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SALT LAKE CITY — The Federal Trade Commission filed a complaint against two Utah men in U.S. District Court earlier this month, accusing them of making deceptive claims about their business coaching operations that cost consumers to collectively lose millions of dollars.
The Federal Trade Commission filed its complaint against Jared Rodabaugh, of Sandy, and Justin Larsen, of Lehi, who they say are the owners of Vision Solution Marketing LLC, based in Draper with a mail forwarding address in Las Vegas, Nevada, Specialized Consulting Solutions LLC, also in Draper, Ryze Services LLC, based in Sandy, which were also listed as defendants in the complaint filed May 1.
The collective businesses’ services were also halted by an order filed in court, FTC officials said a statement Wednesday. The agency said the Utah Department of Commerce assisted in the investigation into the companies.
In the statement, the FTC claimed the businesses began by targeting people who bought work-at-home programs online for less than $100 from another business, Internet Teaching and Training. The programs often encouraged buyers to contact an “expert consultant” or “specialist” to see if they qualified “advanced coaching” program. The agency said those who asked to speak with a specialist were routed to telemarketers of the businesses owned by the two Utah men.
Internet Teaching and Training faced a different claim from the FTC in December 2017 for charging consumers as much as $15,800 to enroll in its Business Coaching Program, court records show.
When consumers were forwarded over to Vision Solution Marketing, the FTC claims they were charged as much as an additional $9,995 and the two companies split the sales. Vision Solution Marketing then began selling Business Coaching Program in 2016 and charged consumers as much as $13,995 for it, the complaint stated.
It added the businesses continued to target consumers with telemarketing calls to induce follow-up sales.
“Most consumers who purchase the Defendants’ products and services, however, do not end up with a functional online business, earn little or no money, and end up heavily in debt,” the FTC wrote in its complaint filed in U.S. District Court.
The complaint added that “numerous consumers” collectively lost millions of dollars as a result of the telemarketing scheme, though it did not say how many people were affected or an exact dollar amount.
While the companies’ assets are frozen, FTC officials said the owners will be prohibited from selling business coaching services. Officials added in its statement that they intended to “permanently end alleged illegal practices and obtain money for injured consumers.”
A call to a number listed for Vision Solution Marketing went unanswered Wednesday.
