Industry News

FTC cracks down on realty investment training business

Alleges company made false representations in mortgage money-making program

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The Federal Trade Commission has charged two companies and two individuals with allegedly making false representations in connection with a business program that claims to teach consumers how to make large amounts of money by buying and selling privately held mortgage notes. Privately held mortgage notes are notes held by individuals rather than financial institutions. The federal agency alleges the business practices violate the FTC Act and the Telemarketing Sales Rule and is seeking an injunction, as well as consumer redress. The FTC's complaint was filed in the U.S. District Court, Western District of Washington, in Seattle. It names John Stefanchik, Seattle-based Beringer Corp., Scott Christensen and Salt Lake City-based Atlas Marketing, collectively doing business as the Stefanchik Organization. According to the complaint, defendants charge consumers as much as $5,000 to $8,000 for "The Stefanchik Program," which purports to teach consumers how to make large amounts of money ...