Well-known real estate investors Dean Graziosi and Scott Yancey are suspected of promoting sham coaching and training seminars.

Two well-known real estate investors could soon be named as defendants in a case against a real estate training company accused of scamming consumers out of more than $400 million.

On Monday, the Federal Trade Commission announced it had named investor promoters Dean Graziosi and Scott Yancey as potential defendants in a lawsuit it filed against Nudge, a Utah-based company that advertised various coaching, training and wealth-building seminars for real estate agents.

FTC

Graziosi is a self-described multi-millionaire known for selling real estate guides, CDs and infomercials for the past two decades. He has over 1 million subscribers on Instagram and regularly publishes posts about “hustling” and “passion.” Yancey, who starred on the A&E show “Flipping Vegas” between 2011 and 2014, also published a book about making money by flipping homes for profit. Neither could be immediately reached by Inman for comment.

“We believe these two TV personalities each made millions of dollars by assisting and facilitating this real estate investment rip-off,” Andrew Smith, Director of the FTCs Bureau of Consumer Protection, said in a press statement. “They were instrumental to the scheme and took a cut of the profits, and that’s why we’re seeking to add them to our case against the program’s operators.”

https://www.instagram.com/p/CEmj-pGH5Ns/

The FTC and the Utah Division of Consumer Protection first filed a complaint against Nudge in November, claiming the company “used false money-making promises to convince consumers to buy real estate training packages that often cost tens of thousands of dollars.” An amended complaint claims Graziosi and Yancy were the main celebrities that Nudge used to bring in consumers by offering “free” sessions as a way of getting them to buy costly packages later on.

“Graziosi and Yancey each received over $10 million from the Nudge Defendants since 2012,” reads the amended complaint. “Graziosi and Yancey received a percentage of most or all of the Nudge Defendants’ sales to consumers who attended the Preview Events they sponsored, including sales of additional training or coaching services that the Nudge Defendants sold to consumers through telemarketing.”

https://www.instagram.com/p/CD15evSDqrM/

The two agencies further allege Graziosi and Yancey were aware of complaints from buyers who claimed they were misled into spending money on training programs promising a winning money-making formula and received a percentage of what they paid for seminars and training programs. Graziosi and Yancey also allegedly helped Nudge develop a good reputation by discussing ways to get positive reviews about the company on sites such as Yelp and Consumer Affairs as early as last year.

If the court approves the amended complaint, the case will proceed with Nudge, Graziosi and Yancey as the defendants.

Over the years, numerous  scams and schemes have surfaced in the real estate industry using everything from training programs to lead-generation services as a way to deceive agents into spending money.

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×