The Federal Trade Commission (FTC) is distributing more than $10 million in refunds to consumers who paid for a real estate investment training program that allegedly made empty promises about earning big profits by flipping houses.
The FTC and the Utah Division of Consumer Protection (DCP) accused Response Marketing Group LLC, a Utah-based real estate investment training company, of making bogus promises in selling a series of expensive real estate investment training programs to a consumer audience through infomercials and social media advertising. Consumers were encouraged to purchase three-day workshops for around $1,000 under the false claims that participants would receive access to special tools enabling them to become successful real estate investors. At the three-day workshops, Response Marketing peddled additional training programs that cost tens of thousands of dollars.
The FTC and DCP sued Response Marketing Group LLC in November 2019, citing the company, its affiliates Nudge, LLC and BuyPD, LLC, and its principals. The FTC later named two real estate celebrities as additional defendants – Scott Yancey, who was the star of the home-flipping show Flipping Vegas, and Dean R. Graziosi, the author of “Millionaire Success Habits.” A $15 million settlement was reached last May.
The FTC is sending payments to 4,670 consumers. The agency is also sending claim notices to nearly 400 consumers who previously filed a complaint about Response Marketing. Consumers who paid for the defendant’s real estate investment training programs are eligible to file a claim for payment.
