Sunday, June 3, 2012

John Beck Convicted

For many years real estate guru John Beck was a regular on late night television pitching his "Pennies on a Dollar" tax lien system where homes could be purchased for as low as $600.

I know you have seen these infomercials (and others like them) many times.

You won't see them or John Beck on TV ever again.

On April 20, 2012, John Beck along with two other get-rich-quick infomercial gurus (John Alexander and Jeff Paul) were convicted in the U.S. District Court for the Central District of California of a massive fraud scheme of gigantic proportions.

The Federal Trade Commission brought the case and is seeking $450 million in damages.

Nearly ONE MILLION consumers were defrauded by these three gurus and their infomercials.

Here is a link to Federal Trade Commission v. John Beck Amazing Profits, LLC

The FTC won at summary judgment, meaning the case against the defendants was overwhelming.

Please take the time to read the case and learn what schemes these gurus dreamed up, even selling $14,995 personal coaching and mentoring systems where not a single person who bought them made money.

Here is the official FTC page on John Beck.

Virtually nothing about John Beck's Free and Clear Real Estate System was legitimate.  From the moment you saw the infomercial you were being defrauded.  If you picked up the phone to place an order you were already snared in their trap.  Even these testimonials were fake.

I find all this news very sad because I always liked John Beck.  His courses in the past (1980s era) were always exceptional.  His FORCED SALE WORKBOOK was one of the first home study courses I ever owned and to this day I regard it as a masterpiece.  It was so good I know law offices that used it as a reference source.

The most upsetting point to learn about John Beck after reading the Federal case is he never really invested full time in tax lien properties at all.  Everyone, including me, always assumed he was a tax lien investing machine, filing quiet title actions by the score on all those "thousands" of liens he always claimed  he was buying.  He was so knowledgeable about the subject his experience seemed to be obvious.

In reality, he admitted in his deposition before the FTC he bought less than TEN homes in his lifetime using his tax lien method.

What happened?

No comments:

Post a Comment