David Newby is an author, an entrepreneur, an internet sensation.
This is money man David Newby spoofing the big banks and how they don't know what they're doing with your money.
Look at his bio: "He is a highly sought after wealth coach who coaches some of the most savvy investors around the world."
David's been on TV infomercials telling his rags to riches story of financial success about semi-retiring at 32.
And David Newby wants to help you invest and become rich like the people who give testimonials on David's TV pitches.
But unlike the people on David Newby's videos is Joe, who says David Newby basically ripped him off for $50,000.
Now Joe wants to warn others before they lose their money too.
"Hopefully this can illuminate a bigger picture here and maybe help someone else," he said.
FOX 2 Problem Solver Rob Wolchek is going to illuminate him all right, David Newby it's time for your spotlight.
For more than 10 years David Newby has been pushing his books, his programs and telling the world about his success.
Wolchek: "So you're a wealth coach?"
"I used to call myself that not so much now," Newby said.
Wolchek: "So what do you call yourself?"
"I do consulting, business consulting mainly," Newby said.
FOX 2: "So are you pretty successful at it?"
"I have been," Newby said.
According to Newby's bio, David R. Newby is living the American dream, having attained security for himself and his loved ones; Newby is now on a mission to help others do the same.
David spins tales about how he bought this Lamborghini for his 6-year-old son and says he's semi-retired but it sure seems like David's still working - working on getting clients like Joe to invest money with him.
Joe met David Newby at a business seminar several years ago. David seemed impressive, a young, rich, retired guy who offered up some good advice.
So when Joe had $50,000, he wanted to invest in real estate and he turned to Newby.
"I thought he was honest, trustworthy and this was not his first rodeo," Joe said.
Joe handed over $50,000 to an eager David Newby.
"Here's where the investment is going to go, we're going to get it under contract then we're going to purchase the real estate using my funds and another investor's funds," Joe said David told him.
Then Joe didn't hear from David Newby for months and was getting worried.
"I met with him the first of September and I asked him again," Joe said. "I asked for an accounting. I wanted to know where the funds were."
David kept putting Joe off, until Joe threatened to sue - and finally reached David on the phone in January.
"He says how horrible he's felt and all through Christmas and the holidays," Joe said. "It was stressful on him to know the money wasn't there."
That's right. The money, held by David in escrow for the purchase of this investment property, was gone. Well, not all gone. The account had $1.20 left in it.
"You don't take an escrow account that you're trusted with and just spend it," Joe said.
Joe filed suit against David and his many companies.
But that didn't teach David Newby anything. David still wants more investors.
Here he is meeting with Wolchek’s undercover cameraman. The next day they meet again and this time David gets to meet with Rob.
"Hey David, Rob Wolchek from FOX 2, can I talk to you for a minute?”
Wolchek starts by asking David about his supposed wealth.
Wolchek: "How much money do you make a year?"
"I'm an entrepreneur," Newby said. "So some years I might make a couple hundred, some years I might make more."
Wolchek: "A couple hundred thousand?"
"Yes," Newby said.
If he makes at least a couple hundred grand a year, how come he doesn't have Joe's $50,000.
Wolchek: "You took $50,000 from him and what happened to that money?"
"I worked on raising some funds for real estate deals," Newby said. "I'm still working on those deals and we're resolving things now."
Resolving things? Joe's suing you dude.
"So his money was put in an escrow account right?" Wolchek asked. "So doesn't that mean his money was supposed to go towards his investment?"
Newby: "Yes it is."
"So did you take the money out of his escrow account," Wolchek said.
Newby: "Yes I did."
And Wolchek found out, this sure isn't David's first rodeo. Wolchek starts reading from a lawsuit filed by Comerica Bank.
Wolchek: "You took out $50,000 for David Newby LLC, that's your company right?"
Newby: "Yeah that has nothing to do with the deal with Joe."
Wolchek: "It has to do with the fact that you defaulted on a $50,000 loan right?"
Wolchek: "You also defaulted on loans from Wells Fargo, Bank of America, you're taking money from people and Joe thought you were a really honest, decent guy but you're not.
"You're certainly not a successful guy. Here you got sued by Chase Bank: JP Morgan chase vs. David Newby."
And David, who just said he earned a couple hundred thousand dollars or more a year, seems to have exaggerated his income 10 times.
Wolchek read from a government document regarding his income.
"It says here that you make $1,964 a month, is that accurate," said Wolchek.
"Have you ever owned a business?" Newby said. "What you pay yourself in salary can be very different than what the business is doing."
"But if you're making $200,000 you'd probably give yourself more than $2,000 a month right," Wolchek said.
"Not necessarily," Newby said. "I have friends who make multiple millions in their businesses and they only pay themselves a few thousand."
"Who are some of your friends that make multiple millions," Wolchek said.
"I have no interest in bringing them up right now," Newby said.
Hmmm, maybe David can raise the money by selling that Lamborghini he bought for his 6-year-old son.
"Why did you buy him a car, a fancy-pants car," Wolchek said.
"I grew up on welfare," Newby said. "It was really rough on me and it shut me in with a lack-thinking. So I wanted to help my son have more of an abundance-thinking. That's why I bought him a car."
"But that's not a very good idea now because you don't even have the $50,000 to pay that guy back," Wolchek said.
"That was over 10 years ago," Newby said. "I sold that car many many years ago."
Seems like all the lessons David Newby wants to teach us financial amateurs in his books, his videos, his webpages and his infomercials haven't really worked for David at all.