Real Estate Investment Coaching Scheme Settles Allegations of Using Predatory Sales Tactics

Lori Kalani, Bernard Nash
Cozen O'Connor
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  • Utah AG Sean Reyes and the FTC reached a settlement with real estate investment coaching company Zurixx, LLC, related entities, and their three owners (collectively, “Zurixx”) to resolve allegations that Zurixx used false and misleading claims to market its programs in violation of the FTC Act, the Consumer Review Fairness Act, the Telemarketing and Consumer Fraud and Abuse Prevention Act, the Telemarketing Sales Rule, and Utah consumer protection laws.
  • The second amended complaint alleged that Zurixx used inflated earnings claims, celebrity endorsements, and high-pressure telemarketing methods to lure tens of thousands of customers into free seminars about real estate flipping, which turned out to be aggressive sales pitches for paid seminars costing thousands of dollars.
  • Under the terms of the stipulated order, the corporate defendants are subject to a $104.7 million judgment, and each of the individual defendants is subject to a $2.33 million judgment. In addition, all defendants are permanently banned from marketing or selling real estate or business coaching programs, among other things.
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