Suthers, feds suing Colorado company
DENVER (Legal Newsline) - Colorado Attorney General John Suthers announced on Tuesday that his office has joined with the Federal Trade Commission to file a lawsuit against an allegedly misleading "get rich quick" company.
The Westminster, Colo.-based Dalbey Education, formerly known as American's Note Network, and the companies' principals allegedly engaged in deceptive trade practices connected to misleading infomercials.
According to the complaint, the companies and their principals allegedly created, marketed and ran an infomercial called "Winning in the Cash Flow Business" since 2002 that led consumers to believe they could get wealthy by dealing self-financed promissory notes or cash flow notes.
The infomercials ran throughout the United States and Canada. The infomercials sold informational materials for initial prices ranging from $39.95 to $159. Consumers were allegedly also offered thousands of dollars in additional products and services to help with their promissory note businesses. The complaint alleges that consumers were told they could make tens of thousands of dollars in a matter of days by purchasing the Winning in the Cash Flow Business materials.
Suthers alleges that very few consumers ever broke into the promissory notes business and most never earned any money as a result of purchasing the materials.
"These infomercials preyed on consumers desire to get rich quick," Suthers said. "Infomercials and other materials promising large returns with minimal training or effort are almost always scams. Consumers should remember that if an offer sounds too good to be true, it probably is."