A Westminster-based company, the Dalbey Education Institute, has been sued by the Colorado Attorney General and the Federal Trade Commission, alleging that the company’s “Winning in the Cash Flow Business” infomercials are misleading and deceptive.
The complaint, filed in U.S. District Court in Denver, notes that the infomercials, featuring Gary Collins as the “Emmy award Winning Host,” have been shown tens of thousands of times on broadcast and cable television.
Each year between 2002 and 2010, a version of the “Winning in the Cash Flow Business” infomercial has been one of the 100 most frequently disseminated infomercials on national cable television stations in the United States, according to the complaint.
The complaint alleges that Collins, DEI founder Russ Dalbey, and numerous testimonialists have appeared repeatedly on screen and touted that they made substantial amounts of money, quickly and easily, finding and brokering promissory notes.
The complaint said that in connection with the telemarketing and sale of DEI goods and services, the defendants have misrepresented, directly or indirectly, material aspects of the “Winning in the Cash Flow Business.”
These include that consumers are likely to quickly and easily find, list and broker promissory notes; quickly and easily earn substantial amounts of money, and earn substantial amounts of money.
However, Andrew Shoemaker, the lawyer representing the Dalbeys, strongly denied the allegations.
“The lawsuit brought by the FTC and the Colorado Attorney General is an aggressive attack on a respected local employer that has been in business for over a decade,” said Shoemaker.
“The case is deeply flawed, and we intend to prove that people can and do make money based on what they learned from Dalbey Education Institute. The company denies the allegations and looks forward to having its day in court,” said Shoemaker.
According to Colorado Attorney General John Suthers and the FTC, the marketed products and services purportedly teach consumers how to find, broker and earn commissions on seller-financed promissory notes or cash flow notes.
The informational materials are sold in a price range of between $39.95 and approximately $159 and include items such as booklets, CDs, and DVDs.
According to the complaint, very few consumers ever broke into the promissory note business and most never earned any money as a result of the “Winning in the Cash flow Business” materials.
“These infomercials preyed on consumers desire to get rich quick,” said Suthers. “Infomercials and other materials promising large returns with minimal training or effort are almost always scams. Consumers should remember that if any offer sounds too good to be true, it probably is.”
Named as defendants are the Dalbey Education Institute, Russell Dalbey and Catherine Dalbey, who served as DEI president until January 2010.
The complaint notes that Congress directed the FTC to prohibit abusive and deceptive telemarketing acts or practices.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com.
