Real Estate Investors Get Class Status in Video Promotion Suit

A federal court has granted class action status to investors harmed by an allegedly fraudulent real estate investment training scheme, clearing the way for broader litigation against Response Marketing Group, LLC and its principals. The ruling permits investors who purchased expensive training programs promoted through social media and celebrity endorsements to proceed collectively rather than individually, substantially increasing the defendants' exposure and strengthening settlement negotiating positions.

The FTC and Utah Division of Consumer Protection initiated enforcement action against Response Marketing Group in November 2019, alleging the company and its affiliates used deceptive marketing tactics to sell real estate investment training programs that made false promises about generating substantial profits through house flipping. The FTC subsequently named two high-profile real estate personalities as additional defendants: Scott Yancey, known for the CNBC home-flipping series *Flipping Vegas*, and Dean R. Graziosi, bestselling author of *Millionaire Success Habits*. Both celebrities leveraged their public platforms to promote the training programs while simultaneously suppressing negative customer reviews and complaints on social media, according to the FTC's amended complaint.

The settlement framework totaled $16.7 million in refunds and penalties. Response Marketing Group and its principals agreed to pay $15 million, with Yancey and Graziosi contributing an additional $1.7 million combined to the compensation fund. Beyond financial remedies, the settlement permanently prohibits Response Marketing Group and its affiliates—including Nudge, LLC and BuyPD, LLC—from selling any "wealth creation" products or services anywhere in the United States.

The FTC has begun distributing refunds exceeding $10 million to 4,670 consumers who purchased the fraudulent training programs. Most recipients will receive paper checks by mail with a 90-day redemption window; approximately 400 consumers without valid mailing addresses on file will receive PayPal payments redeemable within 30 days. Additional eligible consumers who filed previous complaints with regulators have been issued claim notices, allowing them to apply for compensation if they purchased the defendants' real estate investment training offerings.

The class action certification underscores regulatory and judicial skepticism toward celebrity-endorsed financial training schemes marketed through social media channels, particularly those making speculative income guarantees. The precedent may encourage additional litigation against similar programs and expand FTC authority to pursue influencers and public figures who knowingly participate in deceptive marketing practices.