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Many paying $99 for Russ Whitney’s 3-day real estate training; others charged all sorts of different prices

For many years, Russ Whitney’s three-day real estate seminar was $1,590. Actually, they said it was a lot more. $1,590 was the “scholarship” or “discounted” price for the first (insert 20% of the number in the audience at the free seminar here) who signed up.
The 1590
That was the price for so long that the people who worked for Whitney referred to that seminar as, “The 1590.” When I made fun of it at this Web site, Whitney seemed to change it to $1,790 shortly thereafter.
Not any more. Now it’s the “How much can you afford?” or the “Would you believe?” or something like that.
Now I am hearing all sorts of different prices. Also, there are now different names. One is “Cash Flow Generator.” That is an apt name from Whitney’s perspective. The seminar generates millions in cash for him, his commissioned speakers, and the TV stations who run his ads. It also generates cash flow for the students who sign up for it: negative cash flow in the form of monthly payments they have to make on the credit card charge they ran up to sign up.
I note that the Cash Flow Generator Web site has no mention of Russ Whitney. But if you look at their “contact us” page, it shows Russ Whitney’s headquarters address, again without mentioning Russ Whitney’s name. In court papers against me, they say over and over how valuable Russ Whitney’s name is and that I am profiting illegally by using it (to criticize him). If his name is so valuable, why is his ownership of Cash Flow Generator not disclosed?
O.P.M.
Hey, as Whitney’s instructors always say, “It’s O.P.M. (Other People’s Money), so who cares?” Actually, you should because the other people is you. That is, you get other people’s money by charging it on your credit card, then you immediately have to pay the other people back with your money plus you have to pay more of your money in the form of interest to the other people. The other people aren’t stupid. There is a reason why they let you borrow their money. Because they can charge you more interest than they could charge people who do not do things like buy thousands of dollars worth of get-rich-quick seminars
Today, an attendee told me she paid $995 for the three-day seminar. Someone who called Whitney headquarters said they were quoted a price of $1,190. Another guy told me he paid $300. Another said $500 at the same seminar as the $300 guy. I have also heard $400, $1,790, and $1,990.
The $99 price appears to have been given to, among others, persons who attended some real estate investment conference. Fine. If you insist on going to this seminar—which I do not recommend—at least wait for the next $99 conference deal.
A number of people who have been approached by Whitney salespeople in person or by phone had the impression that information given to Whitney staff about their “goals” and assets and liabilities was used by the staff not to counsel them so much as to tell how much to try to sell them. A number also said the prices seemed to slide up and down according to what the salesperson thought you could afford or would agree to.
It’s as if you were buying a rug in some Middle Eastern bazaar or a clay pot from a street vendor in Juarez.
Low prices do not jibe with what Whitney says in his annual report
Whitney’s annual report tells how much he charges. I do not recall seeing these prices I am hearing about. Page 1 of the 2004 annual report says, “Our tuition ranges from approximately $1,600 to $32,000 per course of study.”
I really do not understand how they can say things that appear not to be true in documents filed with the United States Securities and Exchange Commission. This is a federal agency. Now, as a result of the Sarbanes-Oxley Act of 2002, Russ Whitney himself has to sign the annual report. Here is what the line above his signature says, “ In accordance with Section 13 or 15(d) of the Exchange Act, we have caused this Report to be signed on our behalf by the undersigned, thereunto duly authorized.”
What does that mean? Here is what one Web site said,
“Under the new rules [Sarbanes-Oxley Act of 2002], the Chief Executive Officers and Chief Financial Officers of [U.S.] companies…are required to certify, with respect to each quarterly report… and annual report…, and amendments to these reports, filed with the SEC, that:

1. the officer has reviewed the report;

2. based on the officer’s knowledge, the report is not misleading;

3. based on the officer’s knowledge, the financial statements, and other financial information included in the report, “fairly present” in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in the report;”
Here is what another Web site said about the section of Sarbanes-Okley that requires the CEO’s signature:
“Section 302: Corporate Responsibility For Financial Reports.

The CEO and CFO of each issuer shall prepare a statement to accompany the audit report to certify the ‘appropriateness of the financial statements and disclosures contained in the periodic report, and that those financial statements and disclosures fairly present, in all material respects, the operations and financial condition of the issuer.’ A violation of this section must be knowing and intentional to give rise to liability.”

Is Russ Whitney going to claim, like the heads of Enron and Worldcom, that he does not know what is going on in the corporation he is the head of? Well, here.
Hey, Russ! Your prices range from $99 to $90,000, not $1,600 to $32,000. (I’d like to meet the prize package who paid $90,000, if such a person exists.)
Now Russ knows that his 2004 annual report is incorrect.
The way I read the law, that means he now needs to file a Form 8-K with the SEC to correct the incorrect seminar fee prices. That form announces changes or corrections to previously-filed forms. While he’s at it, he might also want to explain why he is now selling for $99 three days of real estate investment information—a duration of real estate training which he previously sold for $1,790. And also, he might want to explain how such a 94% price decrease will affect financial performance of his corporation which makes more from the three-day real estate seminar than from any other service or product.
‘Tidbits’
What do you get for your money whatever the price is? The word I hear the most is “tidbits.”
What’s a tidbit? One lady gave the example of telling a seller what the total cumulative sum of the mortgage payments you will be making to them is over the life of the loan. That is always a very big number and Whitney’s instructor said that would increase the probability that the seller would agree to take back a mortgage as a result. Perhaps. Total payments on a multi-year mortgage is really the wrong way to look at it. With multi-year payment streams, you should look at the loan amount, interest rate, and the risk of the borrower. Total payments is misleading. But anyway, there’s one Whitney tidbit you do not have to pay $1,990 or even $99 to get.
What price did you pay?
So what price did you pay? I’m starting a collection. Tell me your price for Russ Whitney’s three-day real estate seminar and I’ll post it here. I need your price, date, the name of the training, and its location.
Maybe they have one of those policies where they will refund the difference if you find someone who paid less.
Copyright 2005 by John T. Reed
Last update 6/10/05
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John T. Reed, a.k.a. John Reed, Jack Reed, 342 Bryan Drive, Alamo, CA 94507, Voice: 925-820-7262, Fax: 925-820-1259, Email: johnreed@johntreed.com

CONSUMER WARNING NOTICE: I recently saw Russ Whitney on a late night TV infomercial and then attended one of his "free" seminars. Unfortunately I believed all of their LIES and FRAUDULENT CLAIMS and I paid thousands of dollars to go to his "training camps". Needless to say I was clearly ripped off, cheated and lied to by Russ Whitney and his employees (band of thieves). My mistake was not searching the Internet to find out more about Russ Whitney and his company's HORRIBLE reputation for fraud, deception and illegal activities. Had I searched online I would have found out about THOUSANDS of customers being cheated, HUNDREDS of investigations by the Attorney General into the fraud of Russ Whitney and his company's, and that Russ Whitney himself is a CONVICTED VIOLENT FELON and spent years in PRISON. I saved the cached pages from the major search engines of the John Reed lawsuit with Russell Whitney and the TRUTH and FACTS that Reed discovered during his investigation of Whitney. I am posting this information on real estate discussion boards so other people do NOT get cheated and ripped off like I did.