SALT LAKE CITY, Utah, March 23, 2023 (Gephardt Daily) — The Federal Trade Commission is issuing more than $10 million in refunds to victims of a real estate investment training scheme, the Utah Attorney General’s Office announced Friday.
The FTC and AG’s office, on behalf of the Utah Department of Commerce’s Division of Consumer Protection, sued Response Marketing Group LLC in November 2019, alleging that the company, its affiliates Nudge LLC and BuyPD LLC, and its principals used false promises to sell consumers a series of expensive real estate investment training programs.
The FTC announced a settlement of the suit with the Utah-based Response Marketing Group in May of last year in a press release that said the $16.7 million settlement was likely the largest in Utah’s history.
“Checks for the first $10 million are in the mail,” said Douglas Crapo, director of white collar and commercial enforcement in the AG’s office.
“This helps heal at least some of the harm caused at the hands of Response Marketing and the other defendants. Protecting consumers from deceptive practices is essential for fostering an economy based on trust. Our office is proud to represent Commerce and the Division of Consumer Protection in our concerted efforts with the FTC as we stop bad actors.”
The company and its principals agreed to a settlement that permanently banned them from selling “wealth creation” products and services anywhere in the country and required them to pay $15 million to be used for refunds, according to the AG’s press release.
The FTC had later added Scott Yancey, the star of the home-flipping show “Flipping Vegas,” and Dean R. Graziosi, the author of “Millionaire Success Habits,” as defendants for promoting the scam. Yancey and Graziosi also agreed to settlements requiring them to pay an additional $1.7 million.
The FTC is sending payments to 4,670 consumers from the settlement, according to the AG’s press release.
Most consumers will receive checks by mail. Eligible consumers who do not have an address on file will receive a PayPal payment, which should be redeemed within 30 days.
In addition, the FTC is sending claim notices to nearly 400 consumers who previously filed a complaint about Response Marketing. Consumers who paid for Response Marketing’s real estate investment training programs may file a claim for a refund.
Consumers who have questions about their payment or the claims process should contact the refund administrator, JND Legal Administration, at 877-871-0474 or visit the FTC website for questions about the refund process. The FTC never requires people to pay money or provide account information to get a refund.
“Companies that rely on deceitful or manipulative tactics to earn money will not be tolerated in Utah as it not only undermines people’s financial security but also the very trust we have in each other that is crucial to our No. 1 ranked economy,” said Margaret Busse, executive director of the Utah Department of Commerce.
“We are pleased that our Division of Consumer Protection’s investigative efforts, along with the cooperative partnerships with the FTC and the Utah Attorney General’s Office, resulted in restitution for affected consumers. We encourage consumers to do research and conduct thorough checks before purchasing.”
