WASHINGTON, D.C. — The Federal Trade Commission (FTC) has distributed more than $12 million in refunds to consumers who were misled by Zurixx, LLC, a company that falsely promised significant profits through real estate investment training.
The action follows a lawsuit filed in September 2019 by the FTC and the Utah Department of Commerce Division of Consumer Protection (UDCP) against Zurixx and its owners, Cristopher Cannon, James Carlson, and Jeffrey Spangler. The complaint, later amended, accused the defendants of running a fraudulent real estate investment coaching scheme. They sold live seminars and telephone coaching by making exaggerated earnings claims, convincing consumers to spend thousands or even tens of thousands of dollars on the promise of quick profits from “flipping” or wholesaling real estate.
Details of the Scheme
Zurixx marketed their scheme with the help of well-known personalities from home-improvement and flipping television shows, adding a veneer of credibility to their claims. They assured consumers that by using Zurixx’s system, they could achieve substantial financial gains in a short period. However, these promises were empty, and many consumers found themselves out of pocket with no realistic path to achieving the touted profits.
Settlement and Refunds
In February 2022, the defendants agreed to a settlement that included a monetary judgment and permanent bans from marketing or selling any real estate or business coaching programs. They were also prohibited from making misleading earnings claims and from using contract terms that restricted consumers’ ability to review their products or speak to law enforcement agencies.
As part of the settlement, the FTC is now sending checks to 25,563 affected consumers. These recipients are advised to cash their checks within 90 days, as indicated on the checks.
Consumer Guidance
Consumers with questions about their payments are encouraged to contact the refund administrator, JND Legal Administration, at 888-906-0593. Additionally, information and frequently asked questions about the refund process are available on the FTC website. Importantly, the FTC emphasizes that it never requires people to pay money or provide account information to receive a refund.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.