Also see Other rent-to-buy links (not all Rick Otton)
Rick Otton (& former students)- News and Links
Otton claims to have tens of thousands of former students. Those included here have been presented in Otton’s advertising, or at his seminars, as successful – or in one case where the student gave evidence supporting Otton in court.
South Australian Real Estate Agent exploited impoverished, vulnerable pensioner for profit. (May 2020)
The court found that Zane Pitt engaged in unconscionable conduct when he used a lease option to purchase a house from a vulnerable pensioner for a low price. It appears that Pitt had used the phrase “We Buy Houses” at one point, and Otton and other Otton students are friends on his facebook page.
Criminal charges (2019 -)
One of Otton’s “successful” students has been charged with obtaining financial advantage by deception, in relation to the refinancing of their vendor finance/lease option deals. While the case was set down to be heard mid 2020, it’s likely to be delayed due to COVID19.
Court decision, penalties and bankruptcy
In November 2018, the Court imposed record penalties on Otton and We Buy Houses totalling $18 million.
The Federal Court also banned Otton from managing corporations for 10 years in Australia and permanently restrained Otton and We Buy Houses from further involvement in the supply or promotion of services or advice concerning real property transactions or investment. See details.
Otton filed for bankruptcy on 23rd January, 2019.
Australian Competition & Consumer Commission v We Buy Houses & Rick Otton
Court heard arguments about penalty on 5 May 2018 – no decision has been made yet but the regulator asked the court to fine Otton and his company We Buy Houses $20 million (AUD). This is the same amount that the regulator says We Buy Houses has made in Australian from bootcamps and seminars since 2000.
Australian Federal Court found that Otton had engaged in misleading and deceptive conduct in relation to his marketing (and his book) including misleading statements about his success using his strategies. Neither Otton, or any former students, could show the court that one of his strategies had worked ‘in real life’. Otton was found by the judge to be an “unreliable witness” and was found to have lied to the court in relation to some issues.
In March 2015 when the proceedings were issued, Otton was teaching in the UK and has continued to teach in the UK since.
Lease Option ‘Gone Bad’
Former Otton student Karin Siekaup, who gave evidence for Otton in the ACCC case (see below) took a house owner to court to enforce two lease options – Siekaup lost and was ordered to pay costs Sieve-storm v Murphy (December 2016)
Ben was a former student who appeared on stage at Otton seminars in the UK with other “successful students”, and made some short videos with Otton. Ben sold ‘insider secrets’ to ‘buying houses for £1’ and was co-founder of Property TV. Ben Rogers, was declared bankrupt on 5th May 2015, owing money to people including ‘students’ who had been persuaded to ‘invest’ in his deals. Rogers continues (in 2018) to promote property investment workshops. He also claims to have run 365 marathons in 365 days, although this has been questioned on at least one running forum.
Students “invested” with successful student
I have been told by one of three Australian students who lost their money, that they “invested” tens of thousands of dollars in another student’s deal, which was never repaid. Otton regularly shared the stage with this “successful” student. I don’t know whether Otton encouraged students to lend to each other, but I’m told that the students placed trust in Otton, and therefore in this other student because Otton spoke so highly of him.
Rowan Lines (former Otton student) ordered to pay compensation (5/11/15) Rowan Lines compensation (see more details in link below)
Ben Chislett Court Action (28/10/15), Court orders former Otton student Chislett to stop operating as a real estate agent and finds he engaged in false and misleading conduct.
Rogue Agent Banned After Criminal Proceedings James Monaghan, Otton former student, and “very special guest” on Otton’s podcast. Enforceable Undertaking here. Refers to Ezibuyhomes and Benny Bull Pty Ltd which are related to Ben Chislett, another former student and regular guest on Otton’s podcasts (see below) Domain, 15/5/15
ACCC taking action against We Buy Houses and Rick Otton ACCC Media Release, 3/3/15
Spruiker facing legal action over renttoown scheme The Age, Chris Vedelago, 25/1/15 Mentions Sheree Becker and Rick Otton
From seminar to success story… to getting fined in the Supreme Court of Western Australia: How it happened Property Observer, Jennifer Duke, 10/3/13
“Spruikers Exploit the Vulnerable“, Lateline, ABC TV, 24/2/2014
Ben Chislett bankruptcy (below)
Author of “How to Buy a House for $!”. His Facebook page simply describes his business:
“Invest In Property & Generate Positive Cash Flow From Day One… Without Bank Loans, Deposit Or Experience.”
Some information about Rick Otton, his seminars, or past students, that may be of interest.
Some of Rick Otton’s responses to legal action in WA:
Response on Australian Property Forum
Response on facebook: “The courts have now ruled that to say “you buy houses” you don’t necessarily need to have bought one, more so, that the have the ability to do so. If you don’t have the ability to buy a home instead of using the words “we buy houses” maybe “family needs a home” which worked wonders or “soccer mum needs a home” and you will be swamped with calls”
Other responses from Otton to criticism and regulatory action. (post on this site)