MichaelC 160 Report post Posted January 11, 2008 From today's Sun-Sentinel: http://www.sun-sentinel.com/business/sfl-f...582,print.story South Florida Sun-Sentinel.comWhitney Information Network settles with state over claims in seminarsWhitney to reimburse clients who claim they were misledBy Diane C. Lade South Florida Sun-Sentinel January 11, 2008 Florida consumers could receive more than $1 million in reimbursements from a company that state regulators said misrepresented its real estate and investment seminars by promising unrealistic results. Attorney General Bill McCollum on Thursday said the state had reached a settlement with Whitney Information Network Inc., which advertises through television infomercials such programs as "Star Trader," "Wealth Builder Workshop" and "Focus on Foreclosure." State regulators said more than 250 consumers had complained that Whitney testimonials were misleading and that the company charged for seminars offering only rudimentary information, then asked participants to pay thousands more for advanced classes. Regulators said many participants were seniors or retirees worried about retaining financial independence and that some paid thousands of dollars for the advanced classes. While Whitney denied wrongdoing, the company already has refunded more than $580,000 to Florida customers since the investigation began two years ago and in the settlement agreed to pay another $450,000 in outstanding claims. Whitney also must put $150,000 into a reserve account to compensate any unsatisfied consumers who have not yet come forward, as well as pay $300,000 to the state. Those who think they might have a claim against Whitney should call the Attorney General's Office at 866-966-7226. The company also agreed to alter its trade practices, including notifying consumers when people were paid for testimonials and running a prominent disclaimer with its ads that advertised results from the programs "are not to be expected by the average person using these programs or methods." Whitney representatives did not return two telephone calls to its Cape Coral headquarters on Thursday. In Florida, Whitney is doing business under several names, including the Wealth Intelligence Academy, Whitney Education Group Inc. and Success Development Institute. Sally Hurme, an attorney with AARP's Consumer Protection Unit in Washington, said investment seminars often targetolder adults. "They have the money to invest, they want to invest it wisely and they want to make it last," Hurme said. She predicts such businesses will actively solicit seniors this year, playing on fears of a volatile stock market and bumpy economy. Seminars or work-at-home offers often draw people in by promising to provide all the tools they will need for success, then saying additional money is needed for more training or supplies, Hurme said. "The tactic is, if you don't spend more money, then you will lose the money you already invested," she said. Diane Lade can be reached at dlade@sun-sentinel.com, 561-243-6618 or 954-356-4295. Copyright © 2008, South Florida Sun-Sentinel Share this post Link to post Share on other sites
Gordon Holtner 0 Report post Posted January 12, 2008 Hi Michael It is rather unfortunate that so many people did business with this man. A couple of years ago I went to one of their free seminars and all i saw was that stereotypical salesman hyping things that they themselves were never successful at. Many of the so called experts there never did a deal in their life, and not only that after the pitch was done they started hyping some travel mlm scheme. I am glad that Doug told me to go here instead. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 12, 2008 Not to single out Whitney, because he is just the best known of this bunch of snake oil salesmen. But, yeah, their method is to sell you something and then upsell the hell out of you. Before you know it, the really gullible folks are out $35K and not a bit closer to doing a deal. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted January 12, 2008 I know one guy who spent about $25k on Whitney and then went out and did 100 deals over the next few years. But I think he's the kind of person that would have done those deals either way. Share this post Link to post Share on other sites
-Tony- 0 Report post Posted January 13, 2008 I wont lie I read one of his books I think I paid $2 for it.... Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 14, 2008 I wont lie I read one of his books I think I paid $2 for it....And I'll bet afterwards they tried to upsell you another book for $5! Share this post Link to post Share on other sites
Michael Quarles 1 Report post Posted January 14, 2008 I have to jump in and say that not all up selling practices are scams... When I first began speaking on the real estate investing and teaching people how to make money successfully I was surprised at the number of investors who "Wanted" more education. It was weird but I started having this following of groupies... Like I was a rock star... I would ask these people why are you coming back so often, telling them that my talk was the same one they heard last time... Invariably they would say but we learn so much... But I am saying the same thing I said to myself... Then it started... Over and over again investors would ask "Michael do you have boot camps"? No I dont would be my reply. However more and more I was being asked to teach camps... So I started then it was "When is your next boot camp , this one was outstanding?" I thought next one... But they kept asking so now I do two different boot camps and I still get investors asking for more.. It has gotten to the point that I now have one on one mentoring in the investors area which costs a ton of money... But investors want the unfair advantage and to be taught by people who have been in the trenches... BTW this isn’t an Advertisement for more students.. So despite the fact that there are those who up sell and are scamming people, I would say a lot of up selling is also the effect of investors too afraid to jump... my 2 cents Michael Quarles Share this post Link to post Share on other sites
velozatdigg 0 Report post Posted February 9, 2008 I know one guy who spent about $25k on Whitney and then went out and did 100 deals over the next few years. But I think he's the kind of person that would have done those deals either way. I know two guys here in Alabama that went to his $5,000 bootcamp and did several after they got back.But I do remember that they reattended his bootcamp with their attorney and he did not like the way they were doing the deals. Share this post Link to post Share on other sites
