The infomercials for the "wealth-building" program, Winning in the Cash Flow Business, promised quick and easy money. Millions of viewers were told they could earn large commissions for spending "just minutes a day" brokering promissory notes.
In reality, the scheme was "a real loser for hundreds of thousands of consumers nationwide," according to the Federal Trade Commission, which along with the Colorado attorney general filed a complaint against a fistful of codefendants in U.S. District Court in May.
Defendants include Dalbey Education Institute, LLC, the company's CEO and founder Russell T. Dalbey and Catherine L. Dalbey.
Consumers who signed up paid $40 to $160 for the initial program but were urged to spend thousands more for training classes, coaching sessions and lists of leads.
The infomercials, hosted by TV actor and talk-show host Gary Collins, included testimonials from people who claimed they earned "$1.2 million in 30 days," $79,000 in a few hours," or $262,216 part time." The FTC said those results were far from typical and the company failed to "accurately describe how much consumers can expect to make and be truthful about how quickly they will be able to do so."
The defendants are also charged with violating telemarketing rules by making similar claims during sales calls.
In the first order ever by the FTC against a person providing a false testimonial, the agency has agreed to settle a case against Marsha Kellogg, who claimed earnings that were $50,000 higher than the true amount, the FTC said. The agency prohibited Kellogg from making various misrepresentations. Kellogg also agreed to cooperate in the agency's case against other defendants.
Update on vacuum mystery
