The Federal Trade Commission (FTC) has announced the distribution of $12 million in payments to customers impacted by a real estate house-flipping scheme orchestrated by Zurixx, LLC.
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The FTC has revealed that over 25,000 customers paid Zurixx, a real estate investment coaching business, for coaching services endorsed by real estate television personalities. The government alleged that the company misled customers with false promises of profitable property flipping or wholesaling.
According to the FTC, celebrities such as Tarek and Christina El Moussa, Hilary Farr, Peter Souhleris, and David Seymour were listed as endorsers who boosted Zurixx sales.
“Preying on struggling Americans with empty promises of quick riches is against the law,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “We urge consumers to thoroughly investigate any money-making promises before investing their hard-earned money.”
In collaboration with the Utah Department of Commerce Division of Consumer Protection, the FTC filed a lawsuit against Zurixx and its owners, Christopher Cannon, James Carlson, and Jeffrey Spangler, in September 2019.
The lawsuit alleged that Zurixx and its associated companies sold live seminars and telephone coaching with misleading earnings claims, using celebrity endorsements and restrictive contract terms to prevent customers from reviewing products or contacting law enforcement agencies.
Defendants in the case agreed to a settlement in February 2022, which included $12 million in refunds to customers and over $111 million in monetary judgments. Zurixx was prohibited from marketing and selling real estate or business coaching programs and violating certain regulations.
“Many victims will finally receive justice,” stated Utah Attorney General Sean Reyes. “Removing these actors permanently from the coaching space is a significant victory for Utah and a warning to others considering similar programs based on false earnings claims.”
For more information on FTC refunds, customers can refer to this FAQ resource provided by the FTC.