FTC slams get-rich infomercial scams with huge penalty


FTC / Federal Trade CommissionAre you skeptical about those real estate programs advertised on long-form television ads that promise riches to those who buy into the program? The FTC was, and the result is a court-ordered payment of $478M from three such companies.

The companies on the hot seat include “John Beck’s Free & Clear Real Estate System,” “John Alexander’s Real Estate Riches in 14 Days,” and “Jeff Paul’s Shortcuts to Internet Millions.”

According to the FTC, nearly 1 million consumers paid money to the firms, and most of them lost it. The initial buy-in for the programs was set at $39.95, and personal coaching services sold subsequently could run as high at $14,995.

Jeffrey Klurfeld, Director of the Western Region of the Federal Trade Commission, issued the following statement regarding the Order: “This huge judgment serves notice to anyone thinking of using phony get-rich-quick schemes to defraud consumers. The FTC will come after you if you violate the law. It’s also a reminder to consumers that they should be skeptical about these types of easy-money claims.”

In addition to the fine, the court installed a life-long ban against involvement in either the infomercial or telemarketing business to the three defendants.


  1. I’ve used his tax sale methods and made out great. I’m thinking that this is a ploy to help usher in the new Consumer Protection Arm of the Obama Camp. When did tax sales investing become illegal? I like not having to go to the JOB like I use to.

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