These included claims that customers received special access to a funding network allowing them to conduct real estate deals without using their own money, assurances that students would receive letters enabling them to make cash offers for properties at discounted rates, promises of lined-up buyers for homes students intended to flip, and assertions of limited availability in Response Marketing's "Inner Circle" program.
The Federal Trade Commission (FTC) is issuing refunds totaling over $10 million to individuals who paid for a real estate investment training program that allegedly misled them with false promises of earning significant profits through house "flipping."
The FTC, along with the Utah Division of Consumer Protection, filed a lawsuit in November 2019 against Response Marketing Group, LLC, its affiliates Nudge, LLC and BuyPD, LLC, and its principals. The lawsuit claimed that these entities used deceptive tactics to sell expensive real estate investment training programs to consumers.
Subsequently, the FTC added two real estate personalities, Scott Yancey and Dean R. Graziosi, as additional defendants. Yancey, known for his role in the show Flipping Vegas, and Graziosi, the author of Millionaire Success Habits, promoted the training programs and allegedly participated in efforts to suppress online customer complaints about Response Marketing's failure to deliver on its promises or its alleged fraudulent activities.
Above is a video of Dean Graziosi professing his top student Matt Larson paid income tax on over $707,000 in income solely from real estate investing.
“Today’s order against Response Marketing and its owners permanently bans them from the wealth creation business and returns $15 million to consumers, on top of the $1.7 million already secured through this litigation,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “We are grateful to the Utah Division of Consumer Protection for their partnership in obtaining this strong relief, and we will continue cracking down on deceptive moneymaking opportunities and unlawful endorsement practices.”
“This is the largest consumer protection division settlement in Utah’s history and holds Nudge and its affiliates accountable for the serious financial harm to consumers across the country,” said Utah Department of Commerce Executive Director Margaret Busse. “Utah businesses that seek to take advantage of consumers should be put on notice.”
Response Marketing attracted individuals to complimentary events nationwide via infomercials and social media ads featuring real estate celebrities who promised to share their investment strategies.
During these events, Response Marketing encouraged attendees to buy three-day workshops for approximately $1,000, falsely claiming that these workshops would grant access to special tools for achieving success in real estate investment. The complaint states that at these workshops, Response Marketing deceptively promoted additional training programs costing tens of thousands of dollars.
Following this, Response Marketing upsold consumers by promoting a coaching program through telemarketing, which could cost up to an additional $30,000. Marketed as an exclusive "Inner Circle" training with limited availability, this program purportedly offered one-on-one sessions with a supposed real estate expert. The complaint alleges that the majority of consumers who purchased Response Marketing's products and services did not achieve success as real estate investors and failed to recoup the money spent on these training programs.
One celebrity endorser mentioned in the complaint pledges to share his proven "formula for success." However, the FTC's complaint alleges that the seminars are primarily aimed at selling additional training rather than helping consumers earn money. According to a survey cited in the FTC's court documents, over 95 percent of consumers who attended Nudge's seminars paid more to Nudge than they earned from subsequent real estate transactions.
“These defendants presided over a sales process that started with empty promises of future wealth and ended with many consumers left in financial ruin,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “The lure of easy income is strong, but consumers should stop and evaluate the facts behind any money-making promise.”
Nudge began selling real estate training packages as early as 2012. The FTC's complaint states that Nudge generated revenues of over $400 million from late 2014 to late 2017 alone.
Above: is Scott Yancey featured in the A&E's show called "Flipping Vegas"
The scheme began with advertisements featuring real estate TV celebrities such as Scott Yancey from A&E's "Flipping Vegas," Doug Clark from Spike TV's "Flip Men," Drew Levin and Danny Perkins from HGTV's "Renovate to Rent," and Josh Altman from Bravo's "Million Dollar Listing Los Angeles." There ads promised insights from celebrities on how to profit in real estate, attracting thousands of consumers to attend free 90-minute seminars.
Above is Doug Clark from the show "Flip Men", featured on ABC news notorious for his ability to flip homes at a fast rate and quick returns, offering his strategies that help people to learn about several different areas of investment. According to the program, to Doug Clark real estate isn’t just something he provides income education on, it’s been his opportunity in providing himself with financial peace.
Above is Drew Levin and Danny Perkins willing to buy old, foreclosed houses to completely renovate them, then rent them out for top dollar. The name is the show is "Renovate To Rent", only on HGTV.
Above is Josh Altman a host to the Bravo show "Million Dollar Listing Los Angeles"
In a June 2022 ruling that partially granted the FTC's motion for summary judgment, the district court judge overseeing the case determined that many of Response Marketing's assertions were false or misleading. These included claims that customers received special access to a funding network allowing them to conduct real estate deals without using their own money, assurances that students would receive letters enabling them to make cash offers for properties at discounted rates, promises of lined-up buyers for homes students intended to flip, and assertions of limited availability in Response Marketing's "Inner Circle" program.
Response Marketing marketed its training programs under various names, such as Affluence Edu, Cash Flow Edu, Flip for Life, OnWealth, Renovate to Rent, and Visionary Events. The company's predecessor began selling real estate investment training packages in the early 2010s. In December 2019, Response Marketing agreed to discontinue the sale of these packages following the filing of the initial complaint in this case by the FTC and the Utah DCP.
Real estate celebs, group agree to pay $16.7 million in largest Utah consumer protection settlement https://www.fox13now.com/news/local-news/real-estate-celebs-group-agree-to-pay-16-7-million-in-largest-utah-consumer-protection-settlement
The company and its leaders agreed to a settlement that permanently prohibits them from selling "wealth creation" products and services nationwide. They also agreed to pay $15 million, which will be used for refunds. Graziosi and Yancey separately agreed to settlements requiring them to pay an additional $1.7 million. Under their settlements, Graziosi will pay $1.25 million, and Yancey will pay $450,000.
The FTC is distributing payments to 4,670 consumers, with most receiving checks by mail. Recipients are advised to cash their checks within 90 days, as indicated. Eligible consumers without a registered address will receive a PayPal payment, redeemable within 30 days. Furthermore, the FTC is sending claim notices to nearly 400 consumers who previously lodged complaints about Response Marketing. Consumers who purchased the defendant’s real estate investment training programs can file a claim for payment.
Consumers with inquiries regarding their payment or the claims process should reach out to the refund administrator, JND Legal Administration, at 877-871-0474. They can also visit the FTC website for answers to common questions about the refund procedure. It's important to note that the Commission never asks individuals to pay money or provide account information in order to receive a refund.
THANK YOU FOR YOUR TIME
DISCLAIMER
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of The Steven Wick Blog. Any content provided by our bloggers or authors are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.
If you decide to purchase any item using our authorized referral/affiliate links, be aware, we may receive a portion of the sales as commission, i.e. if you purchase a product/service.
To shop, select or click buttons, links or images, you will be redirected to product pages. Please, carefully research before you purchase. Feel free to share and leave a comment, we would love to hear from you. Your feedback is very important to us.
For more like this, music, literature, news, fashion, savvy political commentary, and fascinating features, sign up for the Steven Wick News Letter.
We here at the Steven Wick Blog are so proud of our work, we’d like to thank you for being a part of our community. However, our mission to share so much from music, literature, lifestyle to fashion is a 24/7 undertaking! We need your help to continue our work. Your financial donation will help us not only keep the lights on, but enable us run many more stories in the future to come. DONATE HERE
Message Of Gratitude
We deeply appreciate your contribution in making our blog the top brand among customers.
Without you as our readers, we wouldn't have achieved this level of success. Your satisfaction is our utmost priority, and we assure you that we will always be a reliable source for your entertainment needs.
Your trust in us is invaluable, and we are grateful for your generous donations as our readers.
A number of you took an extra effort and opted to contribute as monthly donors. By doing so, your generous contribution is multiplied by twelve throughout the year, thereby amplifying the impact you have on our work. Your dedication truly makes a significant change, and we sincerely appreciate your valuable support.
Your support has been instrumental in our brand's success.
Thank you for being with us throughout the past year.
As we continue to grow and enhance our business, we pledge to prioritize your needs and interests.
Best Regards
The Steven Wick Team
Comments