me for two days to keep from talking to me, and when I cornered him to try to speak to him he cussed me out. Then claimed that it's my fault I didn't call him at our scheduled time. It would be funny if I didn't know that he's doing it over and over to other people every week.<br />
<br />
Trust me.. I was in his inner-circle. He's not your friend. He doesn't have any friends. He never helped his pizza guy make a million dollars, and he never gave his girlfriend colon-blow as a gift. He doesn't have some exclusive contract to market Michael Jordon's camp. When you see people in his testimonials, look them up (they will be easy to find on the web) and ask them how much they have actually made from James' stuff. If they tell you how great his programs are, they will likely tell you that they are "working" on things and they are expecting big results (but they won't have any yet.) There is no curtain. What you see is what you get. There is no secret that only the inner-circle knows.</div>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com1tag:blogger.com,1999:blog-569911244797122719.post-34622043830822407502011-04-02T02:26:00.002-06:002011-04-02T02:34:52.307-06:00The James Malinchak Reaction, From The Salty Droid, Presented by Robert Paisola<div class="clearfloat" id="page"><div id="content"><div class="post" id="post-7174"><span class="breadcrumbs"><a href="http://saltydroid.info/"></a><b>The Robert Paisola Statement on behalf of The Robert Paisola Foundation 2011</b></span></div><div class="post" id="post-7174"><b><span class="breadcrumbs">"Before you decide to take a man like Malinchak Down, you might want to see all of the successes he has had. I am working on getting him on my show next week. There is much more good to this man that you should experience. If you for some reason consider yourself a "Victim of James </span></b></div><b><span class="breadcrumbs">Malinchak" Send me a very detailed outline of what went on to investigations@seminarwatch.com</span></b><br />
<b><span class="breadcrumbs">Scroll all the way down and read the full 5 page letter tendered by </span>LAVELY & SINGER</b><b><span class="breadcrumbs"> </span></b></div><div id="content"><b><span class="breadcrumbs"> </span></b><br />
<div class="post" id="post-7174"><b><span class="breadcrumbs">Robert Paisola</span></b></div><div class="post" id="post-7174"></div><b>President and Chief Executive Officer<br />
The Western Capital Group of Companies<br />
<a href="http://www.robertpaisola.com/" target="_blank">www.RobertPaisola.com</a><br />
<a href="http://www.mycollector.com/" target="_blank">www.MyCollector.com</a><br />
<a href="http://www.wcmtalent.com/" target="_blank">www.WCMTalent.com</a><br />
<a href="http://www.facebook.com/RobertPaisola" target="_blank">www.Facebook.com/RobertPaisola</a><br />
<a href="http://www.westerncapitalmultimedia.com/" target="_blank">www.WesternCapitalMultimedia.com</a></b><br />
<div class="post" id="post-7174"><span class="breadcrumbs"> </span> <br />
<h2 class="title">The Malinchak Reaction</h2><div id="stats">Author == <a href="http://saltydroid.info/author/SD/" title="Posts by SD">SD</a> 31 March 2011 65 Comments</div><div class="entry clearfloat"><div style="text-align: center;"><img alt="" class="size-full wp-image-7189 aligncenter" height="731" src="http://saltydroid.info/wp-content/uploads/2011/03/James-Malinchak-Can-Too.jpg" title="my face is stupid ... and you can too" width="500" /></div><b>James Malinchak</b> is a fucking scammer!<br />
… or something.<br />
Of course :: I’m a just fake robot so what do I know but parody?<br />
My recent <a href="http://saltydroid.info/secret-millionaire-secrets-revealed/">James Malinchak</a> {<i>aka fucking scammer</i>} post landed on ole’ cuzin Malinchak like a plague of biblical frogs :: and he no likey. I mean :: hello :: he’s trying to launch a scam frauduct off the back-end of a BS television appearance over here … and this ain’t helping.<br />
He better do something about it … like … um … like … um …<br />
Says James Malinchak to the large mirror above the double sinks in the empty master bedroom of his empty Henderson McMansion …<br />
<blockquote><div style="padding-left: 30px;">“FUCK! The Droid. FUCK!</div><div style="padding-left: 30px;">Think Malinchak think!</div><div style="padding-left: 30px;">There’s no “I” in think!</div><div style="padding-left: 30px;">No fuck … wait … yes there is!</div><div style="padding-left: 30px;">Or is there?</div><div style="padding-left: 30px;">Arrrggghh!!</div><div style="padding-left: 30px;">I’m from a steel mill town where people lived with their homes and their pants and you can’t do this to me!”</div></blockquote>{<i>stupid overload!</i>}<br />
So instead of thinking up a plan with his defective thinking equipment :: James Malinchak {<i>scammer</i>} called a hush law firm. Cause that’s how ABC’s super charitable Secret Millionaires roll {<i>like mega dicks</i>}.<br />
The law firm of <a href="http://www.lavelysinger.com/">Lavely & Singer</a> agreed to represent {<i>stupid fucking scammer</i>} James Malinchak in his efforts to once again bring silence to the voice of the abused victims … sort of.<br />
Lavely & Singer did send a Cease & Desist letter :: but to the wrong motherfucking cowboy. <a href="http://www.antion.com/JamesMalinchakCeaseAndDesist.html">Tom Antion</a> :: a well liked veteran in this bizarro ”industry” :: <a href="http://www.antion.com/secretmillionairejamesmalinchakemail1.htm">mailed his list</a> about my Malinchak post :: quoted from it extensively :: and retracted a previous endorsement which he has come to regret. The big scary law firm sent the C&D to Tom instead of the fake robot :: weak ass threats by proxy …<br />
<div style="text-align: center;"><a href="http://saltydroid.info/wp-content/uploads/2011/03/James-Malinchak-Demands-Silence.pdf"><img alt="" class="size-full wp-image-7177 aligncenter" height="253" src="http://saltydroid.info/wp-content/uploads/2011/03/Malinchak-threats-thumb.png" title="... shut you mouth " width="233" /></a></div>According to the <a href="http://blogs.wsj.com/law/2009/12/21/lavely-singer-the-firm-at-the-center-of-the-tiger-cover-up">Wall Street Journal law blog</a> :: Lavely & Singer is the law firm that helped cover-up some of Tiger Woods’ shenanigans. They also represented Reese Witherspoon {<i>in the incident involving Reese Witherspoon</i>} :: and author James Frey {<i>who made Oprah look stupid without <a href="http://saltydroid.info/category/james-arthur-ray/">killing anyone</a></i>}.<br />
The letter is stuffed with case law and scary legal words and concepts :: it’s definitely the most impressive threat letter I’ve seen to date … they’re usually <a href="http://saltydroid.info/silencing-of-the-lambs/">pretty</a> <a href="http://saltydroid.info/chris-cardell-direct-fail-marketing/">ghetto</a>.<br />
<blockquote><div style="padding-left: 30px;">“All of this demonstrates your malicious intention to harm my client’s reputation by spreading outrageous demonstrable lies. Your conduct exposes you to very substantial liability for defamation, false light invasion of privacy, tortious interference with contract, and interference with prospective economic advantage, among other claims. Moreover, if you continue to engage in this course of wrongful conduct, doing so will exacerbate that liability exponentially, potentially exposing you to liability for compensatory and punitive damages of tens of millions of dollars.”</div></blockquote>Blah blah bullshit!<br />
They might just have a point there if James Malinchak wasn’t such an obvious scammer. But he is … so they don’t.<br />
More …<br />
<blockquote><div style="padding-left: 30px;">“Your offensive and harmful false Statements include referring to my client as an”unethical ” “money stealing” ” scammer ” who provides “No value :: no service :: no refunds :: no nothing” to his customers. Those lies are pointedly calculated to harm my client’s reputation.”</div></blockquote>Quoting me :: complete with alt-punk-punctuation and everything. They are “pointedly calculated” words :: that’s for sure :: but rather than lies they are a true reflection of James Malinchak’s horrible reputation. You may think that Tom can’t be held liable for quoting my fake robotic opinions about how much turd sucking James Malinchak and his messed up face do … but Lynda Goldman of Lavely & Singer has already pretended to think of that …<br />
<blockquote><div style="padding-left: 30px;">“To the extent that you attempt to claim that in your emails peppered with defamatory statements you might have paraphrased or lifted from other sources and that you are therefore not responsible for stating that Mr. Malinchak is a “money stealing” ” sociopath,” etc., any such argument would fail as a legal defense to defamation claims, since you will be deemed to have adopted those defamatory statements as your own. See, e.g., Khawar v. Globe lnt’l, Inc., 19CaI.4th 254, 79 CaI.Rptr.2d 178 (1998) (“one who republishes a defamatory statement is deemed thereby to have adopted it and so may be held liable, together with the person who originated the statement, for resulting injury to the reputation of the defamation victim”); see also, Jackson v. Paramount Pictures Corp., 68 CaI.App.4th 10, 80 CaI.Rptr. 2d 1, 27 (1998) (“When a party repeats a slanderous charge, he is equally guilty of defamation, even though he states the sourceof the charge and indicates that he is merely repeating a rumor”); Srnolla, Law of Defamation (2ndEd. 2004) Vol. 1, §4:91 (secondary publisher, or republisher, may be liable for defamatory publication). Be advised that “[r]epetition of another’s words does not release one of responsibility if the repeater knows that the words are false or inherently improbable, or there are obvious reasons to doubt the veracity of the person quoted or the accuracy of his reports. . . . “Goldwater v. Ginzburg, 414 F.2d 324,337 (C.A.N.Y. 1969). That is the case here.”</div></blockquote>Lynda Goldman of Lavely & Singer is expressly and impliedly calling The Salty Droid a liar. Such an obvious liar am I that other people quoting me is an actionable tort in and of itself. Given that my whole reputation :: and the success of this project :: hinges on my perceived veracity :: I’d say that Ms. Goldman’s unfounded statements and hurtful allegations do themselves rise to the level of defamation. Maybe I’ll send Tom Antion a C&D over his republication of Ms. Goldman’s defamatory words {<i>or not</i>}.<br />
Lavely & Singer style themselves as an Entertainment Law and crisis management firm. Their efforts to shut-up the celebrity press are of zero interest to me. Don’t care about who Tiger Woods screws :: don’t care if people want to expose who he screws :: don’t care if lawyers try to shush people who are going to expose who he screws. Don’t care. Exploiting the fame of celebrities to sell trash papers is big business :: and those celebrities have the right to fight back {<i>I guess</i>}. If your name is a $50 million brand :: then you’re probably going to hire lawyers to protect that brand. Fine.<br />
But James Malinchak isn’t a celebrity trying to keep his private life private :: he’s an asshole that’s fleecing innocent and naive victims. His reputation isn’t being damaged :: it’s being exposed. If dissent is silenced … he will do more harm … there will be more victims.<br />
I’m hoping that Lavely & Singer want to be an Entertainment Law Firm … and not a Facilitating WhiteCollar Crime Law Firm. I’m hoping that they just made a mistake :: and that they wouldn’t send a 1st Amendment slighting C&D regarding a public figure if they thought that public figure might actually be taking sad middle-aged ladies for five-figure sums. Because that wouldn’t be ethical :: and I don’t imagine it would help attract new celebrity clientele.<br />
But if Lavely & Singer are itching for a fight :: if they want to be a part of a continuing global conspiracy to separate the credulous from their monies :: if they want to be a part of keeping speech chilled :: victims voiceless :: and change impossible :: then …<br />
I’m most definitely their motherfucking huckleberry.<br />
<b>>> <span style="color: red;">bloop</span> bleep</b><br />
-------------More <b>fabulously hilarious</b> writing ::<br />
<ol><li><a href="http://saltydroid.info/secret-millionaire-secrets-revealed/" rel="bookmark" title="Permanent Link: Secret Millionaire Secrets Revealed">Secret Millionaire Secrets Revealed</a> <small> James Malinchak has a millionaire’s smile :: literally :: if smile...</small></li>
<li><a href="http://saltydroid.info/chris-cardell-direct-fail-marketing/" rel="bookmark" title="Permanent Link: Chris Cardell :: Direct Fail Marketing">Chris Cardell :: Direct Fail Marketing</a> <small> Fee-fi-fo-fum, I smell the blood of an Englishman, Be...</small></li>
<li><a href="http://saltydroid.info/silencing-of-the-lambs/" rel="bookmark" title="Permanent Link: Silencing of the Lambs">Silencing of the Lambs</a> <small> A lot of citizens say that Bill Harris {product...</small></li>
<li><a href="http://saltydroid.info/ripoff-report-report/" rel="bookmark" title="Permanent Link: RipOff Report Report">RipOff Report Report</a> <small> A whole fucking week without me! Oh lord how...</small></li>
<li><a href="http://saltydroid.info/scribes-of-silence/" rel="bookmark" title="Permanent Link: Scribes of Silence">Scribes of Silence</a> <small>Scribe SEO :: the first two words of this post...</small></li>
</ol><div style="padding-left: 300px;">:: read one <b>now</b> before you die of stupid.</div></div><div id="tools"><div style="float: left;"><a href="http://digg.com/submit?phase=2&url=%20http://saltydroid.info/the-malinchak-reaction/&title=The%20Malinchak%20Reaction" target="_blank"><img src="http://saltydroid.info/wp-content/themes/arthemia/images/sociable/digg.png" title="Digg this!" /></a><a href="http://del.icio.us/post?v=4&noui&jump=close&url=http://saltydroid.info/the-malinchak-reaction/&title=The%20Malinchak%20Reaction" target="_blank"><img src="http://saltydroid.info/wp-content/themes/arthemia/images/sociable/delicious.png" title="Add to del.icio.us!" /></a><a href="http://www.stumbleupon.com/submit?url=http://saltydroid.info/the-malinchak-reaction/&title=The%20Malinchak%20Reaction" target="_blank"><img src="http://saltydroid.info/wp-content/themes/arthemia/images/sociable/stumbleupon.png" title="Stumble this!" /></a><a href="http://technorati.com/faves?add=http://saltydroid.info" target="_blank"><img src="http://saltydroid.info/wp-content/themes/arthemia/images/sociable/technorati.png" title="Add to Techorati!" /></a><a href="http://www.facebook.com/sharer.php?u=http://saltydroid.info/the-malinchak-reaction/&t=The%20Malinchak%20Reaction" target="_blank"><img src="http://saltydroid.info/wp-content/themes/arthemia/images/sociable/facebook.png" title="Share on Facebook!" /></a><a href="http://www.newsvine.com/_tools/seed&save?%20u=http://saltydroid.info/the-malinchak-reaction/&h=The%20Malinchak%20Reaction" target="_blank"><img src="http://saltydroid.info/wp-content/themes/arthemia/images/sociable/newsvine.png" title="Seed Newsvine!" /></a><a href="http://reddit.com/submit?url=http://saltydroid.info/the-malinchak-reaction/&title=The%20Malinchak%20Reaction" target="_blank"><img src="http://saltydroid.info/wp-content/themes/arthemia/images/sociable/reddit.png" title="Reddit!" /></a><a href="http://myweb.yahoo.com/myresults/bookmarklet?%20t=The%20Malinchak%20Reaction&u=http://saltydroid.info/the-malinchak-reaction/&ei=UTF" target="_blank"><img src="http://saltydroid.info/wp-content/themes/arthemia/images/sociable/yahoomyweb.png" title="Add to Yahoo!" /></a> </div></div></div><div id="comments"><h3 id="comments">65 Comments <a href="http://saltydroid.info/the-malinchak-reaction/#respond" title="Leave a comment">»</a></h3><ul class="commentlist"><div class="commentlist">
<li id="comment-58221"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo avatar-default grav-hashed grav-hijack" height="55" id="grav-ad516503a11cd5ca435acc9bb6523536-0" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=55" width="55" /> <br />
<div class="commenttext"><cite><b>Beowk </b> said: </cite> Lawyers are idiots and are no different from the celebrities featured in this blog.<br />
No offence.<br />
<img alt="Thumb up" id="up-58221" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58221" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58221-total" style="color: #009933; font-size: 12px;">+1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58308"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-0" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:16 pm</small><br />
@Beowk ::<br />
Not true. <br />
Some lawyers are worse than useless garbage who do more to harm society than all the world’s murderers put together.<br />
And some lawyers are heroes {<i>John Adams :: Thurgood Marshall :: Gandhi</i>} :: and the only ones with the fucking stones to stand up to powers of oppression.<br />
ALL the “celebrities” featured on this blog are useless :: and there is no alt-version of them that is useful.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 2:14 am </div></li>
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<li id="comment-58224"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-511a063241de1ea08724096922c606d4-0" src="http://1.gravatar.com/avatar/511a063241de1ea08724096922c606d4?s=55&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b>Vern </b> said: </cite> Surely Lavely & Singer know what Malinchak does. The lawyer has to know the truth before they represent a client, don’t they? Or is that optional? <br />
Derschowitz knew the truth about von Bulow … didn’t he?<br />
If Lavely Singer see evidence of Malinchak’s scamming (like all these chuckleheads, he doesn’t do much to hide it) would they stop representing him?<br />
Or do they just take a check from anyone willing to pay the number they quote and say “fuck it” to all the rest.<br />
One wonders.<br />
<img alt="Thumb up" id="up-58224" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58224" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58224-total" style="color: #009933; font-size: 12px;">+4</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58226"><img alt="" class="avatar avatar-32 photo avatar-default grav-hashed grav-hijack" height="32" id="grav-ad516503a11cd5ca435acc9bb6523536-1" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=32" width="32" /><cite>208-577-6210</cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 3:46 am</small><br />
<div style="background-color: rgb(255, 255, 224) ! important; padding: 1px;">@Vern, I suppose they know he’s in the ‘self-improvement industry’ and don’t look any further. It is a very, very murky industry – to try and untangle all the lies people spew about themselves and others does take a while. Lavely & Singer bill by the hour, so probably feel their time isn’t well spent conducting such thorough research. Just hold your nose and take the money…</div>WINNER!! :: <img alt="Thumb up" id="up-58226" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58226" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58226-total" style="color: #009933; font-size: 12px;">+10</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div><div class="comment-childs chalt" id="comment-58310"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-1" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:25 pm</small><br />
@Vern ::<br />
Maybe they didn’t know.<br />
Did George know?<br />
I doubt it. <br />
People :: including lawyers and celebrities :: tend to think that no one would lie right to their face … and they don’t have incentives to investigate when money is on offer. James Malinchak convinces people that he’s something he’s not for a living. It’s not very hard.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 2:55 am </div></li>
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<li id="comment-58228"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-833326bd62220d4a3cfbca398b80ee4e-0" src="http://0.gravatar.com/avatar/833326bd62220d4a3cfbca398b80ee4e?s=55&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://www.seduction.com/" rel="external nofollow">Ross Jeffries</a> </b> said: </cite> <br />
<div style="background-color: rgb(255, 255, 224) ! important; padding: 1px;">@Salty <br />
Go get them! I briefly had a lawyer from L and S represent me to negotiate some film rights to my life story. I would up getting $1 for a year option. Nice work there….<br />
BTW, Mala-chucks-dick is also a public figure, so the burden of proof is much higher as he has to show that any defamatory statements were made with knowledge that they were false or with a reckless disregard for the truth.<br />
RJ..ex litigation paralegal with Tuverson and Hillyard</div>WINNER!! :: <img alt="Thumb up" id="up-58228" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58228" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58228-total" style="color: #009933; font-size: 12px;">+9</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58312"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-2" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:29 pm</small><br />
@Ross Jeffries ::<br />
Maybe L&S should dump you and Malinchak and take up my defamation and public accommodations claim against Twitter. <br />
I suspect that Twitter has more money than Tom Antion.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 4:02 am </div></li>
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<li id="comment-58229"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-833326bd62220d4a3cfbca398b80ee4e-1" src="http://0.gravatar.com/avatar/833326bd62220d4a3cfbca398b80ee4e?s=55&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://www.seduction.com/" rel="external nofollow">Ross Jeffries</a> </b> said: </cite> <br />
<div style="background-color: rgb(255, 255, 224) ! important; padding: 1px;">@Salty<br />
One more thing: here in California, we have an Anti-SLAPP(Strategic Lawsuit Against Public Participation) statute. Anyone who tries to sue for defamation in a situation where the defendant is participating in a public forum on an matter of public interest, faces serious odds against prevailing.</div>WINNER!! :: <img alt="Thumb up" id="up-58229" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58229" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58229-total" style="color: #009933; font-size: 12px;">+8</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 4:10 am </div></li>
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<li id="comment-58236"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo avatar-default grav-hashed grav-hijack" height="55" id="grav-ad516503a11cd5ca435acc9bb6523536-2" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=55" width="55" /> <br />
<div class="commenttext"><cite><b>ZILA </b> said: </cite> <br />
<div style="background-color: rgb(255, 255, 224) ! important; padding: 1px;">OMG Does your mother know what you are doing? You must make her proud and terrified at the same time!</div>WINNER!! :: <img alt="Thumb up" id="up-58236" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58236" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58236-total" style="color: #009933; font-size: 12px;">+7</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58314"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-3" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:37 pm</small><br />
@ZILA ::<br />
I recall at one time it was just terrified :: so I guess that’s an improvement.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 6:34 am </div></li>
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<li id="comment-58238"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo avatar-default grav-hashed grav-hijack" height="55" id="grav-ad516503a11cd5ca435acc9bb6523536-3" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=55" width="55" /> <br />
<div class="commenttext"><cite><b>syndicate h8r </b> said: </cite> If you provide proof hes a scammer is Tom allowed to turn around and counter sue them for like freedom if speech harassment or something?<br />
<img alt="Thumb up" id="up-58238" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58238" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58238-total" style="color: #009933; font-size: 12px;">+1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58315"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-4" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:41 pm</small><br />
@syndicate h8r ::<br />
Sort of :: but not really. Lawsuits are an expensive waste of time … both ways. <br />
I doubt Tom wants to sue :: he just wants to apologize to his trusted customers and make sure it’s clear that he no longer supports such an obvious bastard. That’s what EVERYONE should be doing :: that’s what EVERYONE is obligated to be doing … and yet you can still count on one hand the number of people who actually have.<br />
Not impressive.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 7:28 am </div></li>
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<li id="comment-58241"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo avatar-default grav-hashed grav-hijack" height="55" id="grav-ad516503a11cd5ca435acc9bb6523536-4" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=55" width="55" /> <br />
<div class="commenttext"><cite><b>willis </b> said: </cite> i am naming my next born after you…<br />
{head down : fist raised : fight the power}<br />
<img alt="Thumb up" id="up-58241" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58241" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58241-total" style="color: #009933; font-size: 12px;">+5</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58252"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-5" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 9:49 am</small><br />
@willis ::<br />
Put up your fists if all you want is FREEDOM :: put up your fists if all you want is FREEDOM<br />
{<i>raises fist</i>}<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 8:14 am </div></li>
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<li id="comment-58242"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-25f1b83e754d938669f9789668cc7727-0" src="http://0.gravatar.com/avatar/25f1b83e754d938669f9789668cc7727?s=55&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://www.articulayers.com/" rel="external nofollow">Martypants</a> </b> said: </cite> <br />
<div style="background-color: rgb(255, 255, 224) ! important; padding: 1px;">Maybe they should sue Malindork’s dentist instead – he did much more to damage this guy’s reputation than you did, ‘droid. That forced Cheshire crap is truly the stuff of nightmares.</div>WINNER!! :: <img alt="Thumb up" id="up-58242" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58242" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58242-total" style="color: #009933; font-size: 12px;">+17</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58247"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-c0fc87979822cc9575fe8dd2025cd95e-0" src="http://0.gravatar.com/avatar/c0fc87979822cc9575fe8dd2025cd95e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://jimmyray.com/" rel="external nofollow">Jimmy Ray</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 9:13 am</small><br />
@Martypants, <br />
lolol<br />
<img alt="Thumb up" id="up-58247" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58247" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58247-total" style="color: #009933; font-size: 12px;">+2</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div><div class="comment-childs chalt" id="comment-58253"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-6" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 9:54 am</small><br />
@Martypants ::<br />
His dentist is probably a minion of James Arthur Ray who disfigured him in order to give Ray a competitive advantage in the biz.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 8:14 am </div></li>
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<li id="comment-58243"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-17b8a61c612ed48b1a385a6a2acbc2db-0" src="http://1.gravatar.com/avatar/17b8a61c612ed48b1a385a6a2acbc2db?s=55&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b>what?? </b> said: </cite> Awww…you bullies are making Malinchak sad. Lavely & Singer are counting on the fact that most people get intimidated by scary lawyer letters. What they should be counting on instead is most people don’t like lawyers who protect scammers. <br />
On top of everything else, I can’t believe they want to tell him what he can post on his Facebook page! They are funny lawyers.<br />
<img alt="Thumb up" id="up-58243" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58243" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58243-total" style="color: #009933; font-size: 12px;">+6</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 8:21 am </div></li>
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<li id="comment-58244"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-916f13bd4a37ab53ecab9d69db9fafb0-0" src="http://1.gravatar.com/avatar/916f13bd4a37ab53ecab9d69db9fafb0?s=55&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://reportemnow@ftc.com/" rel="external nofollow">Poop Chute</a> </b> said: </cite> Salty, it looks like you might just get that lawsuit you’ve been hankering for yet. MalingeringChuck already admits openly he has a low IQ. Maybe…just maybe…that’s the ONLY thing he’s telling the truth about and he’s really really stupid enough to push it into court.<br />
I too understand the whole “reputation management” thing but the 1st Amendment protects the TRUTH. If what you’re saying is true, or if you state whatever the hell you want clearly as your opinion, you’re entitled to it. State law be damned. It looks like these attorneys are treading painfully close to restricting Antion’s constitutional rights.<br />
But then again — that’s why I was never an attorney (thanks, mom, for never pushing me there).<br />
Once again, nice stuff. This guy is so totally over-the-top screw-em-all it’s not even funny. I’d LOVE to see the discovery flying HIS way, too.<br />
<img alt="Thumb up" id="up-58244" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58244" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58244-total" style="color: #009933; font-size: 12px;">+3</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58248"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-c0fc87979822cc9575fe8dd2025cd95e-1" src="http://0.gravatar.com/avatar/c0fc87979822cc9575fe8dd2025cd95e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://jimmyray.com/" rel="external nofollow">Jimmy Ray</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 9:16 am</small><br />
@Poop Chute, <br />
Salty will need to register a new URL called the DroidDiscoveryChannel.com<br />
I’ll comment there ;)<br />
<img alt="Thumb up" id="up-58248" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58248" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58248-total" style="color: #009933; font-size: 12px;">+5</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div><div class="comment-childs chalt" id="comment-58317"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-7" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:45 pm</small><br />
@Poop Chute ::<br />
They ain’t going to sue me dog :: not in the cards. No one will even talk to me. No C&D’s have ever been served to me directly.<br />
The question here is whether or not I will back off of them :: not if they will back off of me.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 8:40 am </div></li>
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<li id="comment-58249"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-c0fc87979822cc9575fe8dd2025cd95e-2" src="http://0.gravatar.com/avatar/c0fc87979822cc9575fe8dd2025cd95e?s=55&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://jimmyray.com/" rel="external nofollow">Jimmy Ray</a> </b> said: </cite> PS James BalinCak, I’d pay to watch someone punch you in the teeth.<br />
<img alt="Thumb up" id="up-58249" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58249" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58249-total" style="color: #009933; font-size: 12px;">+5</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58274"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-25f1b83e754d938669f9789668cc7727-1" src="http://0.gravatar.com/avatar/25f1b83e754d938669f9789668cc7727?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://www.articulayers.com/" rel="external nofollow">Martypants</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 11:57 am</small><br />
@Jimmy Ray, Quite literally, laughed out loud. Simple+direct=funny! I got $5 I am willing to throw in there too.<br />
<img alt="Thumb up" id="up-58274" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58274" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58274-total" style="color: #009933; font-size: 12px;">+2</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs" id="comment-58352"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-c0fc87979822cc9575fe8dd2025cd95e-3" src="http://0.gravatar.com/avatar/c0fc87979822cc9575fe8dd2025cd95e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://jimmyray.com/" rel="external nofollow">Jimmy Ray</a></cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 3:22 am</small><br />
@Martypants, <br />
I will match your $5, and raise $10.00<br />
<img alt="Thumb up" id="up-58352" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58352" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58352-total">0</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58364"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-25f1b83e754d938669f9789668cc7727-2" src="http://0.gravatar.com/avatar/25f1b83e754d938669f9789668cc7727?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://www.articulayers.com/" rel="external nofollow">Martypants</a></cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 7:22 am</small><br />
@Jimmy Ray, In that case, I’ll see your raised punch, and add-in a spin-kick. Or maybe some brass knuckles on the punch, so more breakage is ensured.<br />
And it would only be right if the video of this glorious brutality is shot in an empty Vegas show home.<br />
<img alt="Thumb up" id="up-58364" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58364" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58364-total" style="color: #009933; font-size: 12px;">+1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div></div></div><div class="commentmetadata"># 31 March 2011 at 9:17 am </div></li>
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<li id="comment-58256"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-37f0d1881f1058f71af6281d7f2ec84f-0" src="http://1.gravatar.com/avatar/37f0d1881f1058f71af6281d7f2ec84f?s=55&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://revronsrants.blogspot.com/" rel="external nofollow">Li_Kuan</a> </b> said: </cite> <br />
<div style="background-color: rgb(255, 255, 224) ! important; padding: 1px;">I suspect that L&S are using the same tactic I learned about in the dojo many years ago: puff up & threaten when you know you lack the wherewithal to prevail. I have never been bested by anyone who announced what a horrible fate would befall me in a match, and from what I’ve seen in my own research (and that of my partner Cosmic Connie), Salty is in no particular danger of having to slap the mat anytime soon.<br />
Oh my… does that make me liable for having supported the “libelous” source of Munchindick’s pain? :-)</div>WINNER!! :: <img alt="Thumb up" id="up-58256" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58256" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58256-total" style="color: #009933; font-size: 12px;">+7</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58268"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-de3798b602e1a39e45a80c61718abc28-0" src="http://1.gravatar.com/avatar/de3798b602e1a39e45a80c61718abc28?s=32&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://cosmicconnie.blogspot.com/" rel="external nofollow">Cosmic Connie</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 11:36 am</small><br />
And everyone: For the benefit of those who don’t know, this is the GOOD Li_Kuan. He’s on our side.<br />
<img alt="Thumb up" id="up-58268" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58268" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58268-total" style="color: #009933; font-size: 12px;">+2</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div><div class="comment-childs chalt" id="comment-58328"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-3bd79cf59654c295c986e9a4cb93325f-0" src="http://1.gravatar.com/avatar/3bd79cf59654c295c986e9a4cb93325f?s=32&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite>scammed</cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 8:03 pm</small><br />
@Li_Kuan, <br />
Saaaay, now that you mention it, we have several wild tom turkeys that do that very thing outside our windows now and again. It’s spring afer all, and they walk around puffing themselves up reeeeeeaaaalll big and spreading their tail feathers wide hoping to psych each other out. It’s quite amusing and can go on for some time. From now on, I think I’ll imagine skanky-lawyer-types as puffed-up turkeys with no substance and deserving of no respect.<br />
<img alt="Thumb up" id="up-58328" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58328" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58328-total" style="color: #009933; font-size: 12px;">+2</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 10:09 am </div></li>
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<li id="comment-58257"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-de3798b602e1a39e45a80c61718abc28-1" src="http://1.gravatar.com/avatar/de3798b602e1a39e45a80c61718abc28?s=55&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://cosmicconnie.blogspot.com/" rel="external nofollow">Cosmic Connie</a> </b> said: </cite> <br />
<div style="background-color: rgb(255, 255, 224) ! important; padding: 1px;">Good work again, Salty. And by the way, you may have been banned from Facebook, but you’re getting a fair amount of publicity there anyway, thanks to a brand new Facebook member (I finally succumbed to pressure).</div>WINNER!! :: <img alt="Thumb up" id="up-58257" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58257" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58257-total" style="color: #009933; font-size: 12px;">+7</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58318"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-8" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:47 pm</small><br />
@Cosmic Connie ::<br />
… mistake.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 10:12 am </div></li>
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<li id="comment-58259"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-117d1f130d1baecce815542aff2ed6ea-0" src="http://1.gravatar.com/avatar/117d1f130d1baecce815542aff2ed6ea?s=55&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b>Injun Samurai </b> said: </cite> <br />
<div style="background-color: rgb(255, 255, 224) ! important; padding: 1px;">@Salty – <br />
Personally, I enjoy the parody and public forum provided by this website.<br />
However, the fact that these weekly parodies serve as conversation starters is moot isn’t it…?<br />
I mean, I’m not from a small steel mining town or anything fancy like that, but doesn’t – 485 U.S. 46 Supreme Court Ruling clearly state: “First Amendment’s free-speech guarantee prohibits awarding damages to public figures to compensate for emotional distress <b>intentionally inflicted upon them.</b>”<br />
I mean, I don’t have a low IQ like James, but when Chief Justice William Rehnquist said <i>(in the official opinion)</i>: <br />
<blockquote>“First Amendment gives speakers immunity from sanction with respect to their speech concerning public figures unless their speech is made with the knowledge of its falsehood…”</blockquote>Maybe you can clear it up for me, but as far as I can tell, <b>“Intentionally Inflicting emotional distress on public figures”</b> is a Constitutional Right Unanimously backed with precedents set by the Supreme Court. As long as you believe what you’re saying is true, it doesn’t need to be substantiated, parody, or satire, you’re allowed to say whatever you believe. <br />
And, according to that ruling, “deliberately attempting to harm someone’s reputation and / or cause them emotional distress” is totally protected by law as long as you believe what you’re saying… <br />
So while I sincerely hope the bloodsuckers at Lackey & Scumbag allow you to be their Mother Fucking Huckleberry… It’s not going to happen, there’s no case here.<br />
Their C&D is an a total bluff… <br />
The funny thing is, since James knows his allegations against Tom are unfounded, if he makes one public statement refering to Tom’s actions as libelous, then technically, James would meet the criteria for an actionable defamation suit… <br />
<b>End Note: To Lackey, Scumbag, and James – </b> Sue the Droid, come on, do it for the lulz, stop being pathetic and file a fucking suit you pussies…<br />
<i>sine qua non:</i> (ie. Only a pussy is disturbed by being called a pussy, thus rendering it factual. If someone calls you a pussy, and you file a C&D, the C&D merely substantiates the claim that you’re a pussy.)<br />
<b>In other words:</b> Unfounded threats to sue Tom for “tens of millions of dollars” prove the the claim that you are a money stealing scammer. So unless you file the suit and win, you’re found guilty in the court of popular opinion and your reputation is fucked…<br />
PS. Get Alexa Sparky — compare, contrast, and extrapolate (and realize how many people are watching)…<br />
<b>A Bone:</b> To save you time on the obscenity argument, there is a clear legal distinction between obscenity and profanity…</div>WINNER!! :: <img alt="Thumb up" id="up-58259" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58259" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58259-total" style="color: #009933; font-size: 12px;">+16</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58270"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-de3798b602e1a39e45a80c61718abc28-2" src="http://1.gravatar.com/avatar/de3798b602e1a39e45a80c61718abc28?s=32&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://cosmicconnie.blogspot.com/" rel="external nofollow">Cosmic Connie</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 11:41 am</small><br />
@Injun Samurai, “…Only a pussy is disturbed by being called a pussy, thus rendering it factual. If someone calls you a pussy, and you file a C&D, the C&D merely substantiates the claim that you’re a pussy.”<br />
LOL. Of course this reminds me (as I’m sure it does many of you) of Bill “Hollow-Sink” Harris and The Silencing of the Lambs. I know you linked to that above, Salty, but here’s the link again for those who don’t feel like scrolling up. <a href="http://saltydroid.info/silencing-of-the-lambs/" rel="nofollow">http://saltydroid.info/silencing-of-the-lambs/</a><br />
<img alt="Thumb up" id="up-58270" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58270" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58270-total" style="color: #009933; font-size: 12px;">+6</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div><div class="comment-childs chalt" id="comment-58319"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-9" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:48 pm</small><br />
@Injun Samurai ::<br />
Nice!<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div><div class="comment-childs chalt" id="comment-58351"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-c0fc87979822cc9575fe8dd2025cd95e-4" src="http://0.gravatar.com/avatar/c0fc87979822cc9575fe8dd2025cd95e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://jimmyray.com/" rel="external nofollow">Jimmy Ray</a></cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 3:21 am</small><br />
@Injun Samurai, <br />
Yes please someone (BallsInCock)sue the droid, that would be some fake reality tv show shizz that I would definitely watch!<br />
<img alt="Thumb up" id="up-58351" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58351" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58351-total" style="color: #009933; font-size: 12px;">+1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div><div class="comment-childs chalt" id="comment-58398"><img alt="" class="avatar avatar-32 photo avatar-default grav-hashed grav-hijack" height="32" id="grav-ad516503a11cd5ca435acc9bb6523536-5" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=32" width="32" /><cite>Fascinated</cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 2:31 pm</small><br />
@Injun Samurai, <br />
I am impressed by your knowledge. Do you or salty have any recommendations that are credible for the lay person to better understand first amendment rights?<br />
<img alt="Thumb up" id="up-58398" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58398" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58398-total" style="color: #009933; font-size: 12px;">+1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs" id="comment-58408"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-117d1f130d1baecce815542aff2ed6ea-1" src="http://1.gravatar.com/avatar/117d1f130d1baecce815542aff2ed6ea?s=32&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite>Injun Samurai</cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 5:52 pm</small><br />
@Fascinated, <br />
Thanks Fascinated, that’s nice of you to say…<br />
My background is actually in legislative law, so I’m not really a good source for ‘lay’ stuff… <i>(my knowledge of the intricacies and subtleties of civil law consists of a formidable roladex)</i>…<br />
But if you are serious about getting a basic knowledge of this stuff, $12.70 spent on ‘U.S. Constitution For Dummies’ (available at Amazon) will go a very long ways towards giving you an overview and getting you conversant quickly…<br />
Also, cheap, easy, and lay is to rent: “The People versus Larry Flint” and “Howl” – two great movies on Freedom of Expression which both address the “Obscenity versus Profanity” issue which is what all of us are hoping the Lackey & Scumbag attorneys go after if they try to get Salty…<br />
Free, easy, and quick is to do a google search on “Profanity versus Obscenity” and you’ll get host of articles that will get you up to speed on the limits of freedom of expression…<br />
Basically, everything Salty and Tom have done so far with regards to James is totally legal and protected by law, no court would ever bother hearing it…<br />
But I think the actual C&D James, Lackey & Scumbag wrote (not filed) falls under: “Threatening, Belligerent, or Coersive with the Intent to Obstruct Commerce” – across state lines making it both a civil and trade federal offense… <br />
It’s funny, because Salty and Tom’s right to ‘Intentionally Inflict Emotional Distress’ on James is protected by law… But because James et al threatened Tom in writing, they’ve potentially committed a federal offense…<br />
In other words, you can’t threaten to sue someone if you know you have no case, that’s coersion and it’s illegal. You must believe you have a case before filing a Cease and Desist…<br />
But that letter, unless it bogus is not a legal document, you’ll notice it says “Our File Number” where it should say “Case Number” they’ve never filed a Ceased & Desist order, it’s a just threat… <br />
See, being belligerent is one thing, that’s freedom of expression, but threatening to do someone physical or monetary harm is an entirely different thing, it’s not protected, it’s illegal… When commerce and statelines get involved, it ‘exacerbates exponentially’.<br />
So what’s funny here, is that if pressed, James and the Lackey & Scumbag attorneys will need to prove that they believe they have a case, that they never made a threat, and the only case they could possibly have is to say “Salty is Obscene” – See, obscenity isn’t protected, but profanity is… <br />
There are finite tests for obscenity, but in the end it basically boils down to: “Obscenity is any statement or act which <b>strongly</b> offends the prevalent morality of the time…” <br />
So the reason I personally hope they take Salty up on his offer to be their Huckleberry is that the case will inevitably come down to updating Morality…<br />
But none of this will ever see a courtroom…<br />
But then again, what I do know? I use a roladex for these sorts of issue, there’s only one true Human Right’s violator on Salty’s roster worthy of facing off with Salty in court… That’s what I’m really looking forward too… <br />
<b>End Note:</b> It’s worth noting that once you get up to speed, Salty’s posts take on a new light because you’ll start to notice how deftly he tows the line of the law… His ability to be vulgar, profane, incendiary, and vitriolic without ever crossing over into libel or obscenity is truly a work of art…<br />
<img alt="Thumb up" id="up-58408" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58408" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58408-total" style="color: #009933; font-size: 12px;">+4</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58431"><img alt="" class="avatar avatar-32 photo avatar-default grav-hashed grav-hijack" height="32" id="grav-ad516503a11cd5ca435acc9bb6523536-6" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=32" width="32" /><cite>Fascinated</cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 10:51 pm</small><br />
@Injun Samurai, Thanks! I will be busy checking out those resources. Your insight and expertise is appreciated.<br />
<img alt="Thumb up" id="up-58431" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58431" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58431-total">0</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div></div></div><div class="commentmetadata"># 31 March 2011 at 10:29 am </div></li>
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<li id="comment-58260"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-ec43d4fb1394c8572631d34a6f0dfae1-0" src="http://0.gravatar.com/avatar/ec43d4fb1394c8572631d34a6f0dfae1?s=55&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://rafaelmarquez.me/" rel="external nofollow">Rafael Marquez</a> </b> said: </cite> <br />
<div style="background-color: rgb(255, 255, 224) ! important; padding: 1px;">In my opinion, I can’t help but think that someone that isn’t a scammer would want to address the points raised directly and show how he really isn’t a scammer. Perhaps it’s just a matter of being perceived as a scammer, rather than actual maliciousness and whatnot. <br />
You know what I mean? <br />
Malinchak could have handled this like a man. Instead, he went to lawyers crying like a bitch.<br />
Alas, sicking the lawyers on someone first shows guilt more than anything else. That’s what I perceive anyway. It also makes me wonder, how many other people have gotten a letter like this and been bullied into complying?<br />
That’s my opinion.</div>WINNER!! :: <img alt="Thumb up" id="up-58260" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58260" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58260-total" style="color: #009933; font-size: 12px;">+7</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58342"><img alt="" class="avatar avatar-32 photo avatar-default grav-hashed grav-hijack" height="32" id="grav-ad516503a11cd5ca435acc9bb6523536-7" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=32" width="32" /><cite>422</cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 12:46 am</small><br />
@Rafael Marquez, it is so funny, he sent those two lawyers after a man that quoted SaltyDroid. If they are so upset with him quoting , then they should have sent that C&D to Salty FIRST. He is the source. Even the lawyers are afraid. lol too funny<br />
<img alt="Thumb up" id="up-58342" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58342" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58342-total" style="color: #009933; font-size: 12px;">+3</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 10:31 am </div></li>
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<li id="comment-58261"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-8df695183075049f00924964e249f6e1-0" src="http://0.gravatar.com/avatar/8df695183075049f00924964e249f6e1?s=55&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b>Bullshit Detector </b> said: </cite> “CONFIDENTIAL LEGAL NOTICE PUBLICATION OR DISSEMINATION IS PROHIBITED”<br />
“We cannot overemphasize the seriousness of this matter. If you disregard the foregoing demands, you do so at your peril.”<br />
I haven’t laughed so hard since Ricky Gervais roasted Hollyweird at the Golden Globes!<br />
<img alt="Thumb up" id="up-58261" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58261" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58261-total" style="color: #009933; font-size: 12px;">+6</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58316"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-2ce27f2fe4bf5b27b0cc73dff9e41c11-0" src="http://0.gravatar.com/avatar/2ce27f2fe4bf5b27b0cc73dff9e41c11?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://www.jackbewildered.com/" rel="external nofollow">Jack</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:43 pm</small><br />
@Bullshit Detector, I was also wondering about it because before they told me about it I thought probably they were in danger of overemphasizing it but then they told me they weren’t so I knew I was wrong then.<br />
<img alt="Thumb up" id="up-58316" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58316" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58316-total" style="color: #009933; font-size: 12px;">+2</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 10:42 am </div></li>
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<li id="comment-58262"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo avatar-default grav-hashed grav-hijack" height="55" id="grav-ad516503a11cd5ca435acc9bb6523536-8" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=55" width="55" /> <br />
<div class="commenttext"><cite><b>Joe </b> said: </cite> Introducing…a new cast member! Why was that intimidation letter also CC’ed to “Davy Tyburski?” Hmmm…<br />
“James Malinchak endorsed by Davy Tyburski, Mastermind Group”<br />
<img alt="Thumb up" id="up-58262" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58262" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58262-total" style="color: #009933; font-size: 12px;">+5</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 10:49 am </div></li>
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<div class="commenttext"><cite><b>Lawyers SUCK </b> said: </cite> <img alt="Thumb up" id="up-58267" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58267" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58267-total" style="color: #009933; font-size: 12px;">+2</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 11:25 am </div></li>
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<div class="commenttext"><cite><b>Left Hook </b> said: </cite> Is James Malinchak in compliance with the State of California SAMP Act? <br />
<a href="http://ag.ca.gov/consumers/general/samp.php" rel="nofollow">http://ag.ca.gov/consumers/general/samp.php</a><br />
22 other states also have similar requirements:<br />
<a href="http://www.ftc.gov/bcp/franchise/netbusop.shtm" rel="nofollow">http://www.ftc.gov/bcp/franchise/netbusop.shtm</a><br />
The FTC also has stringent requirements:<br />
<a href="http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=7fb172a7c5e183d29bce19e7031fab8e&rgn=div5&view=text&node=16:1.0.1.4.55&idno=16" rel="nofollow">http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=7fb172a7c5e183d29bce19e7031fab8e&rgn=div5&view=text&node=16:1.0.1.4.55&idno=16</a><br />
<img alt="Thumb up" id="up-58272" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58272" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58272-total" style="color: #009933; font-size: 12px;">+3</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58321"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-10" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 6:51 pm</small><br />
@Left Hook ::<br />
James Malinchak isn’t in compliance with any Acts!<br />
of course … that’s just my highly educated and informed expert opinion … take it for what it’s worth {<i>way more than your stupid opinion</i>}. <br />
blessings<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 11:43 am </div></li>
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<div class="commenttext"><cite><b>Attorney </b> said: </cite> I can think of many First Amendment lawyers who would LOVE to take on this type of case pro bono, without charging the defendant a penny. Why? It’s similar to the reason white collar attorneys take on high-profile cases for free … the publicity/free marketing associated with the case more than pays for the actual costs fronted by the firm. In other words, being sued by somebody represented L&S does not necessarily mean huge defense costs.<br />
<img alt="Thumb up" id="up-58285" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58285" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58285-total" style="color: #009933; font-size: 12px;">+3</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 2:44 pm </div></li>
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<div class="commenttext"><cite><b>Tom Antion is a good guy </b> said: </cite> Yo Salty!<br />
Question:<br />
Let’s say one of these guys sued you.<br />
Could you get the records of their associates (aka affiliates)?<br />
I think you said something about this before.<br />
<img alt="Thumb up" id="up-58290" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58290" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58290-total" style="color: #009933; font-size: 12px;">+2</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 3:37 pm </div></li>
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<div class="commenttext"><cite><b>Fuck-Godaddy </b> said: </cite> Guys this isn’t related but there are many people here who are site owners and I thought you should see this.<br />
If some of you buy stuff from godaddy then you should know that their CEO is a murderer and a fucking coward who kills animals for pleasure.<br />
His response is even worse.<br />
<img alt="Thumb up" id="up-58291" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58291" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58291-total" style="color: #990033; font-size: 12px;">-1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58338"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-3bd79cf59654c295c986e9a4cb93325f-1" src="http://1.gravatar.com/avatar/3bd79cf59654c295c986e9a4cb93325f?s=32&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite>scammed</cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 11:32 pm</small><br />
@Fuck-Godaddy, <br />
Wow–that just makes me ill. Elephants are such cool creatures. It boggles the mind how callous and completely removed from feelings of connection and compassion this guy must be. Just gross. I will never ever buy anything from Go Daddy again.<br />
<img alt="Thumb up" id="up-58338" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58338" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58338-total" style="color: #009933; font-size: 12px;">+1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs" id="comment-58359"><img alt="" class="avatar avatar-32 photo avatar-default grav-hashed grav-hijack" height="32" id="grav-ad516503a11cd5ca435acc9bb6523536-14" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=32" width="32" /><cite>Fuck-Godaddy</cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 6:57 am</small><br />
@scammed,<br />
True. And not only that, he is a motherfucker Leopard killer as-well. <br />
Watch in the video how he mention that killing Leopards is great for economy and foreign currency.<br />
Fucking idiot!<br />
<img alt="Thumb up" id="up-58359" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58359" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58359-total" style="color: #009933; font-size: 12px;">+1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div><div class="comment-childs" id="comment-58386"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-7faa3bc7c24a4928675a724d30bb0d66-0" src="http://1.gravatar.com/avatar/7faa3bc7c24a4928675a724d30bb0d66?s=32&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite>Anonymous Bastard</cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 12:26 pm</small><br />
Hidden due to low <a href="http://wealthynetizen.com/wordpress-plugin-comment-rating/" title="Rated by other readers">comment rating</a>. <a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750" title="Click to see comment">Click here to see</a>.<br />
<div id="ckhide-58386" style="display: none; opacity: 0.6;">@scammed, “Elephants are such cool creatures”<br />
Especially when they’re stampeding through your crops and ruining your food supply. Coolamundo.</div><b>LOSER!! ::</b> <img alt="Thumb up" id="up-58386" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58386" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58386-total" style="color: #990033; font-size: 12px;">-5</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div></div><div class="commentmetadata"># 31 March 2011 at 3:42 pm </div></li>
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<div class="commenttext"><cite><b>Irwin </b> said: </cite> “James Malinchak isn’t a celebrity trying to keep his private life private :: he’s an asshole that’s fleecing innocent and naive victims.”<br />
Sometimes you just have to call a spade a spade.<br />
<img alt="Thumb up" id="up-58295" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58295" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58295-total" style="color: #009933; font-size: 12px;">+5</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 4:49 pm </div></li>
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<div class="commenttext"><cite><b><a class="url" href="http://stechdoes.com/" rel="external nofollow">StechDoes</a> </b> said: </cite> Salty (not the rest of you yahoos) I just wanted to offer you free and unmitigated use of my new logo (for unacceptable.co) feel free to stamp it where ever you like.<br />
<a href="http://www.flickr.com/photos/54031155@N08/5572844642/"><img alt="unfuckingacceptable_skew_sm" height="330" src="http://farm6.static.flickr.com/5291/5572844642_bdc53eb8c1.jpg" width="500" /></a><br />
<img alt="Thumb up" id="up-58300" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58300" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58300-total" style="color: #009933; font-size: 12px;">+6</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58330"><img alt="" class="avatar avatar-32 photo avatar-default grav-hashed grav-hijack" height="32" id="grav-ad516503a11cd5ca435acc9bb6523536-15" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=32" width="32" /><cite>fed up</cite> Reply:<br />
<small class="commentmetadata">March 31st, 2011 at 8:39 pm</small><br />
@StechDoes,<br />
thank you – that will come in handy in my correspondence…<br />
<img alt="Thumb up" id="up-58330" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58330" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58330-total" style="color: #009933; font-size: 12px;">+1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 31 March 2011 at 5:30 pm </div></li>
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<div class="commenttext"><cite><b>Patrick </b> said: </cite> He should probably try to avoid the mistake of using fake small caps in his promotional materials. You can tell because the small capitals are the same weight as the big capitals. <br />
Of course, that’s all just my opinion, however.<br />
<img alt="Thumb up" id="up-58320" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58320" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58320-total" style="color: #009933; font-size: 12px;">+1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 6:49 pm </div></li>
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<li id="comment-58322"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-2ce27f2fe4bf5b27b0cc73dff9e41c11-1" src="http://0.gravatar.com/avatar/2ce27f2fe4bf5b27b0cc73dff9e41c11?s=55&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://www.jackbewildered.com/" rel="external nofollow">Jack</a> </b> said: </cite> One thing I got to think about as when I was readin g the funny cease & desist letter was about that I don’t think I’d ever seen a law firm negotiate against themselves so fast and easily befroe ever getting any sort of counteroffer because at the beginning they said:<br />
<blockquote>“Moreover, if you continue to engage in this course ofwrongful conduct, doing so will exacerbate that liability exponentially, potentially<br />
exposing you to liability for compensatory and punitive damages of tens of millions of dollars.”</blockquote>but then later by the ending part of the letter they said<br />
<blockquote>“if you continue your wrongful conduct, my client’S damages will escalate, exposing you to millions of dollars in compensatory and punitive damages.” </blockquote>Maybe it’s some new-fan-gold sort of “silent negotiation” tactic.<br />
<img alt="Thumb up" id="up-58322" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58322" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58322-total" style="color: #009933; font-size: 12px;">+2</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 6:56 pm </div></li>
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<div class="commenttext"><cite><b>Shit Storm </b> said: </cite> You gotta love a robot who pulls the tail of the angry dog and laughs while doing it<br />
‘I’m most definitely their motherfucking huckleberry.’<br />
Who knew Robots had BIG balls…<br />
I knew a Linda Goldman not Lynda Goldman. The Linda Goldman I knew was a HUGE Slut<br />
Many called her Whore Linda Goldman and Linda the slut Goldman.<br />
<img alt="Thumb up" id="up-58331" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58331" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58331-total">0</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 31 March 2011 at 9:15 pm </div></li>
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<li id="comment-58348"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-511a063241de1ea08724096922c606d4-1" src="http://1.gravatar.com/avatar/511a063241de1ea08724096922c606d4?s=55&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b>Vern </b> said: </cite> If you want to know (as did I) what is meant by “I will be your huckleberry”, here’s an explanation.<br />
<a href="http://www.worldwidewords.org/qa/qa-huc1.htm" rel="nofollow">http://www.worldwidewords.org/qa/qa-huc1.htm</a><br />
<img alt="Thumb up" id="up-58348" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58348" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58348-total" style="color: #009933; font-size: 12px;">+3</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 1 April 2011 at 1:40 am </div></li>
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<li class="my_comment" id="comment-58366"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-05c41a594abddb28f4c3fc94afdf597e-11" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=55&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a> (author) </b> said: </cite> Someones just told me that Lavely & Singer are counsel to Robbins Research International :: and lookey lookey …<br />
<a href="http://paisolafacts.blogspot.com/2007/06/anthony-robbins-sends-in-pit-bulls-at.html" rel="nofollow">http://paisolafacts.blogspot.com/2007/06/anthony-robbins-sends-in-pit-bulls-at.html</a><br />
So I guess they are professional trolls.<br />
Fine.<br />
Game on skanks.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58367"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-05c41a594abddb28f4c3fc94afdf597e-12" src="http://0.gravatar.com/avatar/05c41a594abddb28f4c3fc94afdf597e?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://saltydroid.info/" rel="external nofollow">SD</a></cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 9:04 am</small><br />
Hey Lavely & Singer :: <br />
I’ll be over here all day … <a href="http://saltydroid.info/james-arthur-ray-trial-updates/" rel="nofollow">http://saltydroid.info/james-arthur-ray-trial-updates/</a> :: and here <a href="http://twitter.com/RayShouldPay" rel="nofollow">http://twitter.com/RayShouldPay</a> … doing my bit for the dead.<br />
And you?<br />
Oh that’s right … you’ll be propping up the assholes doing the killings.<br />
Anywayz :: maybe we can talk later once we’re each done doing our part for the day.<br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs" id="comment-58379"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-15f51ad47519ae5e48ebfcc818f3c9ae-0" src="http://1.gravatar.com/avatar/15f51ad47519ae5e48ebfcc818f3c9ae?s=32&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite>Unicorn Army</cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 11:02 am</small><br />
@SD, yeah, take ‘em out for a beer.<br />
<img alt="Thumb up" id="up-58379" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58379" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58379-total" style="color: #009933; font-size: 12px;">+2</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="comment-childs chalt" id="comment-58437"><img alt="" class="avatar avatar-32 photo grav-hashed grav-hijack" height="32" id="grav-aebef7bace406f4652565be948bd9318-0" src="http://0.gravatar.com/avatar/aebef7bace406f4652565be948bd9318?s=32&d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D32&r=X" width="32" /><cite><a class="url" href="http://www.westerncapitalvip.com/" rel="external nofollow">Robert Paisola</a></cite> Reply:<br />
<small class="commentmetadata">April 2nd, 2011 at 1:54 am</small><br />
@SD, This is Robert Paisola and I am the CEO of Western Capital Multimedia. Thanks so much for showing the public what we do on a daily basis to protect our clients from people like this. You would never believe how much money that have offered for us to take down our posts, but we never ever will.<br />
The voices are gathering and the voices are being heard and change is the result that you are seeing around the globe.<br />
We assist the pitbulls, we go after the bad guys and we NEVER EVER STOP<br />
To your success<br />
Robert Paisola<br />
President and Chief Executive Officer<br />
The Western Capital Group of Companies<br />
<a href="http://www.robertpaisola.com/" rel="nofollow">http://www.RobertPaisola.com</a><br />
<a href="http://www.mycollector.com/" rel="nofollow">http://www.MyCollector.com</a><br />
<a href="http://www.wcmtalent.com/" rel="nofollow">http://www.WCMTalent.com</a><br />
<a href="http://www.facebook.com/RobertPaisola" rel="nofollow">http://www.Facebook.com/RobertPaisola</a><br />
<a href="http://www.westerncapitalmultimedia.com/" rel="nofollow">http://www.WesternCapitalMultimedia.com</a><br />
<img alt="Thumb up" id="up-58437" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_gray_up.png" style="border: medium none; margin: 0px; padding: 0px;" /> <img alt="Thumb down" id="down-58437" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_gray_down.png" style="border: medium none; margin: 0px; padding: 0px;" /> <span id="karma-58437-total">0</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 1 April 2011 at 8:58 am </div></li>
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<li id="comment-58400"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo grav-hashed grav-hijack" height="55" id="grav-bf848aacddb337d899e88877ce709623-0" src="http://1.gravatar.com/avatar/bf848aacddb337d899e88877ce709623?s=55&d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D55&r=X" width="55" /> <br />
<div class="commenttext"><cite><b>Fake Non-Droid </b> said: </cite> Hey, looks like you finally got a nibble!<br />
But why do you want to go fishing for sharks?<br />
<img alt="Thumb up" id="up-58400" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58400" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58400-total" style="color: #990033; font-size: 12px;">-1</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div><div class="comment-childs chalt" id="comment-58407"><img alt="" class="avatar avatar-32 photo avatar-default grav-hashed grav-hijack" height="32" id="grav-ad516503a11cd5ca435acc9bb6523536-17" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=32" width="32" /><cite>Phil</cite> Reply:<br />
<small class="commentmetadata">April 1st, 2011 at 4:57 pm</small><br />
@Fake Non-Droid, Don’t confuse a shark with a bottom-feeding catfish wearing a rented shark costume.<br />
<img alt="Thumb up" id="up-58407" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58407" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58407-total" style="color: #009933; font-size: 12px;">+3</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div></div><div class="commentmetadata"># 1 April 2011 at 2:54 pm </div></li>
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<li id="comment-58419"> <div class="clearfloat"><img alt="" class="avatar avatar-55 photo avatar-default grav-hashed grav-hijack" height="55" id="grav-ad516503a11cd5ca435acc9bb6523536-18" src="http://0.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=55" width="55" /> <br />
<div class="commenttext"><cite><b>Words Spread </b> said: </cite> Another blogger with a backbone:<br />
<a href="http://www.warriorforumsucks.com/2011/03/james-malinchak-empty-head-empty-house.html" rel="nofollow">http://www.warriorforumsucks.com/2011/03/james-malinchak-empty-head-empty-house.html</a><br />
<img alt="Thumb up" id="up-58419" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_up.png" style="border: medium none; cursor: pointer; padding: 0px;" title="sweet!" /> <img alt="Thumb down" id="down-58419" src="http://saltydroid.info/wp-content/plugins/comment-rating/images/2_14_down.png" style="border: medium none; cursor: pointer; padding: 0px;" title="lame!" /> <span id="karma-58419-total">0</span><br />
<div class="thdrpy">[<a href="http://www.blogger.com/post-edit.g?blogID=569911244797122719&postID=3462204383082240750">Reply</a>]</div></div></div><div class="commentmetadata"># 1 April 2011 at 6:53 pm </div></li>
</div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></ul><h3 id="respond">Say Something!</h3><form action="http://saltydroid.info/wp-comments-post.php" id="commentform" method="post">Hurry and leave a successful comments before supplies are running out!<br />
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title="12 posts filed under Sheeple">Sheeple</a> <a href="http://saltydroid.info/category/stompernet/" style="font-size: 13pt;" title="12 posts filed under StomperNet">StomperNet</a> <a href="http://saltydroid.info/category/the-secret/" style="font-size: 20pt;" title="58 posts filed under The Secret">The Secret</a> <a href="http://saltydroid.info/category/the-syndicate/" style="font-size: 17pt;" title="40 posts filed under The Syndicate">The Syndicate</a> <a href="http://saltydroid.info/category/tony-robbins/" style="font-size: 12pt;" title="5 posts filed under Tony Robbins">Tony Robbins</a> <a href="http://saltydroid.info/category/twitter/" style="font-size: 17pt;" title="40 posts filed under Twitter">Twitter</a> <a href="http://saltydroid.info/category/utah/" style="font-size: 13pt;" title="9 posts filed under Utah">Utah</a> <a href="http://saltydroid.info/category/video/" style="font-size: 20pt;" title="59 posts filed under Video">Video</a> <a href="http://saltydroid.info/category/wikileaks/" style="font-size: 12pt;" title="4 posts filed under WikiLeaks">WikiLeaks</a> <a href="http://saltydroid.info/category/yanik-silver/" style="font-size: 12pt;" title="2 posts filed under Yanik Silver">Yanik Silver</a> </div><div class="textwidget"><a href="http://saltydroid.info/james-arthur-ray-trial-updates/"><img src="http://saltydroid.info/wp-content/uploads/2011/03/death-eyes.jpg" width="300" /></a></div><h3>{ SD trial tweets }</h3><div class="aktt_tweets"><ul><li>c u laterz. recapitulate your #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> experiences here <a href="http://saltydroid.info/james-arthur-ray-trial-updates/" rel="nofollow">http://saltydroid.info/james-arthur-ray-trial-updates/</a> :: keep the sex 2 yourself <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53972178827358208">8 hrs ago</a></li>
<li>Jury questions not asked. Fawn Foster excused subject to recall {on the prior lodge issue} #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53970634673369088">8 hrs ago</a></li>
<li>Sometimes faux alpha and omega's end up gammas in prison. #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53969901777453056">8 hrs ago</a></li>
<li>Kelly rubs in the priors #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53969570112876544">8 hrs ago</a></li>
<li>Mr. Kelly's recross expresses his anger about how shockingly bad that surprise was. #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53969439225425920">8 hrs ago</a></li>
<li>Awesome redirect complete. Judge allows recross on just the "alpha and omega" mega bomb. #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53969154256023552">8 hrs ago</a></li>
<li>Q: Would someone be free to leave the lodge if they were unconscious? A: Objection! #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53968787757731840">8 hrs ago</a></li>
<li>Mr. Kelly objects based on narration! Two minutes earlier and he would have avoided that disaster! #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53968312975097856">8 hrs ago</a></li>
<li>I'm the alpha and the omega :: I am god. #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> ... oh gosh <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53967765454852097">8 hrs ago</a></li>
<li>Sidebar. Truc smiles on purpose. #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53967486038712321">8 hrs ago</a></li>
<li>Mr. Kelly so mad. lol #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53966633928105984">8 hrs ago</a></li>
<li>Ms. Polk dismisses the idiocy of Mr. Kelly's fake measurements. #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53966284748107776">8 hrs ago</a></li>
<li>Mr. Kelly makes a fake objection ... and then strikes it. #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> #haha <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53966066380054528">8 hrs ago</a></li>
<li>Blankets were pulled off the lodge to help people. FF pulled two off ... when she tried to pull third off the cops stopped her ... #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53965840663584770">8 hrs ago</a></li>
<li>Ms. Polk so good. I no commit crimes in Yavapai ... #<a class="aktt_hashtag" href="http://search.twitter.com/search?q=%23JamesRay">JamesRay</a> <a class="aktt_tweet_time" href="http://twitter.com/RayShouldPay/statuses/53964864850362368">8 hrs ago</a></li>
<li class="aktt_more_updates"><a href="http://twitter.com/RayShouldPay">More updates...</a></li>
</ul></div></div><div class="clearfloat" id="sidebar-middle"><div id="sidebar-left"><h3>{ follow along }</h3><a class="a2a_dd addtoany_subscribe" href="http://www.addtoany.com/subscribe?linkname=The%20Salty%20Droid&linkurl=http%3A%2F%2Fsaltydroid.info%2Ffeed%2F"><img alt="Subscribe" height="16" src="http://saltydroid.info/wp-content/plugins/add-to-any-subscribe/subscribe_120_16.png" width="120" /></a> <br />
<h3>{ calendar }</h3><div id="calendar_wrap"><table id="wp-calendar" summary="Calendar"><caption>April 2011</caption> <thead>
<tr> <th scope="col" title="Monday">M</th> <th scope="col" title="Tuesday">T</th> <th scope="col" title="Wednesday">W</th> <th scope="col" title="Thursday">T</th> <th scope="col" title="Friday">F</th> <th scope="col" title="Saturday">S</th> <th scope="col" title="Sunday">S</th> </tr>
</thead> <tfoot>
<tr> <td colspan="3" id="prev"><a href="http://saltydroid.info/2011/03/" title="View posts for March 2011">« Mar</a></td> <td class="pad"></td> <td class="pad" colspan="3" id="next"></td> </tr>
</tfoot> <tbody>
<tr> <td class="pad" colspan="4"></td><td>1</td><td id="today"><a href="http://saltydroid.info/2011/04/02/" title="James Ray Trial Tweets for 2011-04-02">2</a></td><td>3</td> </tr>
<tr> <td>4</td><td>5</td><td>6</td><td>7</td><td>8</td><td>9</td><td>10</td> </tr>
<tr> <td>11</td><td>12</td><td>13</td><td>14</td><td>15</td><td>16</td><td>17</td> </tr>
<tr> <td>18</td><td>19</td><td>20</td><td>21</td><td>22</td><td>23</td><td>24</td> </tr>
<tr> <td>25</td><td>26</td><td>27</td><td>28</td><td>29</td><td>30</td> <td class="pad" colspan="1"></td> </tr>
</tbody> </table></div><h3>{ categorically }</h3><select class="postform" id="cat" name="cat"> <option value="-1">Select Category</option> <option class="level-0" value="143">Aaron Parkinson (3)</option> <option class="level-0" value="319">Andy Jenkins (29)</option> <option class="level-0" value="436">Angel Valley (2)</option> <option class="level-0" value="343">Arleen Anderson (1)</option> <option class="level-0" value="439">Bill Harris (4)</option> <option class="level-0" value="145">bleep bloop (60)</option> <option class="level-0" value="172">Bob Proctor (4)</option> <option class="level-0" value="655">Boiler Rooms (13)</option> <option class="level-0" value="320">Brad Fallon (11)</option> <option class="level-0" value="592">Brian Clark (4)</option> <option class="level-0" value="565">Chris Cardell (1)</option> <option class="level-0" value="375">Colleen Conaway (14)</option> <option class="level-0" value="591">Copyblogger (4)</option> <option class="level-0" value="180">copyright (9)</option> <option class="level-0" value="146">credit cards (5)</option> <option class="level-0" value="487">Dan Kennedy (3)</option> <option class="level-0" value="494">David Miscavige (1)</option> <option class="level-0" value="148">David Schirmer (8)</option> <option class="level-0" value="629">Decor My Eyes (2)</option> <option class="level-0" value="149">Dennis Karganilla (5)</option> <option class="level-0" value="284">DMCA (12)</option> <option class="level-0" value="583">Eben Pagan (5)</option> <option class="level-0" value="526">Ed Dale (2)</option> <option class="level-0" value="512">Ed Magedson (3)</option> <option class="level-0" value="460">Eric Graham (1)</option> <option class="level-0" value="137">Featured (8)</option> <option class="level-0" value="268">Frank Kern (29)</option> <option class="level-0" value="608">Free Speech (22)</option> <option class="level-0" value="196">Gary McCaffrey (7)</option> <option class="level-0" value="431">Greg Hartle (15)</option> <option class="level-0" value="151">Harlan Kilstein (31)</option> <option class="level-0" value="136">Headline (2)</option> <option class="level-0" value="669">Hope (3)</option> <option class="level-0" value="614">IM Warfare (2)</option> <option class="level-0" value="364">James Arthur Ray (73)</option> <option class="level-0" value="693">James Malinchak (2)</option> <option class="level-0" value="457">Jason Moffatt (1)</option> <option class="level-0" value="587">Jeff Johnson (4)</option> <option class="level-0" value="463">Jeff Schwerdt (1)</option> <option class="level-0" value="544">Jeff Walker (10)</option> <option class="level-0" value="552">Jennifer Horton (5)</option> <option class="level-0" value="639">Jeremy Johnson (7)</option> <option class="level-0" value="153">Jimmy Davis (6)</option> <option class="level-0" value="550">Joe Vitale (6)</option> <option class="level-0" value="428">John Assaraf (2)</option> <option class="level-0" value="615">John Raygoza (3)</option> <option class="level-0" value="455">John Reese (5)</option> <option class="level-0" value="474">Josh Fredrickson (9)</option> <option class="level-0" value="635">Julian Assange (4)</option> <option class="level-0" value="603">Kajabi (2)</option> <option class="level-0" value="621">Magic Bullet (3)</option> <option class="level-0" value="274">Maria Andros (6)</option> <option class="level-0" value="382">Mark Fabiani (3)</option> <option class="level-0" value="641">Mark Shurtleff (9)</option> <option class="level-0" value="156">Matt Bacak (6)</option> <option class="level-0" value="613">Matt Harward (2)</option> <option class="level-0" value="389">Megan Fredrickson (25)</option> <option class="level-0" value="388">Michelle Goulet (18)</option> <option class="level-0" value="407">Mike Filsaime (11)</option> <option class="level-0" value="433">Mike Koenigs (10)</option> <option class="level-0" value="157">minions (8)</option> <option class="level-0" value="624">MLM (2)</option> <option class="level-0" value="560">Munger Tolles & Olson (2)</option> <option class="level-0" value="556">Pat O’Bryan (2)</option> <option class="level-0" value="445">Paulie Sabol (3)</option> <option class="level-0" value="158">Perry Belcher (43)</option> <option class="level-0" value="617">PushTraffic (2)</option> <option class="level-0" value="511">Rip-Off Report (3)</option> <option class="level-0" value="405">Russell Brunson (4)</option> <option class="level-0" value="227">Ryan Deiss (15)</option> <option class="level-0" value="259">Scams (161)</option> <option class="level-0" value="490">Scientology (2)</option> <option class="level-0" value="612">Scribe (2)</option> <option class="level-0" value="698">Secret Millionaire (1)</option> <option class="level-0" value="630">SEO (11)</option> <option class="level-0" value="412">Sheeple (12)</option> <option class="level-0" value="318">StomperNet (12)</option> <option class="level-0" value="471">Tellman Knudson (1)</option> <option class="level-0" value="245">The Secret (58)</option> <option class="level-0" value="426">The Syndicate (40)</option> <option class="level-0" value="518">Tony Parinello (1)</option> <option class="level-0" value="429">Tony Robbins (5)</option> <option class="level-0" value="163">Twitter (40)</option> <option class="level-0" value="1">Uncategorized (1)</option> <option class="level-0" value="651">Utah (9)</option> <option class="level-0" value="164">Video (59)</option> <option class="level-0" value="628">Vitaly Borker (1)</option> <option class="level-0" value="634">WikiLeaks (4)</option> <option class="level-0" value="533">World Cup (6)</option> <option class="level-0" value="678">WWASPS (1)</option> <option class="level-0" value="473">Yanik Silver (2)</option> </select> <br />
<h3>{ archival }</h3><select name="archive-dropdown"> <option value="">Select Month</option> <option value="http://saltydroid.info/2011/04/"> April 2011 (1)</option> <option value="http://saltydroid.info/2011/03/"> March 2011 (8)</option> <option value="http://saltydroid.info/2011/02/"> February 2011 (11)</option> <option value="http://saltydroid.info/2011/01/"> January 2011 (8)</option> <option value="http://saltydroid.info/2010/12/"> December 2010 (9)</option> <option value="http://saltydroid.info/2010/11/"> November 2010 (10)</option> <option value="http://saltydroid.info/2010/10/"> October 2010 (11)</option> <option value="http://saltydroid.info/2010/09/"> September 2010 (12)</option> <option value="http://saltydroid.info/2010/08/"> August 2010 (9)</option> <option value="http://saltydroid.info/2010/07/"> July 2010 (13)</option> <option value="http://saltydroid.info/2010/06/"> June 2010 (11)</option> <option value="http://saltydroid.info/2010/05/"> May 2010 (8)</option> <option value="http://saltydroid.info/2010/04/"> April 2010 (8)</option> <option value="http://saltydroid.info/2010/03/"> March 2010 (11)</option> <option value="http://saltydroid.info/2010/02/"> February 2010 (14)</option> <option value="http://saltydroid.info/2010/01/"> January 2010 (13)</option> <option value="http://saltydroid.info/2009/12/"> December 2009 (12)</option> <option value="http://saltydroid.info/2009/11/"> November 2009 (13)</option> <option value="http://saltydroid.info/2009/10/"> October 2009 (16)</option> <option value="http://saltydroid.info/2009/09/"> September 2009 (15)</option> <option value="http://saltydroid.info/2009/08/"> August 2009 (13)</option> <option value="http://saltydroid.info/2009/07/"> July 2009 (13)</option> <option value="http://saltydroid.info/2009/06/"> June 2009 (13)</option> <option value="http://saltydroid.info/2009/05/"> May 2009 (10)</option> <option value="http://saltydroid.info/2009/04/"> April 2009 (14)</option> <option value="http://saltydroid.info/2009/03/"> March 2009 (15)</option> <option value="http://saltydroid.info/2009/02/"> February 2009 (16)</option> <option value="http://saltydroid.info/2009/01/"> January 2009 (5)</option> </select> </div><div id="sidebar-right"><h3>{ top posts }</h3><ul class="wppp_list"><li><a href="http://saltydroid.info/james-arthur-ray-trial-updates/" title="James Arthur Ray Trial Updates">James Arthur Ray Trial Updates</a></li>
<li><a href="http://saltydroid.info/the-internet-marketing-syndicate/" title="The Internet Marketing Syndicate">The Internet Marketing Syndicate</a></li>
<li><a href="http://saltydroid.info/syndicate-shit-storm/" title="Syndicate Shit Storm">Syndicate Shit Storm</a></li>
<li><a href="http://saltydroid.info/stompernet-shit-storm/" title="StomperNet Shit Storm">StomperNet Shit Storm</a></li>
<li><a href="http://saltydroid.info/ryan-deiss-perpetual-traffic-accident/" title="Ryan Deiss :: Perpetual Traffic Accident">Ryan Deiss :: Perpetual Traffic Accident</a></li>
<li><a href="http://saltydroid.info/tony-robbins-and-the-syndicate/" title="Tony Robbins and The Syndicate">Tony Robbins and The Syndicate</a></li>
<li><a href="http://saltydroid.info/hello-james-arthur-ray/" title="Hello James Arthur Ray">Hello James Arthur Ray</a></li>
<li><a href="http://saltydroid.info/frank-kern-list-contol-bonus/" title="Frank Kern List Control Bonus">Frank Kern List Control Bonus</a></li>
<li><a href="http://saltydroid.info/secret-millionaire-secrets-revealed/" title="Secret Millionaire Secrets Revealed">Secret Millionaire Secrets Revealed</a></li>
<li><a href="http://saltydroid.info/rated-g-reports/perry-belcher/" title="Perry Belcher">Perry Belcher</a></li>
<li><a href="http://saltydroid.info/dan-kennedy-presents-russell-brunson/" title="Dan Kennedy Presents Russell Brunson">Dan Kennedy Presents Russell Brunson</a></li>
<li><a href="http://saltydroid.info/frank-kern-call-me/" title="Frank Kern :: Call me!">Frank Kern :: Call me!</a></li>
<li><a href="http://saltydroid.info/frank-kern-underachieving/" title="Frank Kern Underachieving">Frank Kern Underachieving</a></li>
<li><a href="http://saltydroid.info/maria-andros-she-is-god-maybe/" title="Maria Andros: She is God {maybe}">Maria Andros: She is God {maybe}</a></li>
<li><a href="http://saltydroid.info/vacationing-with-mike-filsaime/" title="Vacationing with Mike Filsaime">Vacationing with Mike Filsaime</a></li>
</ul></div></div><div id="sidebar-bottom"><h3>{ commentators }</h3><div id="get_recent_comments_wrap"><ul><li><b><a href="http://saltydroid.info/the-malinchak-reaction/" title="The Malinchak Reaction was posted on March 31, 2011">The Malinchak Reaction </a> { <a href="http://saltydroid.info/the-malinchak-reaction/#" title="There are 65 comments to this posting">65</a> }</b><ul><li>~ <a href="http://saltydroid.info/the-malinchak-reaction/#comment-58437" title="The Malinchak Reaction , March 31, 2011">Robert Paisola</a>: @SD, This is Robert Paisola and I am the CEO of Western Capital Multimedia. Thanks so much for showing the public what...</li>
<li>~ <a href="http://saltydroid.info/the-malinchak-reaction/#comment-58431" title="The Malinchak Reaction , March 31, 2011">Fascinated</a>: @Injun Samurai, Thanks! I will be busy checking out those resources. Your insight and expertise is appreciated.</li>
<li>~ <a href="http://saltydroid.info/the-malinchak-reaction/#comment-58419" title="The Malinchak Reaction , March 31, 2011">Words Spread</a>: Another blogger with a backbone: http://www.warriorforumsucks.c om/2011/03/james-malinchak-emp ty-head-empty-house.html</li>
<li>~ <a href="http://saltydroid.info/the-malinchak-reaction/#comment-58408" title="The Malinchak Reaction , March 31, 2011">Injun Samurai</a>: @Fascinated, Thanks Fascinated, that’s nice of you to say… My background is actually in legislative law, so...</li>
<li>~ <a href="http://saltydroid.info/the-malinchak-reaction/#comment-58407" title="The Malinchak Reaction , March 31, 2011">Phil</a>: @Fake Non-Droid, Don’t confuse a shark with a bottom-feeding catfish wearing a rented shark costume.</li>
</ul></li>
<li><b><a href="http://saltydroid.info/james-arthur-ray-trial-updates/" title="James Arthur Ray Trial Updates was posted on March 25, 2011">James Arthur Ray Trial Updates</a> { <a href="http://saltydroid.info/the-malinchak-reaction/#" title="There are 708 comments to this posting">708</a> }</b><ul><li>~ <a href="http://saltydroid.info/james-arthur-ray-trial-updates/#comment-58433" title="James Arthur Ray Trial Updates, March 25, 2011">Anonymous</a>: @jamo, Agreed. I missed the “God” quote, but I did see Kelly bringing up Fawn’s past, which I feel was...</li>
<li>~ <a href="http://saltydroid.info/james-arthur-ray-trial-updates/#comment-58432" title="James Arthur Ray Trial Updates, March 25, 2011">wondering why</a>: @Yavapai Local, More power to Ms. Sheila Polk! I am glad she is personally prosecuting Mr. Ray..Ray’s defense team...</li>
<li>~ <a href="http://saltydroid.info/james-arthur-ray-trial-updates/#comment-58430" title="James Arthur Ray Trial Updates, March 25, 2011">wondering why</a>: @katiecoolady, I belive that Angel Valley charged MORE when Ray’s had his seminars..It was at least $2,000+ per...</li>
<li>~ <a href="http://saltydroid.info/james-arthur-ray-trial-updates/#comment-58428" title="James Arthur Ray Trial Updates, March 25, 2011">White Rabbit</a>: @KansasGirl, “In a lot of parts of Northern Arizona, having an education is the “exception” and not the...</li>
<li>~ <a href="http://saltydroid.info/james-arthur-ray-trial-updates/#comment-58425" title="James Arthur Ray Trial Updates, March 25, 2011">Yavapai Local</a>: Happy to share. I can’t watch it live and I can’t go personally, so I really appreciate all the info you...</li>
</ul></li>
<li><b><a href="http://saltydroid.info/shuttering-david-schirmer/" title="Shuttering David Schirmer was posted on June 24, 2010">Shuttering David Schirmer</a> { <a href="http://saltydroid.info/the-malinchak-reaction/#" title="There are 197 comments to this posting">197</a> }</b><ul><li>~ <a href="http://saltydroid.info/shuttering-david-schirmer/#comment-58427" title="Shuttering David Schirmer, June 24, 2010">sickened</a>: @Robert, He’s a narcissistic fool</li>
</ul></li>
<li><b><a href="http://saltydroid.info/secret-millionaire-secrets-revealed/" title="Secret Millionaire Secrets Revealed was posted on March 21, 2011">Secret Millionaire Secrets Revealed</a> { <a href="http://saltydroid.info/the-malinchak-reaction/#" title="There are 270 comments to this posting">270</a> }</b><ul><li>~ <a href="http://saltydroid.info/secret-millionaire-secrets-revealed/#comment-58410" title="Secret Millionaire Secrets Revealed, March 21, 2011">Injun Samurai</a>: @LOLlerskater, It’s kind of more personal then I feel like sharing right now… But I will say, I can totally...</li>
<li>~ <a href="http://saltydroid.info/secret-millionaire-secrets-revealed/#comment-58385" title="Secret Millionaire Secrets Revealed, March 21, 2011">LOLlerskater</a>: @Injun Samurai, Oooooh, you’ve got me SUPER intrigued about this “story to share.” Maybe if it were to...</li>
<li>~ <a href="http://saltydroid.info/secret-millionaire-secrets-revealed/#comment-58378" title="Secret Millionaire Secrets Revealed, March 21, 2011">Injun Samurai</a>: @LOLlerskater, Damn. Thanks for sharing that… It fills a lot of important blanks for me… In fact, I have a...</li>
<li>~ <a href="http://saltydroid.info/secret-millionaire-secrets-revealed/#comment-58363" title="Secret Millionaire Secrets Revealed, March 21, 2011">LOLlerskater</a>: @Injun Samurai, Thanks for asking. It looks like something weird happened with my comment. I was pointing out a video...</li>
</ul></li>
</ul></div><h3>{ topical tweeting }</h3><div class="tt-preamble">tweet tweetly tweeting</div><ol class="tweets"><li class="StechDoes"> <div class="avatar"><a href="http://twitter.com/StechDoes" target="_blank"><img alt="StechDoes ✓" src="http://api.twitter.com/1/users/profile_image/StechDoes" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/StechDoes" target="_blank">StechDoes ✓</a>:</span> <span class="msgtxt">James Ray Trial Tweets for 2011-04-02: Ms. Foster was "devastated" by what she'd just witnessed. # <b>JamesRay</b> ... <a href="http://bit.ly/eklEE1">http://bit.ly/eklEE1</a></span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/StechDoes/statuses/54079588812337152" target="_blank">about 58 minutes ago</a> </div><div class="clearleft"></div></li>
<li class="TheFakeTrucDo"> <div class="avatar"><a href="http://twitter.com/TheFakeTrucDo" target="_blank"><img alt="The REAL Fake TrucDo" src="http://api.twitter.com/1/users/profile_image/TheFakeTrucDo" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/TheFakeTrucDo" target="_blank">The REAL Fake TrucDo</a>:</span> <span class="msgtxt"><a href="http://twitter.com/FakeTomKelly">@FakeTomKelly</a> hiccup... i flipped over the trip chart! Did i leave my red marker in your room? <a href="http://search.twitter.com/search?q=%23jamesray">#<b>jamesray</b></a></span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/TheFakeTrucDo/statuses/54050537733226496" target="_blank">about 2 hours ago</a> </div><div class="clearleft"></div></li>
<li class="TheFakeTrucDo"> <div class="avatar"><a href="http://twitter.com/TheFakeTrucDo" target="_blank"><img alt="The REAL Fake TrucDo" src="http://api.twitter.com/1/users/profile_image/TheFakeTrucDo" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/TheFakeTrucDo" target="_blank">The REAL Fake TrucDo</a>:</span> <span class="msgtxt"><a href="http://twitter.com/FakeTomKelly">@FakeTomKelly</a> left the maid service door hanger out for you. She's a hottie. I did her last night. You can have her tomorrow. <a href="http://search.twitter.com/search?q=%23jamesray">#<b>jamesray</b></a></span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/TheFakeTrucDo/statuses/54041923505229824" target="_blank">about 3 hours ago</a> </div><div class="clearleft"></div></li>
<li class="FakeTomKelly"> <div class="avatar"><a href="http://twitter.com/FakeTomKelly" target="_blank"><img alt="Fake Tom Kelly" src="http://api.twitter.com/1/users/profile_image/FakeTomKelly" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/FakeTomKelly" target="_blank">Fake Tom Kelly</a>:</span> <span class="msgtxt">Did you lock the door behind you? RT <a href="http://twitter.com/TheFakeTrucDo">@TheFakeTrucDo</a>: hate it when i drink too much wine and I have to stumble home alone <a href="http://search.twitter.com/search?q=%23jamesray">#<b>jamesray</b></a></span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/FakeTomKelly/statuses/54027187942195200" target="_blank">about 4 hours ago</a> </div><div class="clearleft"></div></li>
<li class="TheFakeTrucDo"> <div class="avatar"><a href="http://twitter.com/TheFakeTrucDo" target="_blank"><img alt="The REAL Fake TrucDo" src="http://api.twitter.com/1/users/profile_image/TheFakeTrucDo" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/TheFakeTrucDo" target="_blank">The REAL Fake TrucDo</a>:</span> <span class="msgtxt">Snagged my nylons on a prickly pear cacti. hate it when i drink too much wine w/ <a href="http://twitter.com/FakeTomKelly">@FakeTomKelly</a> and I have to stumble home alone <a href="http://search.twitter.com/search?q=%23jamesray">#<b>jamesray</b></a></span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/TheFakeTrucDo/statuses/54026609128251392" target="_blank">about 4 hours ago</a> </div><div class="clearleft"></div></li>
<li class="loveandfriction"> <div class="avatar"><a href="http://twitter.com/loveandfriction" target="_blank"><img alt="Helen Kuveke" src="http://api.twitter.com/1/users/profile_image/loveandfriction" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/loveandfriction" target="_blank">Helen Kuveke</a>:</span> <span class="msgtxt">RT <a href="http://twitter.com/waytooindian">@waytooindian</a>: Watch Fawn Foster relate her version of the redneck sweatlodge <a href="http://is.gd/Ft6aMC">http://is.gd/Ft6aMC</a> <a href="http://search.twitter.com/search?q=%23JamesRay">#<b>JamesRay</b></a> <a href="http://search.twitter.com/search?q=%23NDNZ">#NDNZ</a> streaming live - You won't believe this 1</span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/loveandfriction/statuses/54026151324172288" target="_blank">about 4 hours ago</a> </div><div class="clearleft"></div></li>
<li class="realtucsonn8tiv"> <div class="avatar"><a href="http://twitter.com/realtucsonn8tiv" target="_blank"><img alt="Maya G" src="http://api.twitter.com/1/users/profile_image/realtucsonn8tiv" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/realtucsonn8tiv" target="_blank">Maya G</a>:</span> <span class="msgtxt">RT <a href="http://twitter.com/Megawitch">@Megawitch</a>: RT <a href="http://twitter.com/smartassNDN">@smartassNDN</a>: So how does this one know she's Indian? Did she channel the info or did the space aliens tell her directly? <a href="http://search.twitter.com/search?q=%23JamesRay">#<b>JamesRay</b></a> <a href="http://search.twitter.com/search?q=%23NDNZ">#NDNZ</a></span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/realtucsonn8tiv/statuses/53995428672315392" target="_blank">about 6 hours ago</a> </div><div class="clearleft"></div></li>
<li class="greenthoughtbox"> <div class="avatar"><a href="http://twitter.com/greenthoughtbox" target="_blank"><img alt="Theresa Marinez" src="http://api.twitter.com/1/users/profile_image/greenthoughtbox" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/greenthoughtbox" target="_blank">Theresa Marinez</a>:</span> <span class="msgtxt">RT <a href="http://twitter.com/swskeptic">@swskeptic</a>: Fake Gurus & False Profits: Who are We Listening To? <a href="http://is.gd/4KooEW">http://is.gd/4KooEW</a> <a href="http://search.twitter.com/search?q=%23JamesRay">#<b>JamesRay</b></a> <a href="http://search.twitter.com/search?q=%23NativeAmerican">#NativeAmerican</a> <a href="http://search.twitter.com/search?q=%23NDNZ">#NDNZ</a> <a href="http://search.twitter.com/search?q=%23indigenous">#indigenous</a> <a href="http://search.twitter.com/search?q=%23skeptic">#skeptic</a> <a href="http://search.twitter.com/search?q=%23cults">#cults</a> <a href="http://search.twitter.com/search?q=%23pagan">#pagan</a></span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/greenthoughtbox/statuses/53994377583923200" target="_blank">about 6 hours ago</a> </div><div class="clearleft"></div></li>
<li class="greenthoughtbox"> <div class="avatar"><a href="http://twitter.com/greenthoughtbox" target="_blank"><img alt="Theresa Marinez" src="http://api.twitter.com/1/users/profile_image/greenthoughtbox" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/greenthoughtbox" target="_blank">Theresa Marinez</a>:</span> <span class="msgtxt">RT <a href="http://twitter.com/twinkiewrangler">@twinkiewrangler</a>: <a href="http://search.twitter.com/search?q=%23Blogger">#Blogger</a> takes aim at both <a href="http://search.twitter.com/search?q=%23JamesRay">#<b>JamesRay</b></a> & <a href="http://search.twitter.com/search?q=%23KieshaCrowther">#KieshaCrowther</a> <a href="http://is.gd/4KooEW">http://is.gd/4KooEW</a> <a href="http://search.twitter.com/search?q=%23NativeAmerican">#NativeAmerican</a> <a href="http://search.twitter.com/search?q=%23NDNZ">#NDNZ</a> <a href="http://search.twitter.com/search?q=%23pagan">#pagan</a> <a href="http://search.twitter.com/search?q=%23spirituality">#spirituality</a> <a href="http://search.twitter.com/search?q=%232012">#2012</a> <a href="http://search.twitter.com/search?q=%23indigenous">#indigenous</a></span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/greenthoughtbox/statuses/53994364833251328" target="_blank">about 6 hours ago</a> </div><div class="clearleft"></div></li>
<li class="CassandraYorgey"> <div class="avatar"><a href="http://twitter.com/CassandraYorgey" target="_blank"><img alt="Cassandra Yorgey" src="http://api.twitter.com/1/users/profile_image/CassandraYorgey" /></a> </div><div class="msg"><span class="twit"><a href="http://twitter.com/CassandraYorgey" target="_blank">Cassandra Yorgey</a>:</span> <span class="msgtxt">I didn't watch the <a href="http://search.twitter.com/search?q=%23jamesRay">#<b>jamesRay</b></a> trial today because I would've just screamed "APRIL FOOLS!" a lot, but I love your tweets y'all!</span> </div><div class="info"><a alt="" class="tweet-link" href="http://twitter.com/CassandraYorgey/statuses/53988692464902144" target="_blank">about 6 hours ago</a> </div><div class="clearleft"></div></li>
</ol></div></div></div><div class="clearfloat" id="front-popular"><div class="clearfloat" id="recentpost"><h3>{ ball-o-tags }</h3></div><div class="clearfloat" id="mostcommented"><h3>{ dubious villains }</h3><ul class="xoxo blogroll"><li><a href="http://saltydroid.info/emailing-with-the-enemy/">Andy Jenkins</a></li>
<li><a href="http://saltydroid.info/silencing-of-the-lambs/">Bill Harris</a></li>
<li><a href="http://saltydroid.info/stompernet-shit-storm/">Brad Fallon</a></li>
<li><a href="http://saltydroid.info/the-devil-predicts/">David Schirmer</a></li>
<li><a href="http://saltydroid.info/frank-kern-list-contol-bonus/">Frank Kern</a></li>
<li><a href="http://saltydroid.info/not-doctor-kilstein-terrible-person/">Harlan Kilstein</a></li>
<li><a href="http://saltydroid.info/hello-james-arthur-ray/">James Arthur Ray</a></li>
<li><a href="http://saltydroid.info/secret-millionaire-secrets-revealed/">James Malinchak</a></li>
<li><a href="http://saltydroid.info/category/jeremy-johnson/" title="Lies :: Chargebacks :: and Boiler Rooms … oh my!">Jeremy Johnson</a></li>
<li><a href="http://saltydroid.info/pretty-in-petty/">Maria Andros</a></li>
<li><a href="http://saltydroid.info/mark-shurtleff-attorney-general-of-mlm/" title="Would you like to purchase an Attorney General?">Mark Shurtleff</a></li>
<li><a href="http://saltydroid.info/matt-and-his-mommy/">Matt Bacak</a></li>
<li><a href="http://saltydroid.info/vacationing-with-mike-filsaime/">Mike Filsaime</a></li>
<li><a href="http://saltydroid.info/tony-robbins-and-the-syndicate/">Mike Koenigs</a></li>
<li><a href="http://saltydroid.info/rated-g-reports/perry-belcher/">Perry Belcher</a></li>
<li><a href="http://saltydroid.info/russell-brunson-rocks-the-kasbah/" target="_blank">Russell Brunson</a></li>
<li><a href="http://saltydroid.info/ryan-deiss-perpetual-traffic-accident/">Ryan Deiss</a></li>
<li><a href="http://saltydroid.info/tony-robbins-and-the-syndicate/">Tony Robbins</a></li>
</ul></div><div class="clearfloat" id="recent_comments"><h3>{ people polls }</h3><div class="wp-polls" id="polls-6"><form action="/the-malinchak-reaction/" class="wp-polls-form" id="polls_form_6" method="post"><div style="display: none;"><input name="poll_id" type="hidden" value="6" /></div><div style="text-align: center;"><b>Will Death Ray be convicted of reckless manslaughter?</b></div><div class="wp-polls-ans" id="polls-6-ans"><ul class="wp-polls-ul"><li><input id="poll-answer-23" name="poll_6" type="radio" value="23" /> <label for="poll-answer-23">Yes</label></li>
<li><input id="poll-answer-24" name="poll_6" type="radio" value="24" /> <label for="poll-answer-24">No</label></li>
<li><input id="poll-answer-25" name="poll_6" type="radio" value="25" /> <label for="poll-answer-25">{ insert joke }</label></li>
</ul><div style="text-align: center;"><input class="Buttons" name="vote" type="button" value=" Vote " /></div><div style="text-align: center;"><a href="http://saltydroid.info/the-malinchak-reaction/#ViewPollResults" title="View Results Of This Poll">View Results</a></div><ul class="xoxo blogroll"><li><a href="http://saltydroid.info/emailing-with-the-enemy/">Andy Jenkins</a></li>
<li><a href="http://saltydroid.info/silencing-of-the-lambs/">Bill Harris</a></li>
<li><a href="http://saltydroid.info/stompernet-shit-storm/">Brad Fallon</a></li>
<li><a href="http://saltydroid.info/the-devil-predicts/">David Schirmer</a></li>
<li><a href="http://saltydroid.info/frank-kern-list-contol-bonus/">Frank Kern</a></li>
<li><a href="http://saltydroid.info/not-doctor-kilstein-terrible-person/">Harlan Kilstein</a></li>
<li><a href="http://saltydroid.info/hello-james-arthur-ray/">James Arthur Ray</a></li>
<li><a href="http://saltydroid.info/secret-millionaire-secrets-revealed/">James Malinchak</a></li>
<li><a href="http://saltydroid.info/category/jeremy-johnson/" title="Lies :: Chargebacks :: and Boiler Rooms … oh my!">Jeremy Johnson</a></li>
<li><a href="http://saltydroid.info/pretty-in-petty/">Maria Andros</a></li>
<li><a href="http://saltydroid.info/mark-shurtleff-attorney-general-of-mlm/" title="Would you like to purchase an Attorney General?">Mark Shurtleff</a></li>
<li><a href="http://saltydroid.info/matt-and-his-mommy/">Matt Bacak</a></li>
<li><a href="http://saltydroid.info/vacationing-with-mike-filsaime/">Mike Filsaime</a></li>
<li><a href="http://saltydroid.info/tony-robbins-and-the-syndicate/">Mike Koenigs</a></li>
<li><a href="http://saltydroid.info/rated-g-reports/perry-belcher/">Perry Belcher</a></li>
<li><a href="http://saltydroid.info/russell-brunson-rocks-the-kasbah/" target="_blank">Russell Brunson</a></li>
<li><a href="http://saltydroid.info/ryan-deiss-perpetual-traffic-accident/">Ryan Deiss</a></li>
<li><a href="http://saltydroid.info/tony-robbins-and-the-syndicate/">Tony Robbins</a></li>
</ul><div style="text-align: center;">This is the text of the full letter from Lavely and Singer...<br />
You would think these guys would have got it because of how we bodyslammed their precious lawfirm in the past, Here we go again! God Help Them Robert Paisola<br />
<br />
03/22/2011 09:38 FAX 310 556 3615<br />
JOHN H. LAVE;LVt Jrt.<br />
MARTlN D. GINGI!U~<br />
BRIAN G. WOLF<br />
L.YNDA 8. GOLDMAN<br />
MICHAEl.. D. HOLTZ<br />
WU",LIAM J. Et:RII;;t;;$, II<br />
~AUL, N. ~QRR~I..L.<br />
MICHA~I.. i:. wii:INl;iiti:N<br />
LAVELY & SINGER<br />
LAVELY & SINGER<br />
PROFE6610NAl. CORPORATION<br />
ATtORNEYS AT LAW<br />
SUITE :3400<br />
2Q49 Ciii;NTURY PARK EAST<br />
J...Q!ii AN~QL.~5. CAL.IFORNIA 90067-i2,90Ei<br />
TELEPHONE (:!t t 0) 556.3501<br />
TE;I..,e:c;OPI~R (:j 1 0) !j!i~-;;r.iIj15<br />
www.LAVELYSINGER.coIII<br />
March 21,2011<br />
CONFIDENTIAL LEGAL NOTICE<br />
PUBLICATION OR DISSEMINA'rlON Is PROIDBITED<br />
VIA FAX: (757) 431-2050<br />
VIA EMAIL;orders@antion.com<br />
Mr. Tom Antion<br />
ANTION & ASSOCIATES<br />
Box 9558<br />
Virginia Beach, V A 23450<br />
Re: James Malinchak I Tom Antion, et al.<br />
Our File No.: 5006·2<br />
Dear Mr. Antion:<br />
I1Il 002<br />
I!:VAr.I N. 5f1jEG-=:.L<br />
TODD GTANF'Ohb E:AGlA,ttI<br />
HENRY L SEL.~, III<br />
MATTHEW E. PA,NAGIOTI$<br />
JESSICA G. BABRICK<br />
ANDREWS. BRBTTLER<br />
ALl,i50N s. tiART<br />
KEVIN JAMI:!~<br />
OF COUNS!:L"<br />
We are litigation counsel to James Malinchak and are writing regarding your wide-spread<br />
dissemination of outlandish defamatory lies about our client. We demand that you irmnediately<br />
cease and desist from disseminating false and defamatory Statements about Mr. Malinchak,<br />
including your blatant lies to the effect that my client is a "money stealing" "scammer" and an<br />
"nnethical" "con man" Who is "robbing people," has engaged in "frand," has "ripped off a<br />
children's charity," and has supposedly even been clinically diagnosed by a psychiatrist and<br />
psychologist as a "sociopath" (the "Statements"). IIi essence, you have been falsely portraying<br />
my client as an unethical and mentally-unbalanced thief in false Statements you have spread via<br />
tens of thousands of emails and in other communications, as well as infonning third parties that<br />
your Statements will continue be spread across the internet (a thinly-veiled threat to use your<br />
expertise in that regard to smear my client), and that you even plan to peddle your lies to the<br />
tabloids. All of this demonstrates your malicious intention to harm my client's reputation by<br />
spreading outrageous demonstrable lies. Your conduct exposes you to very substantial liability<br />
for defamation, false light invasion of privacy, tonious interference with contract, and interference<br />
with prospective economic advantage, among other claims. Moreover, if you continue to engage<br />
in this course of wrongful conduct, doing so will exacerbate that liability exponentially, potentially<br />
exposing you to liability for compensatory and punitive damages of tens of millions of dollars.<br />
Your offensive and harmful false Statements include referring to my client as an<br />
"unethical" "money stealing" "scammer" who provides "No value:: no service :: no refunds<br />
:: no nothing" to his customers_ Those lies are pointedly calculated to harm my client's<br />
reputation. They are also transparently calculated to exploit my client's recent notoriety arising<br />
from his appearance on ABC's "Secret Millionaire" and to use that appearance as a catalyst to<br />
spread your lies about Mr. Malinchak. The fact that you have been spreading lies about my client<br />
not only via internet posts and verbal communications, but also in emails disseminated to tens of<br />
03/22/2011 09:39 FAX 310 556 3615<br />
Mr. Tom Antion<br />
Antion & Associates<br />
LAVELY & SINGER<br />
Re: James Malinchak / Tom Antion<br />
March 21,2011<br />
Page 2<br />
I1Il 003<br />
thousands of individuals - all notably targeting those who would most likely be aware of and<br />
interested in his professional services and seminars provides ample evidence of your<br />
wrongdoing. While we already have evidence in hand proving your wrongful conduct, we hereby<br />
put you on notice of your obligation to maintain any and all communications in your possession,<br />
custody and/or control regarding my client for evidentiary purposes, as set forth herein.<br />
In addition to your recent spate of defamatory emails and Statements about my client, you<br />
previously defamed him in public at a conference several months ago when you instigated a<br />
confrontation where you falsely accused him of being a "con man" and a "fraud" in the presence<br />
of multiple witnesses. Although at the time my client declined to take formal action against you,<br />
you appear to have misconstrued the absence of a legal demand as a license to escalate your<br />
dissemination of malicious lies about Mr. Malinchak. Since then, you have intensified your smear<br />
campaign. We are aware, for example, that you have been inducing your cohorts to post<br />
defamatory Statements about my client and his products and services on the internet (for example,<br />
on YouTube), thereby making good on your threats. Meanwhile, by doing so you have exposed<br />
the individuals acting in concert with you to substantialliabiHty as well.<br />
To the extent that you attempt to claim that in your emails peppered with defamatory<br />
statements you might have paraphrased or lifted from other sources and that you are therefore not<br />
responsible for stating that Mr. Malinchak is a "money stealing" "sociopath," etc., any such<br />
argument would fail as a legal defense to defamation claims, since you will be deemed to have<br />
adopted those defamatory statements as your own. See, e.g., Khawar v. Globe lnt'l, Inc., 19<br />
CaI.4th 254, 79 CaI.Rptr .2d 178 (1998) ("one who republishes a defamatory statement is deemed<br />
thereby to have adopted it and so may be held liable, together with the person who originated the<br />
statement, for resulting injury to the reputation of the defamation victim"); see also, Jackson v.<br />
Paramount Pictures Corp., 68 CaI.App.4th 10, 80 CaI.Rptr. 2d 1, 27 (1998) ("when a party<br />
repeats a slanderous charge, he is equally guilty of defamation, even though he states the source<br />
of the charge and indicates that he is merely repeating a rumor"); Smolla, Law of Defamation (2nd<br />
Ed. 2004) Vol. 1, §4:91 (secondary publisher, or republisher, may be liable for defamatory<br />
publication). Be advised that "[r]epetition of another's words does not release one of<br />
responsibility if the repeater knows that the words are false or inherently improbable, or there are<br />
obvious reasons to doubt the veracity of the person quoted or the accuracy of his reports .... "<br />
Goldwater v. Ginzburg, 414 F.2d 324,337 (C.A.N.Y. 1969). That is the case here.<br />
Of course, even if there were any merit to an argument that you ought not be responsible<br />
for repeating lies in your emails, your verbal statements to third party witnesses were direct and<br />
unquestionably expose you to substantialliabiHty for slander. For example, in addition to calling<br />
my client a "fraud" and a "con man," you have told third parties that he "ripped off" a<br />
children's charity, and even said that my client has supposedly been clinically diagnosed as a<br />
"sociopath" by multiple physicians! Such lies are defamatory on their face.<br />
03/22/2011 09:40 FAX 310 556 3615<br />
Mr. Tom Antion<br />
Antion & Associates<br />
LAVELY & SINGER<br />
Re: .James Malincbak I Tom Antion<br />
March 21,2011<br />
Page 3<br />
I1Il 004<br />
Your false Statements to the effect that my client is a "scammer" expose you substantial<br />
liability. See, Kolegas v. Beftel Broadcasting Corp., 154 m.2d 1, 607 N.E.2d 201 (IlL 1992)<br />
(statements about plaintiff" scamming" not entitled to constirutional protection and can reasonably<br />
be construed as asserting false facts that plaintiff was lying). Similarly, your false Statements to<br />
the effect that my client is a thieving "con man" and a "fraud" expose you to substantial liability .<br />
E.g., Condit v. National Enquirer, Inc., 248 F.Supp. 2d 945, 965 (E.D. Cal. 2002) ("statements<br />
which falsely impute the commission of a crime are libelous on their face"). It is defamatory to<br />
falsely state or imply that someone engaged in criminal conduct. Goehring v. wright, 858 F.Supp.<br />
989 (N.D. Cal. 1994) ("A false charge of criminality is defamatory per se"); Fisher v. Larsen,<br />
138 Cal.App.3d 627,640, 188 Cal.Rptr. 216, 226 (1982), cert. denied 104 S.Ct. 390,464 U.S.<br />
959, 78 L.Ed.2d 335 ("There are no First Amendment protections for accusations of criminal<br />
conduct or personal dishonesty").<br />
Additionally, the false portrayal of someone as mentally unsound, unbalanced, or<br />
emotionally volatile is defamatory per se. See, e. g. , Rest. of Torts 2d §559 (imputation of mental<br />
attributes such as insanity are defamatory); Mattox v. News Syndicate Co., 176 F.2d 97,901 (2d<br />
Cir. 1949) cert den. 70 S.Ct. 100 (1949) ("general law" is that "it is libelous per se to say that<br />
a person is insane or of unstable mind"); Goldwater v. Ginzburg, 14 F.2d 324 (2d Cir. 1969)<br />
(affll'llling defamation judgment in favor of presidential candidate falsely accused of insanity or<br />
mental imbalance).<br />
The falsity of your Statements about Mr. Malinchak is belied by the fact that; even now,<br />
you continue to commercially exploit my client's valuable name and likeness by using Mr.<br />
Malinchak's implied endorsement in your promotional materials for Tom Antion & Associates.<br />
If there was any truth to the lies you have been spreading about my client (which there isn't), you<br />
would not deign to continue using his complimentary statements about you in your materials. The<br />
fact that you have the temerity to commercially exploit my client's name and likeness while<br />
simultaneously spewing lies about Mr. Malinchak, thereby undermining the value of his name and<br />
likeness, is shocking.<br />
It is apparent that you are bent on harming my client's reputation and are inexplicably<br />
being motivated to do so by animosities and hostility toward him. Your ongoing pattern of<br />
defaming my client through mean-spirited lies is nevertheless truly puzzling since my client had<br />
shown you nothing but respect, never made negative statements about you, and had considered you<br />
a friend. Even after the you sent him an email in September of 2009 filled with hurtful comments<br />
and specious untruths (all of which my client refuted), my client reached out to you to discuss the<br />
issues you raised. At my client's invitation, the two of you met and spent hours together at my<br />
client's country club and home, and you even enjoyed a game of tennis. Afterwards, my client<br />
thought that whatever had motivated you to send your accusation~laden email had been resolved.<br />
Mr. Malinchak was therefore shocked when, a year later in October 2010, you publicly confronted<br />
him at a seminar where you outrageously slandered him, calling him a "con man" and a "fraud"<br />
in the presence of numerous witnesses.<br />
03/22/2011 09: 40 FAX 310 556 3615<br />
Mr.Tom Antion<br />
Antion & Associates<br />
LAVELY & SINGER<br />
Re: James Malinchak / Tom Antion<br />
March 21, 2011<br />
Page 4<br />
I4i 005<br />
Despite that October incident, my client was still determined to look the other way rather<br />
than asserting legal claims against you at that time. However, it now appears that no good deed<br />
goes unpunished, and that you misinterpreted the fact that you had not yet been sued for defaming<br />
my client as justification to ramp up your defamation campaign.<br />
,<br />
In the event that you do go to the tabloids or other media with your false Statements about<br />
my client as you have threatened, be advised that your legal liability will increase each time your<br />
defamatory lies about my clients are disseminated by the media, since you will be liable for<br />
republication of defamatory statements for wbich you were the source. Smolla, Law of<br />
Defamation (2nd Ed, 2004) Vol. 1, §4:91 ("the originator of the statements is liable for :any<br />
secondary publication that is the natural and probable consequence of bis or her act, even though<br />
the secondary publisher, or republisher, may also be liable"). Furthermore, in the event that you<br />
believe you will be able to spread lies about my client to the media while hiding behind a cloak<br />
of anonymity, be advised that in litigation, the identities of the media's sources may be revealed<br />
during the discovery process. See, e.g" Mitchell v. Sup. Ct., 37 Cal.3d 268,208 Cal. Rptr. 152<br />
(1984); Star Editorial v. U.S. Dist. Ct., 7 F.3d 856, 861 (9th Cir. 1993). As such, your role as<br />
a source for defamatory false stories about my client would be exposed.<br />
Your outrageous and malicious efforts to besmirch my client's reputation are<br />
unconscionable and unacceptable. My client will not tolerate the publication of malicious lies<br />
wbich are so patently false and harmful to bis reputation. If you persist in disseminating false and<br />
defamatory statements about my client, the legal liability to wbich you are already exposed will<br />
be significantly exacerbated. As you know (especially since you are seeking to commercially<br />
exploit them even now), my client's reputation and his brand are extremely valuable, and the lies<br />
you have been spewing about him are obviously intentionally calculated to harm bis reputation and<br />
damage his brand. If that occurs, the fmancial consequences will ultimately be borne by you in<br />
the event that this matter proceeds to litigation. We conservatively believe that, in addition to the<br />
very substantial liability you have already incurred due to your previous dissemination of<br />
defamatory statements about Mr. Malinchak, if you continue your wrongful conduct, my cliellt's<br />
damages will escalate, exposing you to millions of dollars in compensatory and punitive damages.<br />
We demand that you inmlediately cease and desist from making any further false and<br />
defamatory statements about my client to any person or entity, including in verbal statements, in<br />
emails, on your own internet websites and blogs, your Facebook page, or otherwise. We also<br />
demand that you inmlediately retract any and all false statements you previously communicated<br />
to third parties about Mr. Malinchak and his services.<br />
In addition, we demand that you cease and desist from exploiting or using my client's name<br />
and/or likeness in any manner whatsoever, including to state or imply any endorsement of you<br />
and/or your products and services. To the extent that you contend that any such uses by you have<br />
previously been authorized by my client, any such purported authorization was vitiated by your<br />
malicious conduct and is no longer valid. Be advised that your unauthorized commercial<br />
03/22/2011 09: 41 FAX 310 556 3615<br />
Mr.Tom Antion<br />
Antion & Associates<br />
LAVELY & SINGER<br />
Re: James Malinchak I Tom Antion<br />
March 21,2011<br />
PageS<br />
141 006<br />
exploitation of my client's valuable name and likeness exposes you to additional liability for<br />
common law and statutory violation of my client's publicity rights.<br />
So that the following materials will be available for evidentiary purposes if necessary in<br />
litigation, we also demand that you undertake immediate steps to preserve all documents and<br />
records (including electronic data such as emails and text messages) in the possession, custody or<br />
control of you andlor your agents, representatives and employees, pertaining to the Statements and<br />
all communications regarding Mr. Malinchak and/or his services, including without limitation all<br />
emailssentandreceived,drafts, correspondence, and communications of any kind. This<br />
preservation demand is also applicable to all communications evidencing your efforts to publicize,<br />
disseminate andlor otherwise exploit the Statements or any portions thereof (Le., your<br />
communications to third parties regarding the Statements). Be advised that your failure to ensure<br />
that all such materials are appropriately preserved may give rise to additional claims for spoliation<br />
of evidence.<br />
We cannot overemphasize the seriousness of this matter. If you disregard the foregoing<br />
demands, you do so at your peril.<br />
This does not constitute a complete or exhaustive statement of all of my client's rights or<br />
claims. Nothing contained herein is intended as, nor should it be deemed to constitute, a waiver<br />
or relinquishment of any of our client's rights or remedies, whether legal or equitable, all of whiCh<br />
are hereby expressly reserved. This letter is a confidential legal communication and is not for<br />
dissemination or publication.' '<br />
LBG:lg<br />
cc: Mr. James Malinchak (via email)<br />
Mr. Davy Tyburski (via email)<br />
Mattin D. Singer, Esq.<br />
5006·2\LBG·Antion 032111 <br />
<br />
</div></div></form></div><div class="wp-polls-loading" id="polls-6-loading"><img alt="Loading ..." class="wp-polls-image" height="16" src="http://saltydroid.info/wp-content/plugins/wp-polls/images/loading.gif" title="Loading ..." width="16" /> Loading ...</div></div></div>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-37032330903116231522009-06-07T21:07:00.003-06:002009-06-07T21:16:15.911-06:00The United States v WHITNEY INFORMATION NETWORK, INC Class Action, by Thomas Anderson ReutersPage 1 of 112<br />UNITED STATES DISTRICT COURT<br />MIDDLE DISTRICT OF FLORIDA<br />FT. MYERS DIVISION<br />RODNEY DURHAM and ARNOLD<br />FRIEDMAN, Individually And<br />On Behalf of All Others Similarly Situated,<br />Plaintiffs<br />vs<br />WHITNEY INFORMATION NETWORK, INC.,<br />RUSSELL A. WHITNEY, RONALD S. SIMON,<br />ALFRED R. NOVAS, JOHN F. KANE,<br />NICHOLAS S. MATURO, RANCE MASHECK<br />and EHRHART KEEFE STEINER &<br />HOTTMAN PC,<br />Defendants.<br />Case No. 2:06-cv-687-FtM-34DNF<br />CONSOLIDATED AMENDED<br />CLASS ACTION COMPLAINT<br />FOR VIOLATIONS OF<br />FEDERAL SECURITIES LAWS<br />JURY TRIAL DEMANDED<br />BASIS OF ALLEGATIONS<br />Plaintiff has alleged the following - except as to allegations specifically pertaining to<br />Plaintiff and Plaintiff's counsel - based upon the investigation of Plaintiff's counsel, which<br />investigation included review and analysis of publicly available SEC filings, regulatory filings<br />and reports, securities analysts' reports and advisories, press releases and other public statements<br />and media reports, as well as other discussions with both public and confidential witnesses.<br />Plaintiff believes that substantial additional evidentiary support will exist for the allegations set<br />forth herein after a reasonable opportunity for discovery.<br />Page 2<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 2 of 112<br />NATURE OF THE ACTION<br />1.<br />This is a federal class action on behalf of purchasers of the common stock of<br />Whitney Information Network, Inc. (`Whitney" or the "Company") between August 11, 2005<br />and December 15, 2006, inclusive (the "Class Period"), seeking to pursue remedies under the<br />Securities Exchange Act of 1934 (the "Exchange Act"). As alleged herein, Defendants published<br />a series of materially false and misleading statements which Defendants knew and/or recklessly<br />disregarded were materially false and misleading at the time of such publication, and which<br />omitted to reveal material information necessary to make Defendants' statements, in light of<br />such material omissions, not materially false and misleading. As a result of Defendants' scheme<br />and course of conduct, Plaintiff and the members of the Class, who purchased Whitney common<br />stock at artificially-inflated prices, were damaged when the stock price plummeted as the true,<br />concealed facts were ultimately revealed to the market.<br />OVERVIEW OF THE ACTION<br />Company's Purported Profile and Mission<br />2.<br />According to its website at http://www.wincorporate.com/profile.htm, Whitney<br />defines its Corporate Profile, in part, as follows:<br />COMPANY PROFILE<br />Whitney Information Network, Inc. provides post-secondary education and<br />training courses in the United States, Canada, and the United Kingdom. Its<br />courses provide instruction in real estate investing, business strategies, stock<br />market investment techniques, cash management, asset protection, and other<br />financially-oriented subjects. The company also develops and sells educational<br />resource materials, as well as offers various software products for the real estate,<br />small business, and the stock trading industries. Whitney Information Network<br />was founded in 1992. It was formerly known as WIN Systems International, Inc.<br />and changed its name to Whitney Information Network, Inc. in 1999. The<br />company is headquartered in Cape Coral, Florida.<br />2<br />Page 3<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 3 of 112<br />3.<br />On its Internet site, http://www.wincorporate.com/default.htm, the Company<br />defines its "Mission," as follows:<br />OUR MISSION<br />It is our mission to educate people on how to create wealth. We supply a growing<br />line of products, training, and services in the areas of real estate investing,<br />business development, financial investment, and asset protection - both nationally<br />and internationally. We accomplish this by using cutting-edge teaching methods<br />delivered through the most powerful distribution channels available. Through live<br />classroom instruction, mentoring, personal phone coaching, online and on<br />demand training, advising, and state-of-the-art software, we are able to help<br />people reach theirfinancial goals. Our students come to us seeking ways to gain<br />financial independence and our instructors teach them solid fundamentals,<br />combined with proven methods and applications.<br />(Emphasis added.)<br />Russ Whitney: A "Rats to Riches" Tale<br />4.<br />One of the multitude of Internet web-sites associated with or owned by the<br />Company, called Russ Whitney' s Building Wealth, http://www.russwhitney.com/advanced-<br />training.aspx, purports to provide a biography of Russ Whitney, including his purported "rags to<br />riches" story, as follows:<br />Russ Whitney, Millionaire, best-selling author and CEO of Whitney Information<br />Network, Inc. is a hard-driving, intense achiever and leader who never slows his<br />tireless pace.<br />From running a multi-million dollar educational company to spending time with<br />his family, Russ Whitney is the picture and embodiment of success of the<br />American Dream. But it wasn't always like it is now.<br />As a teenager, people who knew Russ Whitney viewed him as nothing more<br />than another high school dropout, street-wise, but headed nowhere. By the<br />age of 20, Russ found himself trying to support his wife and child while employed<br />by the Tobin Meat Packing slaughterhouse in Albany, New York for $5 an hour.<br />Consumed by the desire to give his family a better life, Russ began researching<br />techniques intended to build wealth.<br />"I started answering ads for money-making opportunities. Some of them were<br />3<br />Page 4<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 4 of 112<br />pure junk, some required capital I didn't have and some just didn't suit me. But<br />then I ordered a book that had a couple of ideas that made sense. I finally found<br />something that I could do that didn't require a lot of money to start, and in 3<br />weeks, I made $11,000."<br />Russ realized that wasting this money went against the principles of his new<br />wealth-building strategy. So, he and his family celebrated his initial financial<br />success with a commitment to use that money to make more money. He quickly<br />invested it in another money-making vehicle.<br />A little over a year later, at the age of 22, he had racked up $117,000 in profits.<br />At the age of 25, Russ Whitney decided to move his family to Cape Coral,<br />Florida. In 18 months, with only a thousand borrowed dollars, Whitney<br />streamlined his techniques and amassed a fortune of $4.7 million in real<br />estate.<br />Register Now and Receive a GIFT valued at $195 FREE when You Attend the<br />Training!<br />(Emphasis added.)<br />Promotion of High-End Services<br />5.<br />This website also promoted Russ Whitney and Whitney products and services as<br />very high-end services that would allow people to gain the advanced skills, knowledge and<br />education necessary to have a reasonable chance of succeeding as professional real estate<br />investors and/or stock traders. In fact, Russ Whitney reinforced this fact by holding out his<br />purported best-selling books, as a purported demonstration of the underlying quality of<br />information being conveyed by the Company at in- or out-of-house seminars and classes, camps,<br />Internet training, and/or offered through coaching or mentoring services.<br />6.<br />In fact, because the "value" of the information conveyed in these classes was<br />purportedly so high, prices for full educational packages run into the tens of thousands of<br />4<br />Page 5<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 5 of 112<br />dollars and reach more than $50,000 - the approximate cost of Whitney's Platinum Package.<br />As evidence of the purported value of the information sold by Whitney, the Wealth Builder<br />continues, in part, as follows:<br />Realizing the tremendous need for quality training material on the various aspects<br />of wealth building, Russ developed a complete educational system to help people<br />learn his methods - and put them into practice. With a significant percentage of<br />Whitney's students being lawyers, doctors, business owners and other<br />professionals who had grown weary of working 70 to 80 hours a week to maintain<br />a standard of living, Whitney learned the value of his wealth-building strategies.<br />To reach a broader number of people, Russ Whitney developed a series of<br />workshops, conferences, and other educational programs designed to provide<br />the information and tools necessary for anyone to achieve financial<br />independence and security.<br />(Emphasis added.)<br />Company's Purported Success and Rising Revenue<br />7.<br />As a result of the Company's purported success in capitalizing on the rising<br />demand for Whitney's real estate and stock investment educational services, from 2001 until<br />2006, as the chart below indicates, Whitney reported continuously improving revenues:<br />5<br />Page 6<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 6 of 112<br />8.<br />Despite these rising revenues, by the fall of 2005 Whitney was already beginning<br />to see a shift away from real estate investment educational courses and sales and, at the same<br />time, an increase in demand for stock trading and investment education. This shift, which<br />signified the growing importance of stock education to the future financial strength and<br />profitability of the Company at that time, is also reflected by the following chart that compares<br />the Philadelphia Exchange Housing Index (HGX), to the S&P 500 Index (GSPC) and the<br />NASDAQ Composite Index (IXIC), as follows:<br />^HG}<br />+250<br />+200%<br />+1502<br />+1002<br />+50<br />0<br />80.0<br />60.0<br />0<br />40.0<br />20.0<br />0.0<br />Copyright 2007 Yahoo! Inc.<br />Splits:"<br />as of22-Jun-2007<br />........................................................................................................... .. ..........................................................,.........<br />'HGX<br />http://finance.gahoo.com/<br />Defendants' Scheme To Defraud Investors<br />9.<br />Throughout the Class Period, Defendants publicly represented, inter alia, that<br />Whitney was achieving "record revenues" and earnings, that its backlog of products purchased<br />but not delivered was decreasing, that the Company and its business model were on a positive<br />track toward ever-increasing revenues and positive growth projections, that it maintained<br />controls that were at least sufficient to monitor and control the Company's operations in a<br />reasonably sound manner, and that it complied with Generally Accepted Accounting Principles<br />(GAAP), Sarbanes-Oxley, SEC Rules, and its own Code of Conduct.<br />6<br />Page 7<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 7 of 112<br />10.<br />For example, as alleged in detail herein below in the Section entitled "False and<br />Misleading Statements Made During the Class Period," Defendants made the following public<br />false and misleading statements, among many others, regarding the Company, its management,<br />its financial results, its products, its revenue recognition policy, its compliance with GAAP, its<br />compliance with Sarbanes Oxley, and its Code of Conduct:<br />-"record results for the second quarter ended June 30, 2005" - August 11, 2005 press<br />release;<br />-"the Company cited its expansion ofon-demand and real-time Advanced Training<br />delivered over the Internet as a keyfactorfavorably impacting the Company's bottom<br />line;" Id.;<br />-"The consolidated statements have been prepared in accordance with accounting<br />principles generally accepted in the United States ofAmerica for interim financial<br />reporting and Securities and Exchange Commission regulations ...." 1OQ for 2Q:05;<br />-"The change in net income is a trend that is expected to continue, as the backlog of<br />course trainings purchased and undelivered is reduced, the amount ofcourse<br />deliveries will continue to grow, and no significant change in the ratio ofexpense is<br />anticipatecL Deferred revenue, which is the net backlog oftraining courses purchased<br />and notyet delivered, increased by $12,863,000 during these three months of 2005,<br />compared to an increase of $11,264,000 for the same comparable period in 2004;" Id.;<br />-"this report does not contain any untrue statement ofa materialfact or omit to state a<br />materialfact necessary to make the statements made, in light ofthe circumstances<br />under which such statements were made, not misleading;" Certification to 2Q:05;<br />7<br />Page 8<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 8 of 112<br />- "The dramatic increase in revenue in the third quarter of2005 was a result ofnew<br />pricing strategies, increasedfocus on marketing to geographic markets that have<br />responded strongly to the Company's sales efforts, and an increase in delivery ofthe<br />Company 's Advanced Training courses;" November 9, 2005 Press Release;<br />-"Through our team's hard work, efficiency gains and cost controls, we believe 2005<br />represents an inflection pointfor our Company and aplatformfor sustained growth in<br />2006 and beyond." Russ Whitney, statement in November 9, 2005 Release;<br />-"The depth ofour advanced courses, the emerging electronic delivery ofour course<br />content and overall margin management providedfor a terrific 2005 and the seedsfor<br />a strong 2006." Defendant Maturo, statement in November 9, 2005 Release;<br />-" When a student attends the course, that will trigger the revenue that will be<br />recognized. So it is primarily based on attendance. We will also calculate the likelihood<br />of a student's attendance when it is deemed remote. The combination of those two items<br />in essence will be the revenue recognition of the Company." Defendant Novas,<br />statement during June 28, 2006 conference call for analysts and investors; and<br />-"The Code ofEthics ("the Code') embodies the commitment of Whitney Information<br />Network, Inc., its affiliates and subsidiaries (collectively, "WIN') to conduct its<br />business with the highest ethical standards and in accordance with all applicable laws,<br />rules and regulations of the countries in which WIN engages in business.<br />(Emphasis added.)<br />11.<br />In truth, however, from the inception of the Class Period, at the same time that<br />Defendants were issuing these materially false and misleading statements in Whitney public<br />8<br />Page 9<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 9 of 112<br />filings, Defendants knew but failed to disclose the following known, adverse material facts,<br />among others discussed in detail herein:<br />(i)<br />Defendants' business model had no chance of success because it was based on<br />scamming consumers by inducing them to buy unconscionably overpriced and essentially<br />worthless so-called "educational products." The "product" provided was essentially a lecture that<br />more products were needed and more money had to be spent by the customer in order to get the<br />money-making skills promoted by the Company, which inevitably resulted in customers'<br />demands for refunds or attempts to obtain chargebacks through their credit card companies'<br />fraud protection programs, and the inability of the Company to sustain its revenues and growth;<br />(ii)<br />Throughout the Class Period, Defendants recorded as revenue all "educational"<br />packages sold within one year of the contract purchase date at the latest, despite failure in all<br />instances to finish delivering all services and products that the customer purchased within that<br />time period, including one year of post-class coaching services, camps, and events and follow-up<br />with Advisors;<br />(iii) Defendants failed to disclose the true background and credentials of Defendant Russ<br />Whitney, which show the material facts that he was a convicted felon without the financial assets<br />that he touted early on, and that he was unethical, including:<br />(a)<br />Defendants knew but concealed the fact that in 1974, when Russ Whitney<br />was purportedly working to build his first real estate fortune, he was actually pleading guilty to<br />and serving prison time for robbery;<br />(b)<br />Defendants knew but concealed the fact that Russ Whitney did not make<br />his first real estate fortune by his 25th birthday as reported, but rather had no more than<br />approximately $100,000 worth of highly-leveraged properties at that time;<br />9<br />Page 10<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 10 of 112<br />(c)<br />Defendants knew but concealed the fact that in 1980 Russ Whitney was<br />involved in a hit and run in which a jury found him liable for serious injuries to a 19-year-old<br />pedestrian. Rather than pay the $1.2M jury verdict, Russ Whitney complained that he would go<br />bankrupt before paying the full amount and ended up paying less than a third of the money;<br />(iv) Defendants failed to disclose serious problems within the Company that they were<br />aware of from prior to or at the very latest less than a week into the Class Period. As discussed<br />in detail infra, first in mid-July of 2005, and then in mid-August of 2005, senior management<br />including Defendants named herein received copies of e-mails prepared by two Company<br />managers addressing a host of serious law, reporting, ethics and fair business violations and<br />demonstrating that Defendants, jointly and individually, were aware of these material, adverse<br />facts but concealed them from the marketplace. These specific issues included, in part, the<br />following:<br />• Credit card "chargebacks" had reached a crisis level and Whitney was in jeopardy<br />of being denied credit card processing services. Therefore, the Company's entire<br />future ability to conduct business was at stake. Unbeknownst to shareholders, by<br />that time, Whitney had already been blacklisted by major reputable card<br />processors, and by the fall of 2005, even the processors willing to continue to<br />conduct business with Whitney were complaining about the huge spike in<br />disputed charges, and they too were threatening to close accounts.<br />• The massive sudden spike in chargebacks and charge disputes resulted from the<br />combination of increased volume enrollment, the resulting scarcity of resources<br />within the Company to address satisfactory resolution, and, finally, a Zero Return<br />Policy that had secretly been adopted by Defendants months before.<br />• The Company's unreasonable and illegal refusal to grant refunds to students<br />making legitimate refund requests resulted in a disproportionate number of<br />customers attempting to resolve the issue by contacting their credit card<br />companies - claiming fraud protection and a failure of delivery of services.<br />• The arbitrary and unreasonable refusal to grant legitimate refunds also resulted in<br />artificially inflated deferred revenues, as Defendants kept tens of millions of<br />dollars on the Company's books that should have been returned to consumers.<br />10<br />Page 11<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 11 of 112<br />• The Company arbitrarily designated "Coaching" services as an immediate<br />revenue item, while "Mentoring" or other similar services - necessarily provided<br />at a later date - were classified as Deferred Revenues. This intentional<br />misclassification of "Coaching" as immediate revenue enabled Defendants to<br />improperly realize tens of millions of dollars in additional revenues that rightly<br />should have been reported only when such Coaching services were supplied - up<br />to 2.5 years in the future.<br />• Whitney was operating in violation of GAAP rules, SEC accounting and reporting<br />regulations, the Company's own Codes of Ethics and Business Guidelines, and<br />the Sarbanes-Oxley Act, among other state and federal rules and regulations;<br />(v)<br />Defendants also knew of or recklessly disregarded the problems related to the<br />Company's manipulation of returns and deferred revenue accounting, discussed in detail herein,<br />they also knew or recklessly disregarded that Whitney had provided false financial statements to<br />regulators and had violated federal securities laws, from at least the inception of the Class<br />Period;<br />(vi)<br />Contrary to the Company's representations in its Class Period filings, the<br />Company's Code of Conduct was not designed to moderate the activities of those within the<br />organization and Company employees were not required to uphold basic standards of acceptable<br />business conduct and moral decency. To the contrary, the Code of Conduct was a complete sham<br />designed to create the impression that the Company had proper and ethical business practices<br />when it did not; and<br />(vii)<br />From at least the inception of the Class Period, Defendants had failed to properly<br />report Deferred Revenues in accordance with GAAP or SEC reporting rules. Defendants violated<br />GAAP in connection with their reporting of deferred revenue. It is a fundamental principal of<br />GAAP that revenues are not reported unless earned. It is also a long-established GAAP<br />convention that revenues are not earned until all conditions associated with the delivery of the<br />11<br />Page 12<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 12 of 112<br />goods or services that form the basis of those revenues have been fully performed and are non-<br />contingent.<br />12.<br />Rather than report the true adverse, concealed facts that would reveal the financial<br />and operational condition of the Company that existed from the inception of the Class Period,<br />and the related problems with management, its core business plan, its useless, sham products, its<br />rampant GAAP violations and dramatically overstated revenues and improper and wrongful<br />revenue recognition practices, Defendants engaged in a scheme and course of conduct that<br />operated as a fraud or deceit on purchasers of Whitney common stock by disseminating<br />materially false and misleading positive statements and/or concealing material adverse facts. The<br />scheme : (i) deceived the investing public regarding Whitney 's business, operations, management<br />and the intrinsic value of Whitney common stock; (ii) enabled Defendants to artificially inflate<br />the price of Whitney shares; (iii) enabled Whitney insiders to sell a total of over $8 million of<br />Company stock during the Class Period; (iv) enabled Defendants to sell $13.5 M in Whitney<br />stock to PIPE (Private Investment in Public Equity) investors prior to the registration of those<br />shares and thereafter enabled Defendants to register for sale $13.5 million in Whitney shares,<br />that were sold by PIPE Purchasers; (v) enabled Defendants to register over $33.0 million more<br />EduTrades shares - to be sold to more public investors in a later-aborted spin-off transaction;<br />(vi) enabled Defendants to conduct a $1.00 per share " Special Dividend" - the maj ority of which<br />was paid to insiders of the Company who held Whitney shares; and (vii) caused Plaintiff and<br />other members of the Class to purchase Whitney common stock at artificially-inflated prices and<br />to be damaged when the truth was ultimately revealed and the price of the stock dropped<br />dramatically.<br />12<br />Page 13<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 13 of 112<br />The Truth Begins To Be Revealed<br />13.<br />On November 21, 2006, Defendants shocked and alarmed investors after they<br />published a release that revealed, for the first time, that the SEC had begun non-public<br />investigation into the Company. According to Whitney, the SEC was examining the Company's<br />compliance with federal securities laws in connection with: (i) the efficacy or trading success of<br />the Company's market education programs - EduTrades; and (ii) the Company's prior<br />acquisitions of certain other entities.<br />14.<br />The revelations that the Company had materially misrepresented the efficacy and<br />success of its stock education products were critical to investors because much of the Company's<br />future growth and development had been tied to the development of its stock education business<br />and because the Company had been preparing to sell over $33 million in EduTrades shares in the<br />open market. As evidence of this, on November 21, 2006, shares of the Company plummeted to<br />a low of $5.25 per share - a one day decline of almost 36 % - compared to the closing price of<br />$8.20 per share the prior day, November 20, 2006.<br />15.<br />On December 15, the last day of the Class Period, after the market closed, the<br />Company issued a press release revealing that Whitney had received a Grand Jury Subpoena<br />from the United States Attorney for the Eastern District of Virginia and had been notified that<br />the Company was being investigated for its marketing activities.<br />16.<br />On December 18, 2006, shares of the Company would dropped below $3.25 per<br />share, in response to the December 15, 2006 press release.<br />17.<br />The following day, on December 19, 2006, as shares of the Company continued to<br />trade even lower, the Company published another release announcing the "termination of<br />13<br />Page 14<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 14 of 112<br />employment of Nicholas S. Maturo, President and Chief Operating Officer and Rance Masheck,<br />Vice President, Sales and Marketing ofEduTrades, Inc. (a subsidiary of the Company)."<br />18.<br />On December 21, 2006, investors learned that Whitney had accused Defendant<br />Masheck, the former Vice President, Sales and Marketing of EduTrades, of making false<br />statements about his prior trading success as well as the efficacy of the Whitney stock trading<br />system. That day, in connection with the additional termination of Richard O'Dor, former<br />Director of Corporate Communications, Defendants also published a release that stated, in part,<br />the following:<br />Mr. O'Dor resigned after Management of the Company learned that Mr. O'Dor<br />had made a misstatement to the press without the knowledge of, or authorization<br />by, the Company, regarding the reason for the termination of Rance Masheck,<br />Vice President, Sales and Marketing of EduTrades, Inc. (a subsidiary of the<br />Company), which was announced on December 19, 2006. Mr. Masheck was<br />terminated due to the fact that his trading records do not substantiate claims<br />which he made, and which the Company broadcasted publicly, regarding his<br />trading success. The Company discovered this fact during its internal<br />investigation related to both the grand jury investigation by the United States<br />Attorney's Office for the Eastern District of Virginia, which was announced by<br />the Company on December 15, 2006, and the investigation and subpoena by the<br />Securities and Exchange Commission, which was announced by the Company on<br />November 20, 2006.<br />JURISDICTION AND VENUE<br />19.<br />The claims asserted herein arise under and pursuant to Sections 10(b) and 20(a) of<br />the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule lOb-5 promulgated thereunder by<br />the United States Securities and Exchange Commission ("SEC") [17 C.F.R. § 240.10b-5].<br />20.<br />This Court has jurisdiction over the subject matter of this action pursuant to 28<br />U.S.C. §§ 1331 and 1337, and Section 27 of the Exchange Act [15 U.S.C. § 78aa].<br />14<br />Page 15<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 15 of 112<br />21.<br />Venue is proper in this District pursuant to Section 27 of the Exchange Act, and<br />28 U.S.C. § 1391(b). Whitney maintains its principal place of business in this District and many<br />of the acts and practices complained of herein occurred in substantial part in this District.<br />22.<br />In connection with the acts alleged in this complaint, Defendants, directly or<br />indirectly, used the means and instrumentalities of interstate commerce, including, but not<br />limited to, the mails, interstate telephone communications and the facilities of the national<br />securities markets.<br />PARTIES<br />Plaintiff<br />23.<br />Lead Plaintiff Dr. Arnold Friedman ("Lead Plaintiff' or "Plaintiff") was<br />appointed Lead Plaintiff by Order of this Court dated April 25, 2007. As set forth in the<br />Certification attached to the previous filing in this action, and as incorporated by reference<br />herein, Lead Plaintiff purchased the common stock of Whitney at artificially-inflated prices<br />during the Class Period. When the truth was revealed, the price of Whitney stock dropped and<br />Plaintiff has been damaged thereby. Rodney Durham was the named plaintiff in the first-filed<br />action and his name appears in the caption herein above solely for administrative purposes. Lead<br />Plaintiff intends to seek leave of the Court to update the caption accordingly to reflect the fact<br />that Lead Plaintiff is the sole named plaintiff in the action.<br />Corporate Defendant<br />24.<br />Defendant WHITNEY INFORMATION NETWORK, INC. is a Colorado<br />corporation with its principal place of business located at 1612 Cape Coral Parkway, East, Cape<br />Coral, FL 33904. According to the Company's profile, posted during the Class Period on<br />Yahoo.com, http://finance.yahoo.com/q/pr?s=RUSSE.OB, Whitney provides "post-secondary<br />15<br />Page 16<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 16 of 112<br />educational and training courses" for students in the United States, Canada, the United Kingdom,<br />and Costa Rica. The Company purports to offer non-accredited introductory workshops, primary<br />and advanced courses, and training in the fields of real estate and financial markets education.<br />The Company's courses purport to provide instruction in real estate investing, business<br />strategies, stock market investment techniques, cash management, asset protection, and other<br />financially-oriented subjects. Whitney Information also develops and sells educational resource<br />materials and "mentoring" and "coaching" services. Founded in 1992 as Gimmel Enterprises,<br />Inc., in 1998 the Company changed its name to WIN Systems International, Inc. and again, in<br />1999, changed its name to Whitney Information Network, Inc.<br />Individual Defendants<br />25.<br />Defendant RUSSELL A. WHITNEY ("Russ Whitney") was, during the Class<br />Period, Chairman and Chief Executive Officer. Russ Whitney was also the Founder of the<br />Company. During the Class Period, Defendant Russ Whitney signed the Company's SEC filings,<br />including but not limited to Whitney's Form(s) 10-Q and Form 10-K and the Registration<br />Statements filed with the SEC in connection with the Company's PIPE Registration in<br />November 2006 and its now-aborted spin-off Registration of EduTrades, the Company's stock-<br />trading educational subsidiary . Also, during the Class Period, while in possession of material,<br />adverse, non-public information about the Company, Defendant Russ Whitney liquidated<br />$5,626,000 (in connection with the Company's $13.5 million PIPE transaction discussed herein),<br />and another $950,000 worth of additional shares of his personally-held Whitney common stock,<br />thereby taking further advantage of the artificial inflation in the price of Company stock caused<br />by Defendants' improper and illegal conduct.<br />16<br />Page 17<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 17 of 112<br />26.<br />Defendant RONALD S. SIMON ("Simon") was, during the Class Period,<br />Executive Vice President and Acting Chief Financial Officer (until 1/25/06), and is currently Co-<br />President and Chief Operating Officer of the Company. During the Class Period, Defendant<br />Simon signed the Company's SEC filings, including but not limited to Whitney's Form(s) 10-Q<br />and Form 10-K and the Registration Statements filed with the SEC in connection with the<br />Company's PIPE Registration in November 2006 and its now-aborted spin-off Registration of<br />EduTrades, the Company's stock-trading educational subsidiary. Also, during the Class Period,<br />while in possession of material adverse, non-public information about the Company, Defendant<br />Simon liquidated over $911,999 worth of his personally-held Whitney common stock, thereby<br />taking further advantage of the artificial inflation in the price of Company stock caused by<br />Defendants' improper and illegal conduct.<br />27.<br />Defendant ALFRED R. NOVAS ("Novas") was, during the Class Period, Chief<br />Financial Officer of the Company from at least January 25, 2006. During the Class Period,<br />Defendant Novas signed the Company's SEC filings, including but not limited to Whitney's<br />Form(s) 10-Q and Form 10-K and the Registration Statements filed with the SEC in connection<br />with the Company's now-aborted spin-off Registration of EduTrades, the Company's stock<br />trading educational subsidiary.<br />28.<br />Defendant JOHN F. KANE ("Kane") was, during the Class Period, Executive<br />Vice President of Operations for the Company. During the Class Period, Defendant Kane aided<br />and/or assisted in the preparation of the Company's SEC filings, including but not limited to<br />Whitney's Form(s) 10-Q and Form 10-K and the Registration Statements filed with the SEC in<br />connection with the Company's PIPE Registration in November 2006 and its now-aborted spin-<br />off Registration of EduTrades, the Company's stock trading educational subsidiary. Also, during<br />17<br />Page 18<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 18 of 112<br />the Class Period, while in possession of material adverse, non-public information about the<br />Company, Defendant Kane liquidated over $414,000 of his personally-held Whitney common<br />stock, thereby taking further advantage of the artificial inflation in the price of Company stock<br />caused by Defendants' improper and illegal conduct.<br />29.<br />Defendant NICHOLAS S. MATURO ("Maturo") was, during the Class Period,<br />President and Chief Operating officer of the Company until his sudden, unscheduled termination<br />reported on or about December 19, 2006. During the Class Period, Defendant Maturo signed the<br />Company's SEC filings, including but not limited to Whitney's Form(s) 10-Q and Form 10-K<br />and the Registration Statements filed with the SEC in connection with the Company's PIPE<br />Registration in November 2006 and its now-aborted spin-off Registration of EduTrades, the<br />Company's stock-trading educational subsidiary.<br />30.<br />Defendant RANCE MASHECK ("Masheck") was, during the Class Period,<br />Vice President of Sales and Marketing of EduTrades and served in that position at all times until<br />he was suddenly termination, as announced in a unscheduled report, on or about December 19,<br />2006. During the Class Period, Defendant Masheck aided and assisted in the preparation of the<br />Company's SEC filings, including but not limited to Whitney's Form(s) 10-Q and Form 10-K<br />and the Registration Statement filed with the SEC in connection with the now-aborted spin-off<br />Registration ofEduTrades.<br />31.<br />The Defendants referenced above in ¶¶ 25-30 are referred to herein as the<br />"Individual Defendants."<br />Independent Auditors Defendant<br />32.<br />Defendant EHRHARDT KEEFE STEINER & HOTTMAN PC ("Ehrhardt<br />Keefe") was, during the Class Period, one of the Company's independent, outside auditors.<br />18<br />Page 19<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 19 of 112<br />Defendant Ehrhardt Keefe signed an Independent Auditors Report certifying the veracity and<br />completeness of the Company's SEC filings made during the Class Period. In connection with<br />the Company's November 2006 PIPE Registration and in connection with the Company's now-<br />aborted EduTrades public spin-off, investors paid Ehrhardt Keefe over $1,788,000 in purported<br />accounting fees and expenses.<br />33.<br />During the Class Period, Defendant Ehrhardt Keefe provided letters of consent<br />and/or authorized the use of the Company's financial statements and disclosures within filings<br />made by the Company with the SEC, including but not limited to Whitney's materially false and<br />misleading Registration Statement filed with, but not approved by, the SEC in connection with<br />the attempted sale and offering of over $33 million in EduTrades public offering stock.<br />34.<br />The Auditor Defendant participated in the drafting, preparation, and/or approval<br />of the various public and shareholder and investor reports and other communications complained<br />of herein, were aware of, or recklessly disregarded, the misstatements contained therein and<br />omissions therefrom, and were aware of their materially false and misleading nature. Because of<br />its oversight positions with Whitney, the Auditor Defendant had access to the adverse<br />undisclosed information about Whitney's business prospects and financial condition and<br />performance as particularized herein and knew (or recklessly disregarded) that these adverse<br />facts rendered the positive representations made by or about Whitney and its business issued or<br />adopted by the Company materially false and misleading.<br />35.<br />The Auditor Defendant, because of its position with the Company, was able to<br />and did control the content of the various SEC filings, press releases and other public statements<br />pertaining to the Company during the Class Period. The Auditor Defendant was provided with<br />copies of the documents alleged herein to be misleading prior to or shortly after their issuance<br />19<br />Page 20<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 20 of 112<br />and/or had the ability and/or opportunity to prevent their issuance or cause them to be corrected.<br />Accordingly, this Defendant is responsible for the accuracy of the public reports and releases<br />detailed herein and is therefore primarily liable for the representations contained therein.<br />SUBSTANTIVE ALLEGATIONS<br />Documentary Evidence Demonstrating Defendants' Knowledge and/or Reckless Disregard<br />of the True Adverse Facts At the Beginning of the Class Period<br />36.<br />Defendants were aware of the material falsity of these Company disclosures,<br />and/or that Defendants had recklessly disregarded the falsity of these statements no later than<br />August 18, 2005 - only one week after the inception of the Class Period. On that date an email<br />memorandum was circulated to the senior officers and directors of the Company by former<br />Regional Manager, Robert Paisola, which recited a series of control violations and Federal<br />Securities Law and Sarbanes-Oxley violations, as well as violations of the Company's own<br />internal Code of Conduct and Fair Business Practices. In summary, this Memorandum, e-mailed<br />to `Joe Gnapp,' and cc' d, at russwhitney .com addresses, to: John Kane, Nick Maturo, Ron<br />Simon, Thomas McElroy, and rwjr@russwhitney.com, addressed the following disturbing<br />problems at the Company:<br />Gross Abuse ofRefund Policy;<br />Manipulation ofDeferred Revenues;<br />Credit Chargebacks andAbuse ofMerchant CreditAccounts; and<br />ArtificialInflation ofRevenue Figures.<br />37.<br />Following the completion of a site visitation audit from at least August 8, 2005 to<br />at least August 12, 2005, (former) Salt Lake City Regional Manager Paisola provided<br />Defendants with a memorandum detailing the "substantial" corporate exposure that resulted<br />from the Company' s gross abuse of refund policies . As Paisola reported to management, "One<br />20<br />Page 21<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 21 of 112<br />thing that became quickly apparent to me and the support staff in Utah was that there was a<br />corporate mandate that had been directed to lower management that there would be NO<br />REFUNDS in any case, for any reason, with few exceptions." As a result of this "discovery"<br />Manager Paisola advised management, as follows:<br />Based upon this preliminary analysis, I began to dive into the problem head first. I<br />knew that we were a large revenue company; however, I assumed that the<br />caseload of unsatisfied students would be mitigated by the direct revenue<br />generated by the parent divisions having the problems, this it may be able to be<br />looked at as simple "growing pains" of the organization.<br />Last month, I received a copy of the 2003, 2004 and 2005 Merchant Account<br />Transaction Analysis reports. This was a critical gage in the indexing of this<br />apparent issue. I spent lengthy [sic] time reviewing the excel data that was<br />presented to each of you, and looked at all ofthe relevant data to come up with<br />some plausible reason why our chargeback rates in certain divisions were so<br />out ofcontrol (within established and accepted industry normative guidelines).<br />The result was the establishment of my direct relationship with Will [Trefethen,<br />WEG Accounting Operations Director, responsible for acquisition and<br />maintenance of all merchant accounts] in the Cape Coral Office. Will is a<br />superstar in my book, and I believe that he is a huge asset of the organization. He<br />deserves to be heard.<br />Going forward, we reviewed some of the cases and together determined that<br />it was essential to gain the attention ofsenior management of the magnitude<br />ofthis problem. Ilistened to the plights ofthe past and the previous efforts to<br />resolve some ofthese issues, PRIOR to the crisis point that was eminent.<br />(Emphasis added.)<br />38.<br />Not only did Regional Manager Paisola identify the abuse of the Company's<br />Refund Policy, but he next identified how this policy was eroding the Company's merchant<br />credit card accounts and was fundamentally undermining operations - and how this had reached<br />crisis levels by the inception of the Class Period. In this regard, the August 18, 2005 e-mail<br />memorandum continued, in part, as follows:<br />Based on this "line in the sand" directive [or "zero refund policy"], the<br />respective merchant accounts have been greatly affected This is evidenced by a<br />spreadsheet that was received last week, analyzing the 2003-2004 and 2005<br />21<br />Page 22<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 22 of 112<br />periods, which clearly show the exposure that the Merchant Banks are facing<br />as a result ofour relationship with their institutions.....<br />The new goal of the management team should be to meet in the middle,<br />comparing and contrasting our student 's needs, our legal liability under the<br />law, the merchant guidelines and our ability as an organization to have key<br />executives within the organization responsibly manage the issuance ofrefunds,<br />without continuing to put our valuable merchant accounts at risk...<br />(Emphasis added.)<br />39.<br />The admonitions cited by Manager Paisola to the Company senior management<br />mirrored an email that was previously sent to many within Whitney, by Will Trefethen, Director<br />of the Merchant Account Program, on or about July 28, 2005, that warned that the Company's<br />present course of conduct would result in another Terminated Merchant Account File (`TMF" 1)<br />"blacklisting." This earlier e-mail also warned of the impending crisis - and even offered<br />suggestions to further "hide" the Company's growing chargeback crisis situation - in part, as<br />follows:<br />Thu 7/28/05 2:11 PM<br />All,<br />I have completed a summary review of the chargeback situation. A detailed report<br />on WCS chargeback issues is being complied [sic] to find any common threads<br />that can be targeted for improvement....<br />I have highlighted chargeback percentages that are greater than 1 % each<br />month. Some ofthose accounts are now defunct, meaning that no charges are<br />being run on them, however, we are still receiving chargebacks on those<br />accounts. Although there are several specific accounts that rose above critical<br />marker at different times, the processors are greatly concerned with those<br />accounts that consistently remain above that mark.<br />1 "TMF" is synonymous with the more current acronym Member Alert To Control High-Risk (or<br />"MATCH") Files . A MATCH File or TMF File is a file containing a merchant account that has<br />been terminated for cause. Such files are important tools for member banks to assess credit risk<br />and assign credit rates and reserve requirements, prior to servicing an account.<br />22<br />Page 23<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 23 of 112<br />The figures show two genuine areas of concern; WCS (Whitney Consulting<br />Services) and WIN (Wealth Intelligence Network)<br />We have shifted the responsibility for billing WIN subscriptions to IAS, so the<br />WIN account chargeback issue has been resolved.<br />This leaves WCS as the sole area of concern, as it has always been. Obviously,<br />better customer service and timely coaching contracts is key [sic] to reducing the<br />numbers. I am detailing a few ways we may combat this problem.<br />1.<br />Improve our compliance sent to customers to include pertinent<br />information and make sure they sign it and return it before charging<br />card orproviding service.<br />2.<br />Use a merchant account with a better chargeback percentage, to absorb<br />(hide) the high level ofsales we have lost to chargebacks.<br />3.<br />Deliver at the time of sale on these telemarketing orders, showing proof of<br />delivery of a product or service to the credit card companies and banks.<br />Giving the student 1 year to physically attend. [sic]<br />No Signature on contract ! No delivery of product or service ! No chance of<br />winning chargeback ! [sic]<br />The most alarming figure is comparing the 2004 figures with YTD 2005. We have<br />exceeded the number of chargebacks in 6 months of 2005 than 2004 in whole.<br />Total number of charges through June is 77% of 2005 total. We have done a great<br />job keeping refunds down; however, chargeback percentages have risen<br />noticeably. I am certainly open to hearing other remedies to this problem. We<br />must do something. Inaction will certainly lead us to another TMF listing,<br />making it very difficult to open new merchant accounts. AMEX has already<br />expressed concern directly with a letter...<br />(Emphasis added.)<br />40.<br />Similarly, in his August 18, 2005 e-mail memorandum, Manager Paisola also<br />identified several accounts, at least one of which was described as in crisis at that time, in part,<br />as follows:<br />For the past five months, the WCS Merchant Account ending in... 150, which is<br />the PAYSYSTEMS account, we have been over the threshold since the account<br />was opened in February of 2005. In recent discussions with the provider, they<br />have stated that, "the [sic] understand our business," however, our fear is that the<br />23<br />Page 24<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 24 of 112<br />actual backend bank will terminate us based upon the visa MaserCard regulations<br />that the processors must follow...<br />The Three Year Credit Card chargeback report was reviewed and it is clear that<br />we are over the exposure limits on all basis of accountability. Of primary concern<br />is the WIA Merchant Account, as the percentages are very high (four to eight<br />basis points).<br />In Account ending in ... 889 (Also known as the MOTO Account) we run the<br />WEG Telemarketing Account Charges. This is where all of the sales that are<br />referred by PLATINUM are run also.<br />This is the account that is in a crisis mode. There are a few options to reduce the<br />percentages that we are being faced with (regarding chargeback's) on this specific<br />account.<br />We can move some of the sales or "cherry pick" the sales that are posted<br />to this account. By posting safer and different brands in the product lineup. This<br />will dilute the chargeback percentages and will create a short term solution;<br />however, the long term problem will remain and should be aggressively dealing<br />with the underlying problems.<br />41.<br />In addition to the foregoing, the August 18, 2005 Paisola e-mail memorandum<br />also raised issues that relate to the Company's failure to comply with GAAP and Sarbanes-<br />Oxley disclosure issues. In this regard, the Manager's Memorandum stated, in part, the<br />following:<br />As of the date of this report, it is evident that the merchant banks have not been<br />made aware of the one year period threshold that is taken and needed to complete<br />a transaction internally, because of the promises of the one year of coaching and<br />the one year disclaimer to resolve the camps. Thefact that we as an organization<br />do not disclose this to our merchant accountprocessors is substantial....<br />Under the current regulations with the Visa MasterCard Program, the clock<br />essentially starts ticking after we have finished delivering ALL services and<br />products that the student has purchased.<br />24<br />Page 25<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 25 of 112<br />The student has another eighteen months AFTER FINALLY DELIVERY to<br />initiate a chargeback. This essentially means that our exposure period to any<br />transaction is the initial year that it takes to complete the coaching, camps, events<br />AND one year of follow-up with the Advisors. And at the end of that period of<br />completion there is another 18 months where the customers can chargeback even<br />though all materials, camps, coaching etc. has been fully received.<br />Ultimately, this leads to a total exposure of 2.5 years on each and every<br />transaction.<br />(Emphasis original.)<br />42.<br />In addition to the questionable revenue recognition that was reported above, and<br />the lack of disclosure to the credit card merchants of the full risk underlying the Company's<br />business, the Paisola e-mail memorandum also highlighted another important violation of<br />accounting conventions. This Memorandum reported that the Company had also manipulated the<br />Company's reported "Deferred Income," by arbitrarily choosing to defer recording revenue on<br />"camps" and "mentoring," but failing to defer revenue for "coaching services." In this regard,<br />the Paisola Memorandum further states, in part, the following:<br />The bottom line problem with this is that we are choosing to defer revenue on<br />camps and mentoring ONLY. Coaching is not a deferred item, as all of the<br />revenue is immediately booked. This is not proper.<br />The estimated sales volume per month in the coaching program is approximately<br />500K. All of this money is NOT being deferred and is increasing our corporate<br />liability at a rate of 500K per month (on a going forward AND retroactive basis,<br />because of this deferred revenue game that we are playing. This is also an SEC<br />issue that we can head off now.<br />(Emphasis original.)<br />43.<br />While Mr. Paisola concluded this report optimistically by stating at that time that<br />he was "committed to assisting the management team resolve these issues," and that the entire<br />analysis contained in the Memorandum had been done in an effort to reinforce the value that one<br />25<br />Page 26<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 26 of 112<br />capable of such conscientious analysis "brings to the team," Mr. Paisola was fired almost<br />immediately after submitting this analysis.<br />44.<br />Thereafter, charging a retaliatory termination - in response to writing the<br />memorandum - Mr. Paisola filed a complaint with the United States Department of Labor,<br />Occupational Safety and Health Administration, Case. No. 2005 - SOX - TBA ("OSHA"). The<br />Paisola OSHA Complaint was never disclosed by the Company in any SEC filings, 8K, 10K, or<br />otherwise. That Complaint alleged that retaliatory termination had occurred after he reported to<br />senior management of Whitney, in part, the following points, in addition to those conveyed in<br />his Memorandum to senior management:<br />(a)<br />On August 1, 2005, Complainant had a conference call with Joe Gnapp,<br />wherein he "clearly explained to Mr. Gnapp that [he] had been running into many serious<br />issues ... that could prove extremely problematic for the organization," including "the fact that<br />employees of the organization were issuing duplicate andfabricated contracts to the students,<br />in order to coerce the students into paying for goods and services that were not received or<br />delivered, lying to students by sales staff, lying to merchant cardproviders regarding the true<br />status of the Initial Sales Fulfillment Timeline, Corporate Financial Data Manipulation on<br />SEC Filings." OSHA Complaint, * 18 (emphasis added);<br />(b)<br />On the August 1, 2005 conference call with Joe Gnapp, Paisola conveyed<br />his analysis of the financial reports sent from Will Trefethen in his July 28, 2005 email, whereby<br />he "realized that the rumor that the organization had issued an "unofficial" order to stop ordering<br />refunds in any case, became clear when reviewed with the data provided by Trefethen and his<br />commentary contained therein." OSHA Complaint, *18. In fact, Mr. Paisola sent an email that<br />26<br />Page 27<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 27 of 112<br />day to Joe Gnapp and Will Trefethen stating that "[t]he WCS portfolio certainly represents a<br />point of risk for the organization." OSHA Complaint, *19-20; and<br />45.<br />In addition to the aforementioned reports Mr. Paisola conveyed to senior<br />management, the Paisola OSHA report references "a formal memorandum from [the office of<br />Anne Willcoxon, Manager of Regulatory Compliance] to the Senior Management Team<br />discussing many serious issues" *26:<br />To: Michael McKenna - Corporate Legal Counsel<br />From: Anne Willcoxon - Manager of Regulatory Compliance<br />Date: August 5, 2004<br />Subject: Student Complaints<br />The Student Resolution section of the Regulatory Compliance department has<br />handled 1984 student complaints since January 1, 2004.<br />*<br />*<br />*<br />-students are saying the road crew advised them they can attend thefirst day of<br />the first advanced training class, submit a request in writing and receive a full<br />refund oftheir totalpackage purchase.<br />*<br />*<br />*<br />In our telesales division we continue to see exaggerated claims such as you can<br />make thousands of dollars in the first six months; you have your coach for a<br />year but the program is not explained accurately, students think their coach is<br />available 24/7 immediately for any deal they may be in the bank officer's office<br />for. They are not contacted immediately by their coach, they requested<br />information be sent to them before purchase but was never done, asked their<br />credit cards not be charged until they have spoken with their spouse, etc.<br />Some complaints have no validity while others should be taken very seriously.<br />Having been in sales myself, I know the pressure to meet sales goals is enormous<br />but perhaps it is at the expense of our integrity. Overpromising is a big problem<br />both on the road and through telesales.<br />For Pre Academy customer complaints the common reason to complain or request<br />a refund is buyer's remorse, we didn't come back to their immediate area for the 3<br />Day but instead are too far away, your contracts on the software are illegal or your<br />business practices are illegal ( BBB etc.). For those Pre Academy customers who<br />have attended the 3 Day Training Academy the biggest complaint is the training<br />was too much of a sales hype and not enough information. At the previews the<br />27<br />Page 28<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 28 of 112<br />customer is assured they will walk away with enough information to make a real<br />estate deal but attend the 3 Day and find it is a sales pitch and a cheerleading<br />session. A Big complaint is the idea of increasing their credit card limits with the<br />promise to purchase real estate the next day but they realize it was to purchase an<br />advanced training package.<br />With both real estate and trading we strongly recommend a specific educational<br />path for our students. Often they do not attend the recommended initial trainings<br />and immediately attend classes for the more advanced and experienced investor.<br />Unfortunately the student does not have the needed education or experience to<br />begin investing and plunge in head first. This results in bad deals, loss of revenue,<br />and sometimes affects their credit. We are blamed for their indebted situation and<br />they are desperate to recoup funds.<br />(Emphasis added.)<br />46.<br />The documentary evidence detailed in the allegations in this Section supports a<br />strong inference of scienter that is cogent and at least as -- in fact far more -- compelling than<br />any opposing inference that can properly be drawn. These allegations are further bolstered by the<br />allegations set forth directly below addressing Defendants' secret "Zero Tolerance Refund<br />Policy" and resulting dramatic increase in chargebacks because customers were routinely forced<br />to turn to their credit card companies for fraud protection from Whitney, as well as information<br />from discussions with former employees and internal memoranda that illustrate the Company<br />could not sustain its business model, which was based on a "scam" to bilk customers for<br />unconscionably high fees for worthless "educational" products.<br />Secret "Zero Tolerance Refund Policy" and Resulting Dramatic Increase in Chargebacks<br />47.<br />For the first half of 2004, Whitney 's Regulatory Compliance Department handled<br />1,984 student complaints and Whitney issued $11 million in 2004 refunds and incurred $1<br />million in customer chargebacks. To fight this growing number of complaints and its ultimately<br />negative financial impact on revenues, throughout the Class Period Whitney instituted a Refund<br />28<br />Page 29<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 29 of 112<br />Policy designed to make it virtually impossible for customers to attain a refund after a right of<br />rescission period ("ROR") of just 72 hours.2 Whitney's "line in the sand" was designed to both<br />obfuscate and thwart customer refund and chargeback requests - and was particularly revealing<br />in the face of the fact that the Company had been required to increase by millions of dollars its<br />merchant account reserves.<br />48.<br />Excerpts from an August 1, 2005 conference call - obtained by Lead Counsel in<br />the course of its investigation - among Whitney employees Joe Gnapp, Will Trefethen,<br />Merchant Services Director, and Rob Paisola, District Manager, evidence that while the Zero<br />Tolerance Refund Policy was having the intended effect of minimizing refunds and increasing<br />revenues, chargebacks were dramatically increasing - notwithstanding that Whitney had<br />registered back-up merchant accounts anticipating cancellation - and the Company needed a<br />solution fast:<br />Will Trefethen: Right now we've already got one terminated merchant [account],<br />and we're looking at, if we keep going with the current thing we're going to have<br />another one. It's really impossible to open another merchant account.<br />We have a way of responding to these [chargebacks]. Um, unfortunately, when<br />you make a sale andyou say all sales arefinal, no refunds, and then you don't<br />provide any service, these people are doing the chargebacks and we 've got a<br />compliance tape but they 're claiming we haven 't provided them the service that<br />we've promised them, how are you going to combat that with a US title code I<br />don't know.<br />[In 2005], we've already eclipsed the number of chargebacks from last year just<br />half way through the year and the dollar amount is almost equal.<br />2<br />Willcoxon 9/13/2004 Refund Policy Memo and Whitney refund denial letters,<br />obtained by Lead Counsel in the course of its investigation.<br />29<br />Page 30<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 30 of 112<br />The thing here we're talking about the fact that chargebacks are up but returns are<br />down, refunds are down, voluntary refunds are down. .. we're saying no more, so<br />the consumer 's getting a little more aggressive with us...it's our fault that the<br />chargebacks are happening.<br />Rob Paisola: Absolutely, because we made a decision, a line in the sand, that<br />said no more [refunds], zero.<br />Joe Gnapp: Right. What we're doing isjust damage control.<br />Will Trefethen: There are backup merchant accounts to be utilized if something<br />were to go wrong with our current choice of processor... we do have somewhat of<br />a backup plan as far as that goes.<br />(Emphasis added.)<br />49.<br />On this conference call, various ideas were proposed that would permit Whitney<br />to purportedly comply with merchant bank rules, all designed to thwart chargebacks and deprive<br />customers of their ability to get their money back after purchasing worthless "educational"<br />products from the Company. These ideas included pressuring customers who purchased $20,000<br />services (via a telemarketing call) to access a website to click a button manifesting ironclad<br />consent to accept such services that would prohibit refunds or chargebacks.<br />50.<br />Moreover because it was critical for Defendants to avoid giving refunds once they<br />had extracted up to $50,000.00 from a single student at a live seminar, much of the enrollment<br />and sign-up process was designed for the sole purpose of reducing students' ability to later<br />obtain a refund through a credit card processor or bank. This was also demonstrated by the<br />aforementioned e-mail memorandum, prepared by the Company's then District Manager Rob<br />Paisola, which suggested even more sophisticated methods that could be adopted by the<br />Company to make it more likely that Whitney would prevail against the credit card processors -<br />30<br />Page 31<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 31 of 112<br />while giving little or no attention to the underlying cause of this ground-swell of customer<br />dissatisfaction.<br />51.<br />Thus, the rise in chargebacks was a direct result of Defendants' manipulation of<br />refunds and Whitney 's failed attempts to make their enrollment process Visa and MasterCard<br />collection-rules compliant such that no customer could ever get a refund after three days -<br />regardless of the Company's representations to that person and regardless of cause.<br />Information from Former Employees and Internal Memoranda Show the<br />Underlying "Educational" Products Were a Sham and Defendants Knew the<br />Company Could not Sustain Its Business Model or Revenues Based on the Sham<br />Internal Document Shows Purpose of "Classes" is to "Upsell" - Not Educate<br />52.<br />Contrary to Defendants' public statements discussed herein below in detail<br />regarding the Company's purpose and intention in purporting to provide educational services<br />and product sales to consumers, in fact, as internal Company documents illustrate, Defendants'<br />primary purpose in hosting both real estate and stock market trading and investing classes was<br />not to educate students, but rather to "up-sell" them even more unconscionably expensive and<br />worthless classes. An excerpt from the August 18, 2005 E-mail Memorandum demonstrates, in<br />part, the following:<br />We discussed the structure of the sales process, as it is currently structured.<br />The Sweep<br />Cost: 30K per week break even at best<br />This is the event that captures all of the prospective buyers in a room with the<br />primary mission of up selling to the 3 day training. The current price for entry to<br />the sweep is FREE<br />The Three Day Fulfillment:<br />Creates Approximately 500K per week in income.<br />This event is sold for a unit cost of 99.00 to 199.00. This is where the basics of<br />the business are discussed and the push is for the up sell to the Personal Mentor<br />Program...<br />Telemarketing Up-Sell Program (SLC UTAH)<br />This is the portion of the business model that is currently the highest exposure to<br />the organization... The overwhelming position in Cape Coral is that this is where<br />31<br />Page 32<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 32 of 112<br />all of the high paid salesmen are located and that this is where all of the problems<br />in the organization stem. It is openly viewed as the department that "data mines"<br />the current customer base, to produce additional revenue, selling with wanton<br />disregard for the Students Abilities or Our ability to fulfill as promised.<br />Discussions with Former Employees Further Confirm: the Underlying "Product"<br />was a Sham - Entire Goal of Seminars Was To Sell More Product<br />53.<br />Students in every branch of the Whitney seminar system across multiple states<br />appeared to experience the same problems with the Company: inability to get properly-requested<br />refunds; failure of the Company to respond to their complaints; failure of the seminars to provide<br />the information touted at sales pitches which instead provided worthless or irrelevant<br />information and operated as a forum for Defendants to pressure students to purchase more and<br />more of the Company's unconscionably expensive and useless packages; failure of the coaching<br />sessions to yield any useful information, and being scammed or pressured by the Company to<br />purchase more worthless products.<br />54.<br />Confidential Witness #1 stated that though (s)he was a member of the Technical<br />Support Team during the Class Period, (s)he had gotten a few calls which should have been<br />routed to Customer Service, all of which were from customers who were unhappy with the<br />products. The most common complaint was that they were misinformed about a contract they<br />had signed. Customers had been put under pressure to assign a complicated, detailed contract<br />quickly, while they were at the seminars, but the contract was not adequately explained. In<br />particular, there was a monthly data charge of $59. 95 in addition to a $300 package, which was a<br />one month trial of the basic stock trading course. Customers who had never even downloaded<br />the software were still charge for data usage. The $59.95 per month charges also continued after<br />the contract had been fulfilled, and sales people did not tell customers that the charges for the<br />data feed started immediately on the date the contract was signed.<br />32<br />Page 33<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 33 of 112<br />55.<br />Confidential Witness #1 visited the telesales floor and heard sales people<br />pressuring customers to buy and encouraging them to spread the cost out over multiple credit<br />cards, which would result in massive debt.<br />56.<br />Confidential Witness #2, a member of the seminar sales team during the Class<br />Period, stated, "In my estimation, about 90% of people will not make their money back. You<br />have to be responsible for your trades. It is really hard to make money in the market without<br />discipline. I feel that I was misled [as a student in the program] and given unrealistic<br />expectations. It's not as easy to make money as it is made out to be. CW#2 continued that at<br />least half of a class was a sales pitch for more seminars and more products. The enthusiastic<br />speakers would "sell the dream". Every speaker was a sales person. They told customers they<br />made a lot of money trading, when in fact they made their money selling the stock programs.<br />CW#5, who was trained at the corporate office, learned on the road that the objective was to<br />close the sales. "You sit down and you watch other sales people go through it with customers.<br />It's a high-pressure sales environment. Any student that doesn't buy on Saturday is called back,<br />like a used car salesman."<br />Critical Need to Maintain Multitude of Merchant Accounts<br />57.<br />In order to accept credit cards - the primary form of payment by students for<br />Whitney courses - in the face of huge and quickly-growing numbers of customer complaints,<br />Whitney deemed it critical to maintain a multitude of merchant accounts for its assortment of<br />services through which it could effectuate credit card processing through either a merchant bank<br />or merchant service provider. Without access to merchant accounts, Whitney would be out of<br />business, as credit card payments accounted for $120 million of the $139 million in 2004<br />revenues reported in Whitney's 10K. As important as Whitney's merchant accounts were to its<br />33<br />Page 34<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 34 of 112<br />ability to process payments, it was similarly imperative for Whitney to assure that chargebacks -<br />customer requests for a refund from their card company because they are not satisfied with the<br />quality of a service - remained low, lest Whitney incur not only reversals of revenue, but<br />additional fees, increased requirements for higher merchant account reserves which represent<br />funds on deposit with credit card processors, or complete termination of its merchant accounts.<br />Manipulation of Returns and Lack of Veracity of Company's Public Filings<br />58.<br />Defendants' manipulation of returns and its abuse of credit collection affiliates<br />and customers and other arbitrary reporting had an immediate impact on the veracity and<br />completeness of the Company's financial reports, for at least the following reasons: (i)<br />Whitney's financial reports did not present a true and accurate portrayal of the financial health,<br />flexibility and profitability of the Company, so that investors could make reasonable investment<br />decisions based upon those disclosures; (ii) Defendants artificially inflated reported Deferred<br />Revenues, by representing that the cash already collected and being held by Whitney belonged<br />to the Company, and that such students had simply not yet taken their classes when, in fact,<br />many of the same students had already made a demand for repayment of the same funds; and<br />(iii) Defendants manipulated revenue recognition, immediately recognizing material amounts of<br />"Coaching" fees, despite the fact that these services were virtually identical to mentoring<br />services, which were required to be recorded as deferred revenues.<br />59.<br />Just as Defendants hid these accounting issues from shareholders of the Company,<br />according to documents obtained by Lead Counsel in the course of its investigation, including<br />those referenced herein, infra, from the inception of the Class Period to its end, Defendants also<br />attempted to hide these problems from its credit card affiliates. Thus, in addition to the<br />foregoing, during the Class Period, Defendants also engaged in the manipulation of its actual<br />34<br />Page 35<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 35 of 112<br />credit card processing accounts - thereby "hiding" adverse information from the card processors.<br />It is for these reasons too that, when Defendants reported results for 2Q:05, the first reported<br />period within the Class Period, they announced that credit card processing reserves had been<br />raised from 1% to 5%. At that time, however, Defendants gave no explanation as to why these<br />rates had been raised a whopping 500% in that quarter, nor gave any indication to investors of<br />the true, pervasive problems at the Company, including the inability to sustain revenue based on<br />a scam to pressure customers to purchase worthless educational products which resulted in a<br />large percentage of those customers were demanding refunds or obtaining chargebacks that were<br />adversely impacting Whitney at that time and throughout the Class Period.<br />60.<br />Also, unbeknownst to investors, the aforementioned undisclosed problems were<br />also exacerbating material "weaknesses" at Whitney which were being disclosed by Defendants<br />in piecemeal fashion during the Class Period as discussed herein. Specifically, it was because<br />investors did not know the true impaired condition of Whitney at the inception of the Class<br />Period that they could not effectively gauge the impact of the Company's restatement of its<br />interim and annual financials for the years 2003 through 2005.<br />61.<br />While Defendants were aware that skyrocketing chargebacks were the first<br />warning signs that their arbitrary and abusive Returns policy discussed in detail herein was<br />causing customer backlash, this was not the final adverse effect of Defendants' illegal and<br />wrongful conduct. Accordingly, abused customers were not only complaining to their credit card<br />companies, but after continually being rebuffed by Defendants and having to wade through the<br />morass of obstacles that Whitney put in place in its enrollment process that made it nearly<br />impossible to obtain a refund, were also, in some instances, complaining to government<br />regulators - including United States Attorney Generals and the SEC itself.<br />35<br />Page 36<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 36 of 112<br />Edu Trades: Whitney' s Stock Trading Education Unit<br />62.<br />The Company's stock trading education unit - EduTrades Inc. - was so important<br />to the future strength and profitability of the Company that, by the inception of the Class Period,<br />Defendants had decided to spin off approximately 30% of this subsidiary, in order to obtain<br />proceeds as high as $33.0 million and in order to establish new currency to underwrite future<br />acquisitions for the Company. The spin-off was ultimately unsuccessful and was aborted as<br />discussed herein below.<br />63.<br />Throughout the Class Period, the EduTrades division was run by Rance Masheck<br />who was hired by the Company in July 2004 as Vice President of Sales, and who was described<br />by Whitney as follows:<br />Masheck has significant experience in creating and implementing training programs for<br />financial services organizations and for the sales staffs at leading corporations. He has led<br />expert trainings in the financial industry for floor traders, fund managers and brokers, and<br />has conducted extensive sales trainings for Fortune 500 companies including General<br />Motors, Re-Max, and Minolta.<br />64.<br />The EduTrades proposed IPO never occurred and was ultimately withdrawn.<br />According to Confidential Witness #3, a member of the Company's technical support team<br />during the Class Period, around September of 2006, the EduTrades SEC Registration was<br />withdrawn because information in the registration was not "matching up."<br />Defendants' Materially False and Misleading<br />Statements Made During the Class Period<br />August 11, 2005 Press Release<br />65.<br />On August 11, 2005, Defendants published a release announcing purported<br />"Record" setting results for the second quarter of 2005, ended June 30, 2005. This release also<br />stated, in part, the following:<br />Whitney Information Network, Inc. Posts Record Sales of $46.5 Million and<br />Net Income of $3.1 Million for the Second Quarter of 2005<br />36<br />Page 37<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 37 of 112<br />CAPE CORAL, Fla.--(BUSINESS WIRE)--Aug. 11, 2005--Whitney Information<br />Network, Inc. (OTCBB:RUSS), an international provider of post secondary career<br />education programs, today reported record results for the second quarter ended<br />June 30, 2005. Major achievements for the quarter include:<br />-- Record Sales of $46.5 Million for the quarter<br />-- Operating Cash Flow of $8.9 Million<br />-- Net Income of $3.1 Million for the quarter<br />-- Cash and equivalents of $16.0 Million at June 30<br />-- Strong sales, earnings and cash flow continuing throughout 2005<br />... A key dynamic driving the Company's sales growth was an optimization of its<br />pricing strategy that resulted in a 105% increase in attendance at the Company's<br />3-Day Basic Training Courses and an increase of 33% in Advanced Trainings<br />attendance as compared to the corresponding period in 2004.<br />66.<br />The Company's August 11, 2005 press release attributed Whitney's current<br />purportedly favorable results and its foreseeable future positive results to the following actions,<br />that were reported to have been taken by Defendants during 2Q:05, in part, as follows:<br />Among the successful second quarter initiatives deployed by the Company<br />was an aggressive campaign to test new marketing vehicles and messages.<br />This effort led to significantly improved response rates for all of the<br />Company's core brands, particularly in major markets where these brands have<br />been well established.<br />In the last six months the company's marketing research identified which<br />market segments were most responsive to the Company's message, resulting<br />in more efficient use ofits advertising dollars.<br />As the leading provider of advanced course offerings in its market segment, the<br />Company continued to capitalize on its unique position by expanding both the<br />number and diversity of Advanced Trainings offered to students via alternate<br />delivery methods. In particular, the Company cited its expansion ofon-demand<br />and real-time Advanced Training delivered over the Internet as a key factor<br />favorably impacting the Company's bottom line.<br />(Emphasis added.)<br />37<br />Page 38<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 38 of 112<br />100 for Second Quarter 2005<br />67.<br />The following day, August 12, 2005, Defendants filed with the SEC the<br />Company's 2Q:05 Form 10-Q, for the quarter ended June 30, 2005, signed by Defendants Russ<br />Whitney, Maturo, and Simon, among others, and Certified by Defendants Russ Whitney and<br />Simon. The 2Q:05 Form 10-Q provided statements concerning the Company's Significant<br />Accounting Policies and the basis of its accounting presentation, in part, as follows:<br />Note 1 - Significant Accounting Policies<br />The accompanying consolidated financial statements have been prepared by the<br />Company, without audit, and reflect all adjustments which are, in the opinion of<br />management, necessary for a fair statement of the results for the interim periods.<br />The consolidated statements have been prepared in accordance with<br />accounting principles generally accepted in the United States ofAmerica for<br />interim financial reporting and Securities and Exchange Commission<br />regulations.... In the opinion of management, the financial statements reflect all<br />adjustments (of a normal and recurring nature) which are necessary for a fair<br />presentation of the financial position, results of operations and cash flows for the<br />interim periods....<br />(Emphasis added.)<br />68.<br />In addition to the foregoing, the Company's 2Q:05 Form 10-Q also reported at<br />least two other accounting policies, defined as "significant," including:<br />The Company's contracts for courses require that courses must be attended<br />within one year ofregistration. The Company's policy has been to recognize<br />revenue at the earlier of the attendance of the course or one year from the<br />date ofregistration. During the second quarter of 2005, the Company's United<br />Kingdom subsidiary modified its contracts to be consistent with that of its parent<br />and recognized approximately $1.3 million of revenue from course registrations<br />that had been outstanding for greater than one year.<br />During the second quarter of 2005, the entity that handles the Company's<br />merchant credit cardprocessing increased the reservefor returns on credit card<br />transactions from less than I% of monthly credit card transactions to 5% of<br />monthly credit card transactions.<br />(Emphasis added.)<br />38<br />Page 39<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 39 of 112<br />69.<br />The 2Q:05 Form 10-Q reported revenues, net income and deferred revenues, in<br />part, as follows:<br />Results of Operations<br />Three Months Ended June 30, 2005 compared to June 30, 2004<br />Total revenue for the three months ended June 30, 2005 was $ 46,520,000, an<br />increase of $7,913,000, or 20% compared to the same period in 2004. Tuition for<br />our 3-Day Basic Training events from students enrolled in our Free Preview was<br />$6,697,000 a decrease of $3,826,000 over the comparable period in 2004. This<br />decrease is a result of reduction in the tuition charged to the basic courses which<br />we instituted with the goal of increasing the number of students enrolling in the<br />advanced courses. The enrollment in our advanced courses begins at the 3-Day<br />Training, and the fulfillment of which starts about one-to-two months later.<br />Revenue from our advanced training events was $26,797,000, an increase of<br />$8,990,000 over the comparable period in 2004.<br />Net Income<br />Net income for the three months ended June 30, 2005 was $3,159,000, as<br />compared to a loss of 4,319,000 for the three months ending June 30, 2004, an<br />increase of $7,478,000. Net income per share was $.36, as compared to $(.50) for<br />a similar period last year. This increase is directly attributable to an increase in the<br />delivery of 3 Day basic training courses, realization of more efficient advertising,<br />and general and administrative costs. The change in net income is a trend that is<br />expected to continue, as the backlog of course trainings purchased and<br />undelivered is reduced, the amount of course deliveries will continue to grow,<br />and no significant change in the ratio of expense is anticipatecL Deferred<br />revenue, which is the net backlog of training courses purchased and not yet<br />delivered, increased by $11,863,000 during these three months of 2005,<br />compared to an increase of $11,264, 000 for the same comparable period in<br />2004.<br />(Emphasis added.)<br />70.<br />The Company's 2Q:05 Form 10-Q also contained representations which attested<br />to the purported effectiveness and sufficiency of the Company's controls and procedures, as<br />follows:<br />39<br />Page 40<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 40 of 112<br />ITEM 4. CONTROLS AND PROCEDURES<br />Our Chief Executive Officer and Chief Financial Officer have evaluated the<br />effectiveness of our disclosure controls and procedures ... under the Securities<br />Exchange Act of 1934, as amended (the "Exchange Act"), as of the period<br />covered by this report. Based on such evaluation, such officers have concluded<br />that, as of June 30, 2005, our disclosures and procedures are effective in<br />alerting them on a timely basis to material information relating to our<br />Company (including our controlled subsidiaries) required to be included in<br />our reports filed or submitted under the Exchange Act....<br />(Emphasis added.)<br />71.<br />While the Company stated that its controls and procedures were effective, during<br />2Q:05 Whitney's independent auditors, Ehrhardt Keefe, informed the Board of the Company<br />that certain material weaknesses existed at Whitney, related to the human resources dedicated to<br />accounting and financial reporting. According to the 2Q:05 Form 10-Q, by that time Ehrhardt<br />Keefe knew and was well aware of these control deficiencies, and had reported it to Whitney, as<br />follows:<br />In connection with the interim review of the Company's financial statements, the<br />Company's auditors communicated to the Company's management and the Audit<br />Committee of the Board of Directors material weaknesses involving the<br />Company's internal financial controls. The material weaknesses noted by the<br />auditors relate primarily sufficient human resources within our accounting and<br />financial reporting function and the preparation of financial statement<br />disclosures relating thereto. The Company has assigned a high priority to the<br />remediation ofthe reportable conditions.<br />In connection with the audit of the year ended December 31, 2004, there were no<br />"Reportable Events" within the meaning of Item 304(a)(1)(v) of Regulation S-K.<br />However, the Company's auditors communicated to the Registrant matters it<br />considered to be weaknesses in the Registrant's internal controls relating to the<br />adequacy of staffing of its accounting and finance department. The Registrant<br />believes it has addressed this concern and has further enhanced its staffing and<br />procedures.<br />(Emphasis added.)<br />40<br />Page 41<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 41 of 112<br />72.<br />Further supporting Defendants' statements that Whitney had sufficient control<br />and procedures in place at that time, the 2Q:05 Form 10-Q contained Certifications by<br />Defendants Russ Whitney and Simon. These Certifications attested to the purported accuracy<br />and completeness of the Company's financial and operational reports, stating, in part, "this<br />report does not contain any untrue statement ofa material fact or omit to state a material<br />fact necessary to make the statements made, in light of the circumstances under which<br />such statements were made, not misleading with respect to the period covered by this<br />quarterly report," and that "the financials statements, and other financial information<br />included in this report, fairlypresent in all material respects the financial condition, results<br />ofoperations and cash flows of the registrant as of, and for, the periods presented in this<br />quarterly report," and that "The registrant's other certifying officers and I have disclosed,<br />based on our most recent evaluation of internal control over financial reporting, to the<br />registrant's auditors and the audit committee of registrant's board of directors ... a) all significant<br />deficiencies in the design or operation of internal controls over financial reporting which are<br />reasonably likely to adversely affect the registrant's ability to record, process, summarize and<br />report financial information; and b) any fraud, whether or not material, that involves<br />management or other employees who have a significant role in the registrant's internal control<br />over financial reporting." (Emphasis added.)<br />73.<br />The 2Q:05 Form 10-Q also contained Sarbanes-Oxley Certifications for the<br />period ending June 30, 2004, dated August 10, 2005 and signed by Defendants Russ Whitney<br />and Simon, certifying that "the information contained in the Report fairly presents, in all<br />material respects, the financial condition and results of operations of the Company."<br />41<br />Page 42<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 42 of 112<br />74.<br />Demonstrating a complete lack of diligence in "reviewing" the document being<br />signed, Defendant Simon apparently signed the Section 906 Certification that certified that<br />Charles Miller had reviewed the information presented!<br />75.<br />The statements made by Defendants and contained in the Company's August 11,<br />2005 release and in Whitney's 2Q:05 Form 10-Q were materially false and misleading when<br />made, and were know by Defendants to be false at that time or were recklessly disregarded as<br />such thereby for the following known, concealed materially adverse reasons, among others:<br />(a)<br />At all times during the Class Period, the Company's purported success<br />was not the result of its integration of acquisitions or its products or business model. In truth,<br />throughout the Class Period, Defendants had propped up the Company's results by manipulating<br />Whitney's accounting for revenues and income. The Company's inaccurate accounting methods<br />and failure to properly recognize revenue and income resulted in artificially optimistic financial<br />statements, creating a deceptively successful outlook for the Company;<br />(b)<br />At all times during the Class Period, Defendants concealed and failed to<br />disclose to investors significant credit card processor account problems faced by Whitney<br />through which customers were able to effectively secure "refunds" from the credit card<br />companies through the chargeback process after they were denied refunds by the Company;<br />(c)<br />By the inception of the Class Period, such a large percentage of Whitney<br />customers were demanding refunds that the credit card companies required a 500% increase in<br />account reserves by the Company;<br />(d)<br />At all times during the Class Period, Defendants represented to customers<br />that they could obtain refunds if they so requested within 72 hours (or a similar short time frame<br />of up to five days in certain circumstances), when in fact Defendants did everything in their<br />42<br />Page 43<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 43 of 112<br />power to prevent customers who properly requested such refunds within the prescribed time<br />period from receiving said refunds, and engaged in a pattern and practice of gaming the system<br />in order to subvert customer's legitimate and rightful attempts to obtain a refund after a timely<br />request following the established contractual protocol - including considering a policy of getting<br />customers to "waive" their right of rescission by clicking a button on an internet website;<br />(e)<br />Throughout the Class Period, Defendants' "Zero Tolerance Refund"\<br />Policy" or "line in the sand" policy had a dramatic, negative effect on merchant accounts, as the<br />merchant banks faced exposure as a result of Whitney' s relationship with their institutions;<br />(f)<br />Throughout the Class Period, the Company had a growing chargeback<br />"crisis": while refunds were going down, chargebacks were rising fast;<br />(g)<br />Throughout the Class Period, Defendants recorded as revenue all packages<br />sold within one year of the contract purchase date at the latest, despite failure in all instances to<br />finish delivering all services and products that the customer purchased within that time period,<br />including one year of post-class coaching services, camps, and events and follow-up with<br />Advisors;<br />(h)<br />Defendants' business model had no chance of success because it was<br />based on scamming consumers by inducing them to buy unconscionably overpriced and<br />essentially worthless so-called "educational products" - the "product" provided was essentially a<br />lecture that more products were needed and more money had to be spent by the customer in<br />order to get the money-making skills promoted by the Company, which inevitably resulted in<br />customers' demands for refunds or attempts to obtain chargebacks through their credit card<br />companies' fraud protection programs, and the inability of the Company to sustain its revenues<br />and growth;<br />43<br />Page 44<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 44 of 112<br />(i)<br />Throughout the Class Period, Defendants faced serious problems with<br />compliance, including charging customers before contracts were signed and returned and<br />charging customers before providing any service, and even fabricating contracts;<br />(j)<br />At all times during the Class Period, unbeknownst to investors,<br />Defendants had materially overstated the Company's profitability by failing to properly account<br />for the Company's results of operations and by artificially inflating the Company's financial<br />results - primarily as a result of Defendants' manipulation of deferred revenue accounting and<br />Whitney's abuse of its Refund Policy. Instead of properly characterizing what was actually<br />deferred income, the Company designated some revenue as immediate, allowing the Company to<br />prematurely and improperly realize tens of millions of dollars in additional revenues. The<br />Company also designed a hard-line, difficult-to-defeat (and eventually non-existent) refund<br />policy which made it virtually impossible for unsatisfied customers to recoup their money from<br />the Company, and forced customers instead to turn to the credit card companies for fraud<br />protection;<br />(k)<br />Throughout the Class Period, Whitney did not have adequate systems of<br />internal operational or financial controls. Therefore, Whitney's reported financial statements<br />were not true, accurate, or reliable;<br />(1)<br />As a result of the foregoing accounting improprieties, throughout the Class<br />Period the Company's financial statements and reports were not prepared in accordance with<br />GAAP and SEC rules. Defendants violated GAAP by manipulating their accounting results,<br />failing to disclose information which would be necessary for investors to make informed<br />decisions, mischaracterizing some revenue as immediate when it should have been deferred, and<br />improperly representing their internal controls and business standards as adequate and complete;<br />44<br />Page 45<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 45 of 112<br />(m)<br />Contrary to the Company's representations in its Class Period filings, the<br />Company's Code of Conduct was not designed to moderate the activities of those within the<br />organization and Company employees were not required to uphold basic standards of acceptable<br />business conduct and moral decency. To the contrary, the Code of Conduct was a complete sham<br />designed to create the impression that the Company had proper and ethical business practices<br />when it did not;<br />(n)<br />From at least the inception of the Class Period, Defendants had failed to<br />properly report Deferred Revenues in accordance with GAAP or SEC reporting rules.<br />Defendants violated GAAP in connection with their reporting of deferred revenue. It is a<br />fundamental principal of GAAP that revenues are not reported unless earned. It is also a long-<br />established GAAP convention that revenues are not earned until all conditions associated with<br />the delivery of the goods or services that form the basis of those revenues have been fully<br />performed and are non-contingent;<br />(o)<br />Defendants manipulated Deferred Revenue recording by failing to record<br />certain items as deferred and by recording as deferred what should have been refunded. Thus, in<br />addition to the foregoing, the Company's financial statements were not true, accurate or reliable,<br />for the following reasons, among others: (i) Defendants had failed to report "Coaching" revenues<br />as deferred revenues, consistently with future "camps" and "mentoring." Failing to treat<br />Coaching as Deferred Revenue allowed Defendants to immediately record any revenue<br />categorized this way- despite the fact that these services were intended to be performed over at<br />least an 18 month period. Failing to treat Coaching as Deferred Revenue allowed Defendants to<br />channel material amounts of improperly booked revenue into Whitney; and (ii) Defendants'<br />refusal to grant refunds to customers who made proper and timely refund requests also inflated<br />45<br />Page 46<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 46 of 112<br />Deferred Revenues, because it kept revenue on the Company's books that would otherwise have<br />been returned. Throughout the Class Period, Defendants either adopted a policy of outright<br />refund denials, or they took actions to make it virtually impossible for customers to attain such<br />refunds by carefully designing the delivery of Company services in a manner intended to<br />circumvent merchant banks' chargeback rules and outwit Company customers, by having them<br />sign contract agreements which customers were discouraged from reading or who relied on<br />statements by sales representatives that were not borne out by the contracts, the sole purpose and<br />effect of which is to make obtaining a refund impossible;<br />(p)<br />While Defendants pretended that they did not know until the SEC and US<br />AG investigations were announced that the head of Edutrades, Defendant Masheck, had<br />fabricated credentials and made misrepresentations throughout the Class Period of the<br />Company's products and services, that is not true. In reality, Defendants had conducted a due<br />diligence investigation into EduTrades at the inception of the Class Period - in connection with<br />its proposed spin-off, which was to be headed by Masheck. Therefore, Defendants knew or<br />recklessly disregarded that Masheck did not have the qualifications he pretended and was<br />actively engaged in misrepresenting the Company's products and services as Vice President of<br />Sales and effective head ofEduTrades; and<br />(q)<br />As a result of the aforementioned adverse conditions which Defendants<br />failed to disclose, throughout the Class Period, Defendants lacked any reasonable basis to claim<br />that Whitney was operating according to plan, or that Whitney could achieve guidance sponsored<br />and/or endorsed by Defendants. The "reasonable basis" on which Defendants relied was the<br />soundness and reliability of the Company's audit. However, as a result of manipulated<br />accounting and non-compliance with the basics of GAAP, the audit itself was not based on<br />46<br />Page 47<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 47 of 112<br />accurate information and, knowing this, Defendants could not reasonably rely on it as a basis for<br />claims about the Company's prospects.<br />76.<br />Rather than admit to any of these critical issues that existed within the Company<br />from at least the inception of the Class Period, Defendants instead prepared to take advantage of<br />the almost 20% inflation that had already occurred in the price of Company stock, as a result of<br />Defendants' false statements and omissions. As evidence of this, on September 15, 2005,<br />Defendants published a release on Business Wire, announcing the Company's plans to spin off<br />EduTrades in an Initial Public Offering. This release also stated, in part, the following:<br />Whitney Information Network, Inc. (OTCBB:RUSS) announced today that one of<br />its wholly owned subsidiaries, EduTrades, Inc. ("EduTrades"), has entered into a<br />non-binding letter of intent with an NASD licensed broker-dealer to conduct an<br />initial public offering for EduTrades.<br />Under the terms ofthe letter ofintent, Edu Trades will offer approximately 33%<br />ofits common stock to the publicfor approximately $20 million. The remaining<br />approximately 67% of EduTrades will be retained by Whitney Information<br />Network, Inc. EduTrades provides course training programs covering stock<br />market investing and trading.<br />(Emphasis added.)<br />100 for Third Quarter 2005<br />77.<br />On November 9, 2005, Defendants published a release announcing purported<br />"Record" setting results for the third quarter of 2005, ended September 30, 2005. This release<br />also stated, in part, the following:<br />HEADLINE: Whitney Information Network, Inc. Reports Results for the Third<br />Quarter Ended September 30, 2005<br />Whitney Information Network, Inc. (OTC BB: RUSS):<br />• Pro Forma Operating Cash Flow of $ 8.6 Million, or $0.92 per share (fully<br />diluted),<br />47<br />Page 48<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 48 of 112<br />• Record Sales of $47.7 Million, Net Income of $2.5 Million before tax benefit<br />of $6.7 Million<br />Whitney Information Network, Inc. (OTC BB: RUSS), an international provider<br />of post secondary career education programs, today reported record results for the<br />third quarter ended September 30, 2005.<br />*<br />Other Highlights include:<br />*<br />Pro Forma Operating Cash Flow of $28.3 million for Nine Months ended<br />September 30<br />*<br />Record Sales of $134.3 million for Nine Month ended September 30<br />*<br />Cash and equivalents of $28.2 million at September 30 (includes restricted<br />cash)<br />*<br />Sales, earnings and cash flow growth expected to continue throughout<br />2005.<br />78.<br />The Company's November 9, 2005 press release attributed Whitney's current<br />purportedly favorable results and its foreseeable future positive results to the following actions,<br />that were reported to have been taken by Defendants during 3Q:05, in part, as follows:<br />The dramatic increase in revenue in the third quarter of 2005 was a result of<br />new pricing strategies, increasedfocus on marketing to geographic markets that<br />have responded strongly to the Company's sales efforts, and an increase in<br />delivery ofthe Company's Advanced Training courses.<br />The various marketing initiatives that have been implemented as well as many of<br />the planned projects that are being introduced over the course of the rest of the<br />year could successfully expand the market and result in further sales gains.<br />Increased sales coupled with cost savings from more efficient advertising<br />expenditures including efficient media buys and scheduling and tighter control of<br />general and administrative expenses, which are expected to grow at a slower pace<br />than sales, should result in a continuation of the trend of improving margins.<br />(Emphasis added.)<br />79.<br />In addition to the foregoing, the November 9, 2005 release also provided investors<br />with purported non-GAAP calculations and metrics - such as Pro Forma Operating Cash Flow -<br />which Defendants stated "measures the impact of accounting for deferred revenue and the costs<br />48<br />Page 49<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 49 of 112<br />associated with deferred revenue and other cash items and may better portray the operating<br />performance of the Company than the usual method of calculating operating cash flow." This<br />calculation was stated, in part, as follows:<br />Pro Forma Operating Cash flow (a non-GAAP calculation) was $8 .6 million for<br />the three months ended September 30, 2005 or $0.99 per share (basic) and $0.92<br />per share fully dilutive and $28.3 million for the nine months or $3.25 per share<br />(basic) and $3 . 13 per share (fully diluted).<br />80.<br />In furtherance of Defendants' scheme to sell shares in its EduTrades subsidiary, at<br />the same time the market for its own shares was artificially inflated by Defendants material<br />misstatements and omissions, on November 14, 2005, Defendants published a release<br />announcing that EduTrades had filed a Registration Statement with the SEC, in advance of its<br />expected spin-off IPO transaction.<br />81.<br />The EduTrades proposed IPO never occurred and was withdrawn. According to<br />Confidential Witness #3, a member of the Company's technical support team during the Class<br />Period, around September of 2006, the EduTrades SEC Registration was withdrawn because<br />information in the registration was not "matching up."<br />82.<br />On or about November 21, 2005, Defendants filed with the SEC the Company's<br />3Q:05 Form 10-Q, for the quarter ended September 31, 2005, signed by Defendants Russ<br />Whitney, Maturo, and Simon, among others, and certified by Defendants Russ Whitney and<br />Simon. In addition to making substantially similar statements concerning the Company<br />operations, including expenses, costs and ratios, as had been published previously, the 3Q:05<br />Form 10-Q also provided statements concerning the Company's Significant Accounting Policies<br />and the Basis of its accounting presentation, in part, as follows:<br />49<br />Page 50<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 50 of 112<br />Note 1- Significant Accounting Policies<br />The Company's contracts for courses require that courses must be attended<br />within one year ofregistration. The Company's policy has been to recognize<br />revenue at the earlier of the attendance of the course or one year from the<br />date ofregistration. During the second quarter of 2005, the Company's United<br />Kingdom subsidiary modified its contracts to be consistent with that of its parent<br />and recognized approximately $1.3 million of revenue from course registrations<br />that had been outstanding for greater than one year.<br />83.<br />In addition to the foregoing, the Company's 3Q:05 Form 10-Q reported quarterly<br />Net Income and Deferred Revenue, in part, as follows:<br />Net Income<br />Net income for the three months ended September 30, 2005 was $9,314,000 as<br />compared to a loss of $12,020,000 for the three months ending<br />September 30, 2004, an increase of $21,334,000. Net income per share was $1.04,<br />as compared to $(1.40) for a similar period last year. This increase is directly<br />attributable to an increase in the delivery of advanced training courses, realization<br />of more efficient advertising, and general and administrative costs, and a $6.6<br />million deferred tax benefit. The change in net income is a trend that is<br />expected to continue, as the backlog ofcourse trainings purchased and<br />undelivered is reduced, the amount ofcourse deliveries will continue to grow,<br />and no significant change in the ratio ofexpense is anticipated. Deferred<br />revenue, which is the net backlog of training courses purchased and not yet<br />delivered, increased by $17, 774, 000 during these nine months of2005,<br />compared to an increase of $16,990,000 for the same comparable period in 2004.<br />In the third quarter of 2005, we have reversed the valuation allowance of our<br />deferred tax assets. This created a tax benefit in the period of $6,679,000.<br />The Company's 3Q:05 Form 10-Q also contained representations which attested<br />to the purported effectiveness and sufficiency of the Company's controls and<br />procedures, including "Our Chief Executive Officer and Chief Financial Officer<br />have evaluated the effectiveness of our disclosure controls [and] have concluded<br />that, as of September 30, 2005, our disclosures and procedures are effective in<br />alerting them on a timely basis to material information relating to our Company<br />(including our controlled subsidiaries) required to be included in our reports filed<br />or submitted under the Exchange Act.... In connection with the interim review of<br />the Company's financial statements, the Company's auditors communicated to the<br />Company's management and the Audit Committee of the Board of Directors<br />material weaknesses involving the Company's internal financial controls. The<br />material weaknesses noted by the auditors relate primarily to having<br />50<br />Page 51<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 51 of 112<br />sufficient human resources within our accounting and financial reporting<br />function and the preparation offinancial statement disclosures relating<br />thereto. The Company has assigned a high priority to the remediation of the<br />reportable conditions.<br />(Emphasis added).<br />84.<br />Further supporting Defendants' statements that Whitney had sufficient control<br />and procedures in place at that time, the 3Q:05 Form 10-Q also contained Sarbanes-Oxley<br />Certifications for the period ending September 30, 2005, dated November 18, 2005 and signed<br />by Defendants Russ Whitney and Simon, certifying that "the information contained in the Report<br />fairly presents, in all material respects, the financial condition and results of operations of the<br />Company."<br />85.<br />The 3Q:05 Form 10-Q also reported that Defendant Russ Whitney, together with<br />the Company, had engaged in the private placement of certain Company securities with 16<br />private institutional investors, in a PIPE Transaction - designed to further allow Russ Whitney<br />and the Company to profit from the artificial inflation in the price of Company stock. This PIPE<br />Transaction was reported in the 3Q:05 Form 10-Q, in part, as follows:<br />NOTE 6. SUBSEQUENT EVENTS<br />On November 2, 2005 the Company commenced an unregistered offering of up to<br />2,500,000 units of its securities, each unit consisting of one share of its common<br />stock and 1/2 common stock purchase warrant to purchase an additional 1/2 share<br />at $6 per share. The units are being offered at $4.50 per unit. The securities have<br />not been registered for sale and may not be offered or sold without registration or<br />an exemption.<br />Russell Whitney, the Company's Chief Executive Officer, has committed to sell<br />up to 750,000 of the 2,500,000 units being offered and has the right sell up to<br />50% of all the units sold.<br />The Company is required to register the common stock and the common stock<br />underlying the warrants upon completion of the offering.<br />51<br />Page 52<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 52 of 112<br />The first 600,000 units were sold on November 2, 2005 to one institutional<br />investor.<br />86.<br />On December 13, 2005, Defendants published a release formally announcing the<br />$13.5 million private placement of common stock and warrants. At that time, Defendants<br />revealed that Defendant Russ Whitney would sell at least 1.25 million units, consisting of one<br />share of Company common stock and 1/2 warrant to purchase an additional share at $6.00 per<br />share, at $4.50 per unit. At that time Defendants also reported that the Company would file a<br />registration statement covering these securities within 30 days, from that date.<br />87.<br />In connection with this sale, Defendant Russ Whitney grossed at least $5.625<br />million in illegal insider trading proceeds. At the time Russ Whitney liquidated these shares, he<br />was in possession of material adverse non-public information about the Company. Moreover, the<br />sale of these shares also allowed Whitney to prevent suffering substantial losses on<br />approximately 25% of his entire Whitney portfolio.<br />88.<br />The statements made by Defendants and contained in the Company's November<br />9, 2005 release and those statements also contained in the Company's 3Q:05 Form 10-Q, were<br />each materially false and misleading when made and were know by Defendants to be false at<br />that time, or were recklessly disregarded as such thereby, for the reasons stated herein at ¶¶ 11,<br />36-42, 44, 45, 47, 58 and 75, supra.<br />89.<br />Following this placement of $13.5 million in private equity, on January 9, 2006,<br />Knobias.com, a stock research website, published a comprehensive report on the Company,<br />which noted that, "after losses in 2003 and 2004, WIN is again showing a profit; while a series<br />of corporate actions are awakening RUSS shares from a seven-year slumber." This release noted<br />the Company's recent purported financial strength and foreseeable growth, in part, as follows:<br />52<br />Page 53<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 53 of 112<br />In the first half 2005, reported revenue growth fell sharply to just 12%. In late<br />December, Nicholas "Nick" Maturo, WIN President and COO, told Knobias that<br />the TV ads had "grown stale" and needed to be "refreshed".<br />Mission accomplished; in Q3 2005, year over year reported revenue accelerated<br />by 48%.<br />Maturo now expects WIN to achieve $195 million in 2005 cash sales (incl.<br />deferred revenue gain) up from $167 million in 2004. He credits more efficient<br />marketing. "From 2004 to 2005 we have invested the same advertising dollars<br />with a considerably higher (customer) response rate."<br />90.<br />While the January 9, 2006 Knobias.com report noted that the Company's<br />merchant card processing bank had unexpectedly hiked its reserve holdback from 1% to 5%, this<br />report also quoted Defendant Maturo as stating that in response to this unjustified increase, the<br />Company had sued this bank and diversified its business. In this regard, the Knobias.com report<br />stated, in part, the following:<br />WIN uses the lure of wealth to sell its financial training. Some customers know<br />the terrain and have appropriate expectations. Maturo said, "Some customers sign<br />up for 3 of the intensive courses, but get all they need out ofjust one or two."<br />Others buy courses only to change their minds later and demand refunds. Maturo<br />said that the bank which provides merchant card processing for WIN, suddenly<br />and unexpectedly hiked its reserve holdback from 1% to 5% of credit card<br />transactions. He said WIN is now suing the bank for $2.5 million of the withheld<br />reserves. WIN has also discontinued business with the bank and diversified the<br />business to "6 or 7 others".<br />91.<br />The Knobias.com report concluded by projecting positive results for Whitney, in<br />the foreseeable near-term, in part, as follows:<br />What is next?<br />WIN should be able to report a significant year-end cash position. In September,<br />the Company had $20.9 million in unrestricted and $7.3 million in restricted cash.<br />Since then it has conducted a secondary offering raising $7.9 million for the<br />company (before expenses). The Edutrades.com IPO is expected to raise $15 to<br />20 million in early 2006. Under equity accounting rules, WIN which will retain<br />two-thirds of Edutrades.com stock, will reflect a proportional increase in its own<br />shareholder equity line.<br />53<br />Page 54<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 54 of 112<br />92.<br />Pursuant to the terms of Whitney and Russ Whitney's private equity transaction,<br />on January 11, 2006, Defendants filed with the SEC a Registration Statement pursuant to Form<br />S-1. This Registration Statement described the Offering and the Selling Shareholders, in part, as<br />follows:<br />In December 2005 the Company closed a private placement of 3,300,000 units of<br />its securities, each unit consisting of one share of common stock and one-half<br />common stock purchase warrant to purchase an additional one-half share at $6.00<br />per share. The units were sold at $4.50 per unit. The securities are being<br />registered for sale pursuant to this prospectus. Russell A. Whitney, the Company's<br />Chief Executive Officer, sold 1,250,000 of the units and the Company sold the<br />remaining 1,750,000 units. The private placement generated gross proceeds to us<br />of $7,875,000.<br />Shares<br />Underlying<br />Warrants<br />Shares<br />Percent<br />Shares Owned<br />Owned<br />Owned<br />Owned<br />Prior to<br />Prior to<br />After<br />After<br />Name of Beneficial Owner<br />Offering<br />Offering<br />Offering Offering<br />Cerisano, Michael<br />10,000<br />5,000<br />0<br />0<br />CSL Associates, LP<br />35,000<br />17,500<br />0<br />0<br />Credit Agricole (Suisse) SA<br />Mosaic Europe Agrichg^g Funds<br />55,000<br />27,500<br />0<br />0<br />Double U Master Fund LP c/o<br />Navigator Management Ltd.<br />11,110<br />5,555<br />0<br />0<br />Ferl:in, Martin J .<br />13,404<br />6,702<br />0<br />0<br />Heartland Value Fund<br />600,000<br />300,000<br />0<br />0<br />Iroquois Master Fund Ltd.<br />50,000<br />25,000<br />0<br />0<br />54<br />Page 55<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 55 of 112<br />Lazarus Investment Partners<br />LLLP<br />Lewis Opportunity Fuld LP<br />Mosaic Partners Fund<br />Mosaic Partners Fund (U.S.), LP<br />Noble International Investments,<br />Inc.(1)<br />Noble Special Situations Fund,<br />LP<br />Pequot Mariner Master Fund,<br />L.P. c/o Pequot Capital<br />Management, Inc.<br />Pequot Scout Fund, L. P. c/o<br />Pequot Capital Manageimment,<br />Inc.<br />Prides Capital Fund I, LP c/o<br />Prides Capital<br />QVT Financial Group LLC<br />Radcliffe Investment Partners I<br />Sunrise Equity Partners, L.P.<br />Wasserman, Eric<br />Total s<br />222,222<br />111,111<br />0<br />0<br />20,000<br />10,000<br />0<br />0<br />37,000<br />18,500<br />0<br />0<br />28,000<br />14,000<br />0<br />0<br />300,000<br />150,000<br />0<br />0<br />40,000<br />20,000<br />0<br />0<br />113,608<br />56,804<br />0<br />0<br />2I9,656<br />109,828<br />0<br />0<br />1,100,000<br />550,000<br />0<br />0<br />400,000<br />200,000<br />0<br />0<br />5,000<br />2,500<br />0<br />0<br />30,000<br />15,000<br />0<br />0<br />10,000<br />5,000<br />0<br />0<br />3,300,000<br />1,650,000<br />0<br />0<br />55<br />Page 56<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 56 of 112<br />93.<br />Regarding the Company's purported Revenue, Net Income and Deferred<br />Revenues, this Registration Statement stated, in part, the following:<br />Year Ended December 31, 2004 Compared to December 31, 2003<br />Revenue<br />Total revenue for the year ended December 31, 2004 was $139,859,000, an<br />increase of $44,901,000 or 47%, compared to the same period in 2003. The<br />increase in sales was caused by several factors. There was significant growth in<br />all segments of the business.<br />Net Income<br />Net loss for the year ended December 31, 2004 was $29,896,000, as compared<br />with a net loss of $1,558,000 for the year ended December 31, 2003, an increased<br />loss of 1,819% or $(3.48) per share, as compared to $(0.19) per share for the prior<br />year. The increased loss is directly attributable to increased expenses in all<br />categories in 2004 over the prior period, and to the fact that new sales of<br />advanced training courses continue to outpace the rate at which courses are<br />offered and delivered to students. This is reflected in the fact that deferred<br />revenue increased by S24,096, 000 in 2004, as compared to an increase ofonly<br />$14,044, 000 in 2003. As long as our sales show high growth rates, we must<br />also expand our course offerings to keep pace with that growth. This is a<br />critical performance indicator for us. So long as course delivery can keep pace<br />with sales, we can report net income more closely related to cash provided from<br />operations. In the event that sales of courses continue to outpace the delivery of<br />those courses, then we may continue to show losses, or lower net profits.<br />(Emphasis added.)<br />94.<br />The Company's January 11, 2006 Form S-1 also contained the following<br />information regarding Russ Whitney himself:<br />Russell A. Whitney, Chief Executive Officer, is our founder and has been Chief<br />Executive Officer of our company and its predecessors since 1987. He is also Chief<br />Executive Officer and a director of all of our wholly-owned subsidiaries, written and<br />published three books on wealth building topics. Mr. Whitney devotes substantially all<br />of his time to our business.<br />56<br />Page 57<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 57 of 112<br />95.<br />The Company's January 11, 2006 Form S-1 also contained a purported Report by<br />the Company's Independent Registered Public Accountants, Ehrhardt Keefe, which stated, in<br />part, the following:<br />We have audited the accompanying consolidated balance sheet of Whitney<br />Information Network and Subsidiaries as of December 31, 2004 and 2003, and the<br />related consolidated statements of operations, stockholders' equity and cash flows<br />for each of the three years in the period ended December 31, 2004. ...In our<br />opinion, the consolidated financial statements referred to above present<br />fairly, in all material respects, the financial position of Whitney Information<br />Network, Inc. and Subsidiaries as ofDecember 31, 2004 and 2003, and the<br />results of their operations and their cash flows for each of the three years in<br />the period ended December 31, 2004 in conformity with accounting<br />principles generally accepted in the United States ofAmerica.<br />(Emphasis added.)<br />96.<br />The statements made by Defendants and contained in the Company's January<br />2006 PIPE Transaction Form S-1 Registration Statement and those statements made by the<br />Company's Independent Auditors and contained in the Ehrhardt Keefe April 12, 2005 Report,<br />contained therein, were each materially false and misleading when made and were know by<br />Defendants to be false at that time, or were recklessly disregarded as such thereby, for the<br />reasons stated herein in ¶¶ 11, 36-42, 44, 45, 47, 58 and 75, supra.<br />March 31, 2006 Press Release<br />97.<br />On March 31, 2006, Defendants published a release announcing purported record-<br />setting results for the fourth quarter and full year ended December 31, 2005. This release also<br />stated, in part, the following:<br />HEADLINE: Whitney Information Network, Inc. Reports Record Revenues,<br />Earnings and Adjusted EBITDA for 2005<br />Whitney Information Network, Inc. (OTCBB:RUSS), an international leader in<br />the postsecondary education industry focused on educating individual investors in<br />real estate and financial markets, reported full year 2005 revenue of $178.6<br />57<br />Page 58<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 58 of 112<br />million, up 28% over the prior year, net earnings of $17.4 million vs. a net loss of<br />$(30.1) million in 2004, and Adjusted EBITDA of $23.4 million compared with<br />negative Adjusted EBITDA of ($6.4) million in the prior year.<br />2005 Highlights<br />--<br />Student attendance increased 9.1% to nearly 370,000 vs. 2004<br />--<br />Cash received from course and product sales totaled $196.5 million, a<br />20% increase over 2004<br />--<br />Reported earnings per diluted share totaled $1.86 vs. loss per diluted share<br />of $(3.50) in 2004<br />--<br />Cash flows provided by operations amounted to $17.1 million, vs. $(1.5)<br />million over prior year<br />--<br />Cash, cash equivalents and restricted cash totaled $38.7 million vs. $6.8<br />million in 2004<br />98.<br />In addition to the foregoing, this release also quoted Defendants Russ Whitney<br />and Maturo, in part, as follows:<br />"We are proud of the significant achievements our team attained in 2005," said<br />Russell A. Whitney, founder, Chairman of the Board and Chief Executive Officer.<br />" Through our team 's hard work, efficiency gains and cost controls, we<br />believe 2005 represents an inflection point for our Company and a platform<br />for sustained growth in 2006 and beyond. We take tremendous satisfaction in<br />the growing number of individuals who benefited in multiple ways from our<br />training and ongoing support."<br />President and Chief Operating Officer Nicholas S. Maturo said, "Our relevant and<br />compelling course offerings proved our ability to provide pertinent education<br />content and deliver it on a cost effective basis. Our portfolio of strong brands in<br />both real estate and financial markets education catered to the individual investor.<br />The depth ofour advanced courses, the emerging electronic delivery ofour<br />course content and overall margin management provided for a terrific 2005<br />and the seeds for a strong 2006."<br />(Emphasis added)<br />58<br />Page 59<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 59 of 112<br />99.<br />In addition to conventional GAAP earnings, this release also conditioned<br />investors to focus on "Cash Received From Course and Product Sales" as an "important measure<br />of cash receipts and overall business volume."<br />2005 Form 10-K<br />100.<br />On or about March 31, 2006, Defendants filed with the SEC the Company's 2005<br />Form 10-K, for the year ended December 31, 2006, signed by Defendants Russ Whitney,<br />Maturo, Novas, and Simon, among others, and certified by Defendants Russ Whitney and<br />Novas. In addition to making substantially similar statements concerning the Company's<br />operations as had been made by Defendants previously - including revenue, net income,<br />expenses and costs - the 2005 Form 10-K also reported the Company 's treatment of Deferred<br />Revenues, in part, as follows:<br />Due to the timing differences between cash collection and the time at which our<br />students actually take the course (or course expiration, which ever is earlier), we<br />have historically recorded a substantial amount of deferred revenue. Most of the<br />deferred revenue at the end of each year will result in reported revenues in the<br />next year. As reflected in the table below, our deferred revenue as a percentage of<br />total revenue have ranged from the high 30% to mid 40% range since 2002 (in<br />thousands).<br />Year ended December 31,<br />2005<br />2004<br />2003<br />2002<br />2001<br />Deferred revenue<br />$ 80,550 $ 62,689 $38,593 $ 24,549 $ 23,9;7<br />Revenue for financial reporting<br />178,564<br />139, 859<br />94,958<br />62, 145<br />42,158<br />purposes<br />Deferred as a percentage of<br />45. I ° o<br />44.8010<br />400,o<br />39.500<br />5().800<br />revenue<br />Critical Accounting Policies<br />Deferred revenue<br />59<br />Page 60<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 60 of 112<br />We are engaged primarily in the business ofproviding real estate and<br />financial education to individual investors through courses ofstudy, as well<br />as educational materials. Students pay for the courses in advance and we<br />record the proceeds from the sale ofcourses as deferred revenue when it is<br />received. Revenue is earned when the student attends the training program<br />or at the expiration ofour obligation to provide training, whichever comes<br />first. The fees are generally nonrefundable, and the students are allowed one<br />year to complete theirprogram. A student may receive a refund within three<br />days of their purchase by exercising a right ofrescission. In such cases, the<br />corresponding amount ofdeferred revenue is relieved with no impact on the<br />consolidatedincome statement.<br />Revenue Recognition, Deferred Revenue and Deferred Seminar Expenses<br />We recognize revenue for the sale ofproducts and software, upon delivery.<br />Revenue from educational seminars is recognized upon the earlier of<br />(1) when the nonrefundable deposit is received for the seminars and the<br />seminar has taken place; or (2) upon the contractual expiration ofour<br />obligation to provide a seminar only if the seminar was paid for. Deferred<br />revenue is recorded when the seminar proceeds are received prior to the<br />related seminar taking place. Expenses for commission payments made to our<br />speakers directly related to additional courses sold are considered acquisition<br />costs of those revenues and deferred until the related revenue is recognized in<br />accordance with the guidance in SAB 104.<br />(Emphasis added.)<br />101.<br />The Company's 2005 Form 10-K also contained representations which attested to<br />the purported effectiveness and sufficiency of the Company's controls and procedures, as<br />follows:<br />...Our management, with the participation and oversight of our chief executive<br />officer and chief financial officer, evaluated the design and effectiveness of our<br />disclosure controls and procedures as of the end of the period covered by this<br />report. In conducting this evaluation, several material weaknesses were identified<br />in our internal control over financial reporting relating to timely account<br />reconciliations, preparation and review of financial statements and disclosures,<br />accounting for foreign currency, deferred revenue, inventory valuation, and<br />recordkeeping for equity incentive awards and agreements. Specifically, our<br />personnel lacked sufficient knowledge and experience and did not have<br />appropriate oversight. The Company's accounting department has experienced<br />significant turnover at various levels. This turnover and abilities of these<br />personnel have contributed to the internal control issues described above.<br />60<br />Page 61<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 61 of 112<br />On the basis of these findings, our chiefexecutive officer and our chief<br />financial officer have concluded that our disclosure controls andprocedures<br />were not effective, as of the end of the period covered by this report. In<br />connection with the 2005 audit of our financial statements, our independent<br />registered public accounting arm, issued a management letter which noted<br />that we had the material weaknesses described above in our internal control<br />over financial reporting.<br />Subsequent to identifying the material weaknesses in our internal control<br />over financial reporting our CEO and acting CFO have initiated corrective<br />actions to address these internal control deficiencies, and will continue to<br />evaluate the effectiveness ofour disclosure controls and internal controls and<br />procedures on an ongoing basis, taking corrective action as appropriate. The<br />actions implemented include recruiting additional experienced stafffor<br />newly createdpositions that will directly address the control deficiencies, and<br />the formalization ofpolicies and procedures and addition ofmonitoring<br />controls.....<br />On September 21, 2005, the SEC extended the compliance dates related to<br />Section 404 of the Sarbanes-Oxley Act for non-accelerated filers. Under this<br />extension a company that is not required to file its annual and quarterly reports on<br />an accelerated basis (non-accelerated filer) must begin to comply with the internal<br />control over financial reporting requirements for its first fiscal year ending on or<br />after July 15, 2007. We anticipate that we may become an accelerated filer in<br />calendar 2006 and therefore we could be required to comply with these<br />requirements for the year ending December 31, 2006. We are currently in the<br />process ofdocumenting our internal control structure.<br />(Emphasis added.)<br />102.<br />Further supporting Defendants' statements that Whitney had sufficient control<br />and procedures in place at that time, the 2005 Form 10-K also contained Sarbanes-Oxley<br />Certifications for the period ending December 31, 2005, dated March 31, 2006 and signed by<br />Defendants Russ Whitney and Novas, certifying that "the information contained in the Report<br />fairly presents, in all material respects, the financial condition and results of operations of the<br />Company."<br />61<br />Page 62<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 62 of 112<br />103.<br />The Company's 2005 Form 10-K also contained a purported Report by the<br />Company's Independent Registered Public Accountants, Ehrhardt Keefe, which stated, in part,<br />the following:<br />In our opinion, the consolidated financial statements referred to above present<br />fairly, in all material respects, the financial position of Whitney Information<br />Network, Inc. and Subsidiaries as of December 31, 2005 and 2004, and the results<br />of their operations and their cash flows for each of the three years in the period<br />ended December 31, 2005 in conformity with accounting principles generally<br />accepted in the United States of America. Also, in our opinion, the financial<br />statement schedule II for the year ended December 31, 2005, when<br />considered in relation to the basic consolidated financial statements taken as<br />a whole, presents fairly in all material respects the information set forth<br />therein.<br />(Emphasis added.)<br />104.<br />The statements made by Defendants and contained in the Company's March 31,<br />2006 release and those statements also contained in the Company's 2005 Form 10-K were each<br />materially false and misleading when made and were know by Defendants to be false at that<br />time, or were recklessly disregarded as such thereby, for the reasons stated herein at ¶¶ 11, 36-<br />42, 44, 45, 47, 58 and 75, supra.<br />105.<br />With shares of the Company then trading between $8.00 and $10.00 each,<br />Defendants next took advantage in the artificial inflation in the price of Company shares caused<br />as a result of the publication of their materially false and misleading statements and between<br />early February and early May 2006, insiders raced to the market to liquidate more of their<br />privately-held Whitney common stock - to reap millions more of additional unearned stock<br />profits. As evidence of this, on February 3, 2006 Defendant Simon sold over 100,000 shares of<br />Whitney stock at $9.12 per share to gross $911,999.00; on March 17, 2006, Defendant Russ<br />Whitney also liquidated another 100,000 Whitney shares at $9.50 per share to gross<br />62<br />Page 63<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 63 of 112<br />$950,000.00; and Defendant Kane liquidated 40,000 shares of Whitney stock at $10.35 per share<br />to reap gross proceeds of at least $414,000.00.<br />May 15, 2006: Announcement of Need to Restate Financial Results<br />106.<br />Despite the Company's prior statements that its financial reports were prepared in<br />accordance with GAAP and SEC reporting requirements, that it maintained at least the minimum<br />financial controls and procedures - and that the Company was also working diligently to<br />augment these procedures - on May 15, 2006, Defendants published a release announcing that<br />Whitney would be forced to restate its financial results. This release stated, in part, the<br />following:<br />HEADLINE: Whitney Information Network, Inc. Restates Earnings - No<br />Economic or Cash Flow Impact<br />Whitney Information Network, Inc. (OTCBB:RUSS) will restate financial<br />results for the years 2004 and 2005 and the related quarterly periods. The<br />cumulative restatements have no effect on the timing or amount of the Company's<br />consolidated operating cash flows or its cash position.<br />Restatement<br />The financial restatements reflect:<br />-<br />a modification associated with a change in revenue recognition policy<br />solely at its United Kingdom subsidiary and restatement of revenue from<br />expired contracts in the United Kingdom recorded in 2005 that relate to<br />2004;<br />--<br />reclassifications in prior period line item expense categories and the<br />timing ofaccruals necessary for comparability to the current period's<br />presentation; and<br />--<br />a revision to the revenue recognition policy with respect to the<br />Company's teleconferencing product and service offering.<br />Quarter ended March 31, 2006<br />The Company had $43.7 million of cash, cash equivalents and restricted cash on<br />its consolidated balance sheets as of March 31, 2006, as compared to $38.7<br />63<br />Page 64<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 64 of 112<br />million at December 31, 2005. Consolidated cash flows from operations for the<br />three months ended March 31, 2006 increased 16.6% to $8.7 million over the<br />comparable period in 2005. The cumulative restatements have no effect on the<br />timing or amount of the Company's consolidated operating cash flows or its cash<br />position.<br />(Emphasis added.)<br />107.<br />This release attributed the Company's change in accounting to scrutiny over<br />Whitney' s accounting, which had resulted in connection with the SEC's review of the<br />EduTrades Registration Statement. This release further described the results of this restatement,<br />in part, as follows:<br />In connection with the review of the Company's Registration Statement on Form<br />S-1, the Company had discussions with Staff members of the Securities and<br />Exchange Commission (SEC) regarding the May 2005 change in policy with<br />respect to revenue recognition in the United Kingdom. The Company elected to<br />amend its policy in the United Kingdom with respect to the acceptance of students<br />allowed to take courses subsequent to the expiration of the contract the Company<br />had with the student.<br />The original policy was established at the inception of the Company's European<br />operations and was initially driven by customer service and capacity<br />considerations. As the United Kingdom operations matured, the Company sought<br />to establish conformity with its North American operations; therefore, the policy<br />changed in May 2005 to recognize revenue upon the student contract's expiry. In<br />the second quarter of 2005, the Company changed its policy and recorded $1.3<br />million in revenue in connection with expired contracts.<br />The Company intends to modify the May 2005 policy associated with<br />delivering education content to those students who will attend classes after<br />the expiration of the contract. The Company will also restate revenue from<br />expired contracts in the United Kingdom recorded in 2005 that relate to<br />2004. The United Kingdom subsidiary represented approximately 3.0% of the<br />Company's cash received from course or product sales in 2005. These<br />restatements will have no cumulative effect on the Company's consolidated<br />statement of cash flows.<br />The Company also reviewed the classification of expenses by both period and<br />line item, and will restate prior periods necessary for comparability with the<br />current period's presentation . These changes and reclassifications will have no<br />cumulative effect on reported earnings or cash flows or adjusted earnings before<br />interest taxes depreciation and amortization (EBITDA).<br />64<br />Page 65<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 65 of 112<br />Upon review of the Company's revenue recognition policies for all service<br />and product offerings, the Company concluded the previous revenue<br />recognition policy with respect to its teleconferencing offering needed to<br />comply with Financial Accounting Standard Board's Emerging Issues Task<br />Force Issue No. 00-21, Revenue Arrangements with Multiple Deliverables.<br />Teleconferencing represented approximately 0.8% of cash received from course<br />or product sales in 2005. This restatement has no effect on the Company's<br />consolidated cash flows from operations.<br />(Emphasis added.)<br />108.<br />The statements made by Defendants and contained in the Company's May 15,<br />2006 release were each materially false and misleading when made and were know by<br />Defendants to be false at that time, or were recklessly disregarded as such thereby, for the<br />reasons stated herein at ¶¶ 11, 36-42, 44, 45, 47, 58 and 75, supra. In addition, these statements<br />were also materially false and misleading because this restatement was evidence of the radically<br />insufficient internal controls within the Company, not a non-material event that should have<br />been disregarded, as Defendants intimated, because of its limited impact on performance metrics<br />such as cash flow. Moreover, the May 15, 2006 Restatement release was also materially false<br />and misleading, and was known by Defendants to be false at that time, or recklessly disregarded<br />as such, because at that time, Defendants were also aware that this purported restatement still did<br />not render the Company in compliance with GAAP and SEC reporting rules, because<br />Defendants were still manipulating and abusing Deferred Revenue reporting as a method of<br />artificially inflating the Company's results, and Defendants were still manipulating Whitney's<br />return policies in a manner also designed to inflate reported Deferred Revenues.<br />May 22, 2006 Press Release<br />109.<br />In order to apply its new revenue recognition policies, the Company also delayed<br />its announcement of financial results for the first quarter ended March 31, 2006 until May 22,<br />65<br />Page 66<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 66 of 112<br />2006. That day, Defendants published a release announcing "1Q 2006 Preliminary Results and<br />Restatement Update." This release stated, in part, the following:<br />The Company is pleased with the start of 2006 and the continued momentum of<br />the business . The Company' s restatement of its historical financial statements<br />does not affect the economics or cash flows of our business.<br />Quarter ended March 31, 2006 Preliminary Results<br />Key drivers for the first quarter's growth in cash received from course and product<br />sales include the continued expansion of our outreach program (an increase of<br />$6.2 million) and advanced course sales (an increase of $3.9 million) over the<br />comparable year ago period. This more than offset a slight $0.4 million decline in<br />our three-day sessions, which resulted from our decision to reduce tuition prices<br />in 2005 and provides the opportunity for more students to benefit from our course<br />offerings and exposure to our advanced courses.<br />110.<br />In addition, the May 22, 2006 release also provided additional information related<br />to the Company's previously announced Restatement, in part, as follows:<br />Restatement Update<br />In connection with the review of the Company's Registration Statement on Form<br />S-1, the Company had discussions with Staff members of the U.S. Securities and<br />Exchange Commission ("SEC") regarding our May 2005 change in policy with<br />respect to revenue recognition in the United Kingdom. The SEC further inquired<br />about the revenue recognition policy in United States and Canada with respect to<br />expired contracts. We will modify our policy associated with delivering education<br />content, to those students who attend classes after the expiration of the contract, to<br />be consistent worldwide.<br />Once the policy isfinalized, the reportedperiods that need to be restatedperiods<br />will be determined. The anticipated cumulative restatements are not expected to<br />have an effect on the timing or amount of the Company's consolidated statement<br />of cash flows and its cash position.<br />Upon review of our revenue recognition policies for all service and product<br />offerings, we concluded the previous revenue recognition policy with respect to<br />our teleconferencing offering needed to comply with Financial Accounting<br />Standard Board's Emerging Issues Task<br />Arrangements with Multiple Deliverables.<br />consolidated cash flows from operations.<br />Force Issue No. 00-21, Revenue<br />This restatement has no effect on our<br />66<br />Page 67<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 67 of 112<br />In summary, the financial restatements will reflect:<br />--<br />a modification associated with a change in revenue recognition policy for<br />expired contracts and any related attendance subsequent to the contract expiration;<br />--<br />reclassifications in prior period line item expense categories and the<br />timing of accruals necessary for comparability to the current period's presentation;<br />and<br />--<br />a revision to the revenue recognition policy with respect to the Company's<br />teleconferencing product and service offering.<br />111.<br />Further conditioning the market in advance of the planned EduTrades IPO, on<br />May 22, 2006, Defendants published a release announcing that the Company had increased the<br />size of this offering, and had filed with the SEC an "updated" Registration Statement. According<br />to this release, Defendants then intended to sell at least 3 .0 million shares of EduTrades stock,<br />priced as high as $11.00 - for expected gross proceeds of at much as $33.0 million.<br />10-0 for First Quarter 2006<br />112.<br />On or about June 23, 2006, Defendants filed with the SEC the Company's 1Q:06<br />Form 10-Q, for the quarter ended March 31, 2006, signed by Defendants Russ Whitney, Maturo,<br />Novas and Simon, among others, and certified by Defendants Russ Whitney and Novas. In<br />addition to making substantially similar statements concerning the Company operations,<br />including expenses, costs and ratios, as had been discussed previously, the 1Q:06 Form 10-Q<br />reiterated many of the same or similar statements concerning the Company' s restatement, in<br />addition to reciting the Company's purported basis of accounting presentation, in part, as<br />follows:<br />Note ]-Basis ofPresentation<br />These Consolidated Financial Statements have been prepared in accordance with<br />accounting principles generally accepted in the United States of America (U.S.<br />GAAP .... The Company is in the process of amending its Annual Report on<br />67<br />Page 68<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 68 of 112<br />Form 10-K for the year ended December 31, 2005 to reflect certain policy<br />revisions and the effect of such revisions on its historical Consolidated Financial<br />Statements.<br />113.<br />The 1Q:06 Form 10-Q also reported the impact of the Restatement upon the<br />Company's Controls and Procedures, in part, as follows:<br />... Our management, with the participation and oversight of our chief executive<br />officer and chief financial officer, evaluated the design and effectiveness of our<br />disclosure controls and procedures as of the end of the period covered by this<br />report. In conducting this evaluation, several material weaknesses were identified<br />in our internal control over financial reporting relating to timely account<br />reconciliations, preparation and review offinancial statements and disclosures,<br />accounting for foreign currency, deferred revenue, inventory valuation, and<br />recordkeeping for equity incentive awards and agreements. Specifically, our<br />personnel lacked sufficient knowledge and experience and did not have<br />appropriate oversight. The Company's accounting department has experienced<br />significant turnover at various levels. This turnover and abilities of these<br />personnel have contributed to the internal control issues described above.<br />On the basis of these findings, our Chief Executive Officer and our Chief<br />Financial Officer have concluded that our disclosure controls and procedures<br />were not effective, as of the end of the period covered by this report. In<br />connection with the 2005 audit of our Consolidated Financial Statements, our<br />independent registered public accounting firm, issued a management letter which<br />noted that we had the material weaknesses described above in our internal control<br />over financial reporting. These deficiencies included:<br />•<br />Bank reconciliations were incorrectly prepared containing improper<br />reconciling items resulting in misstatements to the recorded balance in the general<br />ledger.<br />•<br />Errors in deferred revenue and revenue recognition were noted. The<br />Company places excessive reliance on its systems in certain circumstances<br />without adequate review over systems and processes.<br />•<br />A general lack of review over the accounting and reporting functions and<br />inadequate reconciliation procedures exist in many areas of the accounting<br />function.<br />Inadequate EDP controls including general access controls.<br />•<br />The Company does not currently maintain complete records and adequate<br />supporting documentation over its stock options and warrants.<br />68<br />Page 69<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 69 of 112<br />•<br />The Company' s calculation of its foreign currency translation adjustments<br />contained errors.<br />•<br />The Company does not have adequate procedures to provide for inventory<br />obsolescence.<br />These material weaknesses are a result of a lack of sufficient and qualified<br />personnel over the accounting and reporting function, a lack of formalized<br />processes and procedures over key areas in the accounting and reporting functions<br />and inadequate supervision and review over the financial reporting function.<br />(b)<br />There have been no changes in our internal control over financial<br />reporting during the period covered by this report that materially affected, or are<br />reasonably likely to materially affect, our internal control over financial reporting.<br />Subsequent to identifying the material weaknesses in our internal control over<br />financial reporting we initiated corrective actions to address these internal control<br />deficiencies, and will continue to evaluate the effectiveness of our disclosure<br />controls and internal controls and procedures on an ongoing basis, taking<br />corrective action as appropriate. In the first quarter of 2006, we hired experienced<br />Chief Financial Officers for both the Parent Company and for our wholly owned<br />subsidiary, EduTrades, Inc. We are also actively recruiting for several new<br />positions that have been approved by the Board of Directors in the areas of<br />financial reporting, financial planning and analysis, financial systems and<br />continued upgrades in the Controller's department. In the interim, we have<br />retained the services of two certified public accountants and other accounting<br />professionals to assist in the preparation of our Consolidated Financial Statements<br />until the positions are filled. Should additional significant deficiencies in our<br />internal controls be discovered in the future, a failure to remediate them or to<br />implement required new or improved controls could harm our operating results,<br />cause us to fail to meet our reporting obligations or result in misstatements in our<br />Consolidated Financial Statements.<br />(Emphasis added.)<br />114.<br />Further supporting Defendants' statements that Whitney had sufficient control<br />and procedures in place at that time, the 1Q:06 Form 10-Q also contained Sarbanes-Oxley<br />Certifications for the period ending March 31, 2006, dated June 23, 2006 and signed by<br />Defendants Russ Whitney and Novas, certifying that "the information contained in the Report<br />fairly presents, in all material respects, the financial condition and results of operations of the<br />Company."<br />69<br />Page 70<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 70 of 112<br />115.<br />The statements made by Defendants and contained in the Company's May 22,<br />2006 release and those statements also contained in the Company's 1Q:06 Form 10-Q, were<br />each materially false and misleading when made and were know by Defendants to be false at<br />that time, or were recklessly disregarded as such thereby, for the reasons stated herein at ¶¶ 11,<br />36-42, 44, 45, 47, 58 and 75, supra.<br />116.<br />Thereafter, on June 28, 2006, Defendants also hosted a conference call for<br />analysts and investors. Following this call, which was available over the internet and on a free<br />call-in basis, Fair Disclosure newswire service published a transcript that stated, in part, the<br />following:<br />NICHOLAS MATURO,<br />PRESIDENT,<br />COO,<br />WHITNEY EDUCATION<br />GROUP: Thank you, Steve. Good morning, everyone and thank you for listening<br />in. Let me start by saying that I would like to apologize for the delay in issuing<br />the first quarter Q. In relation to the review of our registration statement on Form<br />S-1 and after discussions with SEC staff, we determined and announced that we<br />would restate certain historical financial results. We changed our revenue<br />recognition procedures for expired student contracts and it proved to be a time-<br />consuming project to go back to the year 2000 for these student contracts. But<br />rest assured it had no impact on adjusted EBITDA and cash flow generated from<br />operations and what we believe to be the more appropriate method of tracking our<br />Company's performance. Also, rest assured that our business is strong and that<br />our balance sheet with over 43 million in cash at March 31 and our cash sales are<br />at all-time record highs.<br />In summary, our first quarter 2006 performance was solid with an increase in<br />revenue of 17.9% to 45 .3 million reported and an increase in cash flow of 30.2%<br />to $8.7 million.<br />(Emphasis added.)<br />117.<br />In addition to the foregoing, during this call Defendant Novas, CFO of the<br />Company, announced the effect of the changes in Whitney's revenue recognition policy, in part,<br />as follows:<br />70<br />Page 71<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 71 of 112<br />I'd like to turn our attention then briefly to the change in revenue recognition<br />policy. As Nick indicated earlier, in connection with the review of our registration<br />statement on Form S I, we had discussions with the staff members of the<br />Securities and Exchange Commission regarding our revenue recognition policy<br />and I refer you to the recently filed 10-Q for a much more detailed discussion on<br />those changes. But in summary, our revenue recognition policy will be based on<br />the following. When a student attends the course, that will trigger the revenue<br />that will be recognized, So it is primarily based on attendance. We will also<br />calculate the likelihood ofa student 's attendance when it is deemed remote. The<br />combination ofthose two items in essence will be the revenue recognition policy<br />ofthe Company.<br />Lastly, with respect to the status on the restatement of our financials, we are in the<br />process of amending our annual reports on Form 10-Q for the years 2003 through<br />2005 to reflect our policy revisions and the effect of such revisions on our<br />historical financial statements. We may find it necessary to restate periods prior to<br />2003. We expect to determine how far back we will need to restate over the next<br />few weeks. Once we determine this, we will issue a press release.<br />(Emphasis added.)<br />118.<br />When questioned directly about the Company's limited ability to generate returns<br />for investors, and the obvious ability to sell Whitney to private equity investors, by analyst Brian<br />Wilkinson, from Lewis Asset Management, Defendant Maturo responded, in part, as follows:<br />I think we are demonstrating that there is solid basis performance in this business,<br />tremendous cash flow generation, and at the same time it's very early on in the<br />process. We did not complete the Pipe until mid-December as we have had<br />roadshows since and we plan to get back on the road again and create a greater<br />ground swell of interest.<br />And I think that is really our primary strategy right now, is to continue to tell the<br />story on the Company, and by all the meetings I have had, the response has been<br />very positive, very strong. I think we have got a little bit of a delay here because<br />of our restatement matter but other than that, there's nothing fundamentally<br />changed in the restructuring of the operations of the business, the potential of the<br />business...<br />August 15, 2006 Press Release<br />119.<br />Following the report of the Company' s Restatement and in an effort to reassure<br />investors that Whitney still had tremendous confidence in its ability to continue to grow its<br />71<br />Page 72<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 72 of 112<br />business - and that it maintained at least adequate internal operational and financial controls to<br />accomplish this task - on August 15, 2006 Defendants published a release announcing a large<br />dividend. At that time, Defendants published a release that stated, in part, the following:<br />Whitney Information Network, Inc. (OTCBB: RUSS), an international leader in<br />the postsecondary education industry focused on educating individual investors in<br />real estate and financial markets, announced today that our Board of Directors had<br />declared a cash dividend of $1.00 per share.<br />The special cash dividend reflects the confidence by our Board in our ability to<br />continue to grow our business, increase free cash flow and build shareholder<br />value. It also demonstrates our appreciation to our shareholders....<br />120.<br />The August 15, 2006 release also provided purported Highlights for 2Q:06, in<br />part, as follows:<br />Q2 2006 Highlights<br />--<br />Paid student attendance increased 25.6% over the same period in 2005<br />--<br />Cash received from course and product sales totaled a record $59.7<br />million, a 17.1% increase vs. Q2 2005<br />--<br />Cash flows provided by operations amounted to $5.5 million vs. $2.2<br />million, a 153% increase over the same period in 2005<br />--<br />Cash, cash equivalents and restricted cash totaled $49.9 million at June 30,<br />2006 vs. $21.4 million at June 30, 2005, a $28.5 million increase<br />For the three months ended June 30, 2006, we reported record revenue of $47.5<br />million, an increase of 16.1% over the restated prior year amount of $40.9<br />million, and a net loss of $4.6 million vs. a restated net loss of $2.1 million in the<br />comparable 2005 period. For the second quarter ended June 30, 2006, we<br />recorded Adjusted EBITDA of $6.9 million, essentially the same as in the<br />comparable 2005 period.<br />In addition to conventional GAAP earnings, the August 15, 2006 release also conditioned<br />investors to focus on "Cash Received From Course and Product Sales" as an "important measure<br />of cash receipts and overall business volume."<br />72<br />Page 73<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 73 of 112<br />121.<br />Thereafter, on August 15, 2006, Defendants also hosted a conference call for<br />analysts and investors. Following this call, which was available over the internet and on a free<br />call-in basis, Fair Disclosure newswire service published a transcript that stated, in part, the<br />following:<br />NICHOLAS MATURO, PRESIDENT, COO, WHITNEY INFORMATION<br />NETWORK: Thank you, Al. Good morning, everyone. We are particularly<br />pleased to announce record sales results for the current three and six month<br />periods and our first ever cash dividend and, at $1.00 a share, a pretty sizeable one<br />at that.<br />I would like to note certain business highlights. Our overall business remains<br />brisk and continues to grow. Cash sales reached a record $59.7 million and our<br />business continues to generate significant pre-cash flow. This quarter's adjusted<br />EBITDA was $6.9 million, contributing to our growing $50 million of cash, cash<br />equivalents and restricted cash....<br />122.<br />During this conference call, following the presentation by Defendant Maturo,<br />Defendant Novas also stated, in part, the following:<br />AL NOVAS:<br />... Starting with our Q2 performance, we recorded a 60.1% increase in second<br />quarter GAAP revenue to $47.5 million versus a restated $40.9 million in Q2<br />2005. [Inaudible] attendance increased by 25.6% for the quarter. Cash received<br />from course and product sales increased 17.1% to $59.7 million versus last year's<br />$50.9 million. Our outreach, our telemarketing program, grew 61.7% in the<br />quarter and now represents 27% of our total cash sales compared to 19.6% in Q2<br />'05. On a segment basis, EduTrades had an outstanding quarter in topline<br />performance. Cash received from course and product sales increased over 70%<br />led by the Teach Me to Trade brand, our leading brand company-wide. So we<br />expect this brand to [gross] $100 million alone in 2007.<br />This quarter was a strong cash flow quarter. We generated approximately $5.5<br />million in cash flow from operations which equals an increase of 153% over last<br />year's number. Adjusted EBITDA was $6.9 million, essentially flat the last year.<br />Our cash flow generating capability remains strong. For the first half of the year,<br />we were 60% above last year from cash flow from operations and our cash<br />73<br />Page 74<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 74 of 112<br />balance stood at $50 million at June 30 compared to $33.2 million at December<br />31, 2005.<br />123.<br />The statements made by Defendants and contained in the Company's June 28,<br />2006 Conference Call, those statements made by Defendants and contained in the Company's<br />August 15, 2006 release, and those statements made by the Company and contained in the<br />Company's August 15, 2006 Conference Call, were each materially false and misleading when<br />made and were know by Defendants to be false at that time, or were recklessly disregarded as<br />such thereby, for the reasons stated herein in ¶¶ 11, 36-42, 44, 45, 47, 58 and 75, supra.<br />Form 10-Q for Second Quarter 2006<br />124.<br />On or about August 14, 2006, Defendants filed with the SEC the Company's<br />2Q:06 Form 10-Q for the quarter ended June 30, 2006, signed by Defendants Russ Whitney,<br />Maturo, Novas, and Simon, among others, and certified by Defendants Russ Whitney and<br />Novas. In addition to making substantially similar statements concerning the Company<br />operations, including revenues, deferred revenues, net income and earnings, as had been<br />published previously, the 2Q:06 Form 10-Q also provided an updated Revenue Recognition<br />statement - introducing the concept of "breakage" - in part, as follows:<br />Revenue recognition policy<br />We are engaged primarily in the business of providing real estate and financial<br />education to individual investors through courses of study as well as educational<br />materials. We offer our students multiple course packages. Students pay for the<br />courses in advance and we record the proceeds from the sale of courses as<br />deferred revenue when it is received. Revenue is earned when the student attends<br />the course.<br />The student is permitted to attend courses (in all available learning formats)<br />throughout the life of the student contract. We allow students to attend courses<br />subsequent to expiration upon request. The tuition is generally nonrefundable. A<br />student may receive a refund within three days of the purchase by exercising a<br />74<br />Page 75<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 75 of 112<br />right of rescission. In such cases, the corresponding amount of deferred revenue is<br />relieved with no impact on the Consolidated Statement of Operations.<br />We recognize revenue based on:<br />•<br />when the course is attended by the student; or<br />•<br />likelihood of the attendance by the student is remote (course breakage), which<br />is based on the historical:<br />percentage of students who never attended a course and those<br />students who never attended a course subsequent to expiration; and<br />highest number of days in which 95% of those students who<br />attended our courses subsequent to expiry.<br />We determine our course breakage rate based upon estimates developed from<br />historical student attendance patterns. Based on our historical information, we can<br />determine the likelihood of an expired course remaining unattended. Moreover,<br />we determined that we do not have a legal obligation to remit the value of expired<br />courses to relevant taxing jurisdictions.<br />To apply course breakage, we calculate verifiable and objective supporting data as<br />of each balance sheet date.<br />To the extent our financial markets education division (EduTrades, Inc. a wholly<br />owned subsidiary) and United Kingdom businesses do not have three full years of<br />data (subsequent to course expiration), we recognize revenue based on course<br />attendance. Only at such time that we have developed verifiable and objective<br />data over a three year period subsequent to course expiration will we apply course<br />breakage based on the methodology described above.<br />With respect to financial markets education division and United Kingdom, the<br />Company expects to have sufficient data to apply course breakage by the end of<br />2006. Accordingly, we anticipate reflecting course breakage as contemplated<br />above for the quarter ending December 31, 2006, for the courses sold during the<br />fourth quarter of 2003 through the fourth quarter of 2006 which remains expired<br />and unattended. We expect to recognize a significant amount of deferred revenue<br />in the fourth quarter of 2006 from initial application of the course breakage to our<br />financial markets education division and United Kingdom businesses.<br />As a result of applying this policy, during the three months ended March 31, 2006<br />and 2005 we recognized $1.9 million and $3.6 million, respectively, in revenue<br />related to course breakage.<br />75<br />Page 76<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 76 of 112<br />125.<br />The 2Q:06 Form 10-Q also provided statements concerning the Company's<br />Controls and Procedures that were similar to those reported the prior quarter, including stating,<br />in part, the following:<br />To address the formerly disclosed material weaknesses in the bank reconciliation<br />process we have implemented several controls to ensure accuracy and<br />completeness in the reconciliations to properly support the recorded balance in the<br />general ledger. These new controls have been designed and are operating<br />adequately. We also upgraded our current accounting and financial reporting<br />systems.<br />126.<br />Further supporting Defendants' statements that Whitney had sufficient control<br />and procedures in place at that time, the 2Q:06 Form 10-Q also contained Sarbanes-Oxley<br />Certifications for the period ending June 30, 2006, dated August 14, 2006 and signed by<br />Defendants Russ Whitney and Novas, certifying that "the information contained in the Report<br />fairly presents, in all material respects, the financial condition and results of operations of the<br />Company."<br />127.<br />In addition to the foregoing, for the first time, Defendants also reported the<br />significant additional costs associated with Defendant Whitney and Russ Whitney's private<br />equity sale - all of which was being paid by the Company at a penalty rate of at least $4,500 per<br />day - in part, as follows:<br />Note 10-Commitments and contingencies<br />Liquidated damages provision in registration rights agreement<br />If we failed to have the Registration Statement declared effective by April 11,<br />2006 (or if effectiveness is not maintained), the registration rights agreement<br />requires the payment of liquidated damages to the investors on a daily basis of<br />$4,500 (which represents 1% per month of the proceeds in cash) until the<br />registration statement is declared effective or effectiveness is maintained. We<br />have a maximum liability of one year under the registration rights agreement.<br />76<br />Page 77<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 77 of 112<br />128.<br />The statements made by Defendants and contained in the Company's 2Q:06 Form<br />10-Q were each materially false and misleading when made and were know by Defendants to be<br />false at that time, or were recklessly disregarded as such thereby, for the reasons stated herein in<br />¶¶ 11, 36-42, 44, 45, 47, 58 and 75, supra.<br />129.<br />On November 13, 2006, the SEC declared effective the Registration of the 4.95<br />million shares that the Company had been attempting to register for over a year - shares related<br />to the Company's and Russ Whitney's PIPE Transaction. That day, Defendants filed with the<br />SEC, pursuant to Form 424131, a final Registration Statement that reiterated the Company's<br />revenue recognition policy, as follows:<br />In connection with the review of our Registration Statement on Form S-1, we had<br />discussions with Staff members of the Securities and Exchange Commission<br />("SEC") regarding the May 2005 change in policy with respect to revenue<br />recognition in the United Kingdom. Through these discussions, we identified<br />errors in the application of our revenue recognition policy in compliance with<br />generally accepted accounting principles in the United Kingdom and in North<br />America because our business practice of allowing students to complete courses<br />after the expiration of their contracts was not consistent with our revenue<br />recognition policy in the United Kingdom and in North America between 2001-<br />2005.<br />Accordingly, we elected to restate our Consolidated Financial Statements to<br />correct these errors. Upon implementation of the new revenue recognition<br />policy, we restated our Consolidated Financial Statements from 2001 through<br />and including 2005. These restatements resulted in recognition of revenue<br />based upon when the course is attended or once the likelihood of attendance by<br />the student becomes remote, as describedfurther in our Revenue Recognition<br />Policy below.<br />Our revenue recognition policy is consistently applied worldwide. Moreover, our<br />worldwide business practice to allow our students to attend courses subsequent to<br />the expiration of the contract remains our business practice today and for the<br />foreseeable future.<br />Revenue recognition policy<br />We are engaged primarily in the business of providing real estate and financial<br />markets education to individual investors through courses of study as well as<br />educational materials. We offer our students multiple course packages. Students<br />77<br />Page 78<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 78 of 112<br />pay for the courses in advance and we record the proceeds from the sale of<br />courses as deferred revenue when it is received, Revenue is earned when the<br />student attends the course.<br />The student is permitted to attend courses (in all available learning formats)<br />throughout the life of the student contract. We allow students to attend courses<br />subsequent to expiration upon request. The tuition is generally nonrefundable.<br />A student may receive a refund within three days of the purchase by exercising<br />a right of rescission. In such cases, the corresponding amount of deferred<br />revenue is relieved with no impact on the Consolidated Statement of<br />Operations.<br />(Emphasis added.)<br />130.<br />Again Defendants explained the Company's revenue recognition policies and<br />their effects of what the Company defined as "breakage" accounting, in part, as follows:<br />We recognize revenue based on:<br />•<br />when the course is attended by the student; or<br />•<br />likelihood of the attendance by the student is remote (course breakage),<br />which is based on the historical:<br />- percentage of students who never attended a course and those<br />students who never attended a course subsequent to expiration; and<br />- highest number ofdays in which 95% ofthose students who attended<br />our courses subsequent to expiry.<br />We determine our course breakage rate based upon estimates developed<br />from historical student attendance patterns. Based on our historical<br />information, we can determine the likelihood of an expired course<br />remaining unattended, Moreover, we determined that we do not have a<br />legal obligation to remit the value of expired courses to relevant taxing<br />jurisdictions.<br />To apply course breakage, we calculate verifiable and objective supporting data<br />as ofeach balance sheet date.<br />To the extent our financial markets education division (EduTrades, Inc. a wholly<br />owned subsidiary) and United Kingdom businesses do not have three full years of<br />data (subsequent to course expiration), we recognize revenue based on course<br />attendance. Only at such time that we have developed verifiable and objective<br />78<br />Page 79<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 79 of 112<br />data over a three year period subsequent to course expiration will we apply course<br />breakage based on the methodology described above.<br />With respect to our EduTrades division and the United Kingdom, we expect to<br />have sufficient data to apply course breakage by the end of 2006. Accordingly, we<br />anticipate reflecting course breakage as contemplated above in the quarter ending<br />December 31, 2006, for the courses sold as of the beginning of the first quarter of<br />2003 through the end of the fourth quarter of 2005 which remain expired and<br />unattended. We expect to recognize between approximately $18 million and<br />$22 million of deferred revenue in the fourth quarter of 2006 from initial<br />application of the course breakage related to the period prior to January 1, 2006 to<br />our EduTrades division and United Kingdom businesses.<br />As a result of applying this policy, during the years ended December 31, 2005,<br />2004 and 2003 we recognized $16.6 million, $18.1 million and $19.0 million,<br />respectively, in revenue related to course breakage.<br />(Emphasis added.)<br />131.<br />On November 14, 2006, Defendants published a release announcing the 4.95<br />million share common stock registration, as well as highlights for 3Q:06, which stated in part,<br />the following:<br />Whitney Information Network, Inc. Announces: Registration of 4.95 Million<br />Shares of Common Stock Intention to List on a National Exchange Q3 2006<br />Operating Results<br />CAPE CORAL, Fla., Nov 14, 2006 (BUSINESS WIRE) -- Whitney Information<br />Network, Inc. (OTCBB:RUSS), an international leader in the postsecondary<br />education industry focused on educating individual investors in real estate and<br />financial markets, announces that a Registration Statement filed with the<br />Securities and Exchange Commission was declared effective yesterday at 5:00pm<br />EST. The Registration Statement covers 4.95 million shares of common stock in<br />connection with a private placement completed in December 2005.<br />We also announce our intention to list our shares on a national stock exchange.<br />We will commence an evaluation as to which exchange is best suited for our<br />investors and take the necessary steps to accomplish this objective.<br />Q3 2006 Highlights<br />-- Cash received from course and product sales totaled a record $58.3 million, an<br />8.8% increase vs. Q3 2005, while GAAP revenues increased 18.8% to $52.3<br />million<br />79<br />Page 80<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 80 of 112<br />-- Cash flows provided by operations amounted to $7.9 million vs. $6.0 million, a<br />31.2% increase over the same period in 2005<br />-- Cash, cash equivalents and restricted cash totaled $61.9 million at September<br />30, 2006 vs. $28.2 million at September 30, 2005, a $33.7 million increase<br />For the three months ended September 30, 2006, we reported record revenue of<br />$52.3 million, an increase of 18.8% over the restated prior year amount of $44.1<br />million, and a net loss of $1.3 million vs. restated net earnings of $5.3 million in<br />the comparable 2005 period. Net earnings in the 2005 period included a $6.7<br />million tax benefit. For the third quarter ended September 30, 2006, we recorded<br />Adjusted EBITDA of $4.3 million, a $2.7 million decrease when compared to the<br />same period in 2005.<br />During the first three quarters of 2006, we recorded revenue of $144.8 million, a<br />17.3% increase over the restated $123.4 million in the nine months of 2005, and a<br />net loss of $9.7 million vs. restated net earnings of $3.9 million for 2005.<br />Adjusted EBITDA for the first nine months of 2006 was $19.9 million compared<br />to $23.3 million for the same period in 2005.<br />132.<br />In addition to conventional GAAP earnings, this release also conditioned<br />investors to focus on "Cash Received From Course and Product Sales" as an "important measure<br />of cash receipts and overall business volume."<br />133.<br />The statements made by Defendants and contained in the Company's November<br />2006 revised PIPE Transaction Registration and those statements contained in the Company's<br />November 14, 2006 release announcing this Registration, were each materially false and<br />misleading when made and were know by Defendants to be false at that time, or were recklessly<br />disregarded as such thereby, for the reasons stated herein in ¶¶ 11, 36-42, 44, 45, 47, 58 and 75,<br />supra.<br />Code of Conduct, Code of Ethics, Standards of Business Practice<br />134.<br />In addition to violating SEC and federal securities laws and disclosure<br />regulations, as well as other state and federal laws, the manipulation of refunds as well as<br />80<br />Page 81<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 81 of 112<br />Defendants' other misrepresentations to its shareholders, Defendants also violated the<br />Company's Code of Conduct, Code of Ethics and standards of business practices and made<br />misrepresentations and omissions with respect thereto. As evidence of this, the Code of Ethics<br />for the CEO, President and Senior Officers of the Company (adopted March 9, 2004), signed by<br />each of these senior managers, states the following:<br />Whitney Information Network, Inc. (the "Company") is committed to conducting<br />our business in accordance with applicable laws, rules and regulations and the<br />highest standards of business ethics, and to full and accurate financial disclosure<br />in compliance with applicable law. This Code of Ethics, applicable to the<br />Company's Chief Executive Officer, President, Chief Financial Officer,<br />Treasurer, Vice President of Finance and other senior executive officers<br />(collectively, "Senior Officers") sets forth specific policies to guide you in the<br />performance of your duties. To the extent the positions specified in the immediate<br />preceding sentence exist at any of the Company's subsidiaries, this Code of Ethics<br />will also be applicable to, and the term "Senior Officers" will include, such<br />officers of the Company's subsidiary.<br />135.<br />Similarly, the very first page of the Company's Code of Conduct pertaining to all<br />Whitney directors, officers and employees, contains a statement of Corporate Responsibility,<br />signed by Defendant Russ Whitney, which stated in part, the following:<br />CORPORATE RESPONSIBILITY<br />We at Whitney Information Network, Inc. recognize that to be a leader in the post<br />secondary education market we must demonstrate a commitment to corporate<br />governance and responsibility by conducting our business with the highest ethical<br />standards in accordance with all applicable laws, rules and regulations of the<br />countries in which we engage in business.<br />The Code of Conduct has been developed to summarize the principles and<br />standards that will guide our Company in our mission to empower individuals to<br />create financial independence by incorporating our core values--integrity,<br />accountability, commitment to excellence, and team-player mentality--into our<br />every day business life. These values are the foundation that will guide us through<br />our mission and will strengthen our ability to attract and retain employees,<br />develop business, and reduce costs and risks.<br />81<br />Page 82<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 82 of 112<br />136.<br />The Company's Code of Ethics also imposes duties that bear a direct relation to<br />Whitney' s federal reporting responsibilities and that were designed to ensure GAAP compliance.<br />These statements also include, in part, the following:<br />INTRODUCTION<br />This Code of Ethics ("the Code") embodies the commitment of Whitney<br />Information Network, Inc., its affiliates and subsidiaries (collectively, "WIN") to<br />conduct its business with the highest ethical standards and in accordance with all<br />applicable laws, rules and regulations of the countries in which WIN engages in<br />business. All members of the Board of Directors, Executive Officers, and Senior<br />Financial Officers are expected to adhere to the principles and procedures set<br />forth in this Code. Directors, Executive Officers, and Senior Financial Officers<br />that are also WIN employees are also required to abide by WIN's Employee Code<br />of Conduct, which is not part of this Code.<br />Standard 1.2 - Honesty<br />Each Director, Executive Officer, and Senior Financial Officer owes a duty to<br />WIN to act with integrity. Integrity requires, among other things, being honest.<br />Standard 2.3 - Full, Fair, Accurate, and Timely Disclosures<br />Senior Financial Officers shall provide full, fair, accurate, timely, and<br />understandable disclosures in reports and documents that are filed with or<br />submitted to the SEC and other governmental agencies and in any press release or<br />other public communications.<br />Standard 2.4 - Disclosures free of Misrepresentations<br />Senior Financial Officers shall provide full, fair, accurate, timely, and<br />understandable information, without misrepresenting or causing others to<br />misrepresent, material facts about WIN to the SEC, WIN's independent auditors,<br />WIN employees or independent contractors.<br />Standard 2.5 - Compliance with Laws & Regulatory Agencies<br />Senior Financial Officers shall comply with laws, rules and regulations of<br />national, state, provincial, and local governments and other appropriate regulatory<br />agencies and self-regulatory bodies.<br />82<br />Page 83<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 83 of 112<br />137.<br />The foregoing statements regarding the Company's compliance with laws, rules,<br />and its own Code of Conduct were materially false and misleading because Defendants knew or<br />recklessly disregarded during the Class Period that its financial statements did not comply with<br />GAAP and SEC rules because, inter alia, revenue was improperly and prematurely recognized,<br />and that rather than providing full, fair, and accurate disclosures, in fact Defendants concealed<br />the true fact that Russ Whitney' s and the Company' s entire business model was a sham,<br />premised on the concept of luring unsophisticated students into signing up for near-worthless<br />and unconscionably-overpriced courses and then using the courses themselves as a platform to<br />sell still more worthless courses as further described in the section directly below. As a result,<br />Whitney' s secret, fraudulent business model was doomed to failure and ultimately resulted in<br />dissatisfied customers demanding refunds, not attending courses, and accusing the Company of<br />bad business practices at best and an artful con game at worst, as well as serious problems with<br />credit card companies, including AMEX, regarding chargebacks and customers' refusals to pay.<br />138.<br />Throughout the Class Period, the statements regarding the Company's Code of<br />Conduct as set forth above were materially false and misleading when made because, inter alia,<br />the Company's Code of Conduct was not designed to moderate the activities of those within the<br />organization and Company employees were not required to uphold basic standards of acceptable<br />business conduct and moral decency. To the contrary, the Code of Conduct was a complete sham<br />designed to create the impression that the Company had proper and ethical business practices<br />when it did not.<br />THE TRUE OPERATIONAL CONDITION<br />OF WHITNEY IS BELATEDLY DISCLOSED<br />139.<br />On November 21, 2006, Defendants shocked and alarmed investors after they<br />published a release that revealed, for the first time, that the SEC had begun an investigation into<br />83<br />Page 84<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 84 of 112<br />the Company. According to Whitney, the SEC was examining the Company's compliance with<br />federal securities laws in connection with: (i) the efficacy or trading success of the Company's<br />market education programs - EduTrades; and (ii) the Company's prior acquisitions of certain<br />other entities.<br />140.<br />The revelations that the Company had materially misrepresented the efficacy and<br />success of its stock education products were critical to investors because much of the Company's<br />future growth and development had been tied to the development of its stock education business<br />and because the Company had been preparing to sell over $33 million in EduTrades shares in the<br />open market. As evidence of this, on November 21, 2006, shares of the Company plummeted to<br />a low of $5.25 per share - a one day decline ofalmost 36 % - compared to the closing price of<br />$8.20 per share the prior day, November 20, 2006.<br />141.<br />On December 15, 2006, after the market closed, Defendants further shocked the<br />market by revealing that Whitney had received a Grand Jury Subpoena from the United States<br />Attorney for the Eastern District of Virginia and had been notified that the Company was being<br />investigated for its marketing activities. The Company's press release, announcing the Grand<br />Jury Investigation into Whitney stated, in part, the following:<br />CAPE CORAL, FL, Dec. 15, 2006 (BUSINESS WIRE)<br />Whitney Information<br />Network, Inc. (OTCBB:RUSS) announced today that the United States Attorney<br />for the Eastern District of Virginia has notified the Company that it has<br />commenced a grand jury investigation into certain of the Company's marketing<br />activities. The Company received a subpoena on December 11, 2006 in<br />connection with this investigation requesting documents and information from<br />January 1, 2002 to the present relating to its marketing activities. The<br />Company intends to cooperate fully with this investigation.<br />The Company's Board of Directors has established a Special Committee of<br />independent directors to conduct an internal investigation of these activities<br />and the Company's acquisitions of other companies. The Committee has engaged<br />the law firm of Wilmer Cutler Pickering Hale and Dorr to assist it with this<br />investigation.<br />84<br />Page 85<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 85 of 112<br />Separately, the Company also announced today that it intends to withdraw its<br />EduTrades, Inc. registration statement filed with the Securities and Exchange<br />Commission.<br />Post Class Period Events<br />142.<br />On the next trading day, December 18, 2006, shares of the Company traded to a<br />low of $3 .1 per share.<br />143.<br />The following day, on December 19, 2006, the Company published another<br />release announcing the departure of Defendants Maturo and Masheck. The release published by<br />Defendants at that time, stated, in substantial part, the following:<br />Whitney Information Network, Inc. Announces Departure of Officers<br />CAPE CORAL, Fla.--(BUSINESS WIRE)--Dec. 19, 2006--Whitney Information<br />Network, Inc. (OTCBB:RUSS) announced today the termination of employment<br />of Nicholas S. Maturo, President and Chief Operating Officer and Rance<br />Masheck, Vice President, Sales and Marketing of EduTrades, Inc. (a subsidiary of<br />the Company).<br />144.<br />On December 21, 2006, Whitney revealed that it had accused Defendant<br />Masheck, the former Vice President, Sales and Marketing of EduTrades, of making false<br />statements about his prior trading success as well as the efficacy of the Whitney stock trading<br />system. That day, in connection with the additional termination of Richard O'Dor, former<br />Director of Corporate Communications, Defendants also published a release that stated, in part,<br />the following:<br />Whitney Information Network, Inc. Announces Resignation of Director,<br />Corporate Communications and Details Recent Termination<br />CAPE CORAL, Fla.--(BUSINESS WIRE)--Dec. 21, 2006--Whitney Information<br />Network, Inc. (OTCBB:RUSS) announced today the resignation of Richard<br />O'Dor, Director, Corporate Communications for the Company. Mr. O'Dor<br />resigned after Management of the Company learned that Mr. O'Dor had made a<br />misstatement to the press without the knowledge of, or authorization by, the<br />Company, regarding the reason for the termination of Rance Masheck, Vice<br />85<br />Page 86<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 86 of 112<br />President, Sales and Marketing of EduTrades, Inc. (a subsidiary of the Company),<br />which was announced on December 19, 2006. Mr. Masheck was terminated due<br />to the fact that his trading records do not substantiate claims which he made,<br />and which the Company broadcasted publicly, regarding his trading success.<br />The Company discovered this fact during its internal investigation related to both<br />the grand jury investigation by the United States Attorney's Office for the Eastern<br />District of Virginia, which was announced by the Company on December 15,<br />2006, and the investigation and subpoena by the Securities and Exchange<br />Commission, which was announced by the Company on November 20, 2006.<br />(Emphasis added.)<br />145.<br />On February 2, 2007, Defendants announced that Whitney had undergone a<br />significant Reorganization. Pursuant thereto, Defendant Simon was elevated to the position of<br />Co-President and Chief Operating Officer and Defendant Novas was promoted from Chief<br />Financial Officer to the position of Co-President and Chief Financial Officer.<br />Russ Whitney: True Facts Regarding Felony Conviction,<br />Financial History, Prior Bad Acts<br />146.<br />Following the end of the Class Period, in the face of the above-mentioned<br />disturbing developments, the media began to question statements and potential omissions<br />relating directly to Russ Whitney himself, including the validity of specific points in his resume.<br />147.<br />According to a report published on a locally-oriented website called the<br />EastBayExpress.com in February 2007, a local East Bay resident, John Reed, had previously<br />defended himself in a suit by Whitney (designed to prevent Reed from making critical<br />statements about Whitney, on Reed' s own website), and had discovered that:<br />• In 1974, when Russ Whitney was purportedly building his first real estate<br />empire, he was in factpleading guilty to participating in a 1972 robbery ofa<br />convenience store, and served 19 months, before being paroled in March of<br />1976.<br />•<br />After going to Schenectady, NY, the purported site of Russ Whitney's first real<br />estate fortune, Reed was able to determine that upon his 25th birthday, Russ<br />Whitney appeared to own six "highly leveraged"properties with a combined<br />value ofunder $100, 000.<br />86<br />Page 87<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 87 of 112<br />• In 1980, Russ Whitney was involved in a hit-and-run accident where he<br />seriously injured a 19year old pedestrian, running him over with a pick-up<br />truck, causing brain injury and fleeing the scene, leaving the injured man without<br />medical attention for hours. A civil action against Russ Whitney relating to<br />these events resulted in a $1.2 million judgment for Whitney's victim. Russ<br />Whitney ultimately paid only about one third ofthejudgment for the victim,<br />after threatening to file for bankruptcy before paying the fulljudgment.<br />148.<br />A March 18, 2007, New York Times expose on the Company stated, in part, the<br />following:<br />And "Have you ever wondered how it would feel being rich?"<br />Visions of wine-sipping then fill the screen, of golf-playing, of sailboats sailing<br />into the sunset. Strolling down a dock, a smart-looking fellow in a bright polo<br />shirt and khaki shorts turns to the camera and says, "With real estate, there's no<br />question you can amass the most amount of money in the least amount of<br />time. "<br />This is Russ Whitney, "who started out working in a slaughterhouse for $5 an<br />hour, " the announcer tells us, "and turned $1,000 in borrowed money into a<br />personal wealth of $4.7 million -- in only 18 months! " He has since devoted<br />himself to helping others, the spot continues, and "on this important television<br />special, " Whitney will show you how to build wealth -- "even with only a part-<br />time effort! "<br />To look at Whitney now, you don't have to wonder how it feels to be rich. He has<br />been all over television talking about it. He's spoken of it to countless audiences,<br />written about it in several books, including "Millionaire Real Estate Mentor," a<br />BusinessWeek best seller. (Last fall, Whitney also appeared in New York City as<br />a panelist at a New York Times-sponsored event, the Great Read in the Park.) His<br />rags-to-riches tale has been worn smooth, but he knows it's a good story, and<br />nothing else quite conveys his exceptional pluck.<br />149.<br />The New York Times article further reported on the Company's business structure<br />and some typical experiences that it discovered during its investigation, including the following:<br />By this time, however, Whitney has switched into the future tense, and it becomes<br />clear he is not actually going to reveal any of his wealth-building techniques until<br />you attend one of his "truly unique" workshops. Not only is admission to this<br />"special, limited-seating event" free, but Whitney will also give you, "absolutely<br />87<br />Page 88<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 88 of 112<br />free," his special Russ Whitney's Building Wealth Entrepreneur Start-Up Kit -- "a<br />$199 value." In other words, he will pay you to attend, so how could you not?<br />"You have everything to gain by attending!" "Call now!" "Operators are standing<br />by."<br />And<br />so<br />on....<br />In staging some 4,700 free events a year, Whitney Information Network attracts<br />some 280,000 people, of whom 22,000 go on to enroll as students in advanced<br />courses. Last November at the Clarion Hotel in Louisville, Pat Yarbrough, a 56-<br />year-old custodian at the University of Louisville, became one of them. "Fast<br />money," she explained later, "that's all I'm interested in." At the front of the<br />conference room, a nice man had taught her how to raise her credit-card debt<br />limit, she said, and when she made her way with a cane to the back, a nice clerk<br />showed her what she could buy: three-day courses with names like Rehabbing for<br />Profit and Keys to Creative Real Estate Financing. The courses cost $4,995 each,<br />but less if you bought more. Yarbrough chose four, including the Millionaire U<br />Real Estate Training. She had $130,000 in debt, some of it on her seven credit<br />cards, and the clerk helped her to add $18,000 to it.<br />150.<br />According to the New York Times report, the Company was able to achieve its<br />multi-hundred-million dollar yearly revenues, because they charged students as much as $54,000<br />for Whitney's full course package - usually financed by the additional debt that Whitney<br />instructs its students to obtain. The Times also reported that, for this large investment - greater<br />then the cots of a 4 year college education at most state universities - students are given a mix of<br />pop-self help psychology and rudimentary real estate advice.<br />151.<br />In addition to the foregoing, the Times reported that Whitney students typically<br />justify the huge costs of these classes because they are confident that the riches that lie<br />immediately ahead of them will be sufficient to recover these one-time expenses. According to<br />the Times, this justification is also encouraged to be adopted by Whitney students, even by Russ<br />Whitney, who was also quoted in this report as stating, he was unabashed that his instructors<br />help students put the cost of those courses on credit cards and further stated that compared with<br />the cost of college, his school is "a bargain," and that the cost of a Whitney education can be<br />recovered very quickly through real estate or stock trading proceeds.<br />88<br />Page 89<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 89 of 112<br />152.<br />The Times report does, however, make this observation:<br />In his official company biography, Whitney says that "his greatest achievement is<br />the success of his students." The immediate effect of becoming a Whitney student,<br />though, is not to get rich, but poorer. The infomercial addresses people who are<br />"just getting by, making payments on debts and credit cards." Among the first<br />lessons Whitney instructors teach is how to raise the limits on their credit cards,<br />and then how to plunge deeper into debt buying Whitney courses.<br />153.<br />On March 23, 2007, Defendants announced the resignations of two of its<br />Directors, Stephen L. Cootley and Anthony Petrelli.<br />154.<br />In early April 2007, Defendants reported results for 1Q:07, the period ended<br />March 31, 2007. Thereafter, on April 6, 2007, Cashflow News reported that these results<br />amounted to a sudden negative reversal in the Company's Free Cash Flow - as well as an eight-<br />year low for this important metric.<br />155.<br />Evidencing continued control deficiencies, on May 29, 2007, Whitney revealed<br />that they would be unable to file with the SEC, the Company's 1Q:07 quarterly results pursuant<br />to Form 10-Q. At that time, Defendants stated that such report should be filed with the SEC by<br />May 21, 2007.<br />156.<br />As a result of its delayed filing, on May 29, 2007, Defendants filed a preliminary<br />report with the SEC pursuant to Form 8-K. This statement revealed that Defendant Russ<br />Whitney had refused to cooperate with the Company' s internal investigation and that he had<br />refused to answer questions by legal counsel to the Special Committee.<br />157.<br />On or about June 22, 2007, Whitney ceased trading on the OTC and thereafter<br />commenced trading in the pink sheets under the symbol RUSS-PK.<br />158.<br />On July 2, two large investors in the Company - Hudson Street Capital<br />Management LLC and Kingstown Capital Partners LLC - wrote a letter to the Independent<br />Directors "to express our concern that the RUSS Board of Directors, as currently configured,<br />89<br />Page 90<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 90 of 112<br />lacks independence from Russell Whitney, Chairman of the Board, CEO, and the Company's<br />largest shareholder. We believe that other shareholders' interests have been surrendered to the<br />self-interests and personal enrichment of Mr. Whitney, while shareholder value in general has<br />precipitously eroded.... It is our belief that, once free of Russell Whitney's self-dealing and<br />unchecked influence, the Special Committee could more expeditiously resolve the government<br />investigations that hang over the Company and hamper its operating performance on many<br />levels. In fact, the Company's Form 8-K dated May 29, 2007 discloses that `The Department of<br />Justice and/or the SEC may view [Mr. Whitney's refusal to submit to an interview by the Special<br />Committee's consultant WilmerHale] as lack of cooperation towards the Special Committee's<br />efforts to determine the facts in its internal investigation and prolong the SEC's investigation and<br />broaden the Department of Justice's investigation.."'<br />159.<br />On July 2, 2007, the Company announced that Chester P. Schwartz, the Chairman<br />of the audit committee, had abruptly resigned from the Board of Directors.<br />CAUSATION AND ECONOMIC LOSS<br />160.<br />During the Class Period, as detailed herein, Defendants engaged in an illegal and<br />improper course of conduct that acted to artificially inflate the price of Whitney stock, and that<br />operated as a fraud or deceit on Class Period purchasers of Whitney stock, by misrepresenting<br />the Company's financial results, its internal operations ad the effect of its controls and<br />procedures.<br />161.<br />Over a period of approximately sixteen (16) months, Defendants improperly<br />inflated the Company's financial results. Ultimately, however, when Defendants' prior<br />misrepresentations and fraudulent conduct came to be revealed to investors, shares of Whitney<br />declined precipitously - evidence that the prior artificial inflation in the price of Whitney's<br />90<br />Page 91<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 91 of 112<br />shares was eradicated. As a result of their purchases of Whitney stock during the Class Period,<br />Plaintiff and other members of the Class suffered economic losses, i.e. damages under the<br />federal securities laws.<br />162.<br />By<br />improperly<br />characterizing<br />the<br />Company's<br />financial<br />results<br />and<br />misrepresenting Whitney' s prospects, Defendants presented a misleading image of the<br />Company's business and future growth prospects. During the Class Period, Defendants<br />repeatedly emphasized the ability of the Company to monitor and control costs and expenses,<br />and to manage large deferred revenue accounts, and consistently reported revenues and earnings<br />growth at or above expectations.<br />163.<br />Defendants' false and materially misleading statements and omissions had the<br />intended effect of causing Whitney's shares to trade at artificially-inflated levels throughout the<br />Class Period - reaching a Class Period high of over $11.25 per share in early-May 2006.<br />164.<br />These claims caused and maintained the artificial inflation in Whitney's stock<br />price throughout the Class Period and until investors realized, in a series of partial disclosures<br />towards the end of the Class Period through which the truth was ultimately, belatedly revealed.<br />In mid-November, the Company announced that the SEC had begun an investigation and,<br />thereafter, the US AG for the ED VA announced that it had convened a Grand Jury to investigate<br />Whitney. These belated revelations caused shares of the Company to collapse, evidence that<br />Defendants ' belated revelations had an immediate, adverse impact on the price of Whitney<br />shares.<br />165.<br />These belated revelations also evidenced Defendants' prior falsification of<br />Whitney's business prospects due to Defendants' false statements. As investors and the market<br />learned, the Company's prior business prospects had been overstated, as were the Company's<br />91<br />Page 92<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 92 of 112<br />results of operations. As this adverse information became known to investors, the prior artificial<br />inflation began to be eliminated from Whitney share price, and Plaintiff was damaged as a result<br />of the related share price decline.<br />166.<br />As a direct result of investors learning the truth about the Company in mid-<br />November and mid-December 2006, Whitney's stock price collapsed to below $4.00 per share,<br />from above $9.00 per share - a decline of over 55%, on relatively heavy trading volume many<br />times the average daily trading volume for Whitney stock. This dramatic share price decline<br />eradicated much of the artificial inflation from Whitney's share price, causing real economic loss<br />to investors who purchased this stock during the Class Period.<br />167.<br />In sum, as the truth about Defendants' fraud and illegal course of conduct became<br />known to investors, and as the artificial inflation in the price of Whitney shares was eliminated,<br />Plaintiff and the other members of the Class were damaged, suffering an economic loss of at<br />approximately $ 5.00 per share.<br />168.<br />The decline in Whitney's stock price at the end of the Class Period on December<br />15, 2006, was a direct result of the nature and extent of Defendants' fraud being revealed to<br />investors and to the market. The timing and magnitude of Whitney' s stock price decline negates<br />any inference that the losses suffered by Plaintiff and the other members of the Class was caused<br />by changed market conditions, macroeconomic or industry factors or even Company-specific<br />facts unrelated to Defendants' fraudulent conduct. During the same period in which Whitney's<br />share price fell over 40% as a result of Defendants' fraud being revealed, the Standard & Poor's<br />500 securities index was relatively unchanged.<br />169.<br />The immediate post Class Period statements - e.g., the terminations of high-level<br />management team members Nicholas Maturo, Rance Mashek, and Richard O'Dor - had little<br />92<br />Page 93<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 93 of 112<br />impact on the market price - which dipped to a low of $3.2 on December 19, 2006 but recovered<br />to trade above $4 on December 22, 2006 - because the market had already absorbed the true<br />facts addressed in the Class Period corrective disclosures: that the Company was being<br />investigated by the SEC and US AG for the very type of fraudulent conduct at issue here<br />regarding the Company's materially false and misleading financial statements.<br />170.<br />The economic loss, i.e. damages suffered by Plaintiff and other members of the<br />Class, was a direct result of Defendants' fraudulent scheme to artificially inflate the price of<br />Whitney's stock and the subsequent significant decline in the value of the Company's shares<br />when Defendants' prior misstatements and other fraudulent conduct was revealed. This decline<br />and economic loss at the end of the Class Period - after the market learned of the belated<br />corrective disclosures about Whitney - is demonstrated by the chart below:<br />F:<br />E Li y i I<br />1.-,:.-,1<br />I:I Ir.<br />1<br />nn<br />II - I Iriie<br />I. t<br />Nni<br />II :<br />11 F-.<br />Feb<br />11.ar<br />Apr-<br />r1.a,:.<br />_I^Ir^<br />_I II<br />H Iq<br />=P--p<br />LI:t<br />Pao.:<br />II :<br />93<br />Page 94<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 94 of 112<br />VIOLATIONS OF GAAP AND SEC REPORTING RULES<br />171.<br />During the Class period, Defendants materially misled the investing public,<br />thereby inflating the price of the Company' s securities, by publicly issuing false and misleading<br />statements and omitting to disclose material facts necessary to make Defendants' statements, as<br />set forth herein, not false and misleading. Said statements and omissions were materially false<br />and misleading in that they failed to disclose material adverse information and misrepresented<br />the truth about the Company, its financial performance, accounting, reporting, and financial<br />condition in violation of the federal securities laws and GAAP.<br />172.<br />GAAP defines the accepted principles, conventions, rules and procedures of<br />accounting. An accounting procedure that does not accord with a Statement of Financial<br />Accounting Standards (`SFAS") or Statement of Concepts pronouncement by the Financial<br />Accounting Standards Board ("FASB") by definition does not accord with GAAP. During the<br />Class Period, as alleged in this complaint, Defendants' scheme and course of conduct violated<br />provisions of GAAP including but not limited to:<br />• Violation of SEC Rule 12b-20: For filing periodic reports which lacked the information<br />necessary to make the required statements, in light of the circumstances under which they<br />are made, not misleading;<br />• Violation of Item 303 of Regulation S-K: For failing to ensure that reports for interim<br />periods include a discussion of any material changes in the registrant's results of<br />operations and an identification of any significant elements of registrant's income that are<br />not necessarily representative of the registrant's ongoing business;<br />• Violation of SFAS No. 48 (Revenue Recognition When Right of Return Exists): For<br />improperly recognizing revenues when a right of return (via return or chargeback)<br />94<br />Page 95<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 95 of 112<br />existed, and the Company had historically suffered significant returns and dramatically<br />increasing chargebacks;<br />• Violation of SFAS No. 5: For not provisioning for losses at the time when such a loss<br />contingency exists and when there was a reasonable possibility that a loss may have been<br />incurred;<br />• Violation of APB Opinion No. 28 (Accounting for Contingencies): For failing to<br />adequately identify and reserve for foreseeable returns and chargebacks;<br />• Violation of FASB Statement of Concepts No. 2: For failing to adhere to the principal of<br />"conservatism" as a "prudent reaction to uncertainty;"<br />• Violation of FASB Statement of Concepts No. 1: For failing to ensure that the<br />Company's financial reports provided information about its financial performance that<br />was useful to investors in making investment decisions related to the Company;<br />• Violation of FASB Statement of Concepts No. 2: For failing to ensure that the<br />Company's financial reports were reliable and accurate, and that nothing material was<br />omitted;<br />• Violation of APB Opinion No. 22: For failing to disclose accounting policies and to<br />identify and describe the accounting principles followed by the Company and the<br />methods of applying those principles that materially affect its financial statements.<br />Regulation S-X, to which the Company is subject as a registrant under the Exchange Act, 17<br />C.F.R.210.4-01(a)(1), provides that financial statements filed with the SEC which are not<br />prepared in compliance with GAAP are presumptively misleading and inaccurate.<br />173.<br />Defendants had an obligation adequately to provision for estimated returns and<br />chargebacks. Their adoption of a "no return" policy did not free them of this obligation. Indeed,<br />95<br />Page 96<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 96 of 112<br />as alleged herein, that the adoption of the no-return policy merely shifted the efforts of<br />consumers to retrieve their payments prior to the provision of services from formal return<br />requests to chargeback requests via their credit card companies.<br />174.<br />The GAAP requirement for recognition of an adequate provision for foreseeable<br />costs and an associated allowance applies to interim financial statements as required by<br />Accounting Principles Board Opinion No. 28. Paragraph 17 of this authoritative pronouncement<br />states that:<br />The amounts of certain costs and expenses are frequently subjected to year-end<br />adjustments even though they can be reasonably approximated at interim dates.<br />To the extent possible such adjustments should be estimated and the estimated<br />costs and expenses assigned to interim periods so that the interim periods bear a<br />reasonable portion of the anticipated annual amount.<br />175.<br />The Company's financial statements contained in the fiscal 2005 Form 10-K<br />and/or the quarterly reports filed with the SEC on Forms 10-Q for the quarterly periods<br />throughout the Class Period were presented in a manner that violated the principle of fair<br />financial reporting and the following GAAP, among others:<br />(a)<br />The principle that financial reporting should provide information that is<br />useful to present and potential investors and creditors and other users in making rational<br />investment, credit and similar decisions (FASB Statement of Concepts No. 1).<br />(b)<br />The principle that financial reporting should provide information about an<br />enterprise's financial performance during a period (FASB Statement of Concepts No. 1).<br />(c)<br />The principle that financial reporting should be reliable in that it<br />represents what it purports to represent (FASB Statement of Concepts No. 2).<br />96<br />Page 97<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 97 of 112<br />(d)<br />The principle of completeness, which means that nothing material is left<br />out of the information that may be necessary to ensure that it validly represents underlying<br />events and conditions (FASB Statement of Concepts No. 2).<br />(e)<br />The principle that conservatism be used as a prudent reaction to<br />uncertainty to try to ensure that uncertainties and risks inherent in business situations are<br />adequately considered (FASB Statement of Concepts No. 2).<br />(f)<br />The principle that contingencies and other uncertainties that affect the<br />fairness of presentation of financial data at an interim date shall be disclosed in interim reports in<br />the same manner required for annual reports (APB Opinion No. 28).<br />(g)<br />The principle that disclosures of contingencies shall be repeated in interim<br />and annual reports until the contingencies have been removed, resolved, or have become<br />immaterial (APB Opinion No. 28).<br />(h)<br />The principle that management should provide commentary relating to the<br />effects of significant events upon the interim financial results (APB Opinion No. 28).<br />176.<br />In addition, during the Class Period, Defendants violated SEC disclosure rules:<br />(a)<br />Defendants failed to disclose the existence of known trends, events, or<br />uncertainties that they reasonably expected would have a material, unfavorable impact on net<br />revenues or income or that were reasonably likely to result in the Company's liquidity decreasing<br />in a material way, in violation of Item 303 of Regulation S-K under the federal securities laws<br />(17 C.F.R. 229.303), and that failure to disclose the information rendered the statements that<br />were made during the Class Period materially false and misleading; and<br />97<br />Page 98<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 98 of 112<br />(b)<br />Defendants failed to file financial statements with the SEC that<br />conformed to the requirements of GAAP, and such financial statements were presumptively<br />misleading and inaccurate pursuant to Regulation S-X, 17 C.F.R. ' 210.4-01(a)(1).<br />177.<br />Defendants were required to disclose, in the Company's financial statements, the<br />existence of the material facts described herein and to appropriately recognize and report actual<br />revenues, deferred revenues, true refund costs and expenses in conformity with GAAP. Thus,<br />because Defendants were manipulating refunds in violation of its own business practices and<br />corporate governance policies, and because of the impact of this manipulation on the Company's<br />reported revenues, deferred revenues, refund costs and overall expenses, gross margins, net<br />income and earnings, the Individual Defendants, the Auditor Defendants and the Company failed<br />to make such disclosures and to account for and to report its financial statements in conformity<br />with GAAP.<br />178.<br />Defendants knew, or were reckless in not knowing, the facts which indicated that<br />the fiscal 2005 Form 10-K and all of the Company' s interim financial statements, press releases,<br />public statements, and filings with the SEC, which were disseminated to the investing public<br />during the Class Period, were materially false and misleading for the reasons set forth herein.<br />Had the true financial position and results of operations of the Company been disclosed during<br />the Class period, the Company's common stock would have traded at prices well below that<br />which it did.<br />ADDITIONAL SCIENTER ALLEGATIONS<br />179.<br />As alleged herein, Defendants acted with scienter in that each Defendant knew<br />that the public documents and statements issued or disseminated in the name of the Company<br />were materially false and misleading; knew that such statements or documents would be issued<br />98<br />Page 99<br />Case 2-06-cv-00687-MMH-DNF<br />Document 34<br />Filed 07/10/2007<br />Page 99 of 112<br />or disseminated to the investing public; and knowingly and substantially participated or<br />acquiesced in the issuance or dissemination of such statements or documents as primary<br />violations of the federal securities laws. As set forth elsewhere herein in detail, Defendants, by<br />virtue of their receipt of information reflecting the true facts regarding Whitney, their control<br />over, and/or receipt and/or modification of Whitney' s allegedly materially misleading<br />misstatements, and/or their associations with the Company which made them privy to<br />confidential proprietary information concerning Whitney, participated in the fraudulent scheme<br />alleged herein.<br />180.<br />Defendants were motivated to materially misrepresent to the SEC and investors<br />the true financial condition of the Company because their scheme: (i) deceived the investing<br />public regarding Whitney' s business, operations, management and the intrinsic value of Whitney<br />common stock; (ii) enabled Defendants to artificially inflate the price of Whitney shares; (iii)<br />enabled Whitney insiders to sell a total of over $8 million of Company stock; and enabled<br />Defendants to register for sale $13 millions more of Whitney shares; (iv) enabled Defendants to<br />register over $33. 0 million more EduTrades shares - to be sold to more public investors in an<br />attempted spin-off transaction that ultimately failed; (v) enabled Defendants to conduct a $1.00<br />per share "Special Dividend" - the majority of which was paid to insiders of the Company who<br />held Whitney shares; and (vi) caused Plaintiff and other members of the Class to purchase<br />Whitney common stock at artificially-inflated prices and to be damaged when the truth was<br />ultimately revealed to the market and the price of Whitney stock plummeted.<br />181.<br />During the Class Period, Individual Defendants Whitney, Simon, and Kane<br />profited from sales of Whitney stock as follows:<br />99<br />Page 100<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 100 of 112<br />Sale Price per Number<br />Name<br />Date<br />Share<br />of Shares<br />Proceeds<br />Whitney, Russell<br />13 Dec OS<br />$4.50<br />1,250,000 $5,626,000<br />Simon, Ronald<br />3 Feb 06<br />$9.12<br />100,000<br />$911,999<br />Whitney, Russell<br />17 Feb 06<br />$9.50<br />100,000<br />$950,000<br />Kane, John<br />3 May 06<br />$10.35<br />40,000<br />$414,000<br />*The 12/13/05 $5.625m sale by Russ Whitney was in connection with the $13.5 M PIPE<br />Transaction.<br />182.<br />For the reasons set forth above, Plaintiff has alleged compelling and cogent facts<br />giving rise to a strong inference of scienter.<br />Additional Allegations Regarding the Individual Defendants<br />183.<br />Because of the Individual Defendants' positions with the Company, they had<br />access to the adverse undisclosed information about its business, operations, products,<br />operational trends, financial statements, markets, and present and future business prospects via<br />access to internal corporate documents (including the Company's operating plans, budgets and<br />forecasts and reports of actual operations compared thereto), conversations and connections with<br />other corporate officers and employees, attendance at management and Board of Directors<br />meetings and committees thereof, and via reports and other information provided to them in<br />connection therewith.<br />184.<br />It is appropriate to treat the Individual Defendants as a group for pleading<br />purposes and to presume that the false, misleading and incomplete information conveyed in the<br />Company's public filings, press releases and other publications as alleged herein are the<br />collective actions of the narrowly-defined group of Defendants identified above. Each of the<br />above officers of Whitney, by virtue of their high-level positions with the Company, directly<br />participated in the management of the Company, was directly involved in the day-to-day<br />operations of the Company at the highest levels, and was privy to confidential proprietary<br />100<br />Page 101<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 101 of 112<br />information concerning the Company and its business, operations, products, growth, financial<br />statements, and financial condition, as alleged herein. Said Defendants were involved in drafting,<br />producing, reviewing, and/or disseminating the false and misleading statements and information<br />alleged herein; were aware or recklessly disregarded that the false and misleading statements<br />were being issued regarding the Company; and approved or ratified these statements, in violation<br />of the federal securities laws.<br />185.<br />As officers and controlling persons of a publicly-held company whose common<br />stock was and is registered with the SEC pursuant to the Exchange Act, and was traded on the<br />OTC Bulletin Board (the "OTC Market"), an open and efficient market, and governed by the<br />provisions of the federal securities laws, the Individual Defendants each had a duty to promptly<br />disseminate accurate and truthful information with respect to the Company's financial condition<br />and performance, growth, operations, financial statements, business, products, markets,<br />management, earnings, and present and future business prospects, and to correct any previously-<br />issued statements that had become materially misleading or untrue, so that the market price of<br />the Company's publicly-traded common stock would be based upon truthful and accurate<br />information. The Individual Defendants' misrepresentations and omissions during the Class<br />Period violated these specific requirements and obligations.<br />186.<br />The Individual Defendants participated in the drafting, preparation, and/or<br />approval of the various public and shareholder and investor reports and other communications<br />complained of herein, were aware of, or recklessly disregarded, the misstatements contained<br />therein and omissions therefrom, and were aware of their materially false and misleading nature.<br />Because of their Board membership and/or executive, managerial, or oversight positions with<br />Whitney, each of the Individual Defendants had access to the adverse undisclosed information<br />101<br />Page 102<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 102 of 112<br />about Whitney' s business prospects and financial condition and performance as particularized<br />herein and knew (or recklessly disregarded) that these adverse facts rendered the positive<br />representations made by or about Whitney and its business issued or adopted by the Company<br />materially false and misleading.<br />187.<br />The Individual Defendants, because of their positions of control and authority as<br />officers and/or directors of the Company, were able to and did control the content of the various<br />SEC filings, press releases and other public statements pertaining to the Company during the<br />Class Period. Each Individual Defendant was provided with copies of the documents alleged<br />herein to be misleading prior to or shortly after their issuance and/or had the ability and/or<br />opportunity to prevent their issuance or cause them to be corrected. Accordingly, each of these<br />Defendants is responsible for the accuracy of the public reports and releases detailed herein, and<br />is therefore primarily liable for the representations contained therein.<br />PLAINTIFF'S CLASS ACTION ALLEGATIONS<br />188.<br />Plaintiff brings this action as a class action pursuant to Federal Rule of Civil<br />Procedure 23(a) and (b)(3) on behalf of a Class, consisting of all those who purchased or<br />otherwise acquired the common stock of Whitney between August 11, 2005 and December 15,<br />2006, inclusive (the "Class") and who were damaged thereby. Excluded from the Class are<br />Defendants, the officers and directors of the Company at all relevant times, members of their<br />immediate families and their legal representatives, heirs, successors or assigns, and any entity in<br />which Defendants have or had a controlling interest.<br />189.<br />The members of the Class are so numerous that joinder of all members is<br />impracticable. Throughout the Class Period, Whitney common shares were actively traded on<br />the OTC Market. As of March 27, 2006, the Company had over 10.878 million shares of<br />102<br />Page 103<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 103 of 112<br />common stock issued and outstanding. While the exact number of Class members is unknown to<br />Plaintiff at this time and can only be ascertained through appropriate discovery, Plaintiff believes<br />that there are hundreds or thousands of members in the proposed Class. Record owners and other<br />members of the Class may be identified from records maintained by Whitney or its transfer<br />agent and may be notified of the pendency of this action by mail, using the form of notice<br />similar to that customarily used in securities class actions. Only approximately 29% of the shares<br />of the Company are held by public shareholders, as distinguished from Whitney insiders, who<br />are excluded from the definition of the "Class" as set forth herein.<br />190.<br />Plaintiff's claims are typical of the claims of the members of the Class as all<br />members of the Class are similarly affected by Defendants' wrongful conduct in violation of<br />federal law that is complained of herein.<br />191.<br />Plaintiff will fairly and adequately protect the interests of the members of the<br />Class and has retained counsel competent and experienced in class action and securities<br />litigation.<br />192.<br />Common questions of law and fact exist as to all members of the Class and<br />predominate over any questions solely affecting individual members of the Class. Among the<br />questions of law and fact common to the Class are:<br />(a)<br />whether the federal securities laws were violated by Defendants' acts as<br />alleged herein;<br />(b)<br />whether statements made by Defendants to the investing public during the<br />Class Period misrepresented material facts about the business, operations and management of<br />Whitney; and<br />103<br />Page 104<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 104 of 112<br />(c)<br />to what extent the members of the Class have sustained damages and the<br />proper measure of damages.<br />193.<br />A class action is superior to all other available methods for the fair and efficient<br />adjudication of this controversy since joinder of all members is impracticable. Furthermore, as<br />the damages suffered by individual Class members may be relatively small, the expense and<br />burden of individual litigation make it impossible for members of the Class to individually<br />redress the wrongs done to them. There will be no difficulty in the management of this action as<br />a class action.<br />Applicability of Presumption of Reliance:<br />Fraud-On-The-Market Doctrine<br />194.<br />At all relevant times, the market for Whitney' s common stock was an efficient<br />market for the following reasons, among others:<br />(a)<br />Whitney's stock met the requirements for listing, and was listed and<br />actively traded on the Over The Counter ("OTC") market, a highly efficient and automated<br />market;<br />(b)<br />As a regulated issuer, Whitney filed periodic public reports with the SEC<br />and the OTC Market;<br />(c)<br />Whitney regularly communicated with public investors via established<br />market communication mechanisms, including through regular disseminations of press releases<br />on the national circuits of major newswire services and through other wide-ranging public<br />disclosures, such as communications with the financial press and other similar reporting services;<br />(d)<br />Whitney was followed by several securities analysts employed by major<br />brokerage firm(s) who wrote reports which were distributed to the sales force and certain<br />104<br />Page 105<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 105 of 112<br />customers of their respective brokerage firm(s). Each of these reports was publicly available and<br />entered the public marketplace;<br />(e)<br />Whitney was closely and regularly followed by investors on the internet;<br />(f)<br />the Company further exposed itself to the investor community via various<br />Company-controlled websites to promote itself to a broader audience; and<br />(g)<br />the price of Whitney shares reacted quickly to unexpected news events,<br />including the Company's positive press releases as well as negative news reported on the Internet<br />and/or in the print media about the Company. The price of Whitney shares rose and fell in<br />response to positive and negative news during the Class Period.<br />195.<br />As a result of the foregoing, the market for Whitney securities promptly digested<br />current information regarding Whitney from all publicly available sources and reflected such<br />information in Whitney stock price. Under these circumstances, all purchasers of Whitney<br />common stock during the Class Period suffered similar injury through their purchase of Whitney<br />common stock at artificially inflated prices and a presumption of reliance applies.<br />NO SAFE HARBOR<br />196.<br />The statutory safe harbor provided for forward-looking statements under certain<br />circumstances does not apply to any of the allegedly false statements pleaded in this complaint.<br />Many of the specific statements pleaded herein were not identified as "forward-looking<br />statements" when made. To the extent there were any forward-looking statements, there were no<br />meaningful cautionary statements identifying important factors that could cause actual results to<br />differ materially from those in the purportedly forward-looking statements . Alternatively, to the<br />extent that the statutory safe harbor does apply to any forward-looking statements pleaded<br />herein, Defendants are liable for those false forward-looking statements because at the time each<br />105<br />Page 106<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 106 of 112<br />of those forward-looking statements was made, the particular speaker knew that the particular<br />forward-looking statement was false, and/or the forward-looking statement was authorized<br />and/or approved by an executive officer of Whitney who knew that those statements were false<br />when made.<br />FIRST CLAIM<br />Violation of Section 10(b) of<br />the Exchange Act and Rule IOb-5<br />Promulgated Thereunder Against All Defendants<br />197.<br />Plaintiff repeats and realleges each and every allegation contained above as if<br />fully set forth herein.<br />198.<br />During the Class Period, Defendants carried out a plan, scheme and course of<br />conduct which was intended to and, throughout the Class Period, did: (i) deceive the investing<br />public regarding Whitney' s business, operations, management and the intrinsic value of Whitney<br />common stock; (ii) enable Defendants to artificially inflate the price of Whitney shares; (iii)<br />enable Whitney insiders to sell a total of over $8 million of Company stock; (iv) enabled<br />Defendants to sell $13.5 M in Whitney stock to PIPE investors prior to the registration of those<br />shares and thereafter enabled Defendants to register for sale $13.5 million in Whitney shares,<br />that were sold by PIPE Purchasers; (v) enabled Defendants to register over $33.0 million more<br />EduTrades shares - to be sold to more public investors in a spin-off transaction; (vi) enabled<br />Defendants to conduct a $1.00 per share "Special Dividend" - the majority of which was paid to<br />insiders of the Company who held Whitney shares; and (vii) caused Plaintiff and other members<br />of the Class to purchase Whitney common stock at artificially-inflated prices. In furtherance of<br />this unlawful scheme, plan, and course of conduct, Defendants each, jointly and individually<br />took the actions set forth herein.<br />106<br />Page 107<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 107 of 112<br />199.<br />Defendants (a) employed devices, schemes, and artifices to defraud; (b) made<br />untrue statements of material fact and/or omitted to state material facts necessary to make the<br />statements not misleading; and (c) engaged in acts, practices, and a course of business which<br />operated as a fraud and deceit upon the purchasers of the Company's common stock in an effort<br />to maintain artificially high market prices for Whitney's common stock in violation of Section<br />10(b) of the Exchange Act and Rule 10b-5. All Defendants are sued either as primary<br />participants in the wrongful and illegal conduct charged herein or as controlling persons as<br />alleged below.<br />200.<br />Defendants, individually and in concert, directly and indirectly, by the use,<br />means, or instrumentalities of interstate commerce and/or of the mails, engaged and participated<br />in a continuous course of conduct to conceal adverse material information about the business,<br />operations and future prospects of Whitney as specified herein.<br />201.<br />These Defendants employed devices, schemes, and artifices to defraud while in<br />possession of material, adverse, non-public information and engaged in acts, practices, and a<br />course of conduct as alleged herein in an effort to assure investors of Whitney's value and<br />performance and continued substantial growth, which included the making of, or the<br />participation in the making of, untrue statements of material facts and omitting to state material<br />facts necessary in order to make the statements made about Whitney and its business operations<br />and future prospects in the light of the circumstances under which they were made not<br />misleading, as set forth more particularly herein, and engaged in transactions, practices and a<br />course of business which operated as a fraud and deceit upon the purchasers of Whitney<br />common stock during the Class Period.<br />107<br />Page 108<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 108 of 112<br />202.<br />Each of the Individual Defendants' primary liability, and controlling person<br />liability, arises from the following facts: (i) the Individual Defendants were high-level<br />executives and/or directors at the Company during the Class Period and members of the<br />Company's management team, or acted as the Company's Independent Auditor, or had control<br />thereof; (ii) each of these Defendants, by virtue of his responsibilities and activities as a senior<br />officer and/or director of the Company and its Independent Auditors was privy to and<br />participated in the creation, development, and reporting of the Company's internal budgets,<br />plans, projections, and/or reports; (iii) each of these Defendants enjoyed significant personal<br />contact and familiarity with the other Defendants and was advised of and had access to other<br />members of the Company's management team, internal reports, and other data and information<br />about the Company's finances, operations, and sales at all relevant times; and (iv) each of these<br />Defendants was aware of the Company's dissemination of information to the investing public<br />which they knew or recklessly disregarded was materially false and misleading.<br />203.<br />As a result of the dissemination of the materially false and misleading information<br />and failure to disclose material facts, as set forth above, the market price of Whitney common<br />stock was artificially inflated during the Class Period. In ignorance of the fact that market prices<br />of Whitney's publicly-traded common stock were artificially inflated, and relying directly or<br />indirectly on the false and misleading statements made by Defendants, or upon the integrity of<br />the market in which the securities trade, and/or on the absence of material adverse information<br />that was known to or recklessly disregarded by Defendants but not disclosed in public statements<br />by Defendants during the Class Period, Plaintiff and the other members of the Class acquired<br />Whitney common stock during the Class Period at artificially high prices and were damaged<br />thereby.<br />108<br />Page 109<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 109 of 112<br />204.<br />At the time of said misrepresentations and omissions, Plaintiff and other members<br />of the Class were ignorant of their falsity and believed them to be true. Had Plaintiff and the<br />other members of the Class and the marketplace known the truth regarding the problems that<br />Whitney was experiencing, which were not disclosed by Defendants, Plaintiff and other<br />members of the Class would not have purchased or otherwise acquired their Whitney common<br />stock, or, if they had acquired such common stock during the Class Period, they would not have<br />done so at the artificially-inflated prices which they paid.<br />205.<br />By virtue of the foregoing, Defendants have violated Section 10(b) of the<br />Exchange Act, and Rule I Ob-5 promulgated thereunder.<br />206.<br />As a direct and proximate result of Defendants' wrongful conduct, Plaintiff and<br />the other members of the Class suffered damages in connection with their respective purchases<br />and sales of the Company's common stock during the Class Period.<br />SECOND CLAIM<br />Violation of Section 20(a) of<br />the Exchange Act Against Individual Defendants<br />207.<br />Plaintiff repeats and realleges each and every allegation contained above as if<br />fully set forth herein.<br />208.<br />The Individual Defendants acted as controlling persons of Whitney within the<br />meaning of Section 20(a) of the Exchange Act as alleged herein. By virtue of their high-level<br />positions, and their ownership and contractual rights, participation in and/or awareness of the<br />Company's operations, and/or intimate knowledge of the false financial statements filed by the<br />Company with the SEC and disseminated to the investing public, the Individual Defendants had<br />the power to influence and control and did influence and control, directly or indirectly, the<br />decision-making of the Company, including the content and dissemination of the various<br />109<br />Page 110<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 110 of 112<br />statements which Plaintiff contends are false and misleading. The Individual Defendants were<br />provided with or had unlimited access to copies of the Company's reports, press releases, public<br />filings, and other statements alleged by Plaintiff to be misleading prior to when and/or shortly<br />after these statements were issued and had the ability to prevent the issuance of the statements or<br />cause the statements to be corrected.<br />209.<br />In particular, each of these Defendants had direct and supervisory involvement in<br />the day-to-day operations of the Company and, therefore, is presumed to have had the power to<br />control or influence the particular transactions giving rise to the securities violations as alleged<br />herein, and exercised the same.<br />210.<br />As set forth above, Whitney and the Individual Defendants each violated Section<br />10(b) and Rule 10b-5 by their acts and omissions as alleged in this Complaint. By virtue of their<br />positions as controlling persons, the Individual Defendants are liable pursuant to Section 20(a) of<br />the Exchange Act. As a direct and proximate result of Defendants' wrongful conduct, Plaintiff<br />and other members of the Class suffered damages in connection with their purchases of the<br />Company's common stock during the Class Period.<br />WHEREFORE, Plaintiff prays for relief and judgment, as follows:<br />A.<br />Determining that this action is a proper class action under Rule 23 of the<br />Federal Rules of Civil Procedure and certifying Lead Plaintiff as a Class representative and<br />designating Lead Counsel as Class Counsel;<br />B.<br />Awarding compensatory damages in favor of Plaintiff and the other Class<br />members against all Defendants, jointly and severally, for all damages sustained as a result of<br />Defendants' wrongdoing, in an amount to be proven at trial, including interest thereon;<br />110<br />Page 111<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 111 of 112<br />C.<br />Awarding Plaintiff and the Class their reasonable costs and expenses<br />incurred in this action, including counsel fees and expert fees;<br />D.<br />Awarding extraordinary, equitable and/or injunctive relief as permitted by<br />law, equity, and the federal statutory provisions sued hereunder, pursuant to Rules 64 and 65 and<br />any appropriate state law remedies to assure that the Class has an effective remedy; and<br />E.<br />Such other and further relief as the Court may deem just and proper.<br />JURY TRIAL DEMANDED<br />Plaintiff hereby demands a trial by jury.<br />Dated: July 10, 2007<br />Michael A. Swick<br />Kim E. Miller (admittedpro hac vice)<br />KAHN GAUTHIER SWICK, LLC<br />114 East 39th Street<br />New York, NY 10016<br />Telephone: (212) 920-4310<br />Lewis S. Kahn<br />KAHN GAUTHIER SWICK, LLC<br />650 Poydras Street - Suite 2150<br />New Orleans, LA 70130<br />Telephone: (504) 455-1400<br />Facsimile: (504) 455-1498<br />Lead Counsel for Lead Plaintiff and the Class<br />SAXENA WHITE P.A.<br />Maya Saxena (0095494)<br />2424 North Federal Highway<br />Suite 257<br />Boca Raton, FL 33431<br />Tel: (561) 394-3399<br />Liaison Counsel<br />111<br />Page 112<br />Case 2:06-cv-00687-<br />-<br />F<br />Document 34<br />Filed 07/10/2007<br />Page 112 of 112<br />CERTIFICATE OF SERVICE<br />I HEREBY CERTIFY that on the 10th day of July, 2007, I presented the<br />foregoing to the Clerk of the Court for filing and uploading to the CM/ECF system,<br />which will send notice of electronic filing to Akerman Senterfitt and Holland & Knight,<br />LLP. See attached Service List. I further certify that I mailed a copy of the foregoing<br />document, and the notice of electronic filing to non-CM/ECF participant Russell A.<br />Whitney at the address indicated in the attached Service List.<br />Kim E Miller<br />Service List<br />Mara Aronson<br />Brian P. Miller<br />HOLLAND & KNIGHT, LLP<br />Fla. Bar No. 0980633<br />=<br />701 Brickell Ave - Ste 3000<br />Samantha J. Kavanaugh<br />PO Box 015441<br />Fla. Bar No. 0194662<br />Miami, FL 33131-5441<br />Francisco A. Rodriguez<br />Tel.: (305) 374-8500<br />Fla. Bar No. 0653441<br />Fax: (305) 789-7799<br />AKERMAN SENTERFITT<br />Attorneyfor Defendant Nicholas S.<br />One Southeast Third Avenue, 28th Floor<br />Maturo<br />Miami, FL 33131<br />Tel.: (305) 374-5600<br />Fax: (305)374-5095<br />Attorneysfor Defendant Whitney<br />Information Network, Inc.<br />Russell A. Whitney<br />1612 Cape Coral Parkway<br />Cape Coral, Florida 33904<br />DefendantRobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-45221099101036675682009-04-10T23:23:00.003-06:002009-04-10T23:30:40.748-06:00The Story behind the Utah Call Center Business Model, from City Weekly<h1 style="color: rgb(0, 0, 153);"> A story of fraud, drugs, waterboarding and the call-center companies that gave Attorney General Mark Shurtleff $187,500 in 2008.</h1> <span class="author"></span><br /><div class="content"> <a style="" id="thumb7772" href="http://www.cityweekly.net/utah/imgs/hed/art7772widea.jpg" class="highslide" onclick="return hs.expand (this)" title=""><img src="http://www.cityweekly.net/utah/imgs/hed/art7772nar.jpg" /></a> <div class="contentText"> <div id="contentFont" class="font1"> <div id="contentText" class="size1"><span style="font-size:85%;">No one can really say what 51-year-old Dee Beckstead was thinking one spring evening in May 2008. Arriving early to an LDS Family Services 12-step program for recovering drug addicts, Dee sat alone in his pickup in the church parking lot. Whether he thought of family, friends or felt only the gnawing pain of the heroin addiction he’d wrestled with so desperately, no one will ever know. With less than half an hour before his support class started, though, whatever he felt or thought, he decided he didn’t want any more of it. So he placed a 12-gauge shotgun in his mouth and ended his life.<br /><br />Beckstead was not a gang member or a troubled youth; he was a beyond-middleage man who happened to work, at the time of his suicide, at a call center in American Fork. Mentoring of America, a nondescript Utah County call-center company, has been described by former employees as a den of iniquity. They tell of sales people with silver tongues consulting on real-estate deals across the nation—dialing in serious dollars and partying like rock stars. Dealmakers might close a sale on a costly realestate program with an elderly couple in Florida, and on their breaks sling cocaine, OxyContin as well as marijuana brownies to their co-workers. Employees might shoot heroin up in the bathrooms or drop ecstasy while on the phone with customers.<br /><br />As a former employee describes it, on payday, the sales floor would make a liquorstore run before lunchtime and by the end of the day, might be taking down customer’s credit-card information drunk, high or both.<br /><br /><img src="http://www.cityweekly.net/utah/imgs/media/090409/Dee_obituary.jpg" alt="Dee_obituary.jpg" style="padding: 5px;" align="left" width="161" height="230" />“Dee was a victim of this industry,” says Tim Lawson, a former sales-team leader with Mentoring of America. In July 2007, Lawson brought Beckstead to the company as part of his sales team when he was hired. Lawson says Beckstead was clean when he started at MOA but soon relapsed. And while, ultimately, the actions of an addict are nobody’s fault save his or her own, some wonder how the reckless, anything-goes work environment at MOA and its impact on employees could avoid scrutiny for so long.<br /><br />It didn’t.<br /><br />In fact, the company has been under three separate investigations that resulted in administrative citations and one enforcement action by the Utah Attorney General’s Office, between 2004 and 2007. Not for drugs, however, but for allegations the company fraudulently promised unrealistic guarantees to customers, sold them programs they couldn’t use and otherwise conducted deceptive trade practices. These investigations were brought by the Utah Division of Consumer Protection. The last time Mentoring of America was behind the 8-ball for alleged shady business practices, during winter 2007-08—five months before Beckstead took his life—MOA stood to potentially lose its license and have to eat $113,500 in fines and statutory penalties from the Division of Consumer Protection. In March 2008, however, the charges were dismissed, and MOA dodged a bullet and paid no fines.<br /><br />MOA has managed to rack up quite a legal bill, having to defend itself against consumer complaints nearly every year since it opened its doors in 2002. Owned by Doug Gravink and Gary Hewitt, the company must be making some dough to pay those attorney bills. According to former employees, MOA, through the sale of programs teaching customers how to turn a profit from home tax-lien sales, made up to $1.2 million per week. And that’s only from MOA’s Utah County location and doesn’t include numbers for the company’s operations in Nevada and California.<br /><br />And while this multimillion-dollar operation might not have been paying a lot in fines, the company was investing in political goodwill. In fact, on Jan. 16, 2008, almost a month after it received its most recent charges from the state, MOA contributed $20,000 to Attorney General Mark Shurtleff’s 2008 re-election campaign. Three months after the charges were dropped by the Utah Division of Consumer Protection, Shurtleff would bank another $10,000 from the company, according to MOA’s PAC report.<br /><br /><a href="http://www.cityweekly.net/utah/imgs/media/090409/ShurtleffDiarmama.jpg" target="_blank"><img src="http://www.cityweekly.net/utah/imgs/media/090409/ShurtleffDiarmama.jpg" alt="ShurtleffDiarmama.jpg" style="border-style: solid; border-width: 0px;" align="top" width="577" height="321" /></a><br />While Shurtleff’s political opponents have made quite a stink about the paydayloan industry’s support of Shurtleff’s 2008 campaign, they may have overlooked an even more significant cash flow between Shurtleff and another industry: call-center marketing companies in Utah that hawk online business programs, real-estate mentoring and grant writing software among other endeavors.<br /><br />In 2008, Shurtleff filled his campaign chest with $187,500 in donations from seven call-center companies—all based in Utah and six which have been investigated by the Utah Division of Consumer Protection or prosecuted by assistant attorneys general in Shurtleff’s office representing Consumer Protection. That’s not counting the actions these companies have faced from 10 other state’s attorneys general or consumer protection agencies and from investigative counterparts in Australia. Donations Shurtleff netted from these companies made up more than a quarter of his 2008 war chest.<br /><br />MOA was just one of these companies. When <em>City Weekly</em> asked the attorney general about a possible conflict of interest in accepting donations from companies that have been the subject of state investigation, he did not respond. Instead, in an e-mailed statement, A.G. spokesman Paul Murphy denied any wrongdoing.<br /><br />“Your line of questioning suggests that a candidate or official should not take any contribution if that candidate may have a future conflict of interest,” writes Murphy. “Does the Attorney General or any elected official need to check with every agency in the state before taking a contribution? Does he have to check with the state fair board, the aeronautical board, child protection services, the state board of education? Is that even feasible?”<br /><br /><span style="font-size:100%;"><strong>The Fixer </strong></span><br />Like a Mormon version of Michael Clayton—the troubled attorney turned corporate fix-it man from the 2007 film of the same name—Utah County businessman Tim Lawson says his credentials in the business world go beyond salesmanship. He says he’s also got some tight political connections he can call on to help sort out situations. One close friend, for example, is Utah Attorney General Mark Shurtleff. With the ability to offer MOA access to friends in high places, Lawson says MOA actively recruited him to join the company in 2007. He spent roughly a year at the company.<br /><br />Separated from MOA since the fall of 2008, Lawson now paces about his sparse Provo office, the site of a new business he’s started which builds and markets hovercrafts. His head shaved, dressed in a brown leather jacket, Lawson’s intense gaze and quick, commanding tone would make him a dead ringer for a 1970s police detective if not for the handless headset over his ear.<br /><br />“I already knew of [MOA’s] reputation, but I figured, as one of the managers, I could come in and clean it up,” Lawson says in a Jan. 20, 2009, interview. Now he believes he may have bitten off more than he could chew. “That [sales] floor doesn’t need a babysitter, it needs a roto-rooter to clean out the crap.<br /><br />“People would come to work so drunk or stoned, they couldn’t hardly walk—and they’re collecting credit-card information from people all over the country,” Lawson says, “You’re talking heroin, coke, meth, every type of uppers and downers. They were even pumping out Adderall to people, OxyContin— anything you needed.”<br /><br /><img src="http://www.cityweekly.net/utah/imgs/media/090409/Woman_cov.jpg" alt="Woman_cov.jpg" style="padding: 5px;" align="left" width="167" height="249" />Corine Cyphers was featured in a Jan. 21, 2009, <em>City Weekly</em> article about a discrimination claim filed with the Utah Antidiscrimination and Labor Division against MOA. In a Jan. 8 interview, she told <em>City Weekly</em> that management was more interested in results than office behavior. “[Management] made it a free-for-all as long as the job was done,” Cyphers says. “Go to work, party and then leave. The supervisors knew about it.”<br /><br />This dope-fueled sales environment made for an unusual workplace, Cyphers said. Cyphers described employees toting Nalgene bottles full of vodka, and people passed out at their desk. Both Lawson and Cyphers said employees overdosed while at work.<br /><br />These claims are consistent with documents <em>City Weekly</em> obtained through an open-records request. On July 7, 2005, the American Fork Police Department responded with multiple officers and medical personnel to a call of multiple overdoses at MOA’s location. Investigating officers discovered five employees in need of medical attention after having passed around a bottleful of gamma-hydroxybutrate or GHB. A drug with many street names such “Liquid X” and “Grievous Bodily Harm,” it is known both as a drug of the rave scene as well as a potent date-rape narcotic. Three victims had to be rushed to the emergency room of the American Fork Hospital.<br /><br />The police report indicates several employees saying the incident was illustrative of a larger problem. One overdose victim told an officer “there is a serious problem with drugs being taken by employees at Mentoring of America.” The employee identified as the alleged dealer from this incident was subsequently fired by the company and arrested and booked into jail for narcotic possession, distribution and four counts of reckless endangerment.<br /><br />But as recently as June 24, 2008, the American Fork Police Department again accompanied an ambulance to MOA’s worksite. The responding officer noted that the medical team identified a 32-year-old male employee who appeared to be suffering from an overdose “of Soma, Ultram and possibly Cocaine.”<br /><br />“They follow the philosophy that the more money they make, the bigger the toys and the more drugs they can get,” Cyphers said in her January 2009 interview. Lawson says employees were making a killing off selling a computer program teaching customers how to make money off real-estate tax-lien sales. Team leaders like Lawson easily pulled in over six figures a year. “These kids are bringing down serious money and have no accountability,” he says. MOA was an amped-up sales powerhouse, according to Lawson and Cyphers, pulling in roughly $1.2 million in sales—a week. Other former employees, confirm the company’s drug culture, at least for the period between 2002 and 2005.<br /><br />“Some guys there made $35,000 a week,” says salesman X, a former employee who asked to remain anonymous. “A lot of that just went down the drain with drugs.” X says numerous drugs were sold and available and people had connections to street drugs like ecstasy and heroin, but he says, for the most part, prescription drugs were the narcotics of choice: OxyContin, Lortab, Percoset—even a combination of all three they called “legal speedballs.” X says these prescription-drug cocktails were like performanceenhancing drugs for the sales team. He says the mindset of using while at work was, “I’m going to [work] for 12 hours; I won’t feel rejection, I won’t feel pain. I’ll be patient with the people on the phone. [The drugs] give people the ability to mold and mirror people on the phone and basically take their money.”<br /><br />Salesman Y, also a former employee who asked to remain anonymous, remembers getting a Lortab from a supervisor once for a headache, “Pretty soon he was selling them to me wholesale,” Y says.<br /><br />Since June 2008, there have been no new reported incidents regarding drug usage with the American Fork Police Department.<br /><br />Besides hoping to crack down on drug use on the floor, Lawson says he was also working doubleduty making sure telemarketers weren’t breaking telecommunication law. “There are people that lie openly on the phone. There are people who overpromise. I’ve personally sat there and heard people say ‘Oh, I guarantee you will make $150,000 in your first two months,’” Lawson says. “That’s illegal! You can’t say that.”<br /><br />If you have any comments regarding this article, please send them to investigations@seminarwatch.com<br /><br /><br /><br />Y remembers behavior like that from his time at MOA as well, even remembering a sales person who promised a woman over the phone that since she didn’t have a computer, that if she would just send him a check for $2,000, he would buy her a top-ofthe-line computer and mail it back to her. Y claims the salesman got the check, cashed it, kept the money and never sent the woman the computer. “And this was some old lady on disability,” Y says.<br /><br />According to Consumer Protection records, since 2002, MOA has given a total of $2,459,383 in refunds to victims who complained to the division. MOA also has been in the Utah Division of Consumer Protection’s crosshairs on four separate occasions during the period 2004-07. The first time was in 2004, for violations of the Telephone Fraud Prevention Act including denying refunds, operating without a permit and failing to notify customers of their three-day cancellation rights. MOA settled and had a potential $19,500 fine knocked down to $2,000 so long as they refunded all the complaining consumers and promised to clean up their act.<br /><br />In 2005, MOA was cited again by Utah Division of Consumer Protection for 23 counts of fraud for the exact same violations as in 2004, including deceptive trade practices and violations of the Telephone Fraud Prevention Act for failing to notify customers of their cancellation rights. In settlement of a potential fine of $36,500, MOA avoided having its license revoked and agreed to pay a $10,000 administrative assessment under the condition it amend its practices. If the company violated the terms of the agreement in the future, the company would owe the division an additional $53,500. It also had to “resolve and refund” the newest batch of 23 complaining consumers who, in total, were owed $180,490 for programs they couldn’t use or weren’t what they were promised.<br /><br />Yet in 2006, the Attorney General’s Office, which enforces compliance for administrative actions issued by the Utah Division of Consumer Protection, had to bring civil action against MOA for failing to meet its obligations to refund the 23 complainants from the 2005 case. Nineteen of the 23 were given no refunds, others were given partial refunds and told it was a “take it or leave it” situation, according to the legal complaint. The state then demanded MOA pay full refunds at around $199,950 as well as administrative fines of $163,000.<br /><br />In settlement, MOA paid a $25,000 fine, agreed to reform its practices and stop making false and misleading statements, and agreed that if it screwed up again, a judgment would be entered against MOA in the sum of $53,500 without further hearing, and MOA would be subject to additional fines.<br /><br />Like a case of bad déj-vu, less than a year later, in December 2007, MOA was served with another administrative citation for 24 counts of allegedly violating the Telephone Fraud Prevention Act and for other deceptive practices. This time, MOA had switched it up a bit. According to division allegations, MOA sales representatives were still making deceptive and misleading promises about the program to customers. But now, after making the sale, sales representatives would pass the customer over to an inhouse compliance department. Before transferring the customer over, the salesperson would say that as a formality, the customer needed to tell the compliance agent that the salesperson hadn’t promised the customer outlandish earnings.<br /><br />Overlapping this timeline enters a new star to the MOA team: Tim Lawson.<br /><br />“People always call me to use me for my connections,” Lawson says. “I don’t know that people generally like me, but I know they like the people that I know. So I’ve had multiple people call me on multiple occasions, including the owners of MOA, calling me to try and use my connections to cover their ass,” Lawson says. “But at no time have I ever used my relationships to be compromised.”<br /><br />“Two days out of [knee] surgery, on a Sunday evening and during a huge snowstorm, [MOA] called and said they were in big trouble. That the Division of Consumer Protection, Francine Giani was gonna file a cease-and-desist order and close their doors. And they wanted me to help out,” Lawson says. In the following months, he says, he lobbied Consumer Protection on behalf of MOA, and a settlement was reached.<br /><br />The 2006 agreement had provided for a $53,500 judgment to be entered against MOA, which—combined with the new charges that added another $60,000— made a total possible judgment of $113,500. Yet, under MOA’s latest settlement, it paid no fine, and no judgment was entered. The company actually fared better than the first time it crossed with the division in 2004 when it was fined $2,000. To make a baseball comparison of MOA’s track record since 2004, the company had four strikes against it, and it walked a base.<br /><br />Lawson says he tired of being the company’s fix-it man, especially as company problems persisted. A pivotal moment came with the suicide of his friend and colleague, Dee Beckstead. Lawson says he had been unaware of an employee at MOA who moonlighted as a drug dealer and had been fired several times previously but was continually rehired. This individual, Lawson claims, facilitated Beckstead’s relapse into heroin.<br /><br />“If there would have been a drug policy, a one strike, you’re out, zero tolerance policy, [the dealer] wouldn’t have been there,” Lawson says. While he doesn’t hold MOA responsible for Beckstead’s suicide, he also doesn’t see it as blameless. “Now is [Beckstead’s suicide] MOA’s fault? No. But do they have some culpability? Absolutely. Because they allowed that type of environment to be fostered there.”<br /><br />In a meeting, Lawson says he challenged the MOA management on the issue. Lawson said one of the managers admitted he didn’t care if employees used recreational drugs, “that he himself likes to do an occasional drug, light up a joint now and then, this that and the other,” Lawson says. “I was like, ‘You know, this is not a company I want to work for.’” Despite numerous attempts to contact company executives, MOA representatives would not comment for this story.<br /><br />Lawson left the company in the summer of 2008 and took with him all his connections. Lawson says he regrets having introduced MOA management to Shurtleff. Now, having moved on, Lawson went to Shurtleff in the fall of 2008 and told him the extent of the drug problem.<br /><br />“I’ll go on the record on this: Shurtleff is a man of honor, with impeccable integrity and the honesty of Abe Lincoln,” Lawson says. “He did not know all the stuff about MOA.”<br /><br />So, Lawson says, as the truth came out, Shurtleff in January 2009 returned MOA's two campaign-donation checks, one for $20,000 and another for $10,000.<br /><br />“Which I think is impressive, personally,” Lawson says with the utmost sincerity. “No politician gives money back, because he’s not a politician, right guys? He’s a statesman!”<br /><br /><strong><span style="font-size:100%;">The Reports </span></strong><br />Shurtleff did return $30,000 he received from MOA’s Political Action Committee, according to Shurtleff’s 2008 campaign finance disclosure reports, but he still kept $2,500 he received from MOA’s corporation.<br /><br />The only public record of the $30,000 donation comes from MOA’s 2008 Year-End PAC contributor report. Shurtleff’s report does not mention the receipt of either donation. There’s no indication of the $30,000 at all. According to the State of Utah Lieutenant Governor’s Office which warehouses candidates’ campaign finance filings, without speaking to the specifics of this incident (since no complaint has been filed the office has not investigated) the missing expenditure on the report means either Shurtleff never reported receiving the money or he went back to the electronic report filing and deleted any note of ever receiving the money.<br /><br />According to Joe Demma, chief of staff for Lt. Gov. Gary Herbert, there is only one office that can really investigate and enforce compliance for negligent campaign finance filings—the Attorney General’s Office.<br /><br />The effect of money on a candidate is difficult, if not impossible, to measure. In relative terms, most campaigns are very expensive, especially statewide campaigns. In his written response to <em>City Weekly</em>, attorney general spokesman Paul Murphy made these points in response to concerns of conflicts of interest. “What you are proposing would only allow people with deep financial pockets to run for office. Your approach also takes away the rights of companies and individuals to give to the candidate of their choice,” Murphy writes.<br /><br />Yet, when asked why—if there were no conflict of interest with MOA—did Shurtleff return $30,000 in campaign donations from MOA, spokesman Murphy said that the $10,000 check was a typo on MOA’s report. As for returning the $20,000, Murphy writes via e-mail: “For reasons unrelated to Consumer Protection or unsubstantiated allegations of drug abuse, the Attorney General sent a $20,000 check back to MOA and removed $20,000 from his report.”<br /><br /><strong><span style="font-size:100%;">The Web </span></strong><br />So, for a candidate like Shurtleff, who raised $680,546 in 2008, MOA’s donation makes up a small chunk of that change. But from the call-center telemarketing industry in Utah, Shurtleff pulls in $156,000 in donations for 2008. Counting the allegedly returned MOA checks: $187,500.<br /><br />These companies weave together a large web of money and legal actions. Several have multiple company names and most are interconnected, sharing client information so different companies can offer the same client additional services (see diagram, p. 20). There is even one infamous complaint of one company using waterboarding as a motivational exercise.<br /><br />Prosper Inc., located in Provo, gained some notoriety on Feb. 28, 2008, when The Salt Lake Tribune reported that former employee Chad Hudgens had sued his former supervisor for using a method of torture on him that dates back to the Spanish Inquisition as part of a company exercise. The tactic induces psychological trauma by convincing the body it is drowning. Hudgens alleged his boss waterboarded him, explaining to watching employees that they should put the same amount of struggle into making sales as Hudgen’s body did as it struggled for air. Prosper, which markets business coaching to customers in areas such as real estate, investing and Web commerce also donated $15,000 to Shurtleff in 2008. Despite repeated attempts to contact representatives of Prosper, <em>City Weekly</em> was unable to obtain comments about an administrative citation issued against them by the Utah Division of Consumer Protection in 2007 for deceptive trade practices.<br /><br />Another company that donated to Shurtleff, Storesonline, which markets a service selling and hosting online-business Websites, has been named in two individual lawsuits and settled eight actions with various state attorneys general from California to North Carolina. It is also facing two pending actions in the United States and one in Australia. The 2007 pending case with the Australian Competition and Consumer Commission comes only a year after Storesonline settled with the country in 2006. In that agreement, the company promised to stop making false and misleading statements and agreed to refund 175 Australian consumers a total $673,478.<br /><br />That amount barely edges out a California settlement where Storesonline agreed to pay fines and restitution to the tune of $550,000 in 2006. In all of the company’s settlement arrangements, Storesonline agreed to amend its business practices. Yet documents show between 2003 and 2008, the company has been fined and/or ordered to offer restitution for a combined sum of $2,194,289, an average of roughly $440,000 in fines and restitution owed per year.<br /><br />General counsel for Storesonline Jeffrey Korn says that the company had a recent change in management in November 2008, and that previous management considered its $15,000 in political donations to Shurtleff in 2008 as part of being good corporate citizens. “Current management does not believe that and won’t be making any charitable or political donations,” Korn says. He says the company does not consider that an appropriate use of shareholder funds. “And personally, I wouldn’t have done it,” Korn says, because of the possibility of a perceived conflict. He adds that in his dealings with the state there has never been any significant contact with the Attorney General’s Office. “The negotiations and the complete settlement were done between me and [Consumer Protection] with no input from the Attorney General’s Office.”<br /><br />Korn confirmed Storesonline’s relationship with other Shurtleff donor companies Professional Marketing International (PMI) and the Tax Club as companies that sell products to Storesonline customers. The Tax Club, a call center that sells business tax plans, donated $40,000 to Shurtleff in 2008. They were also subject to Consumer Protection citations for deceptive trade practices in 2007. Despite repeated attempts, to contact representatives of the Tax Club, <em>City Weekly</em>’s calls for comment went unanswered. PMI, aka National Marketing Resources, which gave $10,000 to Shurtleff in 2008, is a company offering real estate coaching and helps market Storesonline software. PMI has faced no citations or actions from Utah Consumer Protection. PMI President Phil Smith says its donations were only a show of support and that the company had likewise donated to several other races and causes in the state. “There was never any conflict of interest,” Smith says.<br /><br />Jeremy Johnson, president of iWorks, a company that gave $50,000 to Shurtleff in March 2008, didn’t believe he was buying any favors, either. “[Shurtleff] is a guy that we like and believe in and there’s nothing else to it,” he says. In 2007, Johnson’s company, which markets products to assist customers in obtaining government small-business loans, was prosecuted by the Attorney General’s Office on behalf of the Division of Consumer protection for deceptive trade practices. The charges were dismissed in early 2008.<br /><br />“We handle clients for a dozen companies with a 150,000 new customers every week. A certain percent complained to Utah’s Consumer Protection, and they decided to take action,” Johnson says. Besides, “Their own lawyers told them if they took it to court they’d lose, so they dropped it.”<br /><br />Of course, Consumer Protection’s own lawyers are by statute, from the Attorney General’s Office.<br /><br /><span style="font-size:100%;"><strong>The Alliance </strong></span><br />In relation to the iWorks campaign donations, the AG’s office’s Murphy pointed out inaccuracies in a June 19, 2008, <em>City Weekly</em> story titled "The $50,000 Question." The story incorrectly stated that members of the Attorney General’s Office participated in the investigation of iWorks. “Three assistant attorneys general have been involved in representing [Utah Consumer Protection] in matters relating to that investigation, but their role has always been as legal counsel, not as participants in any investigation,” Murphy writes.<br /><br />Murphy says, however, that the decision to dismiss the 2007 case against iWorks was one decided “independently” by Consumer Protection, writing that while his staff worked with Consumer Protection on the issue, “The Attorney General had no input and no communications with Consumer Protection about this decision.”<br /><br />Murphy says the Attorney General’s Office collaborated with a number of these businesses as well as the Consumer Protection Division to formulate a best-practices policy for dealing with complaints as part of a new industry association called the Alliance for Lifelong Learning.<br /><br />“The attorney general does not have a relationship with these companies and has not been involved with any complaints that may have been made in the past. They all have compliance and complaint policies and should respond and refund money if there is a problem,” Murphy writes. “Some of these companies have not always been as prompt at responding, but it is hoped that this new association will provide better support for consumers.”<br /><br />While the dismissal was Consumer Protection’s ultimate decision, Murphy notes the attorney general’s advisory capacity in how the division proceeded with the case. “In its role as counsel for the Division in proceedings involving Mentoring of America, the Attorney General’s Office represented the interests of the Division and had various internal discussions, prepared legal papers and had attorney-client communications.” Attempts by <em>City Weekly</em> to gain access to records of these internal documents and discussion records have been denied by the Attorney General’s Office, citing the legal standard of government privacy.<br /><br />“Many companies are very legitimate and doing great work,” says Bill Nixon, executive director of the Alliance for Lifelong Learning, the trade association created with mostly Utah County call-center companies in January 2008. “But this is an industry where you also have fly-by-night, boiler room operations.” Nixon hopes that the association will be able to regulate its industry much like many other national industry associations by requiring members to adhere to strict standards of practice. Nixon says in the association’s first year it has already established a system to resolve customer complaints within roughly 48 hours. “The successful [complaint] closure rate is almost 100 percent,” Nixon says, adding that he still has concerns.<br /><br />“If a company gets 30 complaints in a quarter,” Nixon says, “there may be 3,000 other unsatisfied customers who just don’t complain.” For him, the Alliance can’t simply be a paper tiger. “It’s not enough in my mind that we just meet the consumer’s expectations and thoughtfully and compassionately address their concerns. What we really want to do is improve the behavior of anybody who might be working in this industry. And if they don’t improve, they’ll be moved out of the association.”<br /><br />According to Francine Giani, director of the Utah Department of Commerce—the state agency that houses Consumer Protection, the new association, while helping to resolve complaints won’t affect how the division acts on its investigations. “Citations will still go out,” Giani says, if companies display a pattern of negligent or criminal behavior. “We’re not heavyhanded here. I think we have to balance on [whether we can] correct the business’ practice to bring them in line or will they never learn?” But both Giani and Consumer Protection Director Kevin Olsen, agree the association is helping to resolve complaints. “If self regulation by the industry is the first step, that makes government regulation a lot easier,” Olsen says.<br /><br />Giani did not see Mentoring of America as a driving force behind the association’s founding. “In fact it’s my understanding that they were the last to jump on board,” Giani says.<br /><br />Regarding Consumer Protection’s waiving of MOA’s fine in 2007, Giani explained that consumers’ refunds might have been jeopardized by a protracted court battle. “We believe our first priority is to refund the consumers and not fund the coffers for the state,” Giani says.<br /><br />Olsen notes the industry association is still in its infancy. “I think the alliance gave us a new tool,” he says. “We’re waiting to see if it’s the tool we really hope it is".<br /><br /><span style="font-size:100%;"><strong>The Candidate </strong></span><br />Marcus Aurelius, ancient Rome’s philosopher king, once wrote: “That which is not good for the beehive, cannot be good for the bees.” Utah Federal District Court Judge Paul Cassel would echo that statement in a legal opinion some two thousand years later.<br /><br />Storesonline had sought an injunction against the Division of Consumer Protection to halt a 2007 administrative citation against it by arguing that the division lacked jurisdiction since complaining customers did not reside in Utah. Judge Cassel denied this argument and dismissed the company’s motion. Explaining why a company like Storesonline could potentially damage Utah even though the complaining customers were from outside the state, he wrote: “The state has an interest in protecting consumers against the harms of unchecked, exploitative businesses that are centered in Utah. And the state has an interest in preventing Utah from obtaining a reputation as being a haven for such businesses.”<br /><br />Thus, the state helps bolster its image when it protects consumers from deals too good to be true, even consumers from out of state.<br /><br />It protects consumers such as John and Claire Patrick, a retired couple from Tucson, Ariz., who complained of software and services they purchased from Utah County call-center company The Summit Group in 2007 for $8,000, meant to help them set up an online business site. Claire documented the return of all the materials the company charged her for, and luckily, her credit card company stood by her and canceled the charges. She also demanded a refund and pointed out to Summit that her husband—who had bought the program— was manic-depressive. According to a 2008 Division administrative citation against The Summit Group, John Patrick had even become suicidal when he learned the com pany would not refund the full amount— even after Claire Patrick told them about her husband’s condition. Claire Patrick says, however, that after she talked to the Utah Attorney General’s Office about her husband’s condition and Summit’s behavior, the full amount was soon refunded.<br /><br />The Summit Group and another call center, Thrive Learning, both under the management of Colton Moody and Eric Largin, donated $25,000 to Shurtleff’s campaign in 2008.<br /><br />“We were luckier than most,” Claire says. “Apparently, they kind of go after retired folks like us and maybe people with mental situations like my husband,” she says. “They kind of prey on folks.” Despite repeated attempts, representatives of the Summit Group could not be reached for comment.<br /><br />For Donna Croninger, who works in foster care in Deshler, Ohio, documenting everything and complaining loudly to as many government entities as possible also helped her recoup roughly $8,000 from Mentoring of America in 2007. Still she was embarrassed for getting involved in the first place.<br /><br />“It was stupidity on my part, I know that. But they said you’re making your money back. … You get promised things that aren’t there,” Croninger says. She’s grateful she got her money back and besides the abovementioned advice, she could recommend two other tactics that worked for her: “I cried and prayed,” she says.<br /><br />If you have additional comments regarding this article or are a victim of one of these companies, please contact Western Capital at investigations@seminarwatch.com . Special thanks to City Weekly for this story.<br /></span></div> </div> </div> </div> <!--<a href="share.toolbox.php?theLink2Share=http://www.cityweekly.net/utah/article-7772-called-into-question.html&theTitle2Share=Called+Into+Question" onclick="return hs.htmlExpand(this, { contentId: 'highslide-html-2', objectType: 'ajax'} )" class="sShareBoxIcon">Share</a>--> <p> </p>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com1tag:blogger.com,1999:blog-569911244797122719.post-10359880844580087212008-11-18T22:06:00.001-07:002008-11-18T22:08:53.545-07:00Welcome to SeminarWatch How Can We Assist you Today!<div style="background:#000000;width:400px;height:348px"><embed flashVars="playerVars=showStats=no|autoPlay=yes|videoTitle=Robert%20Paisola%3A%20The%20Western%20Capital%20VIP%20Program" src="http://www.metacafe.com/fplayer/2055448/robert_paisola_the_western_capital_vip_program.swf" width="400" height="348" wmode="transparent" pluginspage="http://www.macromedia.com/go/getflashplayer" type="application/x-shockwave-flash"> </embed></div><br><font size = 1><a href="http://www.metacafe.com/watch/2055448/robert_paisola_the_western_capital_vip_program/">Robert Paisola: The Western Capital VIP Program</a> - <a href="http://www.metacafe.com/">The funniest movie is here. Find it</a></font></div>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-32949676169961857012008-09-26T07:13:00.001-06:002009-01-26T14:38:06.507-07:00To Our Friends Around the World Regarding eCore University<span style="font-size:180%;">To our clients and customers around the world and victims of eCore University from Seminarwatch.com:</span><br /><br />Seminarwatch.com has long been the consumer watchdog protecting, you the public, from scams and unscrupulous individuals. We have been covering a company called e core university for the past 6 months. During that time, many of you have contacted our offices for assistance. <br /><br />We have decided as a Company, that this matter is not a matter that we are going to pursue further. <strong>We believe that the management of eCORE University has created a solution to assist you in your time of need.</strong> We will be posting additional data on this site as to how you can come to a resolution on your individual matter with the company. <br /><br />Again, at this time, SeminarWatch is not able to assist you with any matters regarding eCore University, but you are invited to stay tuned to this site for a formal message from the Company and it's parent organization Millionaire Strategies LLC and RE RE investments LLC.<br /><br /><br />With All the Success In the World,<br /><br />The SeminarWatch Investigations Team<br /><a href="http://www.seminarwatch.com/">www.SeminarWatch.com</a>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.comtag:blogger.com,1999:blog-569911244797122719.post-81252899874322310602008-04-15T20:37:00.005-06:002008-04-26T01:43:15.325-06:00JOHN ALEXANDER REAL ESTATE- A LOOK UNDER THE HOOD, Posted by Robert Paisola<div style="margin:10px;"><a href="http://www.naymz.com/search/robert/paisola/2217"><img src="http://www.naymz.com/images/badge.gif" alt="Mr. Robert Paisola Motivational Speaker on THE SECRET" title="Mr. Robert Paisola Motivational Speaker on THE SECRET on Naymz" border="0" /></a></div><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_1hpnly4Q2ts/SAVnBD8fwXI/AAAAAAAAKAI/d2MYKwfydxw/s1600-h/IMG_9496.JPG"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="http://3.bp.blogspot.com/_1hpnly4Q2ts/SAVnBD8fwXI/AAAAAAAAKAI/d2MYKwfydxw/s400/IMG_9496.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5189667413550940530" /></a><br /><br /><br />Your Moderator, Robert Paisola, Pictured Here, is an international trainer and expert on the subject of Real Estate Investing. This article was published today by the Boston Herald in Boston Mass.<br /><br />John Alexander, a Texas real estate entrepreneur, has prospered selling his techniques to thousands of people looking to profit from property sales. So why did he meet personally two times with ex-felon Dwight Jenkins in Massachusetts, and allow Jenkins to record a testimonial on his Web site?<br /><br />Texas real estate guru John Alexander has built an infomercial empire by selling $39.95 how-to videos, hosting seminars and running a hotline for people looking to make fast money “flipping” houses.<br /><br />He calls his technique the “inverse purchase,” and one of his pupils was Dwight Jenkins of Dorchester, 36, the ex-felon who is being sued by eight local investors who claim Jenkins defrauded them.<br /><br />“I got the program from him,” Jenkins told the Herald in an interview. The two met twice in the Bay State, and Jenkins is still featured on two of Alexander’s Web sites as a profit-making success story. In one testimonial to Alexander, Jenkins said he made $1 million in one year and bought “toys.”<br /><br />“Well, I made a lot of money. Last year I made over a million dollars; this year was good for me also,” Jenkins says on video at johnalexander.com, under a heading reading Real Estate Riches In 14 Days. “I brought me a couple of toys, like I said, I bought a Porsche Carrera C2 with the rims, the TVs, the whole package,” Jenkins says.<br /><br />In an e-mailed statement to the Herald yesterday, sent by attorney Larry C. Russ, Alexander distanced himself from Jenkins.<br /><br />“On two occasions, about a week apart, Mr. Jenkins asked me to attend two separate meetings in connection with certain real estate investments. After the meetings, I decided not to pursue any business relationship with Mr. Jenkins,” Alexander said. “I also advised one of Mr. Jenkins’ former investors to seek legal counsel in connection with her business dealings with Mr. Jenkins.”<br /><br />Alexander said his investment strategies are “completely legal as defined by Fannie Mae standards.” Fannie Mae is a governmemt-sponsored company set up to buy and sell mortgages.<br /><br />“Nothing in my course materials would ever suggest or condone making false statements to anyone,” Alexander said. “Rather, my methodology is based upon full disclosure to all parties.”<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_1hpnly4Q2ts/SAVpHz8fxnI/AAAAAAAAKPo/cGZ6djVt0AY/s1600-h/86c061b4f4_creep.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="http://2.bp.blogspot.com/_1hpnly4Q2ts/SAVpHz8fxnI/AAAAAAAAKPo/cGZ6djVt0AY/s400/86c061b4f4_creep.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5189669728538314354" /></a><br /><br />Jenkins is named in three civil lawsuits filed in federal court and Suffolk Superior Court that accuse him and others of fraud and conspiracy. Alexander is not named in any legal action against Jenkins.<br /><br />The federal suit against Jenkins, brought by Robert G. Smith and Maria E. Dasilva, asserts that the two first-time home buyers obtained hundreds of thousands of dollars in mortgages to buy homes based on loan applications that were falsified by mortgage brokers.<br /><br />Jenkins is accused of steering Smith and Dasilva toward homes they could not afford, and pressuring them into signing mortage loan documents that contained “false and misleading information.”<br /><br />Jenkins says he was nothing more than a middleman in the transactions, did nothing wrong, and the investors knew all the risks.<br /><br />“First, the conduct described in the lawsuit, whether true or false, bares no relationship to the real estate strategies I teach my students in books, tapes, seminars and coaching,” said Alexander.<br /><br /><br /><br />“As well, I have never engaged in any transaction with Mr. Jenkins or any of the other defendants named in the recent federal court action filed in Boston,” he said.<br /><br />On his Web site, Alexander tells his students: “Many people can’t qualify for a home loan. They need your help with financing options which we provide you with and educate you in. This puts you in the profitable position of being the MIDDLE MAN/WOMAN. You become the one person controlling the money that can bring the transaction to a closing. They can’t close without you in the picture.”<br /><br />The middlemen make their money at the closing, when they receive a check for the difference between what they bought the house for and what it was resold for to the buyer, the site states.<br /><br />The Herald reported Sunday that Jenkins earned $905,000 as a middleman in 17 real estate transactions that are now in dispute.<br /><br />“I have 25-plus years of teaching thousands of students real estate investing,” he said. “As far as my methods of investing in real estate are concerned, my techniques are legal and would not be defined as predatory ‘flipping.”’<br /><br />Consumer criticism of Alexander relates to allegations about deceptive marketing practices and unauthorized credit card charges, according to a company report prepared by the Better Business Bureau of Colton, Calif.<br /><br />The BBB gives Alexander an “F” rating for his Van Nuys, Calif., company. In an online report, the BBB states that Alexander advertises a BBB membership on his Web site, richesin14days.com, when it is not, in fact, a member.<br /><br />The most common complaint has to do with credit card charges for access to a hotline service, according to the BBB report. When consumers buy the start-up package for $39.95, they qualify for a 30-day trial of “John’s Unlimited Access On-Demand Hotline Advisory Service” and monthly teleseminars, the BBB report states.<br /><br />That offer comes with a “negative option cancellation clause.” That means if consumers do not cancel the service within the 30-day trial period, their credit card will be charged $39.95 monthly for enrollment in Alexander’s “14 Days to Real Estate Riches Club,” according to the BBB report.<br /><br />Ed Magedson, founder of the Web site, ripoffreport.com, said Alexander’s company has improved dramatically in terms of its customer service in the last year.<br /><br />“From all the calls that were made from the people that filed a report, they were refunded their money or they felt that their report was premature,” said Magedson.<br /><br />The BBB report also asks for substantiation about the advertising claim that buyers are able to obtain “riches in 14 days.”<br /><br />“If this was such a red-hot deal, you’d think that is where they’d be making the money. Why sell the opportunity?” said Gary Almond, vice president of operations at the BBB of Southland, Calif.<br /><br />Alexander stood fully behind his real estate teachings.<br /><br />“The ‘flipping’ strategies I teach are fully sanctioned by Fannie Mae, because my strategy does not promote the sale of property at inflated prices, nor do I recommend making false representations to lenders,” he said in his e-mail.PosteRobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-11933653662042412482008-03-20T00:31:00.003-06:002008-03-20T00:35:59.056-06:00David Gengler = Fraud , Direct from The Rip Off Report, Robert Paisola Reports<a href="http://3.bp.blogspot.com/_1hpnly4Q2ts/R-IFucuRE6I/AAAAAAAAITw/gL-fsnbZ06k/s1600-h/5252838.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="http://3.bp.blogspot.com/_1hpnly4Q2ts/R-IFucuRE6I/AAAAAAAAITw/gL-fsnbZ06k/s400/5252838.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5179708816971862946" /></a><br />Mr. Robert Paisola<br /><br />I was deceived on August 3, by TMTT 'Robert Taylor' hosting a free seminar in Charlotte. For $399 I would be provided manuals, support, software, training(workshop) at this Marriott location in Greensboro, NC Aug 25-27.<br /><br />Robert Taylor was a young dynamic speaker who aroused everyone's interest that day on becoming a successful knowledgeable trader.<br />I say that at least 80-90% purchased this future seminar on that day, consisting of elders, middle age and the young.<br /><br />I made a hotel reservation in Greensboro(Ramada) for the weekend since it was like 110 miles one way from Charlotte. I dragged my wife and baby along for the surprise of a lifetime. (If it's too good to be true, beware- now I learned my lesson) Currently I'm unemployed looking for an opportunity to make money like everyone else out there.<br /><br />The main speaker was David Gengler who wined and dined everyone with his family and home pics in Utah, and how he became so wealthy from trading. During the seminar he became sarcastic with the audience to the point of disrespecting several memmbers of the audience who couldn't follow him with the dream.<br /><br />I approached the Manager of the seminar by the name of 'Andrew' who came on the second day of seminar and asked him about this deception they were introducing. He denied the whole thing and instead with such arrogance and deceitfulness about the business practice they were following were legal & ethical.<br /><br />I told him that he'll be lucky if 10% of the l40-150 students that day would followed thru with his deception. Andrew boasted a wager of $399 that at least 50% would sign up for these outrageous over-inflated class price, which was never mentioned to anyone back in Charlotte. (there was a catch to this scheme)<br /><br />So far less than 10 people signed up and payed a hefty sum for those categorical class they were offering, we all knew cause they were calling them by name out of the groups seated.<br /><br />David Gengler was informed that very few people were registered so far, and diplomatically started to converse on what's holding everyone up from making that ridiculous expensive step. In general, the people were honest and sincere and gave valid reasons for not pursuing TMTT any further. <br /><br />That's when David started getting obnoxious and using derogatory words to spark up emotions to get people to react. David was failing miserably by now, that's when I turned around and looked at 'Andrew the Manager' and reminded him of his wager he made with me. Andrew somewhat frustrated gave me a dirty look and left the hall to corridor, I guess he was totally embarrassed.<br /><br />Nevertheless I became disillusioned and disgusted with the whole seminar that I left early to spend whatever little time I had left with my wife/kid. I hope that everyone that attended that seminar in Greensboro, NC Aug 25-27 will get their full refund.<br /><br />GabrielRobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-47934562640585522672008-03-15T21:02:00.004-06:002008-03-15T21:06:53.265-06:00WELCOME TO THE LEARNING ANNEX, Posted by Robert Paisola<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_1hpnly4Q2ts/R9yOupnW7ZI/AAAAAAAAIS4/V-6qdFn3-Ro/s1600-h/sectionM-490.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="http://3.bp.blogspot.com/_1hpnly4Q2ts/R9yOupnW7ZI/AAAAAAAAIS4/V-6qdFn3-Ro/s400/sectionM-490.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5178170603665288594" /></a><br />THE REAL ESTATE & WEALTH EXPO<br /><br /><span style="font-weight:bold;">WELCOME TO THE EARNING ANNEX</span><br /><br />How the Learning Annex went from teaching offbeat courses on computer programming and the art of reflexology to being a Trumped-up marketplace for get-rich-quick schemes. Ivor Tossell reports<br /><br />Special to The Globe and Mail<br /><br />March 15, 2008<br /><br /><span style="font-weight:bold;">The Learning Annex is back. It's just not the one you remember.</span><br /><br />It actually made its first appearance this time last year. Early one Saturday morning in March, 2007, the lobby of the Metro Toronto Convention Centre was heaving with thousands of inspiration-seeking registrants scrambling to get programs. Each program was emblazoned with the motto "THIS WEEKEND BECOME A MILLIONAIRE!"<br /><br />The Learning Annex Real Estate & Wealth Expo had plastered the city with Donald Trump's face, but hadn't advertised when in the two-day event his ballyhooed speech would occur. So here was everyone who'd paid upwards of $100 for tickets, bleary-eyed and jostling, not wanting to miss out.<br /><br />"If you have your badges, keep moving up the stairs," hollered an official in the crowd. "If you have questions, ask the cute girls in the white shirts!"<br /><br />Upstairs, as the stadium-sized main floor filled up, the girls in white tank-tops - and there were many, every one of them cute - milled about and greeted newcomers. Someone had dressed in a costume with a giant Trump bobblehead. Up front, a speaker had taken the stage.<br /><br />"We have a little tradition here," he boomed. "It's called the money dance!" The money dance was set to the tune of the 1990 pop song I Wanna Be Rich: "I... want... money! Lots and lots of money!" Step-clap-step-clap... As the music blared, thousands got up, looked around a bit sheepishly, then stepped, clapped, stepped and clapped.<br /><br />And then the organizers of the Learning Annex Real Estate & Wealth Expo did a little money dance of their own. For the next two days, attendees were offered a blend of high-octane inspirational talk along with pitch after pitch for schemes that promised success at everything from flipping apartments to profiting from foreclosures - if, of course, they purchased further learning materials.<br /><br />This is the new Learning Annex - and it will be rolling back into town on March 29. After being sold and re-sold over the years, the institution that Torontonians might best recall for its intriguing and offbeat night-school courses has morphed into a different creature entirely.<br /><br />Its curbside boxes are empty and dilapidated, its quirky courses no longer offered. In its place is a travelling extravaganza of high-profile speakers and anyone-can-do-it real-estate schemes. If last year's event is any indication, it will leave some people feeling like a million - and others wondering where their money went.<br /><br /><span style="font-weight:bold;">From z to z and back</span><br /><br />It wasn't always this way. What happened to the Learning Annex that was?<br /><br />"Donald Trump," is Bill Zanker's answer.<br /><br />"Donald Trump took our brand and put it on the map."<br /><br />Mr. Zanker would know. He founded the Learning Annex in 1980 in New York City. By 1986, it had expanded to Toronto, as well as other big cities in the United States. Over the years, it earned a reputation for offering how-to courses that ranged from meat-and-potatoes to downright weird.<br /><br />The Learning Annex would teach you everything from computer skills to reconnecting with your past lives, from magazine writing to "The Intimate Art of Foot Reflexology." It might not have been Harvard North, exactly, but who else offered a course called "Break Into The News Business! An Afternoon With Gord Martineau"?<br /><br />In 1991, however, the Learning Annex filed for bankruptcy, and Mr. Zanker sold the organization he started. The Toronto end of the operation was purchased by a trio of Canadian businessmen and run locally for most of the decade.<br /><br />Through the 1990s, the Learning Annex's local owners moved towards bringing in more high-profile speakers - motivational and otherwise - in addition to the usual courses. Toronto saw the likes of Jerry Lewis, Deepak Chopra, Timothy Leary and Kurt Vonnegut, who spoke in a church on Queen Street East.<br /><br />"We brought a lot of personal growth to the big stage during the nineties," said David Sersta, who was the Learning Annex's managing partner in those years. "We introduced a lot of great speakers, like Eckhart Tolle." (Mr. Tolle went on to author The Power of Now, which became a darling of Oprah Winfrey and her formidable marketing machine.)<br /><br />By 2001, however, Mr. Zanker had retaken the reins of the Learning Annex in the United States. Meanwhile, the Toronto operation had caught the attention of Moses Znaimer, the impresario owner of the CHUM media empire. As Mr. Zanker tells the story, Mr. Znaimer was hooked when Timothy Leary, in town to speak to the Learning Annex, made an appearance on CHUM. (Mr. Znaimer declined to be interviewed for this story.) After the Learning Annex's three Canadian owners sold it back to Mr. Zanker, he in turn sold it to CHUM in 2001.<br /><br />Mr. Zanker said that Mr. Znaimer's plan was to use his television assets to promote the Learning Annex.<br /><br />"It didn't grow to the extent that we wanted it to grow," said Ross Mayot, who headed the Learning and Skills Television of Alberta division of CHUM that operated the Learning Annex.<br /><br />"Bill [Zanker] had some new ideas he was developing in the United States with Trump," he said. "We seized on the opportunity to sell it back."<br /><br />Those new ideas involved real estate. Noticing the interest that the Learning Annex's real-estate seminars were attracting, Mr. Zanker had assembled them into one super-sized Wealth Expo.<br /><br />And so, in 2006, the Learning Annex's Canadian incarnation ceased to be, swallowed by the real-estate spectacular that Mr. Zanker was already touring around the United States, riding the wave of Mr. Trump's newfound reality-TV stardom.<br /><br />In March of 2007, it pulled into Toronto, skinny white t-shirts, Trump bobblehead and all.<br /><br /><span style="font-weight:bold;">putting on a big show</span><br /><br />The 2007 expo drew 50,000 attendees, by the Learning Annex's own tally. Everything about it was oversized - including, it seems, the range of reactions people had.<br /><br />Those who went seeking entertainment - and there were many - seemed to walk away happy. "It was fun," wrote Simon Bernath, a 19-year-old Hamilton salesman who's starting a business in energy-efficient appliances, in response to an e-mail query. He said it was "well worth the $100 admission price to see the many speakers, not so much for the actual content but more for the motivational factor of being at the event." (Mr. Bernath also made a point of praising the cute girls in white tank-tops.) Last year, the keynotes packed the convention hall with high-voltage crowd-pleasers like Tony Robbins and Richard Branson, whose promised appearance turned out to be via satellite feed.<br /><br />Mr. Trump, for his part, proved as good a showman in person as he is on television, regaling a psyched-up sea of spectators with New York-flavoured life lessons ("When somebody screws you, screw them back in spades!").<br /><br />The real-estate seminars were another story. At shows like these, the keynote speakers are paid to be there - Mr. Trump, in this instance, to the tune of $1.5 million - while the seminar presenters pay for their chance to present. Offerings last year included the likes of "Automatic Millionaire Homeowner" and "Auctions and Foreclosures," which promised to teach students "how to buy a home with less than $50, without a credit statement."<br /><br />As the uninitiated quickly discovered, most of these "courses" boiled down to extended infomercials for get-rich-quick schemes.<br /><br />"It was more like their life stories," said Diana Newton, a social worker from Scarborough who attended with her son, looking to get into real-estate investing. "Then at the end, if you wanted more information, you had to come up with $2,000 or $3,000."<br /><br />Salesmen took turns exhorting customers from the main stage, and reiterating their pitches in breakout sessions in smaller rooms.<br /><br />Susan Prestedge, a college instructor who went to the show on a lark, recalls sitting in on one large breakout session on real-estate flipping. Near the end, the instructor announced that there were only 500 seats available in his three-day $1,000 seminar, which would be held in Toronto at a later date.<br /><br />"At that, half of the people got up and started running for the back of the room," she said. "I've never seen so many people so eager to separate themselves from a thousand dollars."<br /><br />But those seminar materials might just wind up sitting on the shelf.<br /><br />"Very few people are affected in a positive way by seminars," said Brad Lamb, the Toronto real-estate broker. "Some people change their lives. Most people end up adhering to the same bad habits."<br /><br />Real estate seminars are nothing new; Mr. Lamb notes that some of the presenters at the Wealth Expo have been selling their wares in Toronto for decades.<br /><br />"There was a host of guys that would travel around doing these motivational real-estate seminars, where they sold you a video and a book and a series of instructional booklets to show you how to find your way to riches," he said. "And they're all conceivably correct, except in practice they don't work."<br /><br />Some would beg to differ. Those who arrived knowing what to expect could take the seminars in stride as a shopping opportunity. Among them were out-and-out fans: real-estate junkies who follow the Trump mantra of thinking big. Maria Lavoie, an ebullient real-estate investor who calls Mr. Trump her mentor, travelled from Sudbury to learn what she could from the show.<br /><br />"We're obsessed with what we do," she laughed, in a phone interview arranged by the Learning Annex. "We do this seven days a week. We don't do anything else."<br /><br />Ms. Lavoie said she and her husband quit their jobs five years ago and threw themselves into full-time real-estate investing. She said that nuggets of wisdom she got from the speakers led her to focus on buying trailer parks (she now owns two) instead of managing property. Her sales since the expo, she says, have totalled over a million. (Ms. Lavoie was so pleased, she wrote a testimonial that's featured in a book co-authored by Mr. Trump and Mr. Zanker, called Think Big and Kick Ass in Business and Life.) At the event, speakers were upfront in saying that truly successful investors are a rare breed. But where some see opportunity, others see opportunism.<br /><br />"I thought they were barely this side of being scams," said Dan Richards, a consultant to the financial sector who was also in attendance. Mr. Richards said he saw a lot of people of limited means hoping to find "quick-fix" solutions.<br /><br />"The biggest value for most people is they give them a brief period of hope."<br /><br />Ms. Newton left disappointed. "A lot of people are down on their luck," she said. "These guys make it seem so easy just to jump up and get started, and it's not."<br /><br /><span style="font-weight:bold;">The trump card</span><br /><br />On March 29, the show will be back in town. This year, however, the expo has been reduced from two days to one.<br /><br />"I think we're not sure how the Canadian market is," said Mr. Zanker.<br /><br />Despite a note on the Learning Annex website that says that Toronto classes will be starting soon, Mr. Zanker says there are no plans to bring them back. In fact, while classes are still offered in New York City, Mr. Zanker says the organization is moving away from in-person classes, and towards online learning.<br /><br />Already, last year's attendees have been receiving free tickets to "Donald Trump Live," arriving in large envelopes with Trump's face scowling from the front.<br /><br />Inside, a flyer urges readers to "Come Meet DONALD TRUMP."<br /><br />"Don't miss Donald's LIVE Q&A after he teaches," it reads. "Ask him about anything... if he will fund a new business idea, where to invest, or even if you could be his 'apprentice.' "<br /><br />The eagle-eyed, however, might spot a disclaimer at the bottom corner of the page, in the smallest of type: "Donald will be recorded LIVE via satellite." His appearance will be beamed in from his house in Florida. He won't be here at all.<br /><br />On the envelope front, the ever-adaptable Learning Annex has updated last year's pitch to fit its foreshortened schedule: "One Saturday" - the first two lines are underlined in red - "Can Make You A MILLIONAIRE!"<br /><br />Hope springs eternal.<br /><br /><span style="font-weight:bold;">CHARGING AHEAD</span><br /><br />After attending last year's expo - and signing up with my credit card - I discovered an unwelcome surprise on my bill.<br /><br />In the weeks after the show, telemarketers made two follow-up phone calls to me. In the first, I was told about a "free" Learning Annex online-learning website - and was told that an e-mail would be sent to me containing a login and password. Seeing no harm, I consented to receive the e-mail. I didn't open it. When a second telemarketer phoned to follow up, I responded that I had no interest in the website, or in any further phone calls.<br /><br />I never visited the website. Months later, though, I discovered two charges for just over $40 on my credit-card bill. Checking the unopened e-mail, I found fine print stating that I would be charged if I did not cancel within 14 days. The Learning Annex had billed the credit-card number I'd used to pay for the expo.<br /><br />Visa refunded my money, but my interest was piqued. It turned out I wasn't alone.<br /><br />Much the same thing happened to Ash Silva, a producer of entrepreneur-oriented events who said he enjoyed the Wealth Expo itself. After the show, however, telemarketers called about the website, telling his wife (who answered the phone) that they had a follow-up product and wanted to confirm their home address.<br /><br />"It was almost a steamroll," said Mr. Silva. "They speak so fast, it doesn't even make sense." Mr. Silva said his wife declined the offer.<br /><br />"Lo and behold," he says, "the credit card got billed."<br /><br />When he called the Learning Annex, Mr. Silva said, a supervisor claimed she had an audiotape of his wife consenting to have her credit card billed. He said it was only when he challenged the supervisor to go ahead and play the tape that she agreed to refund the money.<br /><br />In a phone interview last week, Mr. Zanker called the claims "ridiculous" and said that the Learning Annex would never put unauthorized charges on a credit card. He added that everyone who was signed up to the website trial consented to it when they registered for the expo.<br /><br />"If anyone wanted it, they got it, and if they don't want it, they don't have to have it," said Mr. Zanker.<br /><br /><span style="font-weight:bold;">The Learning Annex: Trading places and trading hands</span><br /><br />Over the years, the institution that Bill Zanker founded has gone through many incarnations.<br /><br />1980: Bill Zanker founds the Learning Annex in New York City with $5,000.<br /><br />1986: Learning Annexes are established in several North American cities, including Toronto.<br /><br />1991: The Learning Annex files for bankruptcy. Bill Zanker sells the organization in both the U.S. and Canada. The Canadian operation is purchased by a trio of local investors. Timothy Leary visits Toronto to present a Learning Annex seminar.<br /><br />1999: The Canadian owners of the Learning Annex sell it back to the American operation.<br /><br />2001: Bill Zanker returns to the company he founded. The Canadian operation is bought by Moses Znaimer's CHUM media.<br /><br />2005: In the United States, Donald Trump appears at Mr. Zanker's wealth expo. Speaking fee: $1.5-million.<br /><br />2006: CHUM sells the Learning Annex back to Mr. Zanker. Classes cease.<br /><br />2007: The Wealth Expo comes to Toronto, headlined by an appearance by Donald Trump. Tens of thousands attend.RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-26645967616907270952008-03-13T11:07:00.003-06:002008-03-13T17:58:22.273-06:00For More Details on The Russ Whitney "Teach Me to Trade" Indictments ....see <a href="http://www.mycollector.com">www.mycollector.com</a>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-55594669599001617382008-03-13T08:44:00.003-06:002008-03-13T13:25:57.941-06:00SEC charges 'Teach Me To Trade' promoters with fraud<a href="http://www.sec.gov/news/press/2008/2008-39.htm">Watch the Videos Directly from the SEC Website</a><br /><br /><a href="http://www.sec.gov/litigation/complaints/2008/comp20486.pdf">Download a copy of the Lawsuit</a><br /><br /><a href="http://www.mycollector.com/news_whitney.html">For Western Capital's Position Statement on the SEC Investigation to the Media</a> and the Sarbanes Oxley "Pelican Brief" that was filed against Russ Whitney with the SEC TWO YEARS AGO<br /><br />Teach Me To Trade -- the company behind those annoying infomercials full of false promises and exaggerated claims -- has attracted the scorn of the Securities & Exchange Commission, which has filed civil fraud charges against Linda Woolf and David Gengler.<br /><br />The SEC charges that "In order to con victims into paying as much as $40,000 for TMTT products and services, the Commission alleges that Woolf and Gengler lied about their success with the trading system, when in truth neither Woolf nor Gengler ever purchased TMTT's products or became successful traders."<br /><br />SEC Chairman Chris Cox chastised the promoters for preying on the "elderly, the desperate, and even the unemployed by promising financial security while instead robbing victims blind."<br /><br />The Commission alleges that, while the promoters portrayed themselves as successful traders, neither of them had ever reported a profit from trading on their tax returns.<br /><br />The U.S. Attorney's Office for the Eastern District of Virginia has also filed an indictment against the promoters.<br /><br />Here's where it gets really interesting. The Teach Me To Trade "system" is part of the the Whitney Information Network (OTC: RUSS), which is dealing with an SEC investigation of its own. That company's namesake and former CEO? Russ Whitney, whose rap sheet includes armed robbery.<br /><br />It's been said before but it's worth saying again; Late-night infomercials are not the place to find the secrets to tremendous wealth, and if it sounds too good to be true, it probably is.RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-47268087398170531002008-02-07T00:33:00.000-07:002008-02-07T00:43:57.966-07:00Get Rich Quick Foreclosure Seminar ScamNewspaper ads promise to make you rich quick but how many people actually make money from these free seminars? John Mattes goes undercover to get answers. <br /><br />John Mattes goes undercover to check the validity of get-rich-quick seminars<br /><br />Fox 6 News Investigates <br /><br /><object width="425" height="355"><param name="movie" value="http://www.youtube.com/v/BCfrKRihKt8&rel=1"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/BCfrKRihKt8&rel=1" type="application/x-shockwave-flash" wmode="transparent" width="425" height="355"></embed></object><br /><br />Larry Pino does NOT present for the Learning Annex at this timeRobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-45488801958133913242008-02-06T02:02:00.001-07:002008-02-06T02:02:46.724-07:00Free Lessons On The Secret Today! Posted By Robert Paisola<a href='http://thesgrprogram.com/?a_aid=4705d098&a_bid=ad57a6b1'><img src='http://www.sgraffiliatecenter.com/scripts/sb.php?a_aid=4705d098&a_bid=ad57a6b1' alt="7 Free Lessons from the Teachers of The Secret" title="7 Free Lessons from the Teachers of The Secret"></a>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-47995069510881295022007-12-23T11:12:00.000-07:002007-12-23T11:14:36.334-07:00Bill Zanker Never Wants to Come Down, From Inc Magazine<strong>Bill Zanker Never Wants to Come Down<br />He's got Tony Robbins! He's got Donald Trump! And, man, has he got a positive outlook! Meet the founder of the Learning Annex, who might be having more fun than anyone else in business today. <br />From: Inc. Magazine, January 2008 | By: Josh Dean </strong><br /><br />--------------------------------------------------------------------------------<br /><br />Bill Zanker knows what you're thinking. He knows that you paid $99 or $149 or, if you absolutely had to have the VIP package, $499 to come here, to the Broward County Convention Center, in Fort Lauderdale, Florida, to figure out how to get rich. By signing up for this two-day installment of the Learning Annex Real Estate & Wealth Expo, you have told him that you want a change. You are here to make contacts, to be taught how to lower your tax burden, to study the art of flipping houses, to unravel the mystery of federal grant programs, or most probably just to learn how to make a fortune from real estate like all the guys on the cardboard cutouts posted around the lobby. If Chris "Free Money" Johnson can do it, so can you. So here you are, at 7:50 a.m. on a sunny Saturday, standing in a long line next to some potted palms while your friends are Saran-wrapping sandwiches for the beach.<br /><br />At 8 a.m., a single door to the convention center's main exhibition hall swings open, and the opening guitar fuzz of Steppenwolf's "Born to Be Wild" blasts into the lobby. Inside, attractive men and women in tight shorts and tighter shirts imprinted with "FUN" in bold red letters form a high-fiving phalanx through which all seminar attendees must pass. Every Learning Annex worker, every usher and guard and Ambassador of Fun (as these tight-shirted people are known) stands along the center aisle, high-fiving patrons while dancing to Gwen Stefani and the Black Eyed Peas.<br /><br />And there is Zanker, off to the side, circling a pillar like a dog that's about to lie down. He dances awkwardly but unselfconsciously, almost in time with the song, then bobs into the line of patrons, delivering high-fives with great verve. Zanker is founder and president of the Learning Annex and the ringmaster of this circus. "We change people's attitudes," the 53-year-old says as he points to a man about to pass through the door. "Look at this guy. Watch his face." The man in question looks like someone who is about to enter a seminar, which is to say his face is absent of expression. A few high-fives later, he's practically giggling. Up onstage, some of the more comely Ambassadors of Fun have reassembled and are gyrating wildly along with members of the audience and a guy wearing a giant Donald Trump bobblehead that seems perpetually on the verge of tumbling off. There are balloons and streamers and ThunderStix, all of them in the red and white colors of the Learning Annex. Six jumbo screens display inspirational sports moments carefully targeted to local tastes--the Miami Heat wins the NBA championship! The Florida Marlins win the World Series!--intercut with close-ups of crisp, green $100 bills.<br /><br />Zanker's ushers treat the room like a game of Tetris, filling it from the front with VIPs and working backward in sections, untaping a row only once the one in front of it has been completely filled. Because the morning is likely to be a little slow, more or less half of the room has been revealed. Thousands of additional seats are hidden behind screens, to be released in sections as the crowds swell. Zanker absolutely hates empty seats.<br /><br />As the crowd settles in, a sprite of a cheerleader takes the stage and asks the crowd to stand. Roxy Zendejas is an actress/model whose job is to motivate and herd the Ambassadors of Fun and to teach the crowd the Money Dance. It's a simple dance, owing much to the hokey-pokey. There are jiggled limbs, forward and backward steps, and moderate hip gyrations, as well as a simple, sing-along chorus set to an '80s pop song: "I want money. Lots and lots of money…" "It's a subliminal thing, to get you thinking about money," says Zanker, who practically bursts with glee at the sight of 5,000 people doing his silly dance. "We're reprogramming people."<br /><br />It's 8:27 a.m. Who's ready to talk taxes?<br /><br />"This is a small show," says Zanker. "The big shows are five times this. Five times everything." His Real Estate & Wealth Expo drew 70,000 people in San Francisco; 50,000 turned out in Toronto. This weekend, in Fort Lauderdale--in the dog days of June--he'll do 27,000, which is just fine with him. Zanker is at this moment bouncing on a mini-trampoline in the green room, a small lounge where speakers can relax and nosh on almonds and raspberries in the vast area behind the main stage where the Expo's nerve center is located. The trampoline is something he picked up from perhaps his favorite human, Tony Robbins, who has been known to bounce up and down for up to three hours before a speech, taking calls and carrying on conversations. It is, in Zanker's estimation, impossible to be grumpy or stressed or to possess negative thoughts of any kind while bouncing on a trampoline.<br /><br /><br />--------------------------------------------------------------------------------<br /><br />Of course, he also bounces because he is incapable of sitting still. To shadow Zanker is to shed pounds. His normal pace is that of an Olympic racewalker, and he is prone to sudden zigs and zags; if a question occurs to him--I wonder what's going on up in the Grand Floridian Ballroom?--he will immediately set out to find an answer. It is a little like I imagine it would be to tag along with a person's id. When not pogoing in the green room, he is pacing or stretching or rocking back and forth on a bizarre piece of exercise equipment that involves a pelvic thrust and is most likely marketed through a late-night infomercial, which happens to be a medium that Zanker loves.<br /><br />Though other men might see infomercials as downmarket, Zanker sees them as effective, particularly when you're marketing the idea of changing someone's life. (If you're up at 4 a.m. watching infomercials, chances are you could use a life change.) Infomercials are just one of the many ways in which he markets his seminars--along with newspaper and TV ads and, especially, billboards. ("Nobody in education uses billboards! We love billboards!") Later this afternoon, he will seal a deal with one of his marquee speakers, George Foreman, to market a book and tape package via infomercial. The concept will be based on Foreman's charming but rather extemporaneous Wealth Expo speeches--"Getting back in the ring" is Zanker's sell line for the product, and the message, as best I can figure it, is "everyone falls down--so go ahead and get the hell back up."<br /><br />These real estate and wealth seminars--featuring upward of 20 speakers and toplined by Foreman and Robbins and Donald Trump--have driven the Learning Annex's explosive growth over the past two years. Zanker is constantly adding dates and cities, and he will soon offer one- and two-day mini-versions in up to 100 smaller markets, filling up hotel ballrooms, testing new tour concepts--such as a pure investment show, absent the real estate component--and exposing future stars of the main stage. It matters little to him if a trend should flag. Within months of Fort Lauderdale, real estate will have gone sour, so Zanker simply cuts back on the real estate, rebrands the tour as "Wealth," and amps up the investment content. He wants to spin off new seminar tours, as well as TV shows and books. A publishing imprint arrives soon.<br /><br />This is a very different Learning Annex from the one I know back in New York, the sort of perpetual graduate school that hawks its astoundingly broad array of continuing education classes via catalogs found on half the street corners in Manhattan. Ask a New Yorker what comes to mind when he hears the words Learning Annex, and I'll bet you he says it's those colorful plastic boxes full of catalogs. Maybe, on a whim or as a way to meet women, he even signed up for "Introduction to Jewelry Making" or "In-line Skating With Joel Rappelfeld." That original core business isn't so much a core anymore, but Zanker says it's crucial. He likes to audition his speakers through the classes, which are increasingly business- and self-help-related, and which he refers to as the company's R&D.<br /><br />Zanker got the idea for the Expos when Samantha Del Canto, then his celebrity talent booker and now his very well-paid Person in Charge of Expo Talent (there are no actual titles at the company), noticed that the real estate classes were selling out every time. "So we blew that up," he says. "The other thing we do is add celebrity." In business classes, that could mean Russell Simmons or Master P on the music business. For real estate and wealth, it's the likes of Foreman and Robbins and, most of all, Donald Trump, Zanker's keynote speaker. Zanker is paying the Donald $1.5 million per one-hour speech--a figure that, according to a giant press release that has been blown up into a poster and affixed to the back of the stage in Fort Lauderdale, is the "largest speaking fee in the world."<br /><br />"Nobody's made adult education sexy," Zanker said to me before we left for Florida. We were in his New York office, a decidedly unsexy place with scuffed, lime-colored walls, and he was standing on an exercise device called a core stabilizer. He was wearing a purple shadow-striped shirt with green enamel cuff links and black Prada shoes, and looked quite different than he had in even fairly recent press shots; he'd lost weight and had a more stylish haircut--it seemed he'd taken the whole Changing Your Life thing to heart. "You think of adult education, who do you think of?" he asked me. "The Learning Annex."<br /><br />Since Zanker bought the company back from his former partner, in 2002, sales have increased from $5 million a year to $107 million a year. In 2005, revenue was $36.5 million. "Right now I'm trying to digest," Zanker said, but in 2008 he expects sales to jump again, to $300 million, and "by 2010 we'll be a billion-dollar company." To drive his hyperambitious growth, Zanker two years ago sold a 40 percent stake to a private equity group known as Apax, and he is targeting seminar companies for acquisition. Zanker says the Changing Your Life business is worth $18 billion a year, and he plans to own it. He describes it, in typical hyperbole, as "probably the biggest industry in the world."<br /><br /><br />--------------------------------------------------------------------------------<br /><br />"Everybody wants to change something," he said, "and we're right here--waving at you. Here we are!"<br /><br />He recently inked a deal to do tours for the stars of The Apprentice and Survivor and is already prepping a second major seminar tour. "The working title is 'Attracting Wealth,'" he told me. "'How to Attract Wealth.'"<br /><br />"Which is different from--" I began.<br /><br />He finished my sentence: "Getting rich. It's different. It's a different mindset."<br /><br />An intellectual might suffer a stroke attempting to parse the marketing lingo of Zanker and his speakers. They wander around that foggy land of business bestsellers, in which entire chapters (or speeches) are built on obvious statements like "don't take no for an answer." Or, you know, "get back in the ring."<br /><br />At about this moment in our first meeting, Heather Moore came into Zanker's office. Like everyone at the Learning Annex, Moore wears various hats. She's ostensibly the director of public relations and marketing, but she also designs many of its ads and buys millions of dollars of local advertising per year.<br /><br />She laid a sheet of paper on Zanker's desk; it was the design for a billboard--simple and featuring bold red letters--that would promote the Fort Lauderdale show.<br /><br />"Do you like the headline?" she asked. It read: "Don't miss this life changing event!"<br /><br />"It's OK," Zanker answered.<br /><br />"Got something better?" she asked.<br /><br />Zanker thought for the briefest of seconds. "Yeah," he said. "'Change your life.'"<br /><br />Each of the 21 speakers at the Fort Lauderdale Expo offers some sort of promise for personal betterment--sometimes vague and self-helpy but often very, very specific, as in "Earn $5,000--$10,000 a Month With Tax Lien Certificates," taught by Ed Broderick three times over the course of the weekend.<br /><br />"Not only are we giving you the tools to make millions; we are giving you the techniques to attract that abundance," says Zanker. The latter is the role of Tony Robbins and of Jack Canfield, a star of The Secret and co-author of Chicken Soup for the Soul. (Canfield will actually appear this weekend via taped speech and, in a mind-boggling bit of meta mind power, will have the entire ballroom crowd telling their palm lines to grow longer by chanting "grow longer" at them.) Paula White, the popular Christian televangelist, is included to clear your conscience. Indubitably one of America's sexiest church leaders, she's so perfectly put together that her image in the catalog looks like a computer rendering. White teaches "that faith and finance are interrelated" in a lecture titled "Why God Wants You To Be Wealthy."<br /><br />As Day One gets under way--a Floridian named Robert Shemin has the honor; he's here to help the audience understand "the difference between deals and duds"--Zanker takes me for a spin around the Expo along with his executive producer, Harry Javer. Javer is a thin man of few words; his expression rarely changes from one of stoic resolve. He prefers dark shirts and is always seen wearing a headset. I ran into him almost everywhere I went on the premises, causing me to wonder if he had somehow acquired the ability to teleport. "It's his show, good and bad," says Zanker. "Everybody goes to Harry." Javer oversees some 200 employees and 10 tractor-trailers' worth of equipment, including 100,000 pounds of promotional product, 84 speakers, 700 linear feet of hardwall, and more than 200 lights. Is the air conditioning sluggish? Ask Harry. Need more chairs? Harry's your man.<br /><br />Zanker's modus operandi is to flit in and out of rooms, motivating workers or pumping up patrons; he doesn't wear a headset. "I had one once and went a little crazy," he admits.<br /><br />"Some people should not have this privilege," Harry says drily.<br /><br />As Zanker's crew stages its 22nd Expo, the logistical process of putting on a show has become seamless. Zanker, though, is constantly fine-tuning the elements. In Fort Lauderdale he is testing a bar code system written by his ace programmer, a Buddhist surfer from Santa Cruz, California. Each attendee will be tracked over the weekend, his badge scanned every time he enters and exits a particular seminar or purchases a DVD package. Zanker will know who's watching what, and when, precisely. He likens the idea to cookies, which track your Internet usage: "I'm building a cookie system for your weekend. I know who customers are, when they bought tickets--say, 3 a.m. during an infomercial--who they like--Tony, Raymond Aaron, etc." Possessing this intelligence, he says, "we can then talk to you better in the future."<br /><br /><br />--------------------------------------------------------------------------------<br /><br />With the exception of Trump, Foreman, White, and Robbins, all of the main-stage speakers also do breakout sessions in adjacent ballrooms. At big shows, they might be on the hook for up to six over the two days. It's a lot of work for a weekend, but their relationship with the Annex is symbiotic. Their lectures sprinkle nuggets of actionable information--enough so that you do, indeed, take away, say, a number of tips on how to get government grants from Chris "Free Money" Johnson, but not so much that you wouldn't seriously consider picking up his book and DVD package, available for $700. (Packages can range up to $5,000 for some speakers, who spend the final 15 minutes or so of their allotted time on the main stage hawking said goods. All fees are, of course, shared with the Learning Annex.)<br /><br />Nearly every time I checked out a breakout room, it was packed--though exactly how packed is determined by Javer, acting as Zanker's brain. Zanker wants seminar attendees to feel that it's difficult to get into a room. He likes to see long, snaking lines outside the doors. His room attendants are to wait until the last possible minute to open doors, and then customers are seated from front to back; rows are taped off until needed. "We're keeping that idea of a hot restaurant," Zanker explains. "If you don't get in, come back."<br /><br />Zanker also likes his rooms icy cold. Heat makes crowds lethargic, and Zanker hates lethargy. The Broward County Convention Center was warmer than he liked Friday, so he had Javer harass the management until it was sufficiently chilly. By Saturday, it's frigid. Employees hand out candy to people in line, and bowls of Jolly Ranchers and Tootsie Rolls sit at the entrance to every room on the premises. Flats of candy are loaded in along with the amps and jumbo screens and loudspeakers.<br /><br />"How many pounds of candy, Harry?" Zanker asks.<br /><br />"Thousands of pounds," Javer answers.<br /><br />"Every time we give you a piece of candy, we're connecting," Zanker says.<br /><br />"It's connection," Javer says.<br /><br />The Learning Annex is far from the only company staging self-empowerment or personal-betterment seminars. The difference, says Zanker, is that "nobody's doing it on the scale we are. It takes big cojones to do what we do." Cojones and a thick wallet--each show costs from $3 million to $5 million, including $500,000 to $2 million in advertising, which pays for a lot of billboards. Zanker says that even a small show like Fort Lauderdale's is profitable, just less so than a mega Expo like Los Angeles's, which grosses more than $20 million. And the Learning Annex has figured out how to extend those profit streams, coming back to its customers later by targeting their specific interests. If foreclosure lectures, say, are a big hit, the Learning Annex will bring smaller, one-off seminars back to the city later.<br /><br />"We're the largest consumer show in the world," Zanker says, tossing out another of his grand boasts. "The knowledge we have is huge. We do 8,000 shows a year in the U.S. and Canada."<br /><br />Wait a second--8,000? Can I see your math?<br /><br />"Every time somebody speaks for us, it's a show," he says, meaning that he counts every Learning Annex class. "What is a show? It's an experience."<br /><br />As I said, this isn't the first time Bill Zanker has owned the Learning Annex. He was in his late twenties and had enrolled himself in film school--having returned from 10 years of living in Israel, where he served in the military, earned himself a passport, and started a real estate business--when his dad called him to lunch and said, "Get a job. I'm not paying for this anymore." Score one for tough love. "And I like school," Zanker explains. "I would go to school for the rest of my life." That gave him an idea: The original Learning Annex would be a film school. He asked his former teachers if they would moonlight. His girlfriend at the time was studying pottery, so he invited her teacher to teach a class, too.<br /><br />This was 1980. Zanker took $5,000, printed up some catalogs, and ran the whole thing out of his apartment on the Upper West Side of Manhattan. He added classes whenever an idea struck him--gardening, guitars, tantric sex--and ran into a young and mostly unknown guy named Tony Robbins, who signed up to teach fire-walking. "I picked him," Zanker says. "I'm a self-help junkie. I read self-help books, even as a kid. I just love them."<br /><br />Robbins at the time was just starting to develop a name. "That's what we do at the Learning Annex," Zanker says. "We get them before they become famous." Deepak Chopra gave his first talk for the Learning Annex in front of 36 people.<br /><br /><br />--------------------------------------------------------------------------------<br /><br />Robbins, Chopra, psychic Sylvia Browne--Is Bill Zanker some sort of self-help talent scouting savant? He found Chopra by browsing in a bookstore. "A lot of the books in the self-help section, they're not getting widely read," he says. "I can't help it. I go right to them. I'll take the name down and call the office."<br /><br />Do people ever say no?<br /><br />"No is just the beginning of yes."<br /><br />You don't accept a no?<br /><br />"Never take no. We teach people to never take no for an answer."<br /><br />The first time around, Zanker owned the Learning Annex for 11 years. He says he sold it because he was "ready for a change." That may be true, but it's also true that he expanded too fast, and the company went bankrupt despite annual revenue of $8 million to $10 million. He sold it to his San Francisco business partner, Stephen Seligman.<br /><br />For the next 10 years, Zanker dabbled in other entrepreneurial ventures, most prominent among them the Great American Backrub, which New Yorkers might remember as a short-lived storefront operation offering bargain back rubs. At its peak, GAB had 18 stores, but Zanker's plan for muscle-rubbing domination was foiled by a lack of quality masseurs willing to work for the low wages that made McBackrubs possible, and by Asian-owned nail salons that practically gave the things away.<br /><br />Eventually, after some fits and starts and travels with his wife and three children--he started an online learning venture called Brainfuel, sold it to Tony Robbins for $9 million, and took his family on a three-year walkabout--Zanker found himself wondering about the old company. He'd never really stopped talking to Seligman, and after September 11, his old partner was getting antsy. "He called me up and said, 'If you're not working, can you pop in and help me out?'" Zanker recalls. "So I started going into the office, and I was jazzed again. I remembered the energy, the fun…and then I offered to buy it. And he didn't want to sell, so I overpaid to buy it back. In hindsight it was cheap, but I overpaid just because I wanted it."<br /><br />Seligman, who maintains a small stake, says the price was fair and that, anyway, Zanker had developed a vision that couldn't be denied. He says Zanker was talking about a billion-dollar business long before he hit $100 million. "When he first told me that, it seemed pie-in-the-sky," Seligman says. "It seemed like a daunting goal to even talk about. But that's part of his motivation--he creates goals for himself that are way above the average person. It doesn't seem so daunting anymore."<br /><br />"I think what Tony is, he pushes you past your limitations, and that's what we look for," Zanker is saying. "Because everyone thinks, This is what I can do. And Tony says, 'No, you can do more'--and if you buy into that, what a great thing to get out of the Learning Annex. The Learning Annex went from $5 million to $107 million in less than four years. You can't do that if you have limitations."<br /><br />If it isn't already obvious, Zanker is positively crazy for Tony Robbins. He listens to tapes of Robbins on his drive to his train station in Westchester County and in 2006 attended a six-day "Date With Destiny" seminar, which featured 14 hours of Tony Robbins per day. He credits Robbins with--all together now--Changing His Life. Making him a better husband and father, helping him lose weight, even making possible the deal with Donald Trump, without which there would be no Expos.<br /><br />As Zanker tells the story, he rang up the Donald's office and got the secretary, who refused to put him through. When she asked what business he had with Mr. Trump, Zanker replied that he wanted to book him as a speaker and was willing to pay $10,000. Not interested, she said. "She didn't even bother to ask him," Zanker recalls. So he called back and upped his offer to $50,000. When he told me this story he was sitting on a chair in his office, but as the story's momentum built he hopped up onto the seat and assumed a squatting position. Zanker offered $150,000, at which point the secretary said--still having yet to relay any of these opportunities to her boss--"Donald makes a lot of money. Make him a reasonable offer."<br /><br />"I just went crazy," Zanker says. "I took a walk, went to the bathroom, and offered $1 million." Robbins, he says, gave him the strength to do something so bold. "Not three minutes later my cell rings. It's Donald himself. He said, 'How many people can you get?' I said 500 or 1,000." Not enough for Trump. "He said, 'You promise me 10,000, and I'll do the deal.' He never once mentioned the money." The deal that was eventually signed gives Trump $30 million for 20 appearances.<br /><br /><br />--------------------------------------------------------------------------------<br /><br />I promised Zanker that if I did one thing at the Florida Expo, I would watch Robbins perform. He says it is the moment in the Expo--the end of Day One--when people go from hoping they will become rich to knowing it's going to happen.<br /><br />"He's America's success coach!" says the emcee, and then Zanker sprints onstage and howls his introduction in front of a giant image of Robbins's head. "There has never been a speaker like Tony Robbins. He changes lives! He changed my life!"<br /><br />Out comes Robbins, full throttle, his black baggy pants billowing in front of AC units that blast the stage. He is a large man, but his presence is positively massive. "I'm not a big believer in positive thinking," he says. "I do believe in energy."<br /><br />In print, most of what Robbins says comes off as hokey:<br /><br />The ultimate resource is human emotions. It's not resources; it's resourcefulness.<br /><br />Whatever your limits are, they're self-imposed. They're not physiological; they're not financial.<br /><br />I want to scoff at the guy, but I have to say I find it uplifting. So many of Robbins's ideas are obvious--Momentum is the key to everything: Depressed people get more depressed; happy people get more happy--but when they are delivered by him via his Jedi mind tricks, they make you feel better.<br /><br />"The most important skill is influence. The person you most need to influence is yourself," he continues, moving on to the idea that will most stick with me. "Emotion is the secret, but emotion is created by motion. The more you move, the more alive you are." Robbins's show is built around audience participation, and his way of illustrating this last point is to have audience members jump up and down, shaking limbs and screaming at the top of their lungs. It is impossible to hold on to negativity after doing this; just try it. I think back to the trampoline.<br /><br />Robbins calls this the "peak state"--on an emotional scale of one to 10, the peak state is in the eight to 10 range--and he urges us to think of triggers that will recall this state. When you're feeling troubled or need a little boost, use a trigger. Zanker says his is to hit his chest. Before he called Trump's secretary to offer the $1 million, he says, "I went to the bathroom, changed my state, and called back."<br /><br />"If you only did one thing," screams Robbins, "do everything at state 8, 9, 10--you will change your life."<br /><br />Wealth, my friends, is a feeling. It's not a dollar amount.<br /><br />"I'm a passionate guy; I love to see people glowing," Robbins tells me backstage, toweling sweat off his face. And how does he fit into this celebration of wealth? "I want to take them from 'I want to get rich' to 'I want an extraordinary life.'<br /><br />"Tonight is designed to trigger them, to inspire them to change. This is my mission."<br /><br />And Bill Zanker--has Robbins's mojo worked on him?<br /><br />Robbins flashes a big, toothy, billion-dollar smile.<br /><br />"He's radically different than he used to be--you should ask him."<br /><br />If tony Robbins is the emotional center of the Expo, then Donald Trump is its exuberant encore. In Fort Lauderdale, he's scheduled to go on at 6 p.m. on Day Two, but the reality is that the Donald takes the mike whenever he feels like it. He arrives at the Convention Center in the late afternoon and spends some time visiting backstage, posing for photos with the Ambassadors of Fun. Meanwhile, the jumbo screens begin to flash "Trump is in THE HOUSE!!!" (their caps, not mine), and the crowd actually seems to buzz. At 7 p.m., Zanker chokes down some water, musters the last remnants of his voice, and dashes onstage for the capstone of his weekend: "I gotta tell you, the next speaker is my hero," he yells. "He is a brilliant entrepreneur. But whatever he does, it's quality. I just signed a book deal with Donald backstage. Imagine that: I'm a small-business owner, and Donald took my business and built it into one of the fastest-growing companies in America according to Inc. magazine!" (His plug, not mine, and he's right: The Learning Annex is a two-time Inc. 500 company.)<br /><br />Then, to the sound of Pink Floyd's "Money" and accompanied by several lovely Ambassadors pounding ThunderStix, Trump emerges. Trump will later brag that he doesn't prepare for these speeches; he reads from a single page of hastily scrawled notes, covering a range of subjects, from his personal lows ("1990; I'll never forget it. I had 99 banks wanting to just kick my ass") to his love of revenge ("Get even, but not for satisfaction, though that's nice. Because people leave you alone"). He also tells the people in the room that many of them will never succeed, and he will later pride himself on providing a rare moment of negativity for the crowd. He's funny and charming and really hits his stride during the question and answer session, which lasts as long as he feels like standing up there. I have never seen a man more confident in his opinions. His role in the weekend is as attention magnet and also preeminent example of where wealth can lead you.<br /><br /><br />--------------------------------------------------------------------------------<br /><br />Trump doesn't need the $1.5 million. In fact, he says he gives it to charity. His only point in demanding such a price was to insist that this is what his time is worth. I ask him afterward what he thinks of Zanker as entrepreneur. "He's a very fine businessman, and he's able to give people what they want," Trump says. "Which is very important. I think people have come to trust them."<br /><br />Trump does, of course, have one major concern about the Learning Annex. "Before I agreed to do the speeches, it was a much smaller enterprise--like 300 people in a hotel ballroom," he says. "But it's become very big, and he's able to reach people who are very interested. Now I don't know what happens after I no longer want to do it. I just don't know. I said to him, 'Someday I won't be there.'"<br /><br />I say that I have asked Zanker the same question--who replaces Trump?<br /><br />"And what did he say?"<br /><br />That he doesn't know yet. But he doesn't seem worried.<br /><br />"It's a tough one. Well, he's been very good to me."<br /><br />Truth is, Zanker feels as if he's on a snowball rolling downhill. By next summer, he will have Expo tours built around the secrets of The Secret. In October, he shared authorship with Donald Trump on a book bearing the measured title Think Big and Kick Ass (in Business and Life). As of November, 400,000 copies were in print.<br /><br />What's more, he feels as though he has yet to tap online learning--and he has Tony Robbins in his corner.<br /><br />I tell him that Robbins told me to ask how he has changed.<br /><br />"Good question," Zanker says. "I've conquered fear. We all have fear. And there's always that question: Should I do this? For me, he's helped me conquer my fears. It's allowed me to build a $100 million company. Because if you have fears, you get paralyzed and can't move forward."<br /><br />Looking forward, I wonder, what will a billion-dollar version of the Learning Annex look like?<br /><br />"We'll own online; we'll own books; we'll own videos; we'll own audio; we'll own the self-help business; we'll own the management. If you're an upcoming guy, I want to manage your career. I want to have a television division; I want to own the touring rights for television shows, so that when you have a TV show and you're famous, I want to tour you. I want to create the next great psychic and then tour that person. I want to own a phone line; I want to own anything to do with changing your life. And feel comfortable that the brand is a little edgy, a little wacko, but cool, solid--stands behind the product. And we'll be there as you change, or whenever you want to change. Because I think people have transitions all through their lives. So you need to come back and learn more. As you get older, you're going to be learning in a community. So we'll either own the community, or there will be a Learning Annex in your community center. It could be in a big building in Florida. In a high-rise condo.<br /><br />"As expansive as the self-help business is, it's just beginning. There's so much of it out there! It's just starting!"<br /><br />Josh Dean's most recent story for Inc., "The Greatly Improbable, Highly Enjoyable, Increasingly Profitable Life of Michael Kobold," appeared in the May 2007 issue.RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-58656307450701997742007-12-14T22:04:00.000-07:002007-12-14T22:06:30.355-07:00Learning Annex is gone but shabby boxes remainJack Lakey<br />Staff Reporter<br /><br />Whatever happened to The Learning Annex, and what's to be done about its boxes languishing on downtown streets?<br /><br />An email arrived yesterday from Austin Repath advising The Learning Annex had closed down in this city. "There are hundreds of Learning Annex boxes across Toronto. Who is responsible for removing them, rather than have them clutter up our sidewalks?"<br /><br />It was news to us that The Learning Annex, a well-established provider of personal development and self-help courses for about 20 years in Toronto, was no longer in business. If you wanted to learn about tax planning strategies or how to deal with stress, for instance, the Learning Annex likely had a seminar on the subject.<br /><br />Just last winter, billboards trumpeted the arrival of tycoon Donald Trump to share his money-making wisdom with us poor folk through the Learning Annex.<br /><br />A Star article from 1987 said it offered upwards of 100 courses monthly and was the only Canadian outlet of a New York-based company.<br /><br />Its monthly catalogues of upcoming courses and workshops were distributed through white plastic vendor boxes located downtown, so we went looking for them yesterday. Sure enough, we found lots of dirty, weather-beaten white boxes – often with the front door missing – but with no catalogues inside.<br /><br />A listing for them in the 2007/08 Toronto Yellow Pages shows an office at 220 Richmond St. W. We called the number; it's out of service. We went to suite 401 at 220 Richmond, as suggested by the main floor directory, but that office is now occupied by CHUM Media.<br /><br />We tried its website (learningannex.ca), but it linked to the website for The Learning Annex's New York office. Since we couldn't find any online information, we made two calls to its New York office; both times we were told the Toronto office is now closed, but we couldn't get any further details.<br /><br />If anybody knows what happened to The Learning Annex, or who should be prodded about getting rid of those boxes, we'd love to hear from you.RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-35957976590574916342007-12-14T21:00:00.000-07:002007-12-14T21:07:03.185-07:00Learning Annex Closes Utah Doors, By Robert PaisolaDecember 14, 2007<br /><br />Our sources have confirmed that The Learning Annex, the company brought to light in a recent lawsuit filed against it in The Utah Federal District Court by the Former Net Marketing Alliance (NET) has ceased its operations in Utah effective immediately.<br /><br />Calls to the Utah Office of The Learning Annex were not answered.<br /><br />More to come on this story, with interviews of former employees.<br /><br />Robert Paisola<br />robert@corbismultimedia.comRobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-569911244797122719.post-71752705480431385972007-11-09T21:46:00.000-07:002007-11-09T23:02:00.929-07:00Lawsuit Filed Against Learning Annex for 1.2 Million Dollars- Forgery-Plagiarism - Bill Zanker- Posted by Robert Paisola<p align="center"><a href="http://4.bp.blogspot.com/_1hpnly4Q2ts/RzU_XeADG8I/AAAAAAAAEpQ/B-IV_zv9MZM/s1600-h/Zanker.jpg"><img id="BLOGGER_PHOTO_ID_5131077022881356738" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="http://4.bp.blogspot.com/_1hpnly4Q2ts/RzU_XeADG8I/AAAAAAAAEpQ/B-IV_zv9MZM/s400/Zanker.jpg" border="0" /></a></p><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><strong>THE LEARNING ANNEX AND CEO, BILL ZANKER, CO AUTHOR OF Donald Trumps Book "Think Big and Kick Ass" Sued for 1.2 Million Dollars for Fraud. Download the Final Court Filings Here..</strong><br /><strong></strong><br /><a href="ftp://ftp.pblwest.com/">ftp://ftp.pblwest.com/</a><br /><strong></strong><br /><br /><strong><span style="font-family:arial;font-size:180%;">Net Marketing v. Learning Annex </span></strong><br /><br />If you are interested, a copy of the Amended Complaint filed Tuesday by Net Marketing against the Learning Annex can be downloaded from an FTP site by clicking on the link below:<br /><br /><a href="ftp://ftp.pblwest.com/" target="_blank">ftp://ftp.pblwest.com/</a><br /><br /><br /><strong>J. THOMAS BECKETT (5587)<br /></strong>PARSONS BEHLE & LATIMER<br />One Utah Center<br />201 South Main Street, Suite 1800<br />Salt Lake City, UT 84111<br />Telephone: (801) 532-1234<br />Facsimile: (801) 536-6111<br />Attorneys for Net Marketing Alliance, LLC<br /><br /><br /><br /><br /><br /><br /><div align="left"><br /><strong>JAY GOLDBERG (NY: JG0662)<br /></strong>JAY GOLDBERG, P.C.<br />250 Park Avenue, Suite 2020<br />New York, NY 10177-2099</div><br /><br /><br /><div align="center"><br /><strong>IN THE UNITED STATES DISTRICT COURT<br />FOR THE DISTRICT OF UTAH<br /></strong></div><br /><br /><br /><div align="center"></div><br /><br /><br /><div align="center">NET MARKETING ALLIANCE, LLC,<br />Plaintiff,<br />vs.<br />THE LEARNING ANNEX, LLC,<br />Defendants.<br /></div><br /><br /><br /><div align="center">FIRST AMENDED COMPLAINT<br />(JURY DEMAND)<br /></div><br /><br /><br /><div align="center"><strong>Case No. 2:07CV00356<br />Judge: Hon. Dale Kimball</strong></div><br /><br /><br /><div align="center"><br />Plaintiff, Net Marketing Alliance, LLC (“NET”), by and through its undersigned<br />counsel, hereby states its amended claims for relief against the defendant, the Learning<br />Annex, LLC (“LAN”).</div><br /><br /><br /><div align="left"><br /><strong>INTRODUCTION<br /></strong>1. Only three companies have successfully competed recently in the “large<br />venue” seminar business – where business stars and personalities give motivating<br />speeches to large crowds who then purchase how-to books, instructional tapes and<br />follow-up training sessions. And for these three companies, this business has been very<br />lucrative.</div><br /><br /><br /><div align="left"><br />2. This Amended Complaint recounts the recent history of two such business<br />competitors, and how one, the defendant, LAN, illegally and unfairly caused grievous<br />harm to the other, the plaintiff, NET, for the sole and improper purpose of obtaining a<br />monopoly in this particular business sector.</div><br /><br /><br /><div align="left"><br />3. First, LAN feigned a good faith interest in a corporate merger with NET.<br />LAN had no interest in completing such a merger. Instead, it contrived that interest to<br />further its scheme to learn all it could about NET’s trade secrets and its business, key<br />employees, vendors, speakers, and strategic business partners.</div><br /><br /><br /><div align="left"><br />4. Because NET reasonably believed that LAN was acting in good faith, NET<br />placed its trust and confidence in LAN. Having done so, it disclosed everything to<br />LAN.</div><br /><br /><br /><div align="left"><br />5. But LAN was not acting in good faith.</div><br /><br /><br /><div align="left"><br />6. LAN outrageously misused what it had learned to mount an illegal and<br />unconscionable disinformation campaign against NET. It used what it had learned<br />about NET’s vendors and strategic partners to discourage and dissuade them, in<br />sometimes vulgar terms, from ever doing business with NET again.</div><br /><br /><br /><div align="left"><br />7. In the midst of this onslaught, Bill Zanker, LAN’s CEO, phoned James<br />Mitton, one of NET’s owners, and wrongfully berated and falsely threatened him:<br />“James, I’ve got enough to put you into bankruptcy. I’m putting you into bankruptcy.<br />I’ve got great attorneys. …. I am not going to stop!”</div><br /><br /><br /><div align="left"><br />8. And he did not stop – not even while NET was in fact paying its creditors.<br />He set up a phone bank, and he and his agents thereafter contacted nearly all of NET’s<br />employees, vendors, speakers, and strategic partners to spread LAN’s false accusations.<br />They told everyone they could connect with that NET was bankrupt and could not be<br />trusted.</div><br /><br /><br /><div align="left"><br />9. Finally, incorrectly assuming that its campaign had put NET out of<br />business for good, LAN then looted NET’s speakers and key employees, and it<br />converted virtually all NET’s trade secrets.</div><br /><br /><br /><div align="left"><br />10. In the aftermath, NET was grievously injured. And LAN is now staging<br />“large venue” seminar events which are virtually indistinguishable from those that<br />NET labored for years to produce to perfection.</div><br /><br /><br /><div align="left"><br />11. Ultimately, however, despite LAN’s efforts, NET survived. Now NET<br />seeks to – and it is entitled to – recapture its rightful, former position. It also seeks very<br />substantial damages for LAN’s breaches of duty and contract, improper business<br />interference, unfair business practices, conversion, and monopolistic designs.</div><br /><br /><br /><div align="left"><br />12. This Amended Complaint is the defendant’s demand for justice and just<br />compensation – not less than $100 million -- comprising actual damages, punitive<br />damages, treble damages and attorneys fees.</div><br /><br /><br /><div align="left"><br /></div><br /><br /><br /><div align="left"><strong>PARTIES</strong></div><strong></strong><br /><br /><br /><div align="left"><br />13. LAN is a business entity with its principal place of business in New York,<br />NY. By virtue of the substantial harm it has inflicted on NET, LAN now holds a virtual<br />monopoly in the “large-venue seminar” industry.</div><br /><br /><br /><div align="left"><br />14. NET is a Utah limited liability company doing business in Utah County,<br />Utah. It was a preeminent participant in the “large-venue seminar business” until it<br />came under attack by LAN. There are five other potential plaintiffs who may decide to<br />join this action, because they have been recently similarly victimized by LAN.</div><br /><br /><br /><div align="left"><br /><strong>JURISDICTION AND VENUE</strong></div><strong><br /><br /><br /><div align="left"><br /></strong>15. Jurisdiction is proper under 28 U.S.C. § 1332(a) because the plaintiff is a<br />citizen of the State of Utah, the defendant is a citizen of the State of New York, and the<br />amount of controversy exceeds $75,000, exclusive of interest and costs.</div><br /><br /><br /><div align="left"><br />16. Jurisdiction is proper also proper under 28 U.S.C. § 1331 inasmuch as this<br />amended complaint presents questions that arise under federal law.</div><br /><br /><br /><div align="left"><br />17. Venue is proper in this district pursuant to 28 U.S.C. §§ 1391(a)(1),<br />1391(a)(2) and/or 1391(c) because a substantial part of the events and omissions giving<br />rise to the claims herein occurred in the State of Utah, and the defendant is a business<br />entity which has transacted business within the State of Utah pursuant to Utah Code<br />Ann. § 78-27-24(1), or has otherwise availed itself of the privileges of the laws of Utah.<br /></div><br /><br /><br /><div align="left"><br /><strong>FACTUAL BACKGROUND</strong></div><strong><br /><br /><br /><div align="left"><br /></strong>A. Overview: NET and LAN were Two of Three Competitors in<br />a Relatively Small but Very Lucrative Business Sector.</div><br /><br /><br /><div align="left"><br />18. Over the past several years, three seminar companies (the “Big 3”) have<br />controlled nearly the entire United States market for large “making it and keeping it”<br />seminars. In these seminars, up to 10,000 people attended events, for free or by paying<br />a nominal fee. Hundred of thousands of people attended these events every year.<br />Hundreds of millions of dollars were grossed annually by the Big 3 selling educational<br />books, tapes, and follow-up events to the attendees.</div><br /><br /><br /><div align="left"><br />19. The “Big 3” were LAN, Peter Lowe’s Success Seminars, and NET.</div><br /><br /><br /><div align="left"><br />20. LAN, the most recent member of the Big 3, became a $100 million business<br />by developing an expertise in marketing events with billboards and free street-corner<br />flyers such as this:</div><br /><br /><br /><div align="left"></div><br /><br /><br /><div align="left"><br />21. Peter Lowe’s Success Seminars achieved its success with marketing efforts<br />focused on its corporate human resource connections and newspaper ads.</div><br /><br /><br /><div align="left"><br />22. The third and most successful member of the Big 3, NET, achieved its<br />primacy with a unique, direct-mail marketing system that utilized scores of discrete but<br />interrelated trade secrets that were developed at considerable expense over a long<br />period of time, and which gave NET a distinctive look of its own:</div><br /><br /><br /><div align="left"><br />23. NET’s trade secrets included<br />everything that made their direct mail<br />solicitations and seminar events successful.<br />These secrets ranged from how to integrate<br />commercial and private mailing lists, to the<br />best room temperature for an event; from how long before an event invitations should<br />be mailed, to which stamp on the solicitation envelope results in the highest response<br />rate; from the right typeface for the return address, to the right shape of the flap which<br />seals the envelope. Of course, this also included the substance of the presentations that<br />their speakers made at their events. In other words, NET’s trade secrets included all the<br />right steps to take to attract to events as many participants as possible who are most<br />likely to purchase products to enhance their well-being.</div><br /><br /><br /><div align="left"><br />24. These trade secrets were developed by NET at enormous cost – more than<br />$100 million, perhaps as much as $250 million – over many years of trial and error and<br />computer-monitored experimentation. They resulted in NET’s unprecedented success<br />in the ordinarily unforgiving marketing venue of direct mail solicitation.</div><br /><br /><br /><div align="left"><br />B. Further Overview: In its Quest to Achieve a Monopoly,<br />LAN Laid a Plan to Destroy NET and Convert NET’s Trade<br />Secrets for its Own Use and Benefit.</div><br /><br /><br /><div align="left"><br />25. At one time, LAN and NET enjoyed a mutually beneficial and symbiotic<br />business relationship. But LAN had designs to take over NET’s business. To do that,<br />LAN had to acquire NET’s expertise in direct mail and its supportive system of postseminar<br />follow-up events. To obtain that, LAN had either to purchase NET in an armslength,<br />fair business transaction, or destroy NET and obtain NET’s secrets by picking<br />up the pieces.</div><br /><br /><br /><div align="left"><br />26. LAN chose the latter course. Bill Zanker, CEO of LAN, devised a plan. His<br />plan was to feign such a purchase, learn the identity of NET’s business partners,<br />threaten and bully those partners in order to discourage them from doing business with<br />NET, thus driving NET out of business, and then convert NET’s trade secrets and other<br />intellectual properties to propel LAN into a monopolistic position.</div><br /><br /><br /><div align="left"></div><br /><br /><br /><div align="left"><br />27. The brutality of Zanker’s plan – effected by threats made in sometimes<br />vulgar terms – is best illustrated by his own words and messages:</div><br /><br /><br /><div align="left"><br />a. To the recent purchaser of National Medical, an affiliate of NET’s,<br />Zanker left a phone message stating: “Congratulations. I just read on the<br />Internet that you bought National Medical from [a principal of NET]. Probably<br />not the smartest thing to do ‘cause the creditors will be all over your ass, but<br />anyway, give me a call.”</div><br /><br /><br /><div align="left"><br />b. To two of NET’s closest business partners, Real Estate Investor<br />Support and INVESToo1s, Zanker stated: “I like you guys, but I have to sue you<br />to put NET out of business.”</div><br /><br /><br /><div align="left"><br />c. To NET’s best-known seminar speakers, Zanker suggested: “Drop<br />your speaking contracts with NET and speak for me because I am putting NET<br />into bankruptcy. You will have no more speaking opportunities unless you<br />come with me.”</div><br /><br /><br /><div align="left"><br />d. To NET’s long-term business partners, Zanker relayed the<br />following message: “I am going to put NET into bankruptcy soon, so come and<br />do business with me because NET will be out of business.”</div><br /><br /><br /><div align="left"><br />e. Remarkably, to NET’s unsecured creditors, Zanker gave incorrect<br />legal advice: “I am putting NET into bankruptcy right away, so you should not<br />accept any payments from them because you will just have to give those funds<br />back to the bankruptcy trustee.”</div><br /><br /><br /><div align="left"><br />f. To one of NET’s principles Zanker stated the following threat very<br />clearly: “James, I’ve got enough [creditors] to put you into bankruptcy. I’ve got<br />great bankruptcy attorneys. I am not going to stop!”<br />g. In Zanker’s book, Think Big and Kick Ass in Business and Life, he<br />stresses – “ Go for the jugular.”</div><br /><br /><br /><div align="left"><br />28. Despite its innumerable threats, LAN never did file a bankruptcy petition<br />against NET. It did not have to. Zanker had achieved his goal – to alienate NET from<br />its business partners – just by making threats. He almost put NET out of business.<br /></div><br /><br /><br /><div align="left"><br />29. This Amended Complaint alleges that Zanker and LAN (i) initiated and<br />pursued fictitious merger negotiations with NET for the improper purpose of<br />discovering NET’s trade and business secrets, (ii) used NET’s confidential business<br />information against it with a baseless disinformation campaign designed to put NET<br />out of business, and (iii) then brazenly and illegally converted NET’s trade secrets for<br />their own use and benefit. Specific allegations in this regard are detailed below,<br />following a brief review of the longstanding contractual and business relationship<br />between NET and LAN, every aspect of which LAN has materially breached.</div><br /><br /><br /><div align="left"><br />C. The True History: NET and LAN’s Relationship, While<br />Certainly Competitive, Was Previously Marked by Cooperation<br />and Fairness as set Forth in two Written Agreements and a<br />Course of Conduct Between the Parties, Which Agreements and<br />Conduct LAN has Materially Breache.:</div><br /><br /><br /><div align="left"><br />30. Early in 2005, NET’s predecessor in interest, MIT entered into a Speaker<br />Agreement with LAN which set out terms and conditions under which MIT would<br />participate in LAN’s seminars.</div><br /><br /><br /><div align="left"><br />31. The Speaker Agreement provides, in part:<br />The income from speaker sales will be split 40% to [MIT/NET] & 60% to<br />[LAN]. ‘Proceeds’ do not include sales subject to collection problems (e.g.,<br />bounced checks, credit card charge challenges)</div><br /><br /><br /><div align="left">.1<br />32. The Speaker Agreement also provides:<br />Sales made after the event to [LAN]’s telemarketing department will be<br />split on a 50/50 basis between [LAN] and [MIT/NET]. On sales made<br />1 In practice, the parties also excluded all cancelled checks and refunded sales from the split in order to achieve a 40/60 split on actually received monies.<br /><br />through [MIT/NET] to event attendees up to and including after two<br />weeks after each event, [MIT/NET] agrees to send [LAN] 50% of the<br />sales…”</div><br /><br /><br /><div align="left"><br />33. In mid-2005, MIT (NET) and LAN also entered into an Agreement entitled<br />MIT Financial / Learning Annex Partnership Agreement (the “Partnership Agreement”).</div><br /><br /><br /><div align="left"><br />34. The Partnership Agreement provides, in part:<br />Speakers. [LAN] agrees not to contact or solicit services of past, present, or<br />future MIT speakers or employees. Any request or referrals to [LAN] for<br />MIT topics, speakers or employees or other companies will be directed to<br />Mitch Huhem at MIT [NET].</div><br /><br /><br /><div align="left"><br />Mutual Understanding. Both companies will not allow derogatory<br />comments to be made about topics, products, or speakers of either<br />company at any time.</div><br /><br /><br /><div align="left"><br />Any modifications to this agreement will be in writing and subject to<br />mutual agreement.</div><br /><br /><br /><div align="left"></div><br /><br /><br /><div align="left">35. Early in 2006, MIT became involved in a trademark dispute with the<br />Massachusetts Institute of Technology and voluntarily ceased operating under the<br />name of MIT. It operated as Professional Support Services LC (“PSS”) through January,<br />2006. In February, 2006, it began operating under the name of NET. LAN was aware of<br />these events and seamlessly conducted business with PSS and NET, pursuant to both<br />the Speaker Agreement and the Partnership Agreement, as it had conducted business<br />with MIT.</div><br /><br /><br /><div align="left"><br />36. Through 2005, 2006 and the first half of 2007, NET and LAN worked well<br />together and abided the Speaker Agreement and the Partnership Agreement. Among<br />other things, they routinely split event and aftersales’ proceeds pursuant to the Speaker<br /><br />Agreement and they neither solicited the others’ speakers, nor disparaged the other’s<br />business, pursuant to the Partnership Agreement.</div><br /><br /><br /><div align="left"><br />37. During 2007, pursuant to the Speaker Agreement and the Partnership<br />Agreement, NET and LAN participated together in multiple events, including:</div><br /><br /><br /><div align="left"><br />NO. DATE LOCATION<br />1 2/24/2007 Atlanta Expo<br />2 3/16/2007 Los Angeles Expo<br />3 3/17/2007 San Francisco Expo<br />4 3/23/2007 Toronto Expo<br />5 4/12/07 Philadelphia Expo<br />6. 5/19/07 Dallas Expo</div><br /><br /><br /><div align="left"><br /><strong><span style="font-size:130%;">38. In relation to the events outlined above, and flagrantly in breach of the Speaker Agreement, LAN owes but refuses to pay NET in excess of $1,200,000.00</span></strong>.</div><br /><br /><br /><div align="left"><br />39. This $1.2 million amount is based directly from reports generated by<br />Michelle D’Agostino, Sr. Controller of LAN.</div><br /><br /><br /><div align="left"><br />40. In addition, LAN owes NET for monies collected through LAN’s<br />telemarketing efforts. Pursuant to the Speaker Agreement and the historic practice of<br />the two companies, the parties split follow-up telemarketing sales 50/50. NET has<br />accounted for every sale made from LAN’s leads, but was told repeatedly during the<br />failed merger negotiations (described below) not to pay “since we are going to buy<br />you anyway.” On the other hand, LAN has failed to give any accounting to NET of<br />telemarketing sales derived from LAN’s utilization of NET’s database. In addition,<br />LAN has also refused to account for monies collected at Don Burnham events,<br />additional collection efforts on payment plans, and subsequent sales derived from<br />NET’s database leads; all of which LAN had agreed to pay to NET. LAN is also in<br />breach of the Partnership Agreement for having solicited NET’s speakers and<br />disparaged NET’s business.</div><br /><br /><br /><div align="left"><br />D. Further Breaching These Agreements, and Every Code of Fair<br />Business Conduct, LAN Proposed and Pursued Sham Merger<br />Discussions With NET for the Improper Purpose of Discovering<br />the Identity of NET’s Confidential Business Information and<br />Trade Secrets.</div><br /><br /><br /><div align="left"><br />41. In September 2006, LAN proposed to NET a potential acquisition of all of<br />NET’s assets by LAN. Its proposal was a sham to learn the identity of NET’s business<br />partners and to discover NET’s trade secrets. In connection with that, the parties<br />entered into a Letter of Understanding (“LOI”) which, among other things, prohibited<br />the disclosure of the upcoming negotiations.</div><br /><br /><br /><div align="left"><br />42. Thereafter, NET and LAN entered into negotiations and NET provided to<br />LAN an enormous amount of confidential information and trade secrets including, but<br />not limited to, financial statements, balance sheets, profit and loss statements, profits<br />summaries, and information regarding seminars and telemarketing operations. LAN<br />provided NET next to nothing.</div><br /><br /><br /><div align="left"></div><br /><br /><br /><div align="left">43. LAN did not actively pursue these negotiations between the Fall of 2006<br />and the Spring of 2007.</div><br /><br /><br /><div align="left"><br />44. On or about April 12, 2007, LAN recommenced its negotiations with NET<br />and propounded further extensive due diligence requests.</div><br /><br /><br /><div align="left"><br />45. During April and May of 2007, NET provided to LAN extensive<br />proprietary and confidential information regarding all legal, financial and<br />administrative aspects of its business. These materials included most, if not all, of<br />NET’s proprietary vendor lists and accounts payable information, as well as<br />information regarding NET’s speakers and strategic partners.</div><br /><br /><br /><div align="left"><br />46. During this time, NET thought it was in the midst of good faith merger<br />negotiations. Curiously, also during this time, Zanker and Samantha Del Canto (LAN’s<br />VP) were meeting secretly with NET’s key employees without giving notice to NET or<br />receiving any authorization from NET.</div><br /><br /><br /><div align="left"><br />47. At one of these meetings, in late-April, 2007, Zanker and Del Canto ordered<br />lunch brought in for NET’s staff. Over lunch, Zanker introduced himself as the owner<br />of LAN, one of the largest and most financially powerful seminar companies in the<br />nation. He told them, “my goal is to own the largest seminar company in the world.”</div><br /><br /><br /><div align="left"><br />48. Zanker then made an astounding announcement to NET’s employees: “As<br />many of you know, our companies have merged.” This statement by Zanker was false,<br />and it violated the LOI that required red confidentiality until a final agreement had<br />been reached. NET’s owners, who were not advised of these meetings, learned<br />afterwards that LAN had announced the uncompleted merger to NET’s employees as a<br />fait accompli.</div><br /><br /><br /><div align="left"><br />49. Thereafter, and also without NET’s principals’ knowledge or authorization,<br />Zanker and Del Canto held private meetings with several of NET’s key employees to<br />interrogate them about various aspects of Net’s proprietary tax lien program and asset<br />protection program. They also gave them specific instructions regarding how NET had<br />to conduct its business going forward with LAN.</div><br /><br /><br /><div align="left"><br />50. According to one employee describing those meetings, “Zanker and Del<br />Canto stormed into my office. They began giving me orders for which they demanded<br />full compliance. [They] commanded me to place 10 - 12 large events in the month of<br />June and to increase the mail quantity … to as much as 300,000 mail pieces per city …<br />despite my warnings that such events would not be profitable and that such an<br />approach would be disastrous.”</div><br /><br /><br /><div align="left"><br />51. According to another employee describing those meetings, “[Del Canto]<br />immediately became very animated and adamantly required that we staple the [Notice<br />of Cancellation] to the order form upside down with text facing the back of the order<br />form, so at first glance the cancellation form is not readily noticeable.2 She actually<br />2 NET believes it has a duty to advise the prospective attendees at its events that may cancel their participation at any time. To assure they understand this, NET provides each prospective attendee with a form of “Notice of Cancellation,” which they may use for that purpose. In the episode described above, LAN’s Vice President, Ms. Del Canto, was attempting to cause NET to violate that duty by making it more difficult for their prospective attendees<br />to recognize that they could cancel their participation at any time.</div><br /><br /><br /><div align="left"><br />called her attorney right then and there and discussed the matter with him. She<br />essentially gave me the directive to make sure her request was fulfilled immediately.”</div><br /><br /><br /><div align="left"><br />52. LAN’s unauthorized instructions to NET’s employees, had they been<br />followed, would have cost NET millions of dollars and hurt its reputation for credibility<br />with its customers.</div><br /><br /><br /><div align="left"><br />E. Having Achieved the Primary Objective of its Merger<br />Proposal – to Obtain NET’s Business and Trade Secrets – LAN<br />Scuttled the Sham:</div><br /><br /><br /><div align="left"><br />53. Suddenly, in mid-May, 2007, LAN declared that NET owed it more than $4<br />million under the Speaker Agreement. At no time was this a viable claim. At all times<br />it was quite certainly LAN which owed NET a substantial amount of money – more<br />than $1 million – under that agreement. In retrospect, LAN’s threat was clearly just a<br />pretense for scuttling the negotiations.3</div><br /><br /><br /><div align="left"><br />54. Indeed, shortly after making its phony claim, LAN informed NET that it<br />was not going forward with the impending merger deal. It provided no good faith<br />basis for doing so. Rather, the same day, Zanker demanded immediate payment of $4<br />million by NET to LAN.</div><br /><br /><br /><div align="left"><br />55. At that time, NET was facing the ordinary financial challenges that it had<br />faced during the slow summer months for many years.</div><br /><br /><br /><div align="left"><br />3 At trial, NET expects to show that it is LAN’s modus operandi falsely to accuse its vendors and partners of<br />liability for exaggerated claims as a means to force unwarranted business concessions. This evidence will show<br />LAN’s propensity to treat all its business associates unfairly in the same manner that it has </div><br /><br /><br /><div align="left"><br />56. NET had arranged, as it always did, to get through this slow time. It had<br />plans in place to increase its liquidity by many millions of dollars.</div><br /><br /><br /><div align="left"><br />57. In connection with its sham merger negotiations, however, LAN had<br />instructed NET not to take those financially responsible steps. That, and LAN’s refusal<br />to pay NET substantial amounts that LAN unquestionably owed NET, were substantial<br />factors in NET’s serious subsequent financial stress.</div><br /><br /><br /><div align="left"><br />58. Indeed, as a direct consequence of these actions by LAN, immediately after<br />LAN withdrew from the sham merger negotiations, NET had to lay off most of its<br />workforce.</div><br /><br /><br /><div align="left"><br />59. NET filed this lawsuit shortly thereafter as a request for declaratory<br />judgment that NET’s outstanding obligations to LAN are exceeded by LAN’s<br />outstanding obligations to NET by at least $1.2 million.</div><br /><br /><br /><div align="left"><br />F. Immediately After Scuttling the Sham Negotiations, LAN<br />Began Using NET’s Confidential Business Information Against<br />it to Drive it out of Business.</div><br /><br /><br /><div align="left"><br />60. Immediately after it scuttled the merger negotiations, LAN initiated a<br />disinformation campaign against NET that was intended to interfere with NET’s<br />longstanding contractual relationships and disparage NET’s business reputation and<br />prospects for financial success.</div><br /><br /><br /><div align="left"><br />61. Specifically, LAN began working the phones contacting NET’s contacts and<br />attempting to mislead them into believing that:</div><br /><br /><br /><div align="left"><br />a. NET was going out of, or had gone out of, business;<br />b. LAN was going to force NET into bankruptcy;<br />c. LAN wanted NET’s vendors to join it in forcing NET into<br />bankruptcy because NET could not pay its debts;<br />d. Even if NET did pay its debts, those payments would have to be<br />returned by the vendors as preferences to NET’s bankruptcy<br />trustee; and<br />e. NET’s vendors should sell their account receivables to LAN and<br />come work with LAN instead of NET.</div><br /><br /><br /><div align="left"><br />62. Zanker made many of these contacts himself; his employees and attorneys<br />contacted the rest.</div><br /><br /><br /><div align="left"><br />63. LAN directed its disinformation campaign (i) to virtually all of NET’s most<br />substantial vendors, including Graphic Communications, Flower Basket Boutique, AFC<br />Express, the law firm of Greenberg Traurig, Sun Litho, Rickard List Marketing,<br />Colorado Envelopes, and Exact Target, (ii) to NET’s primary strategic partners,<br />including James Smith at Real Estate Investor Services, Lee Barba at INVESTools, and<br />Don Burnham at AIA, (iii) to NET’s principal speakers, including Wayne Grey, James<br />Smith, Steve Nickle, Robert Bluhm, and Sam DeHoyas, and (iv) to NET’s key<br />employees.</div><br /><br /><br /><div align="left"><br />64. For example, on or about August 17, 2007, an agent of LAN contacted Sun<br />Litho, Inc. and advised “that NET was going to file bankruptcy,” and that LAN “would<br />pay me pennies on the dollar to satisfy your bill.”</div><br /><br /><br /><div align="left"><br />65. Also, in the first week in August, 2007, an agent of LAN contacted Flower<br />Basket Boutique and advised them that NET “would soon be declaring bankruptcy.”<br /><br />66. Also, on or about August 9, 2007, an agent of LAN contacted NET’s<br />attorney, Greenberg Traurig, LLP, and left a voice mail offering to purchase their<br />receivable from NET “because we want to push them into bankruptcy….”</div><br /><br /><br /><div align="left"><br />67. One of NET’s strategic partners recorded a call from one of LAN’s lawyers<br />offering 33 cents on the dollar for that party’s claim against NET (although that party<br />had no such claim).4 He reported LAN’s lawyer stating that LAN was “going to put<br />[NET] out of business by August 1st or August 2nd at the latest.” He then received a<br />call from “the so-called Owner of Learning Annex who also said he was ‘Taking Down<br />Net Marketing.’” That caller, LAN’s CEO, Bill Zanker, wanted that creditor to join a<br />lawsuit against NET. That creditor declined and reported the contact to NET, ending<br />his email with a question: “Are they allowed to be making these phone calls to us?”<br />68. Zanker’s threats to force NET into bankruptcy was a subterfuge. While<br />NET’s principals were selling personal assets to assist NET to pay off its creditors in<br />good faith, Zanker was advising those creditors not to accept NET’s payments. Zanker<br />was not giving this advice for the purpose of benefiting NET’s creditors. His “advice,”<br />in this regard, was solely intended to dissuade NET’s vendors and partners from ever<br />doing business with NET again.</div><br /><br /><br /><div align="left"><br />69. In the meantime, NET paid all its creditors. Presently it has virtually no<br />outstanding indebtedness.</div><br /><br /><br /><div align="left"><br />4 Evidently, LAN was improperly using NET’s accounts payable information, obtained in the merger negotiations, while contacting NET’s vendors, not knowing that this and other vendors had since been paid by NET.</div><br /><br /><br /><div align="left"><br /><br />G. Believing it had Driven NET out of Business, LAN Brazenly<br />and Illegally Began to Use and Continues to Use NET’s Trade<br />Secrets to Further its Monopolistic Design.</div><br /><br /><br /><div align="left"></div><br /><br /><br /><div align="left">70. LAN is now producing “large venue” seminar events that are virtually<br />indistinguishable from the events that NET carefully designed over the course of many<br />years utilizing literally dozens of trade secrets developed over a long period of time and<br />at great expense.</div><br /><br /><br /><div align="left"><br />71. As explained in more detail above, NET’s trade secrets include the proper<br />management of every possible variable in the process of identifying and inviting<br />potential seminar students, teaching them, and providing them all the follow-on goods<br />and services that they might desire.</div><br /><br /><br /><div align="left"><br />72. As explained below, LAN’s conversion of NET’s secrets has been<br />wholesale. It begins with LAN’s conversion of NET’s know-how about how invitations<br />to events should best be made.</div><br /><br /><br /><div align="left"><br /><br />73. The following are typical examples of LAN’s invitation pieces. They show<br />LAN’s distinctive style (before it began copying NET’s distinctive style):</div><br /><br /><br /><div align="left"><br />74. NET’s typical direct mail pieces, on the other hand, show NET’s distinctive<br />style, which is entirely different from LAN’s. The following is an actual copy of a direct<br />mail piece developed by NET. Direct mail pieces like this were delivered to millions of<br />prospective seminar students by NET over the years. This particular piece was sent in<br />early-February, 2007, for an event NET produced in Boise, Idaho.</div><br /><br /><br /><div align="left"><br />75. The following is an actual copy of a direct mail piece mailed by LAN to<br />hundreds of thousands of prospective students in mid-September, 2007, for an event in<br />San Diego (and more than ten other LAN events). It is obviously a flagrant copy of<br />NET’s work, right down to using the same stamp:</div><br /><br /><br /><div align="left"><br />76. LAN has also copied the items that NET typically included with its<br />invitations: a free ticket and promotional materials. LAN did not previously include<br />such items in its mailings.</div><br /><br /><br /><div align="left"><br />77. The following is an actual copy of the typical free event ticket that was<br />produced by NET and included in its early-February, 2007 invitation to hundreds of<br />thousands of prospective seminar students:</div><br /><br /><br /><div align="left"><br />78. Remarkably, the following is an actual copy of the free event ticket that was<br />delivered by LAN to hundreds of thousands of seminar students in mid-September,<br />2007. LAN had not previously included free tickets in its direct mailings. Its first effort<br />to produce and distribute free tickets was a flagrant plagiarism of NET’s work:<br /></div><br /><br /><br /><div align="left">79. LAN also copied NET’s promotional materials. The following (on the left)<br />is an actual copy of the promotional materials that accompanied NET’s early-February<br />invitation to an event featuring George Ross, a regular NET speaker and advisor to<br />Donald Trump. Next to it (on the right) is an actual copy of the promotional materials<br />that were delivered by LAN to hundreds of thousands of seminar students in late-<br />September, 2007 for an event LAN produced in Ontario, California:</div><br /><br /><br /><div align="left"><br />NET’s Promotional Materials: LAN’S Promotional Materials:</div><br /><br /><br /><div align="left"><br />80. LAN’s promotional materials were most certainly not the result of<br />evolutionary changes to LAN’s historical promotional materials (shown below on the<br />left). Rather (as shown by the highlighted exact-match language on the right) LAN’s<br />most recent promotional materials are obviously plagiarized from NET’s work :</div><br /><br /><br /><div align="left"><br />81. LAN did not have NET’s permission to<br />solicit NET’s speakers to speak at events sponsored<br />by LAN.</div><br /><br /><br /><div align="left"><br />82. Nor did LAN have NET’s permission to use NET’s invitation.</div><br /><br /><br /><div align="left"><br />83. Nor did LAN have NET’s permission to use NET’s free ticket design.</div><br /><br /><br /><div align="left"><br />84. Nor did LAN have NET’s permission to plagiarize its promotional<br />materials.</div><br /><br /><br /><div align="left"><br />85. After Mr. Ross spoke at LAN’s event on October 5, 2007, in Ontario,<br />California, a member of the audience asked him to sign her invitation. When Mr. Ross<br />saw it he immediately recognized it as NET’s work. He quickly advised NET that he<br />had not authorized LAN to copy NET’s work and that he was dismayed by LAN’s<br />flagrant use of NET’s work. He also noted that he had not authorized LAN to use his<br />signature on the promotional materials that were distributed by LAN after having been<br />copied from NET’s work.</div><br /><br /><br /><div align="left"><br />86. LAN also improperly solicited NET’s speakers to make presentations at<br />LAN’s events in San Diego, Ontario, and for other events, notwithstanding the fact that<br />LAN is contractually prohibited from soliciting NET’s speakers, and notwithstanding<br />the fact that those presentations are NET’s property and protected by NET’s copyrights.</div><br /><br /><br /><div align="left"><br />87. LAN’s plagiarism of NET’s work has not been restricted to the invitation,<br />free ticket, promotional materials and featured speaker. LAN has also plagiarized<br />NET’s presentations.</div><br /><br /><br /><div align="left"><br />88. For example, in Scottsdale, Arizona, on October 11, 2007, Mr. Steve Nickel<br />gave a speech at a LAN event which was a nearly identical duplication of a presentation<br />that NET’s speaker, Robert Bluhm had given for years based on a presentation<br />developed by one of NET’s founders, Jay Mitton. The following illustrates a portion of<br />a transcript of the speech that Mr. Nichol is presently giving for LAN, with highlights to<br />show the extent to which that speech is a wholesale “rip-off” of NET’s efforts and<br />intellectual property:</div><br /><br /><br /><div align="left"><br /></div><br /><br /><br /><div align="left">Specimen Pages from Plagiarized Speech:</div><br /><br /><br /><div align="left"><br />89. Participants who attended LAN’s recent events have reported that those<br />events were, in all respects, virtual copies of previous NET events. They were confused<br />as to who was sponsoring these events</div><br /><br /><br /><div align="left"><br />90. Indeed, NET’s customer service department receives calls almost daily<br />from its long-standing, loyal students who are confused by LAN’s plagiarized<br />seminars. Remarkably, in addition, LAN’s own customer service department is now<br />demonstrably confused and unable to tell the difference between LAN’s events and<br />NET’s events, and their own representatives have telephoned NET’s customer service<br />department to ask NET to support products that LAN is now selling.</div><br /><br /><br /><div align="left"><br />91. NET’s goods and services are also being disparaged by LAN’s plagiarism.<br />The public is being presented with NET’s materials by LAN in its promotion and<br />advertising, but without NET’s permission or the backup of NET’s experience, support<br />and expertise.</div><br /><br /><br /><div align="left"><br />92. LAN has obtained a monopolistic stranglehold on the “large venue”<br />seminar business sector. That fact is demonstrated by the recently and severely eroded<br />economic power of the professional speakers who operate in that sector. Their share of<br />revenues is now reduced, and their payments are now delayed. This is a direct result of<br />NET’s current absence from this market sector. That is a direct consequence of LAN’s<br />illegal and improper monopolistic conduct.</div><br /><br /><br /><div align="left"><br />93. LAN did not ask for or obtain NET’s permission to plagiarize its business.</div><br /><br /><br /><div align="left"><br />94. Apparently, LAN did not believe that was necessary because it thought its<br />disinformation campaign, which was informed by its sham merger negotiations, had<br />knocked NET out of business entirely.</div><br /><br /><br /><div align="left"><br />95. LAN is wrong on both counts.</div><br /><br /><br /><div align="left"><br />96. Because of LAN’s outrageous conduct, NET has suffered substantial<br />damages. Those substantial damages give rise to at least the following Claims for<br />Relief.</div><br /><br /><br /><div align="left"><br /><strong>FIRST CLAIM FOR RELIEF<br />(Breach of Confidential Relationship)<br /></strong></div><br /><br /><br /><div align="left">97. NET realleges paragraphs 1 through 96.<br /></div><br /><br /><br /><div align="left"><br />98. LAN wrongfully sought to destroy NET’s business so that it could exercise<br />monopoly power in the industry and otherwise benefit itself. Towards that end, it<br />purported to be interested in merging with NET.</div><br /><br /><br /><div align="left"><br />99. In connection with its sham merger negotiations with NET, LAN received<br />information with the understanding that this data would be used solely for the purpose<br />of determining whether or how to merge with NET.</div><br /><br /><br /><div align="left"><br />100. By reason of these facts, a fiduciary or confidential relationship existed<br />between the parties which restricted LAN’s ability to use the information it received<br />solely for that purpose.</div><br /><br /><br /><div align="left"><br />101. Despite this relationship, LAN breached its duty of confidence by<br />wrongfully misusing the information that it had obtained to attempt to cause and<br />actually to cause NET’s business associates not to do further business with NET and by<br />attempting to use and actually using NET’s trade secrets and trade dress to capitalize<br />freely on NET’s costly research and development efforts and to make the public believe<br />that NET had given its imprimatur to LAN’s business activities.</div><br /><br /><br /><div align="left"><br />102. LAN further breached its confidential relationship with NET in connection<br />with its breaches of the Partnership and Speaker Agreements.</div><br /><br /><br /><div align="left"><br />103. NET has suffered damages because of LAN’s actions in this regard</div><br /><br /><br /><div align="left"><br />104. LAN’s actions in this regard have been purposeful and malicious, allowing<br />NET to recover its attorneys fees and justifying the imposition of punitive damages.<br /></div><br /><br /><br /><div align="left"><strong>SECOND CLAIM FOR RELIEF</strong></div><strong></strong><br /><br /><br /><div align="left"><br />(Federal law: Monopolization: Sherman Act)</div><br /><br /><br /><div align="left"><br />105. NET realleges paragraphs 1 through 104.</div><br /><br /><br /><div align="left"><br />106. LAN, by its actions complained of herein, has monopolized, or attempted<br />to monopolize, the “large scale” seminar business in violation of 15 U.S.C. § 15(a).</div><br /><br /><br /><div align="left"><br />107. The relevant market has been damaged as a consequence of the acts<br />complained of herein, and NET has suffered substantial damages because of LAN’s<br />actions in this regard.</div><br /><br /><br /><div align="left"><br />108. NET is entitled to treble damages, and its attorneys fees, pursuant to 15<br />U.S.C. § 15(c).</div><br /><br /><br /><div align="left"><br /><strong>THIRD CLAIM FOR RELIEF<br /></strong>(Misappropriation of Trade Secrets)</div><br /><br /><br /><div align="left"><br />109. NET realleges paragraphs 1 through 108.</div><br /><br /><br /><div align="left"><br />110. In connection with its “due diligence” efforts, LAN collected information<br />constituting trade secrets from NET. Specifically, LAN collected the identities of NET’s<br />vendors, speakers, employees, and strategic partners.</div><br /><br /><br /><div align="left"><br />111. Thereafter, LAN wrongfully used that information in order to prosecute its<br />disinformation campaign against NET.</div><br /><br /><br /><div align="left"><br />112. NET has suffered damages because of LAN’s actions in this regard.</div><br /><br /><br /><div align="left"><br />113. LAN’s actions in this regard have been purposeful and malicious, allowing<br />NET to recover its attorneys fees and justifying the imposition of punitive damages.<br /><br /><strong>FOURTH CLAIM FOR RELIEF</strong><br />(Conversion)</div><br /><br /><br /><div align="left"><br />114. NET realleges paragraphs 1 through 113.</div><br /><br /><br /><div align="left"><br />115. To the extent that, as alleged above, LAN misappropriated confidential<br />information belonging to NET which does not qualify as trade secrets, such<br />misappropriation constituted a conversion of confidential information.</div><br /><br /><br /><div align="left"><br />116. NET has suffered damages because of LAN’s actions in this regard.<br />117. LAN’s actions in this regard have been purposeful and malicious, allowing<br />NET to recover its attorneys fees and justifying the imposition of punitive damages.</div><br /><br /><br /><div align="left"><br /><strong>FIFTH CLAIM FOR RELIEF</strong></div><strong></strong><br /><br /><br /><div align="left"><br />(Federal Law: Unfair Competition: Lanham Act)</div><br /><br /><br /><div align="left"><br />118. NET realleges paragraphs 1 through 117.</div><br /><br /><br /><div align="left"><br />119. LAN has falsely and misleadingly presented its seminar events as bearing<br />NET’s imprimatur by its misuse of NET’s trade dress and trade secrets.</div><br /><br /><br /><div align="left"><br />120. LAN has falsely and misleadingly led NET’s commercial associates to<br />believe that LAN would put NET in bankruptcy, that NET was not paying its debts,<br />that NET’s vendors should not accept payments from NET, and that NET would be out<br />of business soon.</div><br /><br /><br /><div align="left"><br />121. LAN has acted falsely and misleadingly used information improperly<br />obtained in connection with its sham merger negotiations.</div><br /><br /><br /><div align="left"><br />122. LAN’s falsehoods and misrepresentations actually deceived or at least had<br />a tendency to deceive a substantial portion of the potential customers that LAN<br />contacted, as well as potential customers not contacted directly by LAN, but who<br />learned of LAN’s misrepresentations as such misrepresentations spread through the<br />relevant market.</div><br /><br /><br /><div align="left"><br />123. LAN’s falsehoods and misrepresentations have disparaged NET’s goods<br />and services.</div><br /><br /><br /><div align="left"><br />124. LAN’s falsehoods and misrepresentations were material in that they were<br />likely to influence, and in fact did influence, the purchasing decisions of the potential<br />customers and the economic power of relevant market participants.</div><br /><br /><br /><div align="left"><br />125. LAN’s falsehoods and misrepresentations were disseminated the United<br />States mail, an instrumentality of interstate commerce.</div><br /><br /><br /><div align="left"><br />126. LAN’s falsehoods and misrepresentations violated the Lanham Act, 15<br />U.S.C. § 1125.</div><br /><br /><br /><div align="left"><br />127. NET has suffered damages because of LAN’s actions in this regard.<br />128. LAN’s actions in this regard have been purposeful and malicious, allowing<br />NET to recover its attorneys fees and justifying the imposition of punitive damages</div><br /><br /><br /><div align="left"><br /><strong>SIXTH CLAIM FOR RELIEF<br /></strong>(Intentional Interference with<br />Prospective Economic Relations)</div><br /><br /><br /><div align="left"><br />129. NET realleges paragraphs 1 through 128.</div><br /><br /><br /><div align="left"><br />130. LAN intentionally interfered (and continued to interfere) with NET’s<br />existing and potential future economic relations with its vendors, speakers, employees<br />and strategic business partners by telling NET’s contacts that NET was not paying its<br />debts, that NET was going to be in bankruptcy, that any payments made by NET would<br />have to be returned to NET’s bankruptcy trustee, and that they should do business with<br />LAN, rather than with NET.</div><br /><br /><br /><div align="left"><br />131. LAN intentionally interfered with NET’s existing or potential economic<br />relations with its vendors, speakers, employees and strategic business partners, for an<br />improper purpose; that is, to force NET out of business.</div><br /><br /><br /><div align="left"><br />132. LAN intentionally interfered with NET’s existing or potential economic<br />relations with its vendors, speakers, employees and strategic business partners by<br />improper means; that is, by approaching entities whose identities were confidential to<br />NET, and by making false statements to those entities.</div><br /><br /><br /><div align="left"><br />133. NET has suffered damages because of LAN’s actions in this regard.</div><br /><br /><br /><div align="left"><br />134. LAN’s actions in this regard have been purposeful and malicious, allowing<br />NET to recover its attorneys fees and justifying the imposition of punitive damages.</div><br /><br /><br /><div align="left"><br /><strong>SEVENTH CLAIM FOR RELIEF<br />(Utah Unfair Competition)</strong></div><strong><br /><br /><br /><div align="left"><br /></strong>135. NET realleges paragraphs 1 through 134.</div><br /><br /><br /><div align="left"><br />136. LAN’s past and continuing acts, described above, constitute unlawful,<br />unfair and fraudulent business acts or practices that have infringed on NET’s trade<br />name and consequently violate Utah Code Annotated §§ 13-5A-101, et. seq., and the<br />common laws of the State of Utah</div><br /><br /><br /><div align="left"><br />137. NET has suffered damages because of LAN’s actions in this regard.<br /><br />138. LAN’s actions in this regard have been purposeful and malicious, allowing<br />NET to recover its attorneys fees and justifying the imposition of punitive damages.</div><br /><br /><br /><div align="left"><br /><strong>EIGHTH CLAIM FOR RELIEF</strong><br />(Breach of Contract – Speaker Agreement)</div><br /><br /><br /><div align="left"><br />139. NET realleges paragraphs 1 through 138.</div><br /><br /><br /><div align="left"><br />140. Since April of 2007, LAN has breached (and continued to breach) the<br />Speaker Agreement by refusing and failing to pay to NET the sums outlined above.</div><br /><br /><br /><div align="left"><br />141. As a result of LAN’s breach of the Speaker Agreement as outlined above,<br />NET has been damaged in a sum to be determined according to proof at the time of<br />trial, in excess of $1,200,000.00.</div><br /><br /><br /><div align="left"><br /><strong>NINTH CLAIM FOR RELIEF<br /></strong>(Breach of Contract – Partnership Agreement)</div><br /><br /><br /><div align="left"><br />142. NET realleges paragraphs 1 through 141.</div><br /><br /><br /><div align="left"><br />143. On multiple occasions, LAN breached (and continues to breach) its<br />Partnership Agreement with NET by contacting and soliciting past, present and future<br />NET speakers between approximately April of 2007 and the present.</div><br /><br /><br /><div align="left"><br />144. On multiple occasions, LAN also breached (and continues to breach) its<br />Partnership Agreement with NET by contacting and soliciting past, present and future<br />NET employees between approximately April of 2007 and the present.<br /></div><br /><br /><br /><div align="left">145. On multiple occasions, LAN also breached (and continues to breach) the<br />Partnership Agreement by disparaging NET, and making disparaging statements to<br />NET’s business contacts between approximately April of 2007 and the present.<br />146. As a result of LAN’s breaches of the Partnership Agreement, NET has been<br />damaged in a sum to be determined according to proof at the time of trial.</div><br /><br /><br /><div align="left"><br /><strong>TENTH CLAIM FOR RELIEF</strong><br />(Breach of Contract – Letter of Intent)</div><br /><br /><br /><div align="left"><br />147. NET realleges paragraphs 1 through 146.</div><br /><br /><br /><div align="left"><br />148. LAN breached the LOI on April 12, 2007, by disclosing the existence of<br />merger negotiations to NET’s employees, and leading NET’s employees to believe that<br />the merger had been accomplished.</div><br /><br /><br /><div align="left"><br />149. NET has suffered damages because of LAN’s actions in this regard.</div><br /><br /><br /><div align="left"><br /><strong>ELEVENTH CLAIM FOR RELIEF<br /></strong>(Breach of Covenant of Good Faith and Fair Dealing)</div><br /><br /><br /><div align="left"><br />150. NET realleges paragraphs 1 through 149.</div><br /><br /><br /><div align="left"><br />151. All of the agreements between LAN and NET, whether written or oral,<br />express or implied, including the Speaker Agreement, the LOI, and the Partnership<br />Agreement, (collectively “Agreements”) contained an implied covenant of good faith<br />and fair dealing.</div><br /><br /><br /><div align="left"><br />152. In performing the acts complained of herein, LAN breached the implied<br />covenants of good faith and fair dealing contained in one, more, or all of those<br />Agreements.</div><br /><br /><br /><div align="left"><br />153. NET has suffered damages because of LAN’s actions in this regard.<br />TWELFTH CLAIM FOR RELIEF</div><br /><br /><br /><div align="left"><br /><strong>(Injunctive Relief)</strong></div><strong><br /><br /><br /><div align="left"><br /></strong>154. NET realleges paragraphs 1 through 153.</div><br /><br /><br /><div align="left"><br />155. NET is entitled to an injunction prohibiting LAN from<br />a. using NET’s invitation design, free ticket design, and promotional<br />materials;</div><br /><br /><br /><div align="left"><br />b. using NET’s speakers;<br />c. soliciting and/or continuing to employ NET’s key employees;<br />d. contacting NET’s vendors;<br />e. contacting NET’s strategic partners;<br />f. using NET’s presentations; and<br />g. in all respects, misusing NET’s trade secrets or violating its<br />intellectual property rights.<br />156. NET will be irreparably injured unless LAN is so enjoined.<br />157. LAN’s actions have so damaged NET that NET cannot equitably be<br />required to post any bond.</div><br /><br /><br /><div align="left"><br /><strong>THIRTEENTH CLAIM FOR RELIEF<br /></strong>(Receiver)</div><br /><br /><br /><div align="left"><br />158. NET realleges paragraphs 1 through 157.</div><br /><br /><br /><div align="left"><br />159. Pending determination of the causes of action herein, NET is entitled to the<br />appointment of a receiver to collect and administer all revenues derived from seminars<br />to which LAN has attracted participants using NET’s invitation and promotional<br />materials, and all seminars at which LAN has used NET’s presentation materials.<br /></div><br /><br /><br /><div align="left"><strong>FOURTEENTH CLAIM FOR RELIEF<br /></strong>(Slander Per Se/Trade Libel)<br /></div><br /><br /><br /><div align="left">160. NET realleges paragraphs 1 through 159.</div><br /><br /><br /><div align="left"><br />161. LAN told many of NET’s contacts that NET was not paying its debts, that<br />NET was going to be in bankruptcy, that any payments made by NET would have to be<br />returned to NET’s bankruptcy trustee, and that they therefore should do business with<br />LAN, rather than with NET.</div><br /><br /><br /><div align="left"><br />162. All of LAN’s statements in this regard were false, disparaging, and<br />defamatory.</div><br /><br /><br /><div align="left"><br />163. NET has suffered damages because of LAN’s actions in this regard.</div><br /><br /><br /><div align="left"><br />164. LAN’s actions in this regard have been purposeful and malicious, allowing<br />NET to recover its attorneys fees and justifying the imposition of punitive damages.</div><br /><br /><br /><div align="left"><br /><strong>FIFTEENTH CLAIM FOR RELIEF<br /></strong>(Declaratory Judgment)</div><br /><br /><br /><div align="left"><br />165. NET realleges paragraphs 1 through 164.</div><br /><br /><br /><div align="left"><br />166. An actual case and controversy exists between the parties with respect to<br />their obligations inter se, pursuant to the Speakers Agreement and the Partnership<br />Agreement, and declaratory relief is necessary and appropriate to determine the rights<br />and obligations of the respective parties thereto.<br /></div><br /><br /><br /><div align="left"><br /><strong>JURY DEMAND</strong></div><strong><br /><br /><br /><div align="left"><br /></strong>167. NET hereby demands a trial by jury on all its claims for relief that may, by<br />law, be heard by a jury of its peers.</div><br /><br /><br /><div align="left"><br /><strong>WHEREFORE, NET Marketing Alliance, LLC prays for a judgment in its favor<br />and against the Learning Annex, LLC:<br />1. For payment of NET’s damages, for not less than $100 million, in an<br />amount to be determined at trial, including its actual damages and;<br />2. For treble damages, where allowed by law;<br />3. For punitive damages according to proof;<br />4. For NET’s attorneys fees as allowed by law;<br />5. For Injunctive relief; and<br />6. For such other and further relief as this Court deems just and<br />proper.</strong></div><strong><br /><br /><br /><div align="left"><br /></strong>DATED this 5th day of November, 2007.<br />PARSONS BEHLE & LATIMER<br />__/s/___________________________<br />J. Thomas Beckett<br />JAY GOLDBERG PC<br />__/s/___________________________</div><br /><br /><br /><div align="left"><br />Jay Goldberg<br />17039.003/1013080.1 38<br />Plaintiff’s Address:<br />Net Marketing Alliance, LLC<br />2230 N. University #2A<br />Provo, Utah 84604</div>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com2