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'Worthless & Dangerous!' 'Flip This House' Star Sued Over Seminar 'Scheme'

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Jan. 10 2017, Published 7:15 p.m. ET

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Flip this House star Armando Montelongo has been slapped with a class action lawsuit for allegedly selling "worthless, dangerous and unlawful advice" in his seminars, according to the court documents obtained exclusively by RadarOnline.com.

The case against the A&E star was filed in Federal Court in San Antonio, Texas on December 20, 2016 by 138 of Montelongo's former "students," who claim that his real estate seminars were "cover for a nationwide fraudulent scheme," according to Chris Wimmer, the lead attorney on the case.

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The lawsuit claims that Montelongo's seminars, which can be as pricey as $40,000, have been misleading his students.

READ THE COURT DOCS

"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," the federal court documents obtained by Radar claim.

One shocking example of the fraud allegations detailed in the documents state: "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,)" the documents allege.

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The documents allege that Montelongo's deceit has destroyed the lives of those who invested in his seminars.

"The financial devastation wrought by the AMS programs has taken a heavy emotional toll, destroying friendships, wrecking marriages, driving students into clinical depression, and even resulting in suicide," the documents allege.

Wimmer told Radar that when Montelongo's students follow the plan, "It guts people's hopes."

The plaintiffs are asking the judge for a jury trial.

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