Saturday, March 25, 2017

Guru Admits to Fraud

A well known real estate guru from the early 2000s who once boasted he did "100 Deals a Month" and made "Millions of Dollars While He Sleeps" from his wholesaling and flipping property courses now admits it was all a lie.

The circumstances could not be simpler.

For nearly a decade this well known real estate guru was a regular on the creative real estate circuit, selling a variety of get-rich-quick schemes including an "asset protection" course which could "hide property so even God could not find out what you own."

From at least 1999 to 2007, this guru was one of the most famous in the United States, literally everywhere including a hotel ballroom near you pitching home study courses, seminars, workshops, bootcamps, you name it.

Fast forward ten years.

This guru is now involved in a bitter divorce with his wife of nineteen years.

The judge ordered him to pay child and spousal support of $11,500 per month until a property settlement could be reached.

He then claimed in official court documents he is "without the resources to pay (name deleted) the amounts ordered by the court."

When deposed by the wife's legal counsel, he claimed to be broke, a product of the Great Recession and the real estate crash.

What happened next is stunning.

The wife's lawyers cross-examined him with excerpts of text from the guru's own asset protection course and advertising materials where this man claimed to be making millions of dollars a year.

Excerpt after excerpt taken directly from his advertisements, books, and courses of him boasting of great wealth and the supernatural ability to hide it.

After forty-four questions, the guru admitted, and this is an exact quote:

"Okay, I admit it.  I lied.  Who cares?  There was no property.  No houses, whatever, nothing.  We sold lots of courses and whatever and that's the money we lived on.  She (the wife) knew this and didn't mind spending this cash.  Everyone was doing it so I did it too.  Big deal."

For the record, I have seen the transcript of the deposition but do not have permission to post it here.  Also, out of respect for the guru's long suffering wife I am not naming him in this blog.  He no longer sells any products online or in stores and has exited from the business, making any exposure of his name gratuitously cruel and unnecessary.

If you ever bought or thought about buying a get-rich-quick real estate course in the early 2000s, you likely considered buying his stuff.

If you did, I'm sorry.  If you didn't, you dodged a bullet.

I always suspected his outlandish claims of incredible wealth were false.  At one point he was claiming "100 flips a month."  More than three properties a day?

Now we know for sure.  The sad fact this guru is not the only fraud out there.