Real estate guru history wonks will remember the very nasty and bitter legal dispute between get-rich-quick creative real estate guru Russ Whitney and real estate author and watchdog of the very same industry John T. Reed from a few years ago.
Reed, having published a single email critical of Whitney's seminar offerings on his website, found himself being sued by Whitney in a number of state and Federal courts in Florida, the headquarters of Whitney's real estate information empire.
John T. Reed refused to give in and began a campaign exposing the various falsehoods of Whitney's career, such as how he (didn't) turn $1,000 into $4.7 million through real estate investment while working as a slaughterhouse worker in Upstate New York which was the cornerstone claim of his empire.
For a time, the real estate world was abuzz with the controversy, and many of us (including me) followed the dispute like a real world soap opera with daily updates from both sides.
John T. Reed refused to give in and began a campaign exposing the various falsehoods of Whitney's career, such as how he (didn't) turn $1,000 into $4.7 million through real estate investment while working as a slaughterhouse worker in Upstate New York which was the cornerstone claim of his empire.
For a time, the real estate world was abuzz with the controversy, and many of us (including me) followed the dispute like a real world soap opera with daily updates from both sides.
Anyway, Russ Whitney's lawyer in these lawsuits filed against Reed was named Scott Rothstein who made a name for himself in these disputes not only with the numerous lawsuit filings but also his bizarre reasons for requesting continuances, like the need to go on vacation because he already booked tickets!
Mr. Rothstein has been in the news quite a bit lately, having been found guilty of stealing over ONE BILLION DOLLARS ($1.2 billion, actually) as part of a Ponzi scheme.
He was just sentenced to FIFTY YEARS in prison.
Of course, you can't tar Russ Whitney with the same brush wielded by Scott Rothstein. Birds of a feather often do flock together, but then again sometimes they don't.
What I can say without question is that the prosecution of John T. Reed by Whitney was prosecuted in a grossly unethical manner and certainly Mr. Whitney approved of every action by his own lawyer, further illustrating for me how truly grotesque the get-rich-quick real estate industry really is.
This is just a little bit of trivia for you creative real estate guru enthusiasts out there. Just another lesson in those that play with fire often get burned.
Robert J. Abalos, Esq.
