Real Estate Topics Forum :: View topic - Public domain information about Russ Whitney and his company

Guest

Public domain information about Russ Whitney and his companies

Russ Whitney pled guilty to second degree robbery
Russ Whitney entered New York State prison at age 18 on August 30, 1974 as inmate number 74B1135. He pled guilty to second degree robbery. He was paroled from prison at age 20 on March 9, 1976. Whitney was born on 11/18/55. You can see his prison record at http://www.johntreed.com/%20http://nysdocslookup.docs.state.ny.us/kinqw00. That will take you to the Inmate Population Information Search. Type the name Russell Whitney into the name boxes and hit the “Submit request” button. When you get the list of Russell Whitneys who were in New York State prison, click on the blue 74B1135 link to see the details of his prison term.
Russ Whitney was accused of wrongdoing by the Pennsylvania attorney general
On 7/9/99, the Pennsylvania Attorney General issued a news release about the results of an investigation by their Bureau of Consumer Protection of Russ Whitney. At that time, Whitney’s WIN Systems, Inc. was doing a free seminar called “How to Get Rich in a Year.” The Pennsylvania Attorney General said the seminar was misleading and violated Pennsylvania’s Unfair Trade Practices and Consumer Protection Law…investigators posed as consumers and attended the free seminars. We allege that the company not only failed to deliver what it had promised, but used the [seminars] as a way to promote its other products and services.” The Pennsylvania attorney general action against Whitney resulted in Case No. 392 MD99.

Russ Whitney’s companies have an unsatisfactory Better Business Bureau rating
You can see the Better Business Bureau Reliability Report on various Whitney companies at http://search.bbb.org/search.html. Type in the name “Whitney” and hit “Search.” That will produce a list of about 50 companies. Russ Whitney’s companies are listed under Whitney Leadership Group, Inc. or Whitney Canada, Inc. The BBB said there were “…unanswered complaints and a pattern of complaints concerning sales practices, refund disputes and unsatisfactory business performance,” regarding the U.S. Whitney companies. The BBB said the Canadian Whitney company appeared to have gone out of business.
Russ Whitney company was accused of wrongdoing by the Michigan attorney general
The Michigan attorney general accused a Whitney company of “…Unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce.” The accusation was in a Notice of Intended Action and Opportunity to Cease and Desist against WIN Systems, Inc. WIN Systems, Inc. is a prior name of Whitney Information Network, Inc. AG File No. 98-10060.
Moneywise says ‘stay away’
Moneywise claims to be “Britain’s most popular financial magazine.” Their article about Whitney’s real estate seminars, which have been offered in Britain in recent years appeared in June, 2003 with the headline, “Stay away when this circus comes to town.” http://www.moneywise.co.uk/investigationjune.htm
Whitney companies are non-union
Many Russ Whitney companies are part of Whitney information Network, Inc. The Whitney Information Network, Inc. annual report filed with the Securities and Exchange Commission says, “Our employees are not represented by a labor union…” http://www.sec.gov/Archives/edgar/data/1095276/000110465904008936/a04-3984_110k.htm
Senior poverty
In a 1/20/03 television infomercial, Russ Whitney said, “You know it’s hard to believe that 87% of the public will retire at or below the poverty level with less than $12,000 a year in income.” The Census Bureau monitors poverty. They say, “The percentage of people 65 and over living in poverty in 2002 was 10.1%. The poverty rate for 65 and older was indistinguishable from the poverty rate for 18 to 64 year olds.” (http://www.census.gov/hhes/poverty/poverty02/pov02hi.html) The 2001 median 65 and over income was $23,118 in 2001 dollars. (http://www.census.gov/hhes/income/histinc/h10.html) The poverty threshold in 2002 was $8,628 for a one-person household and $10,885 for a two-person household.” (http://www.census.gov/hhes/poverty/threshld/thresh02.html)
WPVI-TV story about Whitney
http://abclocal.go.com/wpvi/news/print_022704_SR_realestatechallenge.html
Former Whitney instructor and Whitney Hall of Fame member two-time convicted felon
Lee Bellenger, alias Lee Bolongia, was a Whitney instructor and member of Russ Whitney’s Hall of Fame http://www.usdoj.gov/usao/txn/PressRel01/bellenger_sen_pr.html He served a term in Prison in Louisiana under the Bolongia name and was convicted of another felony under the Bellenger name in 2001. (http://www.usdoj.gov/usao/txn/PressRel01/bellenger_sen_pr.html
Florida Department of Banking and Finance, Division of Finance, Division of Securities and Investor Protection accused Whitney of nine violations of law
In Proceeding No. 1450-F-7/89, the Florida government accused Whitney of nine violations of Florida law including “misrepresentation or omission of material facts…and using false writings…false, deceptive, and misleading advertising.”
Whitney was ordered to pay $1.2 million in a civil suit
On 11/15/80, Russ Whitney hit a pedestrian with his pickup truck. The pedestrian was severely injured including permanent brain damage. Whitney did not report the accident until more than a day later after news accounts reported police were looking for a late-model Toyota pickup truck. Glenville, NY police charged Whitney with leaving the scene of a personal injury accident. A grand jury did not indict him. A civil jury awarded the victim $1,190,809 to be paid by Russ Whitney. (book 912, page 134 in the Schenectady County Clerk’s records, Index No. 82-860, Control No. 46-1-84-0132, Calendar No. 84-0767)
Cold hotel meeting room
Russ Whitney’s Mortgage Payment Acceleration Program manual says at Step 9 page 3: “Check the room’s air-conditioning, the room must remain chilly. Warm rooms mean droopy participants and few sales.”
Whitney paternity and child support suit
Case #95-009059CA filed against Russell A. Whitney on November 29, 1995 in 20th Circuit Court, Lee County, Florida. The baby was born to an associate of Whitney on 5/14/94. He was married and she was not his wife. On 12/19/97 “FINAL JUDGMENT OF PATERNITY AND SUPPORT FILED & REC.” A document dated 6/25/96 orders, “The Department of Vital Statistics to issue an amended birth certificate indicating…Russell A. Whitney to be the minor child’s father.” Final judgment on 12/19/97 said in part, “Russell A. Whitney will pay [the mother] periodic child support in the amount of $800 per month. The first payment is due on Friday, 10/17/97…all past due amounts…the mother’s attorney fees.”
Russ Whitney company was accused of wrongdoing by the Tennessee Division of Consumer Affairs
The Tennessee Division of Consumer Affairs said Russ Whitney and Whitney Leadership Group, Inc. “violated the Tennessee Consumer Protection Act of 1977.” (Formal Action #5765)
Below are some of the Tennessee accusations against Whitney.
“The advertisement is headlined "Millionaire Swears Under Oath He Can Show Any Nashville Area Resident How To Get Rich In A Year." Defendant Whitney, who is identified in the advertisement as a "self-made millionaire" has not in fact made any such statement under oath. Mr. Whitney has informed the State that this claim is simply "advertising language." In addition, Mr. Whitney has been unable to provide substantiation that he is a millionaire or that he has become a millionaire by using the principles he will teach in his wealth-building seminar.”
“Defendants' advertisement promises that each individual will learn how to "become rich in a year," "gain security, freedom and wealth," "make serious money with only part-time effort," "turn debt into cash," "create $1,500/month in passive monthly income," and "make a fortune" with a computer. Defendants are unable to substantiate any of these claims. In fact, Mr. Whitney has informed the State that in making his claim that he can show any Nashvillian how to become "rich" in a year, he did not necessarily mean that anyone would become "rich" financially, but "rich" in a spiritual sense or as otherwise defined by the consumer's financial goals and circumstances.”
“Defendants' advertisement also states that consumers will receive a gift worth more than $100 and that there will be drawings throughout the seminar for other prizes. The advertisement fails, however, to identify the prize worth more than $100.00 or to give the verifiable retail price, a clear and conspicuous identification of the prizes, the odds of winning or the eligibility requirements for any prizes offered. For example, in order to be eligible for any prizes or gifts, seminar participants must listen to a sales pitch for Defendant Whitney's book and related products and services, and for an unrelated multi-level marketing plan of which Mr. Whitney is a part.”
“On information and belief, the Defendants aired an infomercial containing misrepresentations and misleading content similar to that in the print advertisements on a Nashville television station on December 10, 11, and 12, 1996.”
“All of the acts and practices engaged in and employed by the Defendants, as alleged herein, are "unfair or deceptive acts or practices…”
“By implying that a money-making opportunity will result in a specified level of success or profit without substantiation for such claims, Defendants have represented or implied that goods or services have characteristics or benefits that they do not have, in violation of Tenn. Code Ann. §§ 47-18-104(a), (b)(5), and (b)(27).”
“By utilizing a testimonial in promoting this money-making plan without disclosing that the success claimed is atypical or extraordinary, Defendants have represented or implied that goods or services have characteristics or benefits that they do not have, in violation of Tenn. Code Ann. §§ 47-18-104(a), (b)(5), and (b)(27) and 16 C.F.R. § 255.2(a).”
“By using statements in their advertisement that gives a false impression of the grade, quality, quantity, value, usability or origin of the goods or services offered or which otherwise misrepresent the goods or service actually being offered, the Defendants have engaged in a scheme to "bait" consumers to their workshop and then "switch" them from the advertised goods and services in violation of Tenn. Code Ann. § 47-18-104(b)(21).”
The actual Tennessee complaint against Whitney is at http://www.johntreed.com/%20http://www.state.tn.us/consumer/00005765.htm

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.