Salt Lake City, UT—The Federal Trade Commission (FTC) is issuing over $10 million in refunds to consumers who paid for a deceptive real estate investment training scheme that falsely promised significant profits through “flipping” houses.

The FTC and the Utah Attorney General’s Office, on behalf of the Utah Department of Commerce’s Division of Consumer Protection, sued Response Marketing Group, LLC in November 2019, alleging that the company, its affiliates Nudge, LLC and BuyPD, LLC, and its principals used false promises to sell consumers a series of expensive real estate investment training programs. The FTC later named two real estate celebrities as additional defendants—Scott Yancey, the star of the home-flipping show Flipping Vegas, and Dean R. Graziosi, the author of Millionaire Success Habits. According to the amended complaint, Yancey and Graziosi promoted the training programs and were involved in efforts to bury online customer complaints that said Response Marketing failed to deliver on its promises or that it was a scam.  

“Companies that rely on deceitful or manipulative tactics to earn money will not be tolerated in Utah as it not only undermines people’s financial security but also the very trust we have in each other that is crucial to our #1 ranked economy,” Margaret Busse, the Executive Director of the Utah Department of Commerce, stated, “We are pleased that our Division of Consumer Protection’s investigative efforts, along with the cooperative partnerships with the FTC and the Utah Attorney General’s Office, resulted in restitution for affected consumers. We encourage consumers to do research and conduct thorough checks before purchasing.”

“Checks for the first ten million dollars are in the mail. This helps heal at least some of the harm caused at the hands of Response Marketing and the other defendants,” said Douglas Crapo, Director of White Collar & Commercial Enforcement at the Utah Office of the Attorney General.  “Protecting consumers from deceptive practices is essential for fostering an economy based on trust. Our Office is proud to represent Commerce and the Division of Consumer Protection in our concerted efforts with the FTC as we stop bad actors.”

The company and its principals agreed to a settlement that permanently banned them from selling “wealth creation” products and services anywhere in the country and required them to pay $15 million to be used for refunds. Graziosi and Yancey also agreed to settlements requiring them to pay an additional $1.7 million.

The FTC is sending payments to 4,670 consumers. Most consumers will receive checks by mail. Eligible consumers who do not have an address on file will receive a PayPal payment, which should be redeemed within 30 days. In addition, the FTC is sending claim notices to nearly 400 consumers who previously filed a complaint about Response Marketing. Consumers who paid for Response Marketing’s real estate investment training programs may file a claim for a refund.

Consumers who have questions about their payment or the claims process should contact the refund administrator, JND Legal Administration, at 877-871-0474 or visit the FTC website for questions about the refund process. The FTC never requires people to pay money or provide account information to get a refund. 

The Division of Consumer Protection is one of nine Utah Department of Commerce agencies. The mission of the Division of Consumer Protection 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. More information can be found at https://dcp.utah.gov/.

Read the FTC press release here.

SALT LAKE CITY, UTAH – Attorney General Sean D. Reyes joined an amicus brief to the Supreme Court of the United States of America in Trump v. United States. The brief, which was led by the State of Alabama, asks the Court to reverse the U.S. Court of Appeals for the District of Columbia Circuit’s ruling about presidential immunity in the case brought by Special Counsel Jack Smith.

The case concerns whether former President Donald J. Trump is entitled to presidential immunity regarding the alleged actions that are the subject of the case. Both the district and appeals courts ruled against the president’s claims of immunity, leading to the appeal to the U.S. Supreme Court. The former president argues that “from 1789 to 2023, no former, or current, President faced criminal charges for his official acts.” The trial in the case is on hold pending the outcome of the appeal.

In their brief, the coalition of attorneys general argue that the U.S. Supreme Court’s “immunity jurisprudence must remain sensitive to the danger of vexatious and partisan prosecutions” and that “the prosecutions of President Trump appear to be partisan.”

The states write, “Unfortunately, the concern that partisans may abuse the justice system is not limited to this case and this prosecutor. There are criminal and civil actions against President Trump around the country, in some cases led by individuals who campaigned on promises to target President Trump. They taunt him and gloat to fawning media. They launch sprawling investigations and scour state codes with one man in mind.”

Joining Utah and Alabama were the States of Florida, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, and West Virginia.

Read the brief here.

This morning in Third District Court, Jorge Gustavo Gonzalez, Sr. pled guilty to two third-degree felonies (Exploitation of a Vulnerable Adult) and two Class A misdemeanors (Neglect of a Vulnerable Adult). Ignacio Gonzalez-Villarruel pled guilty to two Class A misdemeanors (Neglect of a Vulnerable Adult).

In June of last year, the Medicaid Fraud and Patient Abuse Division of the Utah Attorney General’s Office filed multiple charges against the two managers of Evergreen Place in Midvale. Restitution will include reimbursement to all residents (or the appropriate payors) for rent paid for January 2022, when the defendants collected rent payments despite safety and health violations. Restitution will remain open for the statutory period for possible further claims.

“Our senior population is very vulnerable, and elder abuse is one of the most pernicious crimes we prosecute. Congratulations to Director Wooton, AAG Langdon Fisher, and the AG MFCU team. There’s a reason they were honored in 2023 as the top unit in America by their federal counterparts,” said Attorney General Reyes.

The Medicaid Fraud and Patient Abuse Division of the Attorney General’s Office is steadfastly committed to protecting the State’s most vulnerable adults from abuse, neglect, and exploitation.

Read about the original charges here.

SALT LAKE CITY, UTAH—Attorney General Sean D. Reyes joined a letter to Wells Fargo’s Chief Executive Officer regarding several debanking policies that Wells Fargo has embraced. The letter, which the State of Montana led, also requests answers from Wells Fargo about its debanking policies and practices and its relationship with BlackRock.

The States write that Wells Fargo “appears to be using debanking as a political tool to extend the policies of the Biden Administration throughout the economy.” They add that the bank has “committed to the Net-Zero Banking Alliance, promising to align their customers’ greenhouse gas emissions in line with aggressive 2030 targets in link with the Biden Administration’s net-zero goals.” In addition, the attorneys general assert that Wells Fargo has “debank[ed] whole economic sectors, institutionalized discrimination by imposing race and sex-based quotas into credit agreements with customers like BlackRock, [and] debank[ed] Republican candidates and gun industry participants.”

In their letter, the attorneys general highlight that the number of American banks has been consolidated, leading to fewer choices for consumers and more leverage for the banks in the form of ESG policies being wielded against customers.

The States accuse the federal government of “exacerbat[ing] this consolidation process in two primary ways.” First, “by passing the Dodd-Frank Act in response to the failures of enormous financial institutions holding trillions of dollars, the federal government imposed heavy regulatory burdens on banks.” Second, “the implicit subsidy from the federal government has given a systemic advantage to larger banks and provided a subsidy estimated to amount to over $100 billion.”

Joining Utah and Montana on this letter were the States of Arkansas, Idaho, Indiana, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, Ohio, South Carolina, Virginia, West Virginia, and Wyoming.

Read the letter here.

SALT LAKE CITY, UT—Attorney General Reyes recently joined Florida Attorney General Ashley Moody and other attorneys general in filing an amicus brief in the United States Court of Appeals for the Ninth Circuit seeking to keep the Biden administration from using gamesmanship to manipulate a political liability, the border crisis. The Biden administration appears to have decided to abandon its defense of the “Circumvention of Lawful Pathways” rule and is instead seeking a settlement agreement with pro-illegal immigration organizations such as the East Bay Sanctuary Covenant. 

AG Reyes stated:

Instead of enforcing laws already in place to secure our border and protect our country, the Biden Administration now abandons a rule it once promoted as a necessary tool for orderly and legal immigration.

By engaging in closed-door, sue-and-settle negotiations with activist plaintiffs, the Administration leaves no one to defend the rule. This abdication of duty disregards the will of the American People and compels Intervenor states to urgently step into the breach.

I’m proud to join my colleagues in opposing this injustice and defending the Rule of Law at our border.

Following a 2023 challenge and subsequent vacatur of the Circumvention of Lawful Pathways rule, the Biden administration appealed the decision to the United States Court of Appeals for the Ninth District, arguing the rule was absolutely necessary, “any interruption in the rule’s implementation will result in another surge in migration that will significantly disrupt and tax DHS operations.” Until recently, the administration asked the Court to delay further litigation pending a settlement negotiation. 

Following the revelation of a potential settlement, the attorneys general from Alabama, Georgia, Louisiana, Kansas, and West Virginia filed a motion to intervene. Alabama Attorney General Steve Marshall said, “As the tsunami of illegal immigrants continue[s] to pour across our border, Biden and radical activist groups stymie every reasonable effort to defend our country,”…“People in every state are bearing the burdens of this crisis, yet Biden and his cronies refuse to stand up for Americans. Instead, Biden has launched closed-door settlement talks with activist groups to potentially lock in an agreement that would weaken border security for years to come. My colleagues and I are intervening to ensure that does not happen.”

This week, AG Reyes joined Florida Attorney General Ashley Moody-led coalition of 16 states in filing an amicus brief in support of the Intervenor States, saying, “The Intervenor States seek to protect their own sovereign interests by ensuring the challenged rule stays in effect and is used to mitigate illegal immigration—a defense that undeniably shares a common question of law and fact with the main action. This Court should grant their motion and allow them to…intervene”. 

Along with Utah, the following attorneys general joined the brief: Florida, Arkansas, Indiana, Iowa, Kentucky, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, South Carolina, South Dakota, Texas, and Virginia.

Read the full amicus brief here.

SALT LAKE CITY, UTAH – Attorney General Sean D. Reyes joined a comment letter to the Special Rapporteur on the right to education for the United Nations’ Office of the High Commissioner for Human Rights. The letter, which was led by the State of Montana, defended American parental rights of educational choice and freedom for their children.

The coalition of attorneys general write in advance of the Special Rapporteur’s visit to the United States of America, informing United Nations officials about their opposition to the Abidjan Principles, which obligate States to provide public education as a human right and to regulate private involvement in education. According to the Abidjan Principles website, this document, which was adopted in 2019, presents “a reference point for governments, educators and education providers when debating the respective roles and duties of states and private actors in education.”

In their letter, the States write that “the Abidjan Principles are also incompatible with the U.N.’s 1948 Universal Declaration of Human Rights, which affirms … that parents have a prior right’ to decide what kind of education their children shall receive… Responding specifically to the Nazi regime’s use of Germany’s education system to indoctrinate children into its inhumane ideology, the Declaration said education ‘shall be directed to the full development of the human personality and to the strengthening of respect for human rights and fundamental freedoms.’ Similarly, the U.N.’s International Covenant on Economic, Cultural and Social Rights states … that private learning institutions must be respected and that parents have a human right to ensure that their children’s education conforms to the family’s religious and philosophical convictions.”

Joining Utah and Montana on the letter were the States of Arkansas, Georgia, Idaho, Indiana, Louisiana, Missouri, South Carolina, Texas, and West Virginia.

Read the letter here.

Today our interns for the 2024 legislative session capped off their time with the UAGO by participating in our VirTra training program. VirTra is an immersive law enforcement simulation that the UAGO uses to train our law enforcement personnel.

By participating in VirTra immersive modules, trainees get the opportunity to experience a fraction of the pressure that comes with the difficult, life-changing scenarios that our brave LE personnel face every day.

We are grateful for our interns, whose boundless energy and curiosity help our office better serve the people of Utah. They will always be a part of the UAGO family.

SALT LAKE CITY, UTAH – Attorney General Sean D. Reyes joined an amicus brief, led by the State of Virginia, in Alario v. TikTok. The case, which is pending at the U.S. Court of Appeals for the Ninth Circuit, involves a challenge to the State of Montana’s recently enacted law, SB 419, which prohibits TikTok from being downloaded within its borders. The Montana law provides that the prohibition will cease to apply if TikTok is sold to a company that is not incorporated in a country designated as a foreign adversary by the U.S. State Department.

After SB 419 was passed by the Montana Legislature with bipartisan support and signed into law earlier this spring, TikTok and a group of TikTok users successfully convinced a federal judge to block the policy from taking effect. The coalition of States on the brief are asking the appeals court to reverse the decision to block the Montana law.

“The longstanding battle to resist federal overreach has become even more critical in recent years as states enact reasonable laws to protect their citizens from myriad dangers including new and evolving technological  threats,” said General Reyes.

“Montana officials, like many current American leaders, saw the harms TikTok caused their children and acted accordingly. It is our duty as state attorneys general to protect the most vulnerable among us. For this reason, I join my colleagues in urging the Ninth Circuit to reverse the district court and allow this law to go into effect.”

In their brief, the States argue that “SB 419 fits comfortably within the States’ historic police powers” and that “the balance of the equities weighs in favor of Montana.” The attorneys general write, “Make no mistake: TikTok harms American citizens everywhere – including in Montana. In particular, children have lost their lives to TikTok’s promotion of harmful content on its platform. TikTok’s continued resistance to reasonable regulation will almost certainly harm more children.”

Joining Utah and Virginia on this brief were the States of Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kentucky, Mississippi, Missouri, Nebraska, Ohio, South Carolina, South Dakota, Tennessee, and Texas.

Read the brief here.

SALT LAKE CITY, UTAH – Attorney General Sean D. Reyes joined a letter to President Joe Biden regarding the administration’s recent order to waive certain sanctions on Iranian funds for 120 days. The communication to the White House was led by the State of Iowa.

The attorneys general convey their strong concerns over the Biden administration’s decision to give Iran “access to more than ten billion dollars out of frozen accounts located in Iraq, Oman, and Europe.” The States make the case that Iran should not receive these funds after “the horrific Iran-sponsored terror attack on Israel and non-stop Iran sponsored terrorism directed against U.S. interests.” Additionally, the coalition highlights the risk for an Iran-sponsored terrorist to cross the porous U.S. southern border.

In the letter, the attorneys general write, “Money is fungible, so the $10 billion sanctions waiver is subsidizing this mayhem. At the same time, with no transparency as to the European and Middle Eastern banks involved in processing transactions with or for Iran— and no disclosure of the nature of the transactions, let alone the names of the Iranian counterparties—this waiver puts American multinational banks and companies at risk of unknowingly engaging in illegal or even criminal terrorist finance activities.”

Joining Utah and Iowa on the letter were the States of Alaska, Arkansas, Georgia, Idaho, Louisiana, Montana, Oklahoma, South Carolina, Texas, and Virginia.

Read the letter here.

SALT LAKE CITY, UTAH – Attorney General Sean D. Reyes joined a bipartisan comment letter to the Federal Trade Commission (FTC) over its new rule under the Children’s Online Privacy Protection Act (COPPA) urging the Commission to “update the COPPA Rule to keep pace and give State Attorneys General the tools they need to respond to a digital world rife with risk.” The letter, which was led by the States of Oregon, Illinois, Mississippi, and Tennessee, was sent by the National Association of Attorneys General (NAAG).

The COPPA Rule, which was promulgated in 2000, “impos[es] certain requirements on operators of websites or online services directed to children under 13 years of age, and on operators of other websites or online services that have actual knowledge that they are collecting personal information online from a child under 13 years of age.” According to the letter from NAAG, “since the COPPA Rule became effective on April 21, 2000, State Attorneys General, on their own and in partnership with the Commission, have pursued actions for violations of the COPPA rule.”

Attorney General Reyes states, “Attorneys general across America are again overcoming partisan divides and focusing on what’s most important—protecting our children. These federal rules have become obsolete. The online landscape has evolved immensely since COPPA was established. Our children are facing a whole new world of challenges and threats. We implore the FTC to adapt accordingly and strengthen child protection online.”

“It is heartwarming, and even hopeful, that so many states attorneys general are focusing on the safety of children,” said Utah’s statewide coordinator for child and family safety, Missy Larsen. “The FTC is a powerful organization that can immediately make a difference with updated rules that align with current and real online threats.”

In their letter, the coalition of attorneys general makes several comments on the proposed rule revisions from the FTC, including the rule’s prohibition against conditioning a child’s participation on collection of personal information. They write that “as partners with the Commission in ensuring COPPA is enforced and children are protected, the States possess a unique and important perspective on how effective the COPPA Rule has been, the fundamental values and protections it upholds, and what improvements should be made.”

Joining Utah, Oregon, Illinois, Mississippi, and Tennessee on the letter were the States of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, Washington and Wisconsin; as well as the District of Columbia, Puerto Rico, and Virgin Islands.

Read the letter here.