Vision Solution Marketing LLC
Also known as: VSM Group LLC, Ryze Services LLC, Specialized Consulting Solutions LLC.
The FTC alleged this operation bought contact details of people who had paid for cheap work-at-home programs, then sold them coaching for up to $13,995 that delivered information freely available online, leaving most heavily in debt.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC v. Vision Solution Marketing LLC, et al., No. 18-cv-356-TC (D. Utah, 2018)
- Locations
- Salt Lake City, Utah
- Jurisdictions
- United States (federal)
Buying the list of people who already fell for something
This operation did not find its own customers. It bought the contact information of people who had already paid under $100 for work-at-home programs online.
Those cheap programs typically encourage the buyer to call an “expert consultant” or “specialist” to see whether they qualify for an “advanced” coaching programme. Calls went to these defendants’ telemarketers.
The FTC’s releases name the sources directly: the defendants used contact information obtained from Internet Teaching and Training Specialists, LLC and Bob Robinson, LLC, both of which were themselves the subject of FTC enforcement actions settled in 2017 and 2018. The same buyers were sold to twice.
What the coaching cost and contained
Up to $13,995, usually charged to a credit card, for a programme the complaint says provided information largely available for free on the internet, plus thousands more for other business development services. Buyers often received little more than basic instruction on listing products on sites like eBay.
One recorded sales call, submitted to the court as an audio file, has a salesman pitching a $10,000 programme and claiming it was “almost impossible” to make less than $3,000 to $5,000 a month, adding: “we don’t have any students we’ve built the business for that have ever failed. There’s just, there’s literally no way to fail.”
The corporate credit claim
After the coaching sale, the defendants often pitched a further business development programme, claiming special access to lenders who could provide corporate credit the buyer would not be personally liable for. Instead, buyers were passed to more sales calls from companies that simply helped them apply for personal credit cards, which carry exactly the personal liability they had been told to expect to avoid.
The outcome
The scheme began in 2014, ran from offices near Salt Lake City, and took $8.4 million from consumers. Most buyers did not end up with a viable business, earned little or nothing, and ended up heavily in debt.
Settlements approved in October 2018 permanently ban the owners from selling business coaching or development services. One imposes $8.4 million against Jared Rodabaugh and his companies, the other $6.75 million against Justin Larsen and his, both partially suspended on surrender of assets including the remaining funds in the corporate bank accounts.
In July 2019 the FTC mailed 1,177 checks totaling more than $380,000.
What is not established
Court-approved settlements resolve allegations without any admission or finding of wrongdoing.
Sources
Every claim above rests on one of these. Open them and check.
- Enforcement action May 16, 2018
- Enforcement action October 29, 2018
- Enforcement action July 8, 2019
- Enforcement action July 8, 2019
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First recorded May 16, 2018 · Last updated July 8, 2019