A real estate coaching scheme and a $111 million judgment
The FTC and the Utah Division of Consumer Protection sued Zurixx, LLC and its three owners in September 2019, alleging a real estate coaching scheme that used free seminars, TV personalities and false earnings claims to sell $1,997 seminars and coaching costing tens of thousands of dollars. A February 2022 settlement banned the defendants from real estate and business coaching and carried judgments of more than $111 million; $12 million was later sent to 25,563 consumers.
- Year
- 2022
- Where
- United States
- Outcome
- Settled
- Reported loss
- $111.0 million
- Victims
- 25,563
- Schemes
- Real estate investing seminar scams
- Last reviewed
- 2026-09-29
The facts, as recorded
- The FTC and the Utah Department of Commerce Division of Consumer Protection sued Zurixx, LLC, its owners Cristopher Cannon, James Carlson and Jeffrey Spangler, and a number of associated companies in September 2019.
- They alleged Zurixx sold live seminars and telephone coaching using false earnings claims that convinced tens of thousands of consumers to pay thousands or tens of thousands of dollars.
- According to the FTC and Utah, free "seminars" were high-pressure sales events for paid seminars costing $1,997, followed by more expensive seminars and coaching costing tens of thousands of dollars.
- The agencies alleged presenters encouraged consumers to open new credit cards to pay for the training, promising that profits from flipping or wholesaling would quickly pay off the debt.
- They also alleged Zurixx required consumers who received refunds to sign agreements barring them from speaking with the FTC or state attorneys general, complaining to the Better Business Bureau or posting negative reviews.
- The U.S. District Court for the District of Utah entered the settlement order on February 15, 2022; the FTC vote approving it was 4-0.
- The defendants are permanently banned from marketing or selling any real estate or business coaching programs, and barred from misleading earnings claims and from contract terms restricting consumers' ability to review Zurixx or speak to law enforcement.
- Monetary judgments totalled more than $111 million: $104.7 million against the six corporate defendants, which were by then defunct and in receivership with about $5 million of assets, and $2.33 million against each of the three owners with their associated entities.
- The settlement provided approximately $12 million for consumer redress; the FTC announced on July 31, 2024 that it was sending more than $12 million in refunds to 25,563 consumers.
- FTC Bureau of Consumer Protection Director Samuel Levine: "Preying on struggling Americans with empty promises of quick riches is against the law."
- Utah Division of Consumer Protection Director Daniel O'Bannon said the recovered funds were "pennies on the dollar" compared with the harm.
Why this case matters
Zurixx is the largest judgment on this page and the clearest picture of the whole funnel: a free “seminar,” a $1,997 paid seminar, then coaching that could cost tens of thousands. It also shows how far apart a judgment and a recovery can be. The judgments exceeded $111 million; the corporate defendants were defunct and held about $5 million, and about $12 million was sent to customers.
The funnel
According to the FTC and Utah, the free events were high-pressure sales events for the $1,997 seminar, and that seminar was in turn used to sell expensive coaching. The agencies say the pitch was delivered by hard-sell telemarketing and by television home-improvement and flipping personalities whom the defendants partnered with.
The credit cards
The allegation that presenters encouraged consumers to open new credit cards, promising flipping or wholesaling profits would soon pay them off, matters because it converts a purchase into personal debt that does not depend on the system working.
The silence clause
The agencies alleged that consumers who obtained refunds were required to sign agreements barring them from speaking with the FTC or state attorneys general, complaining to the Better Business Bureau or posting negative reviews. The final order bars contract terms that restrict consumers’ ability to review Zurixx or speak to law enforcement.
The caveat
This case ended in a stipulated settlement, not a trial verdict. The FTC and Utah’s descriptions of what Zurixx did are allegations from their complaint, and the FTC’s own press release words them as such. What is a matter of record is the court order: the permanent ban, the more than $111 million in monetary judgments, and the $12 million in refunds. The television personalities who partnered with Zurixx are named in the FTC’s release as promoters, not as defendants.
Sources
- Operators of Investment Coaching Scheme Banned from Industry and Ordered to Pay Millions in Redress to Defrauded Consumers. US Federal Trade Commission. Accessed 2026-09-29. Supports: The defendants, the allegations, the $1,997 seminars, the credit card and refund-clause allegations, the ban terms, the $111 million-plus judgments, the receivership assets and the Levine and O'Bannon quotes.
- FTC Sends More Than $12 Million in Refunds to Consumers Harmed by Zurixx Real Estate Investment Coaching Scheme. US Federal Trade Commission. Accessed 2026-09-29. Supports: The September 2019 lawsuit date, the July 31, 2024 refund announcement, the $12 million and the 25,563 consumers.