Success Path and other frauds...we can stop them

Success Path and other frauds...we can stop them

Investor · Peabody, MA · Member since 2015 · 114 posts · 107 votes

We are looking for others to join a lawsuit against Success Path, Flipping Formula and other companies involved in taking millions from people promising things they never deliver. The more people we can get to file the better our chances are of succeeding. 

Here's why...

I've written a couple of posts about my experience with real estate investing 'guru's' and wanted to provide and update and ask for some help. You can see my story in the forum post 'Taking a stand on a $50,000 lie'. While my loss of money is tragic, it's not as tragic as the insane amount of money these people are making and others are losing even as we speak. 

Here's how it works...

Once you realize you've lost thousands on empty promises and fraudulent practices you contact the company and ask for your money back. The Director of Customer Service, Shane Andrus will contact you via phone and try to make you think you are the problem while attempting scare you out of taking further legal. He'll likely insult you and accuse you of hidden agenda's and financial problems that you are looking to solve at their expense. He'll tell you that if you pursue legal action you will spend thousands and get NOTHING. He will offer you a fraction of what you lost if you sign an agreement first. This agreement states you should never speak of the settlement they gave you and never mention their name in a negative context ever again. It doesn't guarantee a date in which you will receive the money and some have complained they never saw the money even after they signed the agreement.

The business structure...

My lawyer has done some research and found a very tangled web of businesses that run various seminars, bootcamps, coaching, etc. The parent company of all of the companies they use is Zurixx, LLC. The public see's the companies as Success Path, Flipping Formula and others but they are simply Zurixx 'doing business as' or dba Success Path, Flipping Formula, Advanced Real Estate Education, etc.

Check out https://www.bbb.org/utah/business-reviews/training... for a larger list and more info. You'll have to scroll down to Alternative Business Names in the left column.

We THINK this is how they shelter themselves from lawsuits. Anyone who files will likely list Success Path or whatever company they had experience with as a defendant. But that company MAY not have any assets or there is some other catch. It's funny because thinking back to the Vegas Seminar JJ Childer's pretty much explained how they work and recommended investors structure their businesses the same way. The catch phrase is "Own Nothing, Do Nothing". This means you need two companies. One to own the assets and the other to do business under. The idea is that you purchase a property with Company A, LLC and do the work as Company B, LLC. This way if some shenanigans happen and someone has grounds to sue Company B for operating issues, Company B has nothing to lose...Company A has all of the assets. We aren't positive this is how they work but it's a strong possibility.

Just for fun..

I invite you to go to Zurixx's web page http://www.zurixx.com/about-us/our-team/ for a visual of who we are dealing with.

Please PM me if you are interested in getting involved and helping all of us that have lost money and others who will in the future. This affects people of all ages. Picture your parents, friends and other family losing all they have because they put their trust and confidence is these people.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Erica Nagle:

Just found an article stating Zurixx made $130.1 million in 2016. Tarek and Christina (and the other TV sponsors) get a percentage of that. Even if they only get 1% that's still $1.3 million! Just sickening

 If I was laying a bet I would estimate Tarek and Christina made more in the order of 5 million.. 

See this reply in the discussion

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  • Eagle, ID · Member since 2018 · 2 posts · 0 votes
    6y

    Please send information on how to join the lawsuit. I would be happy to share who I talked to and on dates.and I am.no further along in my real estate business.  Help me please find a way to recover from.this fraudulent company.

  • Member since 2019 · 1 post · 0 votes
    6y
    Hello erica, I would like to know if you have done anything about it. I was scammed by this folks too. i need a refund. my whole life is ruined.

  • Member since 2019 · 1 post · 1 vote
    6y

    We signed up for success path in December of 2017. We spent almost 100,000 on training and were told we would make a lot of money flipping houses. We have worked at it for 2 years and only lost more money.

  • Investor · Des Moines, IA · Member since 2016 · 1 post · 1 vote
    6y

    In Summer 2016, Success Path (now Zurixx) came to Des Moines, IA.  I was definitely taken for a ride.  Scammed me out of over $40K.  I was definitely naive I'm embarrassed to say.  Looks like they are in the midst of a law suite now.  Wonder what kind of slap on the wrist they will get.

  • Member since 2020 · 1 post · 1 vote
    6y

    In Summer of 2015 I did the Flipping Formula one. The wife and I put in almost $100K with all the promises like others. When it came time for my mentoring sessions, I just seemed to be out of luck.  I had passed my 30 day window for asking for money back. I was told that I would have to pay for arbitration and that I would get nothing. The wife even did the Inner Circle thing, which was supposed to get us to Boston to meet Dave and Phil(from TV show flipping Boston), and spend a week getting mentored by them, which never happened.  In November 2019, I got notified by YES (Your Entity Solutions) that the company who did the seminar was not paying for my contract anymore, so I would have to pay their monthly/annual fee to keep my contract in place. Today I was contacted by PI, asking about my experience with Real Estate Classes, more specifically Flipping Formula ( which turns out is Advanced Real Estate Education/Zurixx). This got me doing research online and found this forum.  I really doubt if there is anything that can be done to get my money back, as I understand it the FTC actually shut them down in Nov 2019, and the Government took all assets. Just for an FYI, I am still trying to pay off my credit cards that I was told I could pay off within a year just by following their formula, which I did for 2 years, and got nothing out of it.

  • Member since 2019 · 12 posts · 15 votes
    6y

    The FTC and the State of Utah has an ongoing lawsuit against Zurixx. You can find out more about it here: https://www.ftc.gov/enforcement/cases-proceedings/182-3063/zurixx-llc

    You should also monitor Zurixx's former website, which has been taken over by the appointed Receiver. They are posting updates there, and if a refund is ordered by the court, you'll find information posted there first: https://zurixx.com/

    Other than that, there's really not much for anyone to do. The case is on hold until the US Supreme Court rules in a different case, Lui v SEC ( https://www.scotusblog.com/case-files/cases/liu-v-securities-and-exchange-commission/ ) because there are overlapping issues. That ruling will be by July, but the US Supreme Court's schedule has been affected by the Coronavirus, like everything else. They got the oral argument in on 3/3/20, thank goodness. But we are waiting on the US Supreme Court now.

  • Member since 2020 · 1 post · 0 votes
    6y

    Happy to have found this thread. I was taken in and deceived by one of the many divisions of Zurixx (at that point dba "Fast Track Flips", "Your Driven Success", and "Advanced Real Estate Education") I will be monitoring the lawsuit from the FTC and am hoping that someday I can get on board a class action lawsuit myself, as I was taken for the full $1997 + >$41,000 + the thousands spent on the people portrayed as a finance company (known as "Foundation Funding", which didn't fund anything, they just opened 4 credit cards in my name and charged me thousands for the service-in-disguise -- I'm sure was a division of this same organization).  Aside from the approximately $50K that I lost, and the self-loathing for allowing myself to be get 
    deceived, I now have a destroyed credit score and have sunk even thousands more into credit card fees / finance charges.  I got very close to delinquency and filing for bankruptcy until one of the cards referred me to a Debt Management program that made arrangements for my to repay... and now I will spend the next 4 years on a suffocating budget spending every last available penny to repay this massive debt.  This is a far, far cry from what I was led to believe in that ridiculous sales pitch (labeled as training) that said the tuition would be covered in just 2-3 flips over the first 6 months or so.  What a fool I was to believe that.  Those supposed teachers were the best ACTORS I have ever met in my life!  Thank you for continuing this blog/forum.  I will be following closely in the months & years ahead, hoping to see Zurixx go down in flames, and maybe just maybe some of the students will see some sort of class action settlement.  Best of luck to all of us!

  • Las Vegas, NV · Member since 2016 · 1 post · 0 votes
    6y

    I want to join the law suit also spent over 40,000 and they didn’t help us like they said. We bought their package in June of 2016. 

  • Member since 2020 · 1 post · 0 votes
    6y

    Please send me information on how i can join the lawsuit. In Summer 2017, Success Path came to Brooklyn,NY. I paid over $40K for the course and couldn't buy or sell any properties like they promised. The moment the received full payment they were unresponsive and provided little to no support.

  • Member since 2020 · 4 posts · 0 votes
    6y

    Hi, My name is Sheri Zammit.  My husband and I spent over 100,000 on this scam.  We did not get the help or support from the flipping formula.  They promise us that we would not fail and that they would help us to succeed in real estate.  They took our money and ran.  We asked for our money back and we never heard back from them  Please help us   Thank you Sheri Zammit

  • Member since 2020 · 1 post · 0 votes
    6y

    Erica, I just came across this post and had to write. The Flipping Formula wiped out my husband's 401k with their promises of a lucrative real estate career. We live in Southern California, where it's almost impossible to make a profit from flipping unless you're a multi-millionaire. When I challenged my "mentor" on this (I had proof), he said I would never be successful. Is this potential class action suit still active? Thank you. Joanne B.

  • Member since 2020 · 671 posts · 937 votes
    6y

    I just came across this post and I have a sick feeling in the pit of my stomach for you guys.  Some people are just disgusting and vile, I suppose.  I hope you're all able to recover financially and emotionally and that your lawsuit brought you some money and peace.  Best wishes.

  • Member since 2020 · 1 post · 0 votes
    6y

    I would like to join the lawsuit.  How?

  • Member since 2021 · 1 post · 0 votes
    5y

    Is it too late to join in on a lawsuit?  Can't believe I waited this long to look for something on lawsuits against these guys.  Finally getting myself dug out of the hole I put myself in with the Flipping Formula workshops.

  • Baltimore, MD · Member since 2018 · 431 posts · 281 votes
    5y

    Reminder that Mormons and financial scams go hand-in-hand. Hardly a sleazy MLM in the past 20 years hasn't been started by a Mormon. Anything that involves moment making systems, mentoring, coaching, or MLM sales that has a Mormon at the top is almost certainly a glorified Ponzi scheme, and Utah laws protect the worst of them. Chances are, they'll have some high up position in the LDS organization, too. And no, it's not an accident or coincidence.

  • Member since 2022 · 1 post · 0 votes
    4y

    I just found out about this lawsuit. Is it too late to be a party to the lawsuit?  If not, how do I join?  Still in debt 5 years later from all the workshops.

  • Member since 2023 · 2 posts · 0 votes
    3y

    .

  • Member since 2023 · 2 posts · 0 votes
    3y

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