WESTMINSTER, Colo. (CBS4)-The company behind a well-known infomercial is making dramatic changes following a CBS4 Consumer Investigation. In May, CBS4 reported the Dalbey Education Institute was being sued by the federal government over deceptive marketing in that infomercial.
The federal lawsuit and bad press has disrupted business at the Dalbey Education Institute. The entire sales staff, about 70 people, was given final paychecks on Wednesday and told their job is over.
In late May, a federal lawsuit filed against the company, asked that it stop running its infomercial and distributing other materials that promise large returns on investments.
One woman, who asked CBS4 not to reveal her identity, is one of 46 people who have filed complaints with the Colorado Attorney Generals Office. She invested $19,000.
“I was just like a little sheep. All of us are like little sheep and we’re going to get fleeced. That’s what happens,” said the woman.
Employees said they are trained that way, according to one former sales person who also spoke on anonymity.
“Looking back, I feel terrible. I feel awful about, you know, the people I sold, that I feel I took advantage of,” said the former Dalbey Education Institute employee. “They certainly don’t need somebody squeezing every last dollar out of them.”
According to employees, the Dalbey Institute laid off its entire sales staff.
The company attorney said in an email, that the business, “lost a significant medial outlet” for its infomercial and suffered “significant negative press” following the lawsuit. He said the business is “restructuring.”
The Colorado Attorney General expects a court hearing on the case this fall.