Tag: District of Utah

The operators of a massive real estate investment coaching scheme face permanent bans and will pay approximately $12 million for consumer redress as part of a settlement in a lawsuit filed by the Federal Trade Commission and the Utah Department of Commerce Division of Consumer Protection (UDCP).

The FTC and UDCP alleged that Zurixx, LLC, its owners Cristopher Cannon, James Carlson, and Jeffrey Spangler, and a number of associated companies operated a real estate investment coaching scheme that sold live seminars and telephone coaching using false earnings claims that convinced tens of thousands of consumers to pay them thousands or tens of thousands of dollars.

The Federal Trade Commission is sending more than $12 million in refunds to consumers who paid Zurixx, LLC for a real estate investment training program that allegedly made empty promises about earning big profits by “flipping” houses.

As a result of a lawsuit filed by the Federal Trade Commission and the Utah Division of Consumer Protection (DCP), the principals of a Utah-based real estate investment training company will pay $15 million and be banned from selling money-making opportunities under a court order they have agreed to. In addition, two of the primary real estate celebrities who endorsed the training have agreed to orders that require them to pay $1.7 million.

The Federal Trade Commission is sending 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 “flipping” houses.  

Smart home security and monitoring company Vivint Smart Homes Inc. has agreed to pay $20 million to settle Federal Trade Commission allegations that the Utah-based firm misused credit reports to help unqualified customers obtain financing for the company’s products and services.

The Federal Trade Commission alleged Elite IT Partners, Inc. and its founder, President and CEO James Martinos settled FTC allegations that they tricked consumers into believing their computers were infected with viruses in order to sell them costly computer repair services. 

The Federal Trade Commission has brought lawsuits against three current and former high-level distributors – so-called “Wellness Advocates” – of the Utah-based multi-level marketing company doTERRA International, LLC, for making claims that the company’s essential oils and dietary supplements could treat, prevent, or cure COVID-19. The distributors, all current or former healthcare practitioners, made the claims in a series of webinars in early 2022 and touted their medical expertise in recommending the products.

The three complaints, filed by the Department of Justice on behalf of the FTC, allege that the defendants made numerous claims about the ability of various doTERRA products to prevent, treat, or cure COVID-19, in violation of the FTC Act and the COVID-19 Consumer Protection Act.

The Federal Trade Commission is returning an additional $25 million to consumers who lost money to a business coaching scheme that used the names Coaching Department and Apply Knowledge, among others. These refunds are the result of the FTC’s settlements with the scheme’s ringleaders, the companies through which the scheme operated, and a payment processor who helped facilitate the scheme.

In October 2021, the FTC sued Xlear, Inc., a Utah-based company, for violating the COVID-19 Consumer Protection Act, alleging that it falsely pitched its saline nasal sprays as an effective way to prevent and treat COVID-19. DOJ filed the complaint on the FTC’s behalf.

The Federal Trade Commission has permanently banned an alleged work-from-home scammer from selling or promoting business opportunities and from using robocalls under the terms of a settlement.

The FTC alleged that Randon Morris and a number of companies he controlled initiated millions of robocalls nationwide to promote sham work-from-home business opportunities, focusing on consumers concerned about working outside their homes because of the coronavirus pandemic. The defendants lured consumers into purchasing these programs with false promises that consumers could earn hundreds of dollars a day. They also falsely claimed to be affiliated with Amazon.com.

Complete Merchant Solutions, LLC (CMS) and its former CEO, Jack Wilson, have settled Federal Trade Commission charges that they illegally processed millions of dollars in consumer credit card payments for fraudulent schemes when they knew or should have known that the schemes were defrauding consumers. Those schemes included Apply Knowledge and Tarr, which were ultimately shut down by an FTC enforcement action, and USFIA, which was shut down following an enforcement action by the U.S. Securities and Exchange Commission.

The operators of a work-from-home scheme and the CEO of their main affiliate marketing network agreed to pay nearly $1.5 million to settle Federal Trade Commission allegations that they used misleading spam emails to lure consumers into buying work-from-home services. 

The Federal Trade Commission mailed 1,177 checks totaling more than $380,000 to people who paid for purported business coaching services that were marketed as a way to help them earn thousands of dollars a month.

Four separate operations responsible for bombarding consumers nationwide with billions of unwanted and illegal robocalls pitching auto warranties, debt-relief services, home security systems, fake charities, and Google search results services have agreed to settle FTC charges that they violated the FTC Act and the agency’s Telemarketing Sales Rule (TSR), including its Do Not Call (DNC) provisions.

The defendants in an alleged work-from-home business opportunity scam are banned from selling any business coaching service or business opportunity under a settlement with the Federal Trade Commission.

Three Utah-based firms and their owner, which a federal court jury in 2016 found deceptively and illegally called more than 117 million consumers pitching their movies, have agreed to a proposed court order settling the FTC’s charges against them. The DOJ (DOJ) secured the defendants’ agreement to the proposed order imposing civil penalties and prohibiting telemarketing abuses, and filed it with the court on the behalf of the FTC.