FILE PHOTO:
Symbolic house made from one hundred dollars isolated on white background. Photo by Kostiantyn Li on Unsplash
SALT LAKE CITY – In a move aimed at rectifying the fallout from a deceptive real estate investment scheme, the Federal Trade Commission (FTC) has announced the issuance of over $10 million in refunds to consumers who fell victim to false promises of substantial profits through house flipping.
The refunds stem from a lawsuit filed by the FTC and the Utah Attorney General’s Office against Response Marketing Group, LLC, in November 2019. Allegations were leveled against the company and its affiliates, Nudge, LLC, and BuyPD, LLC, along with their principals, for using deceptive tactics to sell consumers expensive real estate investment training programs.
The FTC later included two prominent real estate personalities, Scott Yancey of the television show “Flipping Vegas,” and Dean R. Graziosi, author of “Millionaire Success Habits,” as additional defendants in the case. The amended complaint highlighted their involvement in promoting the training programs and attempts to suppress online customer complaints regarding the failure to deliver promised results or allegations of scam activity.
Margaret Busse, Executive Director of the Utah Department of Commerce, emphasized the importance of consumer protection.
“Companies that rely on deceitful or manipulative tactics to earn money will not be tolerated in Utah,” Busse exclaimed.
She also applauded the collaborative efforts of investigative bodies that led to restitution for affected consumers, urging individuals to conduct thorough research before making financial commitments.
Douglas Crapo, Director of White Collar & Commercial Enforcement at the Utah Office of the Attorney General, echoed Busse’s sentiments, stressing the necessity of safeguarding consumers against deceptive practices for maintaining trust within the economy.
“Checks for the first ten million dollars are in the mail,” Crapo explained. “This helps heal at least some of the harm caused at the hands of Response Marketing and the other defendants.”
As part of the settlement, Response Marketing Group and its principals agreed to a permanent ban on selling “wealth creation” products and services nationwide and agreed to pay $15 million for refunds. Graziosi and Yancey also settled, with each agreeing to pay an additional $1.7 million.
The FTC has initiated the process of distributing payments to 4,670 affected consumers, with most receiving checks by mail. Those without registered addresses will receive PayPal payments. Additionally, claim notices are being sent to nearly 400 consumers who previously lodged complaints against Response Marketing. Eligible consumers who purchased the real estate investment training programs may file claims for refunds.
Consumers seeking clarification regarding their payments or the claims process are encouraged to contact the refund administrator, JND Legal Administration, at 877-871-0474 or visit the FTC website. Importantly, the FTC emphasizes that no payment or account information is required to receive a refund.