You have probably heard the saying “If it sounds too good to be true, it probably is."
The federal government now says that Russel Dalbey's "Winning in the Cash Flow Business" infomercial and business plan falls is a good example of this.
The Federal Trade Commission announced Tuesday it has charged Dalbey, the CEO and founder of the company that developed and marketed the “Winning in the Cash Flow Business” program with defrauding customers. Dalbey's wife and several others involved in marketing the product have also been named in the suit.
The FTC says consumers were misled about how much money they could make using the program and how quickly and easily they could make it.
The FTC says that the testimonials for the program featured in infomercials viewed by millions were fabrications that did not reflect the real truth - that the potential earning power of the product was much lower than advertised.
“When someone is selling a program designed to help people make money, they have to accurately describe how much consumers can expect to make and be truthful about how quickly they will be able to do so," said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. "None of that happened in this case, and people who bought the program paid the price."
The consumer watchdog claims that Dalbey's company told consumers they could make large amounts of money fast by finding, brokering and earning commissions on seller-financed promissory notes. Consumers initially paid $40 to $160 dollars for the program, and were later encouraged to spend hundreds or thousands of dollars more on additional products or services. The FTC says that in some cases, consumers who believed the program's advertising lost thousands.
For information on how to avoid and spot investment fraud, “get-rich-quick” schemes, visit the FTC’s “Money Matters” website.