July 31, 2024
The Utah Department of Commerce’s Division of Consumer Protection, represented by the Utah Attorney General’s Office, and the Federal Trade Commission secure funds in settlement.
This week, the Federal Trade Commission (FTC) is mailing checks to consumers harmed in the Zurixx, LLC (Zurixx) real estate investment coaching scheme. These payments are the result of the $12 million settlement between the FTC and the Utah Division of Consumer Protection with Zurixx in 2022.
“Many victims will finally be getting some justice. Thousands who were coached into fraudulent investments by Zurixx owners will receive checks from this substantial settlement,” said Utah Attorney General Sean Reyes. “Removing these actors permanently from the coaching space is a significant win for Utah. We hope this serves as a warning to others who might consider setting up similar programs based on false earning claims. It remains one of my highest priorities to prosecute white-collar offenders. We are grateful for our partnership with the FTC and the Utah Division of Consumer Protection in this case.”
The FTC and the Division of Consumer Protection filed a lawsuit against Zurixx and its owners, Christopher Cannon, James Carlson, and Jeffrey Spangler, for misleading consumers with false earnings claims during seminars and coaching sessions. The scheme promised large profits from real estate “flipping,” using celebrity endorsements to attract customers. The lawsuit resulted in $12 million in refunds for 25,563 consumers and a permanent ban on the defendants from selling real estate or business coaching services.
“This is a big win for not only the victims harmed in this scheme but all consumers,” said Executive Director Margaret Busse. “When businesses take advantage of the public’s trust, it hurts the health of the economy and makes people less likely to participate in commerce. Stopping operations like this is crucial to building the trust essential to making our economy work for everyone.”
Eligible consumers should begin receiving settlement checks from the FTC starting in August. Recipients should plan on cashing those checks within 90 days of the issue date. Consumers with questions about this case should contact the Utah Division of Consumer Protection at 801-530-6001 or consumerprotection@utah.gov.
##
The Utah Division of Consumer Protection is one of ten agencies within the Utah Department of Commerce. Its mission is to strengthen trust in Utah’s commercial activities by protecting consumers through education and impartial enforcement. The Division administers more than 25 Utah state laws designed to protect consumers, including telephone solicitations. The Division’s enforcement actions are supported and often represented by the Utah Attorney General’s Office, ensuring comprehensive measures to safeguard the rights and safety of consumers throughout Utah. For additional details or to file a complaint, please visit https://dcp.utah.gov/.
Media Contact:
Melanie Hall
Communications Director
Utah Department of Commerce
385-290-0719