Tuesday, March 17, 2009

Stefancik / Beringer scam loses on appeal

John Stefancik's "Wealth Without Boundaries" book and his multi-thousand dollar training program on how to get rich in private real estate mortgage notes have taken another, perhaps final blow.

The FTC charged him with deceptive trade practices and last year obtained an injunction as well as a fine of over $17M. Stefancik appealed and as of this month the 9th Circuit has upheld the ruling of the lower court.

Stefancik, using a sales organization out of Salt Lake City, convinced nearly 8,000 people to buy the book. Some number of those were sold the additional training materials and engaged in trying the program. The investigator found that the notes showed 153 customers had submitted deals to potential paper buyers. Out of that total, 68 had their deals rejected, 77 did not have conclusive comments regarding either acceptance or rejection, and only 8 customers had successfully completed a deal.

Like so many of these kinds of businesses, the chances of success for anyone but the promoter are slim.

The Honorable Judge Roy Bean

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