UPDATE MARCH 2006
To the Worldwide Media covering the Teach Me to Trade and the
Russ Whitney Information Networks Indictments that were announced yesterday.
Please be advised that we are receiving your calls, emails and letters from
around the world including the United Kingdom.
Here are the facts as we can relate to you at this point.
1. A few days ago, two speakers for Whitney Information
Networks, Teach Me to Trade Division, Linda Wolfe and David Gengler, both of
Salt Lake City Utah, along with Hands on Capital LLC, and Lashaico, Inc. were
indicted by the federal government . The copy of the story is located here :
http://www.ksl.com/?nid=148&sid=2828567
2. Many of the national News organizations have been calling
including CNN, Dateline, 20/20, NBC National, and many
more wanting to know
about our CEO, Robert Paisola's Relationship with the Russ Whitney Organization
and many of you have even been able to receive via the Freedom of Information
Act, a copy of the "Pelican Brief" which is a 450 page document that was filed
against Whitney Information Networks, (RUSSO), Whitney Education Group
Inc, Wealth Intelligence Network, Inc. Whitney Canada Inc. Precision Software
Services Inc. Whitney Consulting Services Inc, Whitney Internet Services Inc.
WhitneyMortgage.com Inc. and Whitney U.K. Limited, by Mr. Robert Paisola.
3. While the document is now in the public domain, and while
there are many questions that you have on this matter that was filed under The
US Department of Labor Case Number 2006-SOX-00031 and 00032 before the Office of
Administrative Law Judges, 50 Freemont Street, Suite 2100, San Francisco
California 94105, there was a confidentiality agreement executed by and between
the parties stating that this matter would not be discussed.
4. Now that this matter is in the public forum, we have
contacted the Corporate Counsel for The Russ Whitney Organization, Marie Code in
Florida. She is the general Counsel for the Company. A conversation took place
today wherein she has committed to review the agreement and determine how much
latitude Mr. Paisola has to speak to the National Media, If you are a member of
the media, please call Marie B. Code at 239-542-0643 for up to date details.
5. Many of the news organizations have stated that the
corporation is a " criminal enterprise" and therefore any agreements are null
and void. We simply are not in a position to determine the merits of this claim,
and have no comment.
6. If you have a copy of the 40 initial pages of the brief and
also have the remaining hundreds of pages of backup data, you are welcome to
post them in a public forum. We can not directly provide these documents to you,
even though they are in the public domain and have been released under the
Freedom of Information Act.
7. CNN New York has confirmed that they are setting up a
special section on CNN.com to post all 450 Pages.
8. Should you have ant additional questions regarding this
issue, please feel free to email
media.affairs@westerncapitalcredit.com
and we will get back to you.
One final request, PLEASE RESPECT THE PAISOLA FAMILY AND DO
NOT "CAMP OUT" IN FRONT OF MR. PAISOLA'S HOME FOR AN INTERVIEW. THIS WILL NOT
HELP YOUR CAUSE.
WE WILL BRING YOU UPDATES AS THEY OCCUR.
THANK YOU,
THE WESTERN CAPITAL INVESTIGATIVE TEAM
UPDATE
DECEMBER 22, 2006 Our Official Statement on the Russ Whitney Education
Attorney General and SEC Investigation
As many of our readers are aware the following article was
published on Tuesday December 19, 2006 by the Wire Services on Whitney
Information Networks,Teach Me to Trade, Edutrades, and The Russ Whitney
Organization.
Since this article has been published, our phones have been
lighting up with inquiries from around the world.
We need everyone to understand that we have, nor will have
no public statement on this company. We ask you to refer to counsel for
the Russ Whitney Organization, whom can be reached at Whitney Headquarters in
Cape Coral, Florida.
Western Capital is NOT involved in the Virginia Grand Jury
Matter nor are we currently involved in the Securities and Exchange
Investigation that was mentioned in this article.
We CAN NOT assist individual consumers with any matters
regarding this company and can not further comment on the Sarbanes Oxley
Complaint that is being referred to that was filed by our CEO, Robert Paisola
with OSHA that is now in the hands of the SEC. If you have a copy of this
lengthy 700 page brief and have acquired it via the Freedom of Information Act
or the Securities and Exchange Commission, we would refer you to the Whitney
Organization, as all mutual issues have been resolved between the parties and
Mr. Paisola.
For your review only, we are reposting this article as a
courtesy as this article is in the public domain.
December 21, 2006 02:52 PM Mountain Time
Whitney Information
Network, Inc. Announces Resignation of Director, Corporate
Communications and Details Recent Termination
CAPE CORAL, Fla.--(BUSINESS WIRE)--Whitney Information Network,
Inc. (OTCBB:RUSS) announced today the resignation of Richard O’Dor,
Director, Corporate Communications for the Company. Mr. O’Dor
resigned after Management of the Company learned that Mr. O’Dor
had made a misstatement to the press without the knowledge of, or
authorization by, the Company, regarding the reason for the
termination of Rance Masheck, Vice President, Sales and Marketing of
EduTrades, Inc. (a subsidiary of the Company), which was announced
on December 19, 2006. Mr. Masheck was terminated due to the fact
that his trading records do not substantiate claims which he made,
and which the Company broadcasted publicly, regarding his trading
success. The Company discovered this fact during its internal
investigation related to both the grand jury investigation by the
United States Attorney’s Office for the
Eastern District of Virginia, which was announced by the Company on
December 15, 2006, and the investigation and subpoena by the
Securities and Exchange Commission, which was announced by the
Company on November 20, 2006.
About Whitney Information Network, Inc.:
Whitney Information Network, Inc. (OTCBB:RUSS) is a provider of
postsecondary education focused on individual wealth creation and
personal success. Whitney Information Network, Inc. provides
students with comprehensive instruction and mentorship in real
estate investment, stock trading, business development and
individual investment strategies in the United States, United
Kingdom, Canada and Costa Rica. Additional information can be found
at
www.wincorporate.com.
At A Glance
|
Whitney Information Network, Inc.
|
|
Source: via Business Wire
Updated 09/29/2006 by company
|
|
Headquarters: |
Cape Coral,, Florida |
|
Website: |
http://www.wincorporate.com |
|
CEO: |
Russell A. Whitney |
|
Employees: |
477 |
|
Ticker: |
RUSS (OTCBB) |
|
Revenues: |
$163.1 million (2005) |
|
Net Income: |
$3.9 million (2005) |
Issued December 20, 2006
By: Western Capital Financial
Our Final Statement on the Russ Whitney Education
Attorney General and SEC Investigation
As many of our readers are aware the following article was
published on Tuesday December 19, 2006by the Wire Services on Whitney
Information Networks,Teach Me to Trade, Edutrades, and The Russ Whitney
Organization.
Since this article has been published, our phones have been
lighting up with inquiries from around the world.
We need everyone to understand that we have, nor will have
no public statement on this company. We ask you to refer to counsel for
the Russ Whitney Organization, whom can be reached at Whitney Headquarters in
Cape Coral, Florida.
Western Capital is NOT involved in the Virginia Grand Jury
Matter nor are we currently involved in the Securities and Exchange
Investigation that was mentioned in this article.
We CAN NOT assist individual consumers with any matters
regarding this company and can not further comment on the Sarbanes Oxley
Complaint that is being referred to that was filed by our CEO, Robert Paisola
with OSHA that is now in the hands of the SEC. If you have a copy of this
lengthy 700 page brief and have acquired it via the Freedom of Information Act
or the Securities and Exchange Commission, we would refer you to the Whitney
Organization, as all mutual issues have been resolved between the parties and
Mr. Paisola.
For your review only, we are reposting this article as a
courtesy as this article is in the public domain.
December 19, 2006 08:00 AM Eastern Time
Whitney Information Network,
Inc. Announces Departure of Officers
CAPE CORAL, Fla.--(BUSINESS WIRE)--Whitney Information
Network, Inc. (OTCBB:RUSS) announced today the termination
of employment of Nicholas S. Maturo, President and Chief
Operating Officer and Rance Masheck, Vice President, Sales
and Marketing of EduTrades, Inc. (a subsidiary of the
Company).
About Whitney Information Network, Inc.:
Whitney Information Network, Inc. (OTCBB:RUSS) is a provider of
postsecondary education focused on individual wealth creation and
personal success. Whitney Information Network, Inc. provides
students with comprehensive instruction and mentorship in real
estate investment, stock trading, business development and
individual investment strategies in the United States, United
Kingdom, Canada and Costa Rica. Additional information can be found
at
www.wincorporate.com.
At A Glance
|
Whitney Information Network, Inc.
|
|
Source: via Business Wire
Updated 09/29/2006 by company
|
| Headquarters: |
Cape Coral,, Florida |
| Website: |
http://www.wincorporate.com |
| CEO: |
Russell A. Whitney |
| Employees: |
477 |
| Ticker: |
RUSS (OTCBB)
|
| Revenues: |
$163.1 million (2005) |
| Net Income: |
$3.9 million (2005) |
Whitney top brass fired
Cape company under investigation
By Tim Engstrom
tengstrom@news-press.com
Originally posted on December 20, 2006
ABOUT WHITNEY INFORMATION NETWORK
• Company: The Whitney Information Network, 1612 Cape Coral
Parkway.
• mployees: 270 in Cape Coral; 490 overall.• Founder,
chairman and chief executive officer: Russell A. Whitney,
50.
• Stock: Shares trade over the counter as RUSS.OB The stock
has ranged from a high of $11.26 to a low of $3.10 in the
past year. The stock closed at $3.30 on Tuesday.• History:
Whitney founded the company in Fort Myers in 1983 and moved
to Cape Coral in 1989.
• Quote: “What we teach is subject matter that is kind of
‘How to make money 101 in the real world,’ things that
aren't taught in grade school, high school and college,”
Whitney told The News-Press in 2002.
DELIVERING YOUR
WORLD
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|
 
|
The president and a vice president of sales with Whitney Information
Network in Cape Coral have been fired as the company faces two federal
investigations into its business practices.
In a brief statement released Tuesday, the company announced "the
termination of employment" of Nicholas S. Maturo, president and chief
operating officer, and Rance Masheck, vice president of sales and
marketing of EduTrades Inc., a subsidiary that specializes in stock
market investment strategy.
The firings come as the U.S. Attorney for the Eastern District of
Virginia has launched a grand jury investigation into the marketing
activities of the company.
Whitney executives received a subpoena on Dec. 11 requesting
documents and information stretching back to Jan. 1, 2002, the company
confirmed in a news release late Friday.
In November, the company said it was under investigation by the
Securities and Exchange Commission.
Representatives with the U.S. Attorney's Office in Virginia and the
SEC have said they cannot confirm the investigations.
Company spokesman Richard O'Dor said officials would not comment
Tuesday, and a message left at Maturo's North Naples home was not
returned.
Whitney offers education seminars in real estate and stock market
investment, for which clients pay tuition ranging from $411 for a basic
course to $14,159 for an advanced course. Seminars are scheduled this
week in Atlanta, Orlando and Seattle.
The new announcements have sent shares of the company's stock — which
trades over the counter — tumbling. Shares have fallen from $9.95 on
Nov. 1 to $3.25 on Tuesday.
The company employs about 270 people in Cape Coral and about 490
overall.
Maturo, 59, joined Whitney in 2002 as vice president of strategic
planning and development. He previously had been chief information
officer of Kraft Foods.
At Whitney, Maturo was promoted to chief operating officer in 2003
and was named president in June 2004.
In 2004, Maturo announced the company was reorganizing into an "academy"
that was structured like a college or university but announced layoffs
just a few weeks later.
"We anticipated growth and we hired a little ahead of the curve,"
Maturo said at the time. "Now we've had to cut back on aspects of our
growth."
He said then that he remained optimistic.
"Our business is still solid," he said. "Our revenue is still strong."
Maturo earned a salary of $275,000 in 2005 and a bonus of $250,000,
according to the company's annual report.
No information was available on Masheck's salary.
Whitney reported a net loss of $1.3 million, or 11 cents per share,
in the three months ended Sept. 30, compared to a profit of $5.3
million, or 56 cents per share, for the same period a year ago.
The earnings for the year-ago period were boosted by a $6.7 million tax
benefit. |
December 15, 2006 02:45 PM Mountain Time
Whitney Information Network, Inc. Receives
Grand Jury Subpoena
CAPE CORAL, Fla.--(BUSINESS WIRE)--Whitney Information Network,
Inc. (OTCBB:RUSS) announced today that the United States Attorney
for the Eastern District of Virginia has notified the Company that
it has commenced a grand jury investigation into certain of the
Company’s marketing activities. The
Company received a subpoena on December 11, 2006 in connection with
this investigation requesting documents and information from January
1, 2002 to the present relating to its marketing activities. The
Company intends to cooperate fully with this investigation.
The Company's Board of Directors has established a Special
Committee of independent directors to conduct an internal
investigation of these activities and the Company's acquisitions of
other companies. The Committee has engaged the law firm of Wilmer
Cutler Pickering Hale and Dorr to assist it with this investigation.
Separately, the Company also announced today that it intends to
withdraw its EduTrades, Inc. registration statement filed with the
Securities and Exchange Commission.
About Whitney Information Network, Inc.:
Whitney Information Network, Inc. (OTCBB:RUSS) is a provider of
postsecondary education focused on individual wealth creation and
personal success. Whitney Information Network, Inc. provides
students with comprehensive instruction and mentorship in real
estate investment, stock trading, business development and
individual investment strategies in the United States, United
Kingdom, Canada and Costa Rica. Additional information can be found
at
www.wincorporate.com.
At A Glance
|
Whitney Information Network, Inc.
|
|
Source: via Business Wire
Updated 09/29/2006 by company
|
|
