JZ Knight Pitched Pricy Investment Scam, Lied to Feds for Tax Credit

–First published on June 14, 2014 in Watchdog Wire

First in a Series on RSE International

For decades, Thurston County’s JZ Knight has owned the “no-fault cult” Ramtha School of Enlightenment (RSE). She has boasted of her wealth, her extravagant lifestyle, her political connections, her influence over government authorities, and her celebrity followers like Salma Hayek, Shirley MacLaine, and Linda Evans.

Six minutes into this video clip from a 2008 CNN Larry King Live program, JZ Knight discusses her “best friend” Salma Hayek.  Click here to see video clip of JZ Knight telling Larry King about her best friend Salma Hayek.

Here is the full interview from that segment:

JZ Knight has spent the last year and a half–and millions of dollars–suing people from around the globe over the release of secret RSE videos. These videos show Knight hurling profanities and hate against Catholics, Mexicans, Jews, gays, and more.

These videos also show Knight making fraudulent inducements to her followers, including her claim that mega-conglomerate 3M seeks advice and forecasts from her.

3M Management Responds to Knight's False Claims

3M Management Responds to Knight’s False Claims

3M denies Knight’s claims.

Deceptive business practices are illegal in Washington State.

Officials from Washington State and Thurston County have shown little concern over JZ Knight’s various activities over the years, in spite of multiple reports of wrongdoing.

And after recently accepting her $65,000 donation, Thurston County Democratic Party Chair Roger Erskine stated:

JZ Knight is a very good strong Democrat and she totally supports our platform and our goals and I think that’s good enough.

So Where Does JZ Knight Get Her Money?

JZ Knight’s ex-followers offer a clue as to the money. Several have described decades of one JZ swindle after another, backed by celebrity endorsements.

They talk of losing their homes and their families, as a result of losing their life savings to Knight.

Knight’s infamous horse scam from the 1980s was featured on ABC’s 20/20 in 1988. Seven and a half minutes into the second half of this 20/20 segment (below), Knight explains her feelings about that particular grift: “If a person is ever sorry about what they ever did, then they will never learn, and they never progress and go forward.” She adds, “everyone is entitled to their own truth.”

ABC’s Judd Rose closed the segment by calling RSE a “no-fault cult.”

Apparently JZ Knight learned how to be a little more discreet with her future fraudulent investment offerings.

RSE International, Inc.

In 2007, JZ Knight and her “CPA” pitched a new idea to her followers.

She would sell her main business, the Ramtha School of Enlightenment (RSE), to her followers who could afford the minimum investment of $100,000. The business would be called RSE International, Inc.

Her most trusted followers would comprise the board–including her “CPA” Robert Hoffman and her (then) live-in lover James Flick, who is featured in this video:

Potential investors would first have to sign yet another of Knight’s secrecy contracts, then prove that they had the cash, just to see the written investment proposal.

Knight gave enticing inducements in her investment pitch. She described a flurry of upcoming projects, including vague references to four movie offers, a reality show, and a weekly talk show.

None of these projects came to pass.

In the midst of Knight’s vague claims about upcoming projects, she made one very specific pitch in her written investment proposal:

One movie, “Lifting the Veil” is being produced by the People of “The Secret.”

That was an extremely impressive claim in 2007.

In 2006, Oprah Winfrey overwhelmingly endorsed Rhonda Byrne’s film and book called The Secret, making Byrne an overnight phenomenon.

Oprah followed up with a series of programs on The Secret.

The same month that JZ Knight made her Lifting the Veil claim to potential RSE International investors, Oprah Winfrey raved about The Secret on Larry King Live.

As with JZ Knight’s fraudulent boasts about 3M, her pitch to her potential investors about Lifting the Veil was yet another lie.

Laura Reeve, representative of The Secret, states:

Neither the company that produced and owns The Secret (including any of its affiliated or successor entities), nor any of their respective principals (collectively, “The Secret”), have had any business dealings or agreements with JZ Knight, RSE International, or Ramtha’s School of Enlightenment. Nor did The Secret produce, agree to produce, or otherwise support a movie titled “Lifting the Veil.”

Revised Code of Washington (RCW) 21.20.010 states:

It is unlawful for any person, in connection with the offer, sale or purchase of any security, directly or indirectly:
(1) To employ any device, scheme, or artifice to defraud;
(2) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading; or
(3) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.

Click on 2 below to continue reading –

Share

Leave a Reply

Your email address will not be published.

WordPress spam blocked by CleanTalk.