This is a very overdue email to your regarding Jason Schubert with Rich in Five’s business practices and how they have so negatively affected a great many of us. We felt it was important to write you and speak on behalf of so many of us that have each lost thousands, tens of thousands and hundreds of thousands of dollars by doing business with him.We believe that you are unaware of how Jason Schubert has been doing business for years. We have collected nearly 100 names and contact information along with their stories and how much they invested and lost by doing business with Jason Schubert with Rich in Five. It is a very alarming amount of over $3 million dollars! In many cases, most of the group joined the coaching program. We have a large group from the beginning who each paid $49,000 to join the program; and, to this day, Jason has not fulfilled his legal obligations under terms of the signed contracts and agreements with us and he WILL NOT refund our money. He continues to lie and make excuses to us when we call and inquire about a refund. He says whatever he believes he has to in order to put us off and he continues to placate us. He has no respect for the trust and investments we made with him and his company. The only solution he ever gives to any of us is “I will find you a deal;” yet, this has been going on four years for most of us. Yet he still goes out and continues to bring in more students and take their hard earned money when we all have lost everything we had because he hasn’t fulfilled his end legal obligations of terms of the signed agreements with us. We recently heard from someone who paid $299 to attend Jason’s Miami boot camp in April 2014. He then paid Jason $25,000 and joined his coaching program. This is quoted directly from his email to us,
“We have asked him to see the STR reports for his hotels, the track records for his students, or any financials to validate the claims he made. While he said on different occasions that we would see these documents, we have yet to be shown anything to prove the legitimacy of his company.
We noticed one of his Extend a Suites hotels that is listed on his site is actually in foreclosure and after contacting the broker for the property we learned that part of the terms was that the owner was not allowing any of the financials to be disclosed in regards to this property. That seemed very odd.”
The Dade REIA was warned by several of us about Jason Schubert with Rich in Five, but they chose to ignore our warnings because of the possible money that could be made off the boot camp and coaching program sign-ups. Jason believes that breaching the contracts he had with us means nothing! We are left with no options other than hire lawyers and spend more money going after him. He has signed agreements with some to make payments, but he often doesn’t make them or makes some payments and then stops. Many or most others have gotten $0 back from their $49,000 investment.
We met with the FBI and SEC and turned over and continue to accumulate a great deal of important documents that most likely will result in an investigation of Jason and his business practices. We will only feel vindicated when these organizations finally step in and go after him for the fraud, deception, and in all reality, the theft he has committed and continues to commit.
Something you should also be aware of is the loss of four of his hotels in the past year – Silver Springs, FL, Fort Smith, AR, West Memphis, AR and Baton Rouge, LA. In fact, we understand he is about to lose another hotel, Columbia, TN. We find it very interesting that the four hotels he lost continue to appear on his www.extendasuites.com website in order to continue to mislead people when he tries to convince them how financially lucrative joining his coaching program will be. The coaches continue to stand up at each boot camp and lie to the unsuspecting attendees about how well their hotels are doing when the truth is, they are not doing well. They are committing FRAUD along with Jason all in the name of doing business by deceiving people. Have you ever heard of the Deceptive Trade Practice Act in Texas? You should because Jason continues to violate that law each time he speaks at real estate events and boot camps when he falsely and knowingly advertises his services to others in order to induce them into parting with their money in search of a dream that Jason cannot fulfill. This is both FRAUD and a FELONY!
Here is the story of how he lost Fort Smith, Arkansas and how several people lost more than $500,000. Jason Schubert signed an agreement with Cory Wilkinson, President of the Oklahoma City REIA (one of his students from 2011) and the current hotel owner to lease purchase the hotel on a 3-year lease. Jason then coerced Cory into giving him 51% ownership of the hotel by telling him it needed another $100,000 to really make it go and he had an investor (Phong Pham in Dallas, Texas) willing to put up the money but only if Jason was the controlling member. (Cory was supposed to have 100% ownership of the hotel according to his signed coaching contract). Cory went along with Jason because he trusted him and that’s when everything started falling apart. Jason did not make one lease payment on the hotel from the date he took it over. Jason never made any of the improvements he was supposed to with the $100,000 except for putting up a hotel sign. In March of this year, the hotel owner/seller called Cory to tell him he repossessed the hotel for nonpayment from Jason. Jason never once called Cory or Phong to tell them that he lost the hotel, let alone because of nonpayment. Phong called Cory when this happened and Phong told Cory that he never told Jason he would only put up the money if Jason were in control. This is clearly another instance of fraud and shows just how Jason manipulates people so he can take control of the money. He never answers to anyone. Cory has lost over $200,000 and the two years of hard work he put into this hotel. This is only one story. There are others that have lost their hotels and their life savings because Jason continues to deceive people just so he can prosper.
Additionally, Cory’s hotel went into operation under Jason and Ri5 Management on May 10, 2013. Jason signed a management contract with Cory stating that for a fee of approximately $3,000 per month, he would manage the hotel and pay the bills. Jason never sat down with anyone involved in Fort Smith to explain his actions and take responsibility for what he did and how and understand how this has financially devastated Cory, his business partner Jason Williams and Phong Pham. Jason clearly had a fiduciary responsibility when Ri5 Management signed and agreed to operate and manage this hotel. We are seeking legal counsel to file a lawsuit and pursue all legal remedies available against Jason. We have a clear-cut case of gross negligence and mismanagement of the hotel since Jason collected all the money the hotel made month after month and didn’t use it in the best manner to make the hotel successful. We’re not even sure what happened to all of those funds. We also have other proof of fraud through different sets of profit and loss statements sent to different investors (clearly to accomplish different objectives). This is illegal and we will be pursuing a lawsuit here. Jason was the only one who came away from this without a loss! Even the hotel owner lost over $200,000 in back lease payments, back taxes, liquidated damages and so much more. Again, we all trusted Jason to do the right thing and again he didn’t!
Another lawsuit was filed by Tim Jones in Southern California against Carl (Ron) Benson, his LLC – Get A Grip, and the Des Moines Extend a Suites LLC. Since Jason is majority owner of this hotel but not (yet) named directly in this lawsuit, he is still involved. Tim Jones, a fireman, made a $200,000 five-day loan in July 2012 (his entire life’s savings) to Ron because of his relationship with Ron’s son, also a fireman. Jason and Ron haven’t repaid his five-day loan that has now been in default for almost two years, even under the revised terms Tim agreed in order to help out Ron and Jason. Can you believe that Ron and Jason have only made five interest payments to Tim during all these months (two years)? Don’t you think Tim deserves his money back since the hotel has been making money and Jason and the Benson’s have been profiting since July 2012? Tim is the only person who is not profiting when he should be because it was his loan of $200,000 that enabled the purchase of the property itself (that money was used as a down payment). Whose greed has prevented Tim from receiving what he rightfully deserves back? That’s right, it was Jason’s greed. Tim has invested tens of thousands of dollars in attorney’s fees to get back what he rightfully deserves and is not going to stop until justice is served.
Tempe Connell is suing Jason directly for her $49,000 investment in the Rich in Five coaching program, as well as suing Larry Erwin and his business partner for her private money investment of $150,000 for the San Antonio Extend a Suites hotel. Larry Erwin continues to make claims in the boot camps that his hotel is making money, when in fact, his hotel is suffering. This is fraud and he is culpable for the claims he makes. (We have dozens of people who will be subpoenaed to testify against Jason and the coaches). Tempe is also very serious about these lawsuits. We all are very serious about the loss of money and investments we have made with Jason Schubert and Rich in Five!
The same pattern of gross negligence and mismanagement with the West Memphis, Arkansas property occurred and more than $500,000 was lost on that property. Dr. Morrison and his wife Diane made an investment of $250,000 and have NOTHING to show for their money. Jason even brought his daughter to their house to collect the final check. They have made repeated attempts to reach Jason to discuss a resolution and a return of their money and he isn’t even decent enough to return their calls. Don’t you feel that Jason Schubert owes them a call? How about the dozens of other coaching students and private money investors? What do you think Jason’s obligation is to them? Do you think ignoring their calls, emails and text messages is the right way to conduct business after all the money these people invested in Jason Schubert and Rich in Five? Money that has gone into his pocket to pay for family vacations, luxury cars, private school educations, mortgage on his Round Rock home, and the 20 acres of property he is looking to build his future home on in Austin? All while so many people have lost their life savings, retirement, and investments?
We have so many alarming stories that have been shared with us on how Jason took advantage of and has broken the trust of doing business with him. We have worked so hard all of our lives and we gave Jason our life savings believing we could fulfill our dreams of providing a good life for our families and ourselves. But now, it is all gone with no possibility of replenishing what literally took our entire lives to save! Jason has destroyed so many lives and families because of his greed!
Jason Schubert is a smooth talker and a good salesman; so, don’t let him talk his way out of this. We can send you names and phone numbers of individuals that have done business with Jason and lost everything they had. You can confirm their stories for yourself. What we have shared with you are REAL FACTS and the TRUTH! Jason will lie to you about all of this and will, as always, blame someone or something else for each of these failures since he cannot accept responsibility for anything, although he is in-fact responsible for each and every one of these failures and losses. Jason no longer recognizes right from wrong and cannot tell the truth, probably about anything.
Thank you for your time; we hope you will do the right thing with the information we have shared with you and protect the members of YOUR REIA!
This post written by Cory Wilkinson