08/15/2024
Victims of a real estate investment scheme involving multiple HGTV stars, including Christina Hall and Tarek El Moussa, have been awarded more than $12 million in refunds by the Federal Trade Commission (FTC).
The ex-couple, known for their hit show "Flip or Flop," were among several reality TV stars recruited by Utah-based Zurixx LLC to promote home-flipping seminars.
In 2019, the FTC and the Utah Department of Commerce Division of Consumer Protection sued Zurixx’s owners, Cristopher Cannon, James Carlson, and Jeffrey Spangler. The lawsuit alleged that false earnings claims were used to lure participants into “spending thousands or tens of thousands of dollars in a relatively short amount of time.”
Some participants also alleged that the reality stars used to promote the seminars did not actually attend the coaching sessions, according to Deadline.
The FTC’s investigation revealed that Zurixx enticed consumers with free courses before pressuring them to pay for additional training, sometimes costing tens of thousands of dollars. Over 25,500 people will receive refunds as a result of the FTC's action.
Other reality stars, including Hilary Farr from HGTV’s "Love It or List It" and Peter Souhleris and Dave Seymour from A&E’s "Flipping Boston," were also involved in promoting similar programs.
Despite customer complaints reported by ABC in 2017, Hall and El Moussa defended the program, claiming it was based on their own successful system for flipping houses. However, the FTC has since barred Zurixx and its owners from teaching or promoting these programs, with Samuel Levine, director of the FTC’s Bureau of Consumer Protection, warning consumers to carefully evaluate money-making promises before investing.
