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Zurixx’s real estate investment scheme

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These days, it seems like everyone wants to make money by flipping houses. There are companies out there promising to tell you how, but not all those promises are real. The most recent example is Zurixx, a real estate investment company sued by the FTC and the Utah Division of Consumer Protection (DCP).Front of a house on a sunny day.

Zurixx markets and sells a “flipping system” that says it lets people generate substantial income by flipping houses. Zurixx representatives regularly show supposed “success stories” of customers who made thousands using its system, claiming that the system involves little risk, time, or effort. But, according to a complaint by the FTC and DCP, those claims are false or deceptive, and Zurixx cannot back them up.

Zurixx lures people to free live events, says the FTC, using ads endorsed by celebrities from popular home renovation TV shows. The ads promise that event attendees will learn how to make money from investing in real estate by using other people’s money. But, according to the FTC and DCP, the free event is just a scheme to get people to buy Zurixx’s three-day “risk-free” workshop, which costs $1,997.

The complaint also says that Zurixx tells workshop attendees to get new credit cards, or to increase the credit limits on existing cards, supposedly to help finance real estate deals. But, say the FTC and DCP, in many instances, Zurixx has then told people to use this new credit to pay for its “advanced training” packages costing thousands of dollars. When people complain or get refunds, Zurixx has required some people to sign an agreement barring them from speaking with state attorneys general and other regulators. The gag provision also stops them from reporting to the Better Business Bureau and – wait for it – the FTC.

If someone promises that you can earn a lot of money with little risk, time, or effort, that’s a sign of a scam. If you spot one, tell the FTC at ftc.gov/complaint.

Comments

I hear these ads on the radio all the time. Some guy who says he is affiliated with one of those TV shows that I never watch says the Hartford area is the perfect place for flipping houses. I switch to a different radio station in a different city, and I hear the same ad with a different city name! Am I supposed to believe that every city is the perfect area for flipping houses?

Agree. I wonder why some reputed radio stations allow these ads and who pays for them?

I love receiving and reading your press releases because they are so important for consumers. But this one was my favorite so far. The "wait for it" was simply great writing. Thank you!

This type of scam has been around for a long time, starting with getting rich on the internet with your own web site ...They all start with a "Free" seminar then the three-day course $$$ and go up from there $$$$$. Very hard sell.

There should be a law that whoever signs a "gag" agreement void if company has done everything legal. If a skam or anything illegal, signed document should be void! A no brainer!!!

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