Three Central Texas women say real estate entrepreneur and house-flipping trainer, Armando Montelongo, sold them worthless, dangerous and unlawful advice about real estate investing.
Montelongo is accused of violating the racketeer Influenced and Corrupt Organizations Act. The lawsuit was filed in San Antonio, where Montelongo headquarters has his seminar businesses.
Jean Norton of Austin, as well as Cynthia Woods Jones and Gale Jones from Pflugerville, were listed among almost 200 other students in a federal lawsuit.
In court filings, attorneys claim Montelongo's seminars are “worthless, extended sales pitches for additional Montelongo seminars and products.”
The lawsuit says students paid up to $40,000 for each seminar.
Montelongo is also accused of selling students properties at inflated prices without disclosing his stake.
"The stories we have been told by our many clients from all over the country are remarkably consistent, and show that Montelongo's seminars are really just ruses to sell more of his worthless 'education,' " said Emergent, PC’s Christopher Wimmer in a press release. Wimmer is the lead counsel for the plaintiffs.
The lawsuit claims Montelongo would harass anyone who spoke out against his business practice.
"The results for the students are devastating, because this supposedly bullet proof system that Montelongo claims works in all markets, at all times, does not in fact work at all,” said Wimmer in the release. "Students have been pushed deep into debt and even bankruptcy, with grave consequences for them and their families. Meanwhile, Montelongo brags on social media about his wealth under the hashtag #millionaire."
We reached out to Montelongo. A spokesperson from his office said, "Armando Montelongo Companies has maintained from the beginning that the lawsuit is frivolous. We will fight the claims and file factual counterclaims, at the appropriate time."
You can read a copy of the civil complaint here.