September 4, 2024
Judge Orders Defendants to Pay $42.5 Million in Restitution, Fines, and Penalties in Case Brought by Utah Department of Commerce’s Division of Consumer Protection Against Real Estate Workshop
SALT LAKE CITY – The Utah Division of Consumer Protection (Division), through the Utah Attorney General’s Office, won a landmark case yesterday against Real Estate Workshop (REW) and its principals Troy Stevens, Cory Wadsworth, and MJ Augie Bove. The REW Defendants deceptively enticed thousands of customers to attend free seminars with promises of generating high passive income through real estate investing techniques. Rather than provide training, they pressured attendees into purchasing increasingly expensive training packages. This often involved encouraging buyers to use credit cards, take out home loans, or deplete their retirement funds to pay for the packages, resulting in significant debt and damage to credit. Adding to this unconscionable misconduct, the Division demonstrated that the REW Defendants never delivered on the expensive training, leaving many purchasers insolvent or filing for bankruptcy.
The Honorable Utah Third District Court Judge Kent Holmberg held that the REW Defendants’ conduct violated the Utah Consumer Sales Practices Act and the Utah Telephone Fraud Prevention Act. Judge Holmberg found that the Defendants’ “misconduct was egregious and widespread” noting that “the harm to consumers as individuals was often catastrophic, shattering their economic well-being and forcing some into bankruptcy.” He held that “given the magnitude of payments from consumers, a large fine is necessary to deter other potential violators from engaging in similar conduct.”
The Judge ordered the Defendants to pay, jointly and severally, $2,828,776.19 in restitution to harmed consumers and $39,656,610 in fines and penalties for statutory violations. Defendants Troy Stevens, Cory Wadsworth, and MJ Augie Bove are also permanently barred from selling any type of business coaching or similar services in the future (read full Order at dcp.utah.gov/rew-findings-of-fact).
“Thanks to the witnesses, expert investigators, and skilled legal team in our attorney general office, thousands who were victimized by this bait-and-switch scheme can now find some justice,” said Attorney General Sean D. Reyes. “We are proud to work closely with the Utah Division of Consumer Protection to defend the rights of consumers.”
This is one of three significant cases the Division has won against companies defrauding Utahns through real estate coaching schemes. Earlier this year, the Division and the Federal Trade Commission issued $10 million in refunds to consumers harmed by Response Marketing Group, LLC, and $12 million to consumers defrauded by Zurixx, LLC.
“These companies have made misrepresentations a cornerstone of their business,” said Margaret Busse, Executive Director of the Utah Department of Commerce. “Companies like this are a blight on Utah’s reputation as they erode trust in the economy. I am proud of the hard work of our Division of Consumer Protection and the Utah Attorney General’s Office in holding these companies accountable.”
The Division urges consumers to research claims that seem too good to be true and view company-provided testimonials skeptically. If you or someone you know has been deceived by a similar coaching program, you can file a complaint with the Division. For more information, visit dcp.utah.gov/complaints.
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The Utah Division of Consumer Protection is one of ten Utah Department of Commerce agencies. 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 those related to telephone solicitations. Additional information about the Division and complaints can be filed at https://dcp.utah.gov/.
Media Contact:
Ashley Beyer
Assistant Communications Director
Utah Department of Commerce
abeyer@utah.gov
801-530-6727