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Australia’s most infamous property guru Rick Otton, the controversial "How To Buy A House For $1" author, has filed for bankruptcy, crippled by the largest fine in corporate history.
It comes five months after he and his company were fined $18 million for misleading property investors following ACCC legal action.
The Federal Court judgment found breaches of Australian Consumer Law of $12 million against Otton’s business and $6 million against him personally.
But his four bank accounts have just $18,800, including $5.74 with NAB, according to his statement of affairs filed on the national personal insolvency index at the Australian Financial Security Authority. There was $37,000 owing on his credit cards.There was little property listed as assets, just a Otton family superannuation trust owning a $2 million commercial building, along with an option to buy a 45,000 Euro apartment building at Saint Spyridonas in Greece, where is shifted his spruiking sessions.Full/source articleThis link documents how Rick Otton received a record fine for what the judge called "deceptive marketing". Like another lease options trainer, Ben Rogers, who also went bankrupt, it is interesting to see how few actual assets he owned, despite claims of significant wealth created through lease options and property investment.Rick Otton was the mentor of Ben Rogers, who went bankrupt after borrowing over £2million from within various wealth creation networks including Property Investor Network and Gill Fielding's networks where he was a lease options coach/mentor.Despite the cloud over Mr Otton's head while the court case was on-going, he was posting on facebook in November 2018, being promoted within UK wealth creation networks and working on podcasts with another of his disgraced students, Ben Chislett.This news should serve as a warning to newcomers being lured in to expensive training and mentoring to learn how to undertake lease options. The same marketing techniques used by Rick Otton are in use today in the UK "wealth creation" arena. If a so-called "leading expert" cannot create wealth from lease options, then it stands to reason that newcomers will likely struggle.Clearly, in Mr. Otton's case, it was more lucrative to offer training courses than undertake the strategy himself, but even this did not create huge amounts of assets, despite it being known that, between 2011 and 2014, he generated around $20 million Australian Dollars (circa £11 million) in revenue from the training programs.SEE ALSO - Lease options guru Rick Otton fined $18millUP NEXT - Nathan Winch - Samuel Leeds protegeDON'T MISS - Property education, training, and mentoringNOW WATCH:
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Relevant comment from this thread: Nathan Winch - Samuel Leeds protege