The Federal Trade Commission (FTC) is distributing over $12 million in refunds to consumers who paid Zurixx, LLC for a real estate investment training program. The program allegedly made false promises about earning substantial profits by "flipping" houses.
In September 2019, the FTC and the Utah Department of Commerce Division of Consumer Protection (UDCP) filed a lawsuit against Zurixx and its owners, Cristopher Cannon, James Carlson, and Jeffrey Spangler. The amended complaint claimed that the defendants operated a real estate investment coaching scheme that sold live seminars and telephone coaching using deceptive earnings claims. These claims convinced consumers to pay thousands or tens of thousands of dollars in a short period by "flipping" or wholesaling real estate using Zurixx’s system. Sales were bolstered through partnerships with home-improvement and flipping television personalities.
In February 2022, the defendants agreed to a settlement that included a monetary judgment. They were permanently banned from marketing or selling any real estate or business coaching programs and prohibited from making misleading earnings claims or using contract terms to restrict consumers’ ability to review their products or speak to law enforcement agencies.
The FTC is sending checks to 25,563 consumers. Recipients are advised to cash their checks within 90 days as indicated on the check. Consumers with questions about their payment should contact the refund administrator, JND Legal Administration, at 888-906-0593 or visit the FTC website for frequently asked questions about the refund process. The Commission does not require people to pay money or provide account information to receive a refund.
The Commission’s interactive dashboards for refund data offer a state-by-state breakdown of refunds in FTC cases. In 2023, FTC actions resulted in $324 million in refunds to consumers nationwide.
The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC will never demand money, make threats, instruct you to transfer money, or promise you a prize. More information on consumer topics can be found at consumer.ftc.gov. Fraud, scams, and bad business practices can be reported at ReportFraud.ftc.gov. Follow the FTC on social media for updates on consumer alerts and business news.
