This from graciefighter.com: Gracie Barra founder, Carlos Gracie and his top instructor, Marcio Feitosa, have both been unceremoniously released from their positions at the Gracie Barra school in Orange County, California. Apparently there was a rift between Carlos Gracie and the legal owner of the academy, James Lu. James is a long time student of Rigan Machado and co-founder of the company BJJTAPES.com. BJJTAPES regularly films and sells the Brazilian "Mundials" and instructionals from various BJJ experts, with a heavy emphasis on the Gracie Barra athletes. Lu worked closely with Carlos and shortly afterwards struck some profitable deals with the legendary instructor. It is rumored that in these deals that Rigan Machado was squeezed out of the company's profits and decision making. Lu would later move Carlos and Feitosa to the U.S. with the promise of a new school and entry into the lucrative American market. After some reported money indescrepancies the relationship soured, with Lu then changing the locks to the school. Carlos' students were left in limbo since their contracts were with the school and not the instructors. The contracts however later vanished and the students were free to leave. Lu, in an attempt to salvage the school contacted Rigan Machado with an offer for Rigan to take over the school. We spoke with Rigan about the situation. "James called me with a proposal while I was away doing seminars. I told him we'd talk when I got back. He then went to my school and enlisted a couple of my blackbelts to teach at his school, telling them I had approved the plan. When I arrived I found out about the announcement of my taking over the school, the photo of myself on the GRACIEBARRAUSA.com website and that Lu had literature printed out stating I would be teaching there. I contacted my attorney and asked him to let James know to desist from using my name or likeness immediately." James Lu responded to GRACIEFIGHTER.com by stating: "It was actually more of a mutual agreement to go our separate ways. I wished them good luck. My school was later broken into with someone crow-barring the front door and then stealing the student files and some of the gis. I called the police and there is an investigation pending. I later heard that they (Carlos and Feitosa) are planning on opening a school just a couple blocks away and there would be legal ramifications if this does happen. My original wish was to just let sleeping dogs lie."