Armando Montelongo Now Faces a Civil RICO Lawsuit Backed by 164 Former Students

Many that have followed me over the years know that my first exposure to Real Estate education was through one of Armando Montelongo’s very first bus tours.  I was told I would be rich, that being in his inner circle was all I needed to find deals, lenders, agents, contractors and all that is needed to achieve wealth – at least that is what I remember of the promises.

Naturally when I got home I realized after attending some REI meetings that I didn’t know enough about real estate in my local market. I bought more programs, listened to as many podcasts as I could, and watched as many webinars as I could as I found the path of investing that worked for me.  I’m still here, investing in real estate, and no, I’m not rich yet.

Here is an excerpt from the press release:

Emergent has filed suit under the federal Racketeering Influenced and Corrupt Organizations Act (“RICO”) on behalf of 164 former students of “Flip This House” star Armando Montelongo and his companies, alleging that the real estate mogul’s educational offerings — which cost up to tens of thousands of dollars, and which are attended by thousands of students every year — do not live up to the central claim that the Montelongo “system works in any financial market, at any given time,” and are instead the heart of a fraudulent scheme to sell students worthless “education.”  In what appears to be the first major lawsuit brought against the defendants over their seminars, the students seek over $12 million in trebled RICO damages.

A copy of the complaint is here.  If you’d like to know more about this lawsuit or our other group action work, contact us.

You can read more about Emergent Law on their web-site.

What is RICO?

RICO stands for Racketeer Influenced and Corrupt Organizations.  This is not the same claim that Presidential candidate, Donald Trump is accused of with his “Trump University” Real Estate education program.  That is merely a class action suit that he’s been fighting for almost 6 years now.  (See http://www.courthousenews.com/2010/05/04/TrumpU.pdf.)

Where I’ve seen similarities in the seminar business (see The Seminar Business and the Hard-Sell Up-Sell) from many educators, I’ve never known any to receive such a strong law suit filed against them.

You can read the claim here.