Russ Dalbey Lawsuit FTC Update on Winning in the Cash Flow Business

People seeking refunds from the Russ Dalbey lawsuit may just have been scammed out of money by a different company, according to an update posted by the FTC.

(Editor’s Note: Information on the Dalbey Bankruptcy Chapter 7 Filing can be found in the update posted at the bottom of this article.)

Imagine feeling misled by an infomercial, attempting to get some money back, and losing even more hard earned dollars paid to a company claiming they could get you a refund.

Sadly, this is how the story unfolded.

Earlier this year the Federal Trade Commission and Colorado Attorney General filed a lawsuit charging Dalbey with defrauding consumers.  Feeling misled, some buyers of the “Find ‘Em, List ‘Em, and Make Money” system went in search of a refund.

Just take a look at the heartfelt comments left under the original article entitled Russ Dalbey’s Winning in the Cash Flow Business In FTC Lawsuit to see how angry and hurt many felt.

Next enters a company, RMI Associates, claiming they can help people get refunds from the Dalbey Eduction group, but first they need hundreds of dollars upfront.

This led the FTC to recently update their page on the Dalbey lawsuit with the following:

“A company named RMI Associates has been claiming it can help people get refunds from Dalbey, but first the company wants a fee of several hundred dollars. The FTC believes that this company is attempting to defraud you. Neither the FTC nor the Colorado Attorney General is working with any company. A Court has ordered RMI Associates to stop making claims that it is working with the FTC or that it has a track record of having obtained refunds for consumers.”  Source: FTC Website Update On Dalbey Lawsuit

The Colorado Attorney General also issued their own cash flow business scam alert:

PRESS RELEASE
Colorado Department of Law
Attorney General John W. Suthers

FOR IMMEDIATE RELEASE
September 21, 2011

CONTACT
Mike Saccone, Communications Director
303-866-5632

ATTORNEY GENERAL ANNOUNCES ORDER BARRING DENVER COMPANY FROM CONTINUING CONSUMER-RESTITUTION SCAM

DENVER — Colorado Attorney General John Suthers announced today that his office has obtained an order barring Denver-based RMI Associates from providing consumers with assistance in filing a consumer complaint with the state for a fee. The court order also requires that RMI Associates refund any fees it has accepted from consumers to assist them in filing a complaint with the Office of the Attorney General or the Federal Trade Commission.

The order follows an August lawsuit the state filed against RMI Associates alleging that the company claimed that in exchange for an upfront fee it could help victims recover their losses related to a federal consumer-protection lawsuit against Westminster-based Dalbey Education Institute, formerly known as American’s Note Network.

“This order underlines that consumers should never pay for a service they can obtain for free from the state,” Suthers said. “Any private business that claims a ‘special relationship’ with my office or any other state or federal consumer protection agency is misleading you. You should never pay a fee to file a consumer complaint with the state of Colorado.”

Consumers can file a complaint for free via the Office of the Attorney General’s Web site at www.coloradoattorneygeneral.gov/complaint. Consumer also can file complaints via 1-800-222-4444 or stop.fraud@state.co.us.

The Office of the Attorney General warned consumers about RMI Associates’ fraudulent services in early August after consumers began filing complaints against the company. Consumers should never contract with a company or pay any fees in order to get their complaint submitted to state or federal authorities.  Source: Colorado Attorney General Press Release

At the time of publishing this article there has not been a Court decision on the government’s lawsuit against Russ Dalbey and Winning in the Cash Flow Business. As additional information becomes available we will post updates for our readers and subscribers.

Update 12/1/11 – Dalbey Education Group Has Filed Bankruptcy

According to an article published November 16, 2011, by CBS Denver News the company owned by Russ Dalbey, Promoter of Winning in the Cash Flow Business, has filed for Chapter 7 Bankruptcy.  Here are a couple of key points from the report:

• 308 People have filed complaints with the Colorado Attorney Generals office claiming the Dalbey cash flow business was a scam.
• Gross income for Dalbey Education Institute was around $62 million in 2009, $50 million in 2010, and $21 million this year (2011).
• Assets are normally sold to pay creditors in a Chapter 7 bankruptcy after which a company basically disappears.
• The State of Colorado in conjunction with the FTC continues to pursue restitution along with fines and fees feeling these claims are not dischargable.
• Complaints were still being accepted.

The full article entitled  Company That Promised to Help People Get Rich is Broker by CBS Denver News can be found here: Dalbey Bankruptcy Filing

 

Guru Rhymes With Screw You

gu·ru [goo-roo] – noun

Any person who counsels or advises; mentor, or a leader in a particular field.

Based on the definition above, there are several of us in the seller-financed industry that might be considered ‘gurus’. After all, we post helpful articles on websites such as this one, and offer guidance to those who ask follow up questions. We teach at industry conventions and have decades of experience buying, selling, and/or brokering real estate related cash flow notes.

However, the present-day guru differs greatly from us on that last point. In fact, I have never transacted business with a single self-proclaimed ‘guru’ selling their wares today. This is because ‘gurus’ don’t have Read more

How Much Money Will I Make in the Cash Flow Business?

 

 

 

 

 

 

 

It’s a fair question.

We find it’s the most popular with someone just starting out with cash flow notes. It’s also the most difficult to answer.

Nobody wants to just hear, “Well, that depends.” So here are Read more