WESTMINSTER, Colo. (CBS4) – Several former employees of a Westminster company that runs infomercials on TV are speaking out to CBS4 about what they say are fraudulent practices by the company.
The Dalbey Education Institute has run infomercials on TV for nine years. It offers to teach people how to make money in real estate without ever having to buy, sell or invest in property. The course is called “Winning in the Cash Flow Business.”
The Colorado Attorney General’s Office is now fighting to get the infomercials off the air. They have been investigating the company for more than a year and are set to file a preliminary injunction that “will force the company to stops its fraudulent activities,” said Mike Saccone, a spokesman for the AG’s office.
One of the former employees who wished to remain anonymous told CBS4 in an interview that the business made an estimated $170 million in 2009.
A former employee also told CBS4 that they never saw clients who were satisfied.
“Never once in the years I worked there did I ever have a single client call back and told me they made any money.”That interviewee was one of several people who told CBS4 they are afraid of Russ Dalbey, the CEO of the company. None would reveal their identity to CBS4.
The attorney general’s office says 50 complaints have been filed about the company so far.
“We expect as word of our case gets out we will receive dozens if not hundreds of more complaints from consumers across the country,” Saccone said.
The building where Dalbey Education Institute operates in Westminster looks like most other businesses. But what’s inside?
“It’s just a huge sales force of people calling people all over the nation pitching them on an idea of making a lot of money,” the former employee said.
CBS4 Consumer Investigator Jodi Brooks asked the employee how much money they personally made when they were employed with Dalbey.
“Hundreds and hundreds of thousands.”
“More than $200,000?” Brooks asked.
“More than $300,000?” Brooks asked.
“Looking back, I feel terrible,” that person said. “I feel awful about the people I sold. I feel they took advantage of because a lot times they were old, they were disabled, they certainly didn’t need somebody squeezing every last dollar out of them.”
The attorney for Russ Dalbey denies any allegation of deception and says he will prove people did make money from the company.