Friday, December 22, 2006

Our Official Statement on Russ Whitney, Edutrades, Teach Me To Trade by Western Capital's CEO Robert Paisola on The OSHA Issue and Sarbanes Oxley

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

Whitney Information Network, Inc., Cape CoralRichard O'Dor, Director, Corporate Communications239-542-0643

At A Glance
Whitney Information Network, Inc.
Source: via Business Wire
Updated 09/29/2006 by company
Cape Coral,, Florida
Russell A. Whitney
$163.1 million (2005)
Net Income:
$3.9 million (2005)

Whitney top brass firedCape company under investigationBy Tim 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.

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.

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