Nudge, LLC
The FTC and Utah Division of Consumer Protection alleged that Nudge and affiliates used false earnings claims to sell real estate investment training and coaching. A settlement banned the companies from selling wealth creation products and required $15 million for consumer redress.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC v. Nudge, LLC (FTC case 182-3016, 2019)
- Locations
- Utah
- Jurisdictions
- United States (federal)
Court orders resolved real estate training claims
The FTC and the Utah Division of Consumer Protection sued Nudge, LLC and affiliated companies in 2019. The agencies alleged that free seminars featuring real estate celebrities led consumers into a sales process for costly training. According to the complaint, the free seminars promoted three-day workshops costing more than $1,100, which then pitched advanced training costing as much as $40,000. Nudge allegedly began selling the packages at least as early as 2012.
The FTC alleged that the seminars were designed mainly to sell more training rather than help consumers make money. A survey filed with the court showed that more than 95 percent of seminar attendees paid Nudge more than they netted in later real estate transactions. In 2020, the FTC described the scheme as having bilked consumers out of more than $400 million.
A district court later found that many claims by Response Marketing Group, a Nudge affiliate, were false or misleading. The challenged claims included promises of special access to funding and buyers for homes that students wanted to flip. A 2023 settlement banned Response Marketing, Nudge, BuyPD, their owners, and Response Marketing’s president from selling wealth creation products and services. Those parties were required to pay $15 million for consumer redress. Separate settlements required Dean Graziosi and Scott Yancey to pay another $1.7 million.
In March 2024, the FTC reported sending more than $10 million to 4,670 consumers and sending claim notices to nearly 400 others.
What is not established
The supplied releases do not report that Nudge admitted every allegation. They do report the district court’s partial summary judgment finding that many Response Marketing claims were false or misleading.
Sources
Every claim above rests on one of these. Open them and check.
- Enforcement action November 5, 2019
- Enforcement action August 31, 2020
- Enforcement action May 22, 2023
- Enforcement action March 21, 2024
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First recorded November 5, 2019 · Last updated March 21, 2024