Business ProfileforZurixx, LLC

On February 14, 2022 the Federal Trade Commission and Utah Department of Consumer Protection reached a settlement agreement with Zurixx, LLC and its owners Christopher Cannon, James Carlson, and Jeffrey Spangler. The FTC and UDCP alleged that Zurixx, LLC, its owners Cristopher Cannon, James Carlson, and Jeffrey Spangler, and a number of associated companies operated a real estate investment coaching scheme that sold live seminars and telephone coaching using false earnings claims that convinced tens of thousands of consumers to pay them thousands or tens of thousands of dollars.

The defendants bolstered sales by partnering with home-improvement and flipping television celebrities. The FTC and UDCP alleged that defendants used hard-sell telemarketing tactics promoting the idea that consumers could make tens or hundreds of thousands of dollars in a relatively short amount of time by “flipping” or wholesaling real estate using Zurixx’s system. The celebrities who helped drive Zurixx’s sales included, among others, Tarek and Christina El Moussa, Hilary Farr, Peter Souhleris, and Dave Seymour.

FTC and UDCP also alleged that Zurixx required consumers who received refunds to sign agreements barring them from speaking with the FTC, state attorneys general, and other regulators; submitting complaints to the Better Business Bureau; or posting negative reviews about Zurixx.

Under the terms of the settlement, the defendants are permanently banned from marketing or selling any real estate or business coaching programs. They are also barred from further violations of the FTC’s Telemarketing Sales Rule and Utah’s Business Opportunity Disclosure and Telephone Fraud Prevention Acts. In addition, they are barred from making misleading earnings claims and from using contract terms to restrict consumers’ ability to review their products or speak to law enforcement agencies.

The settlement includes monetary judgments totaling more than $111 million comprised of:

$104.7 million against the corporate defendants in the case (Zurixx, LLC; Brand Management Holdings, LLC; CJ Seminar Holdings, LLC; Dorado Marketing and Management, LLC; Zurixx Financial, LLCUtah; and Zurixx Financial, LLC-Puerto Rico). These corporations are now defunct and under receivership with remaining assets totaling approximately $5 million, which will be used for partial satisfaction of the judgment against them.
$2.33 million against Cristopher Cannon and entities associated with him (CAC Investment Ventures, LLCUtah, and CAC Investment Ventures, LLC-Puerto Rico).
$2.33 million against James M. Carlson and entities associated with him (Carlson Development Group, LLCUtah, and Carlson Development Group, LLC-Puerto Rico).
$2.33 million against Jeffery D. Spangler and entities associated with him (JSS Investment Ventures, LLC and the JSS Trust).

For more information regarding this agreement, please see the link below. 

BBB files indicate that the business has a pattern of complaints concerning the free seminars conducted across the United States and Canada. Complaints allege the seminar is a high pressure sales pitch of an Accelerated Flipping class for $1,997. Once you attend the Accelerated Flipping class you are upsold to higher packages ranging from $7,000-$40,000 to obtain better success and have access to mentors, software, and financing options. Customers were also informed that they would have access to 1-on-1 mentors, promised funding, and you would learn to flip homes without using your own money.

Consumers also allege that they are told that they could cancel at any time.  However, the company responded to such complaints by stating that the contract allows for only 3 days (which is required by the Federal Trade Commission's "cooling off" rule).