The Armando Montelongo RICO case initially filed in California has re-filed in Texas with more plaintiffs, and more gusto.
To view the entire complaint, CLICK HERE.
Excerpts from the RICO Claim
“Acting through his many corporate shells, Montelongo sells worthless, dangerous, and unlawful advice about real estate investing; takes advantage of the students’ trust to loot their accounts; sells them properties at inflated prices without disclosing his stake in them; encourages them to pursue their real estate investments using his allies, who also victimize the students; and harasses those who dare to speak out against him.”
“As another example, Montelongo solicited large amounts of student money for an investment in a marina near Sarasota, Florida called the Olde Fish House Marina. It may have reaped benefits for Montelongo—the AMS website describes it as a “successful casual dining establishment”—but the students who invested with him sustained heavy losses.”
And Kurt Weinrich, (aka Kurt “the shirt” Weinrich)
“Defendants also encourage students to transfer money in their employer- controlled or other secure retirement accounts to self-directed IRAs held by companies allied with Montelongo and the Defendant entities. Until at least mid-2015, Defendants’ chosen company was Preferred Trust Company, LLC (“Preferred Trust”), run by Kurt “the Shirt” Weinrich. After that time, Weinrich continued to be Defendants’ chosen self- directed IRA provider, apparently through a new entity the identity of which Plaintiffs do not yet know.”
“Weinrich also permits Montelongo access to confidential information about the students’ finances that Defendants then use to prey upon them. During the asset protection events, Montelongo’s employees ask students to share their financial information (including about their Preferred Trust accounts) in the name of educating the students. The employees then share that information with Montelongo, whose response to a positive account balance is visceral: Multiple former employees report that he shouts angrily, saying, “That’s my money! You’re not doing your job to get that in my pocket!” The employees comply, using their knowledge of the students’ finances to sell them more AMS “education” or encourage them to invest in properties with AMS-allied developers.”
Regarding Alleged Harassment
“To hide their deception, Montelongo and his employees instill fear in the students to discourage them from questioning the AMS system, and attacking or silencing those who attempt to speak out. For example, early on in a group event, when someone asks a question, Montelongo will berate the speaker, deriding him or her for wasting the other students’ time. Cowed, few others will dare to interrupt again. At other points in an event, Montelongo will mention his in-house legal team, and claim that no one could possibly sue him and win. The crux of these remarks is that anyone who would cross Montelongo on a business deal would lose, and that any student who would cross him would lose, too.”
Self-Dealing Transactions
“Defendants also victimize their students by engaging in self-dealing transactions with them, frequently without disclosing their own interests. For example, before a bus tour event, Montelongo will use an affiliate to purchase properties in the area where the event will occur, and then, during the event, sell the properties to students at inflated prices without disclosing that he has an interest in the sales or receives a share of the profits. (One student fortuitously overheard Montelongo discussing this scheme when she dialed in early to a planned group call for AMS students.)”
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Real estate investing education should be ;like financial, legal or medical advice… Never be afraid to get a second opinion. You JUST MIGHT learn something.
Does anyone have any information how I can sue Armondo Montelogo? I was deceived out of a large amount of money that I invested in his bus tour.