Students drop California lawsuit against Montelongo to refile in San Antonio
The 163 students who sued San Antonio real estate investor and one-time reality TV star Armando Montelongo for providing worthless advice through his real estate seminars have dropped their lawsuit in California so they can refile it here.
A federal judge in San Francisco signed an order dismissing the case Monday. The students, who paid thousands of dollars for Montelongo’s training, indicated in a court filing Friday that they plan to pursue the lawsuit in Texas, where Montelongo operates his businesses.
Montelongo had argued that the federal court in San Francisco had no jurisdiction over the dispute, which was initiated in February. The suit sought more than $12 million in damages from Montelongo and his businesses.
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A call to a lawyer for the students wasn’t immediately returned. It doesn’t appear that the case has been refiled as of early Monday afternoon.
In the San Francisco suit, the students accused Montelongo and his companies of violating the civil Racketeering Influenced and Corrupt Organizations Act (RICO) by committing wire fraud and conspiring to deceive investors over a number of years. Armando Montelongo Cos. has called the lawsuit frivolous and vowed to countersue its former pupils.
Montelongo starred in the A&E series “Flip This House.”
Twitter: @AlamoPD