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.

Dalbey Education Institute Story Archive


Comments (10)
  1. Anonymous says:

    I would like to say that it isn’t just the sales staff without jobs…it’s 100 plus employees both sales and non sales employees that are now without jobs. There are about 20 employees left to close business up over the next couple weeks.

  2. Otter says:

    Good. Find something else to do. Something ethical. Karma or your soul or whatever you believe in will thank you. If you don’t believe in anything… well, Good.

    If, as Russ is quoted as saying, “the government made a mistake” then why is he closing his business? If Dalbey is so innocent of deceptive business practices, they why did Russ’s lawyer say they are ” restructuring”?

  3. Michael says:

    I worked for the company several years ago, and I’ll say that while the sales process was heavy handed, it wasn’t intentionally meclicious in any way. The program worked. People just didn’t use it. The government has shut down nearly every business opportunity at this point. While I would never work for a company like this again, I do think the government is overstepping its bounds a little here. It’s like suing your college for false promises after you failed out because you didn’t go to class.

  4. Suzanne says:

    Everytime I called all I got was someone asking for more money. I got ripped off as well as others. It sounded easy to do and make extra money. Being out of a job you try anything to get extra money coming in. It is hard to live on unemployment money when you made more with the job. So, I got ripped off with $700.00. I hope I can get my money back.

  5. R.J.Bontrager says:

    If a course of retribution is proposed, count me in with my conplaint. R.J.Bontrager, rjbo26@yahoo.com

  6. vikki says:

    i was taken in because i just knew I could find the properties. When I would call for support the person would only try to get more $$ and offer no HELP at all. Count me in on this law suit cause i invested $600.

  7. Gene says:

    I got ripped off for $5500!. I knew something was wrong when the program I received was 100 times more work than the infomercial made it seem. I immediately lost faith in it and went into two other businesses that are everything they said they are. Count me in on the class action suit.

  8. Roy L. Calvin says:

    I have been unable to access my web site for the last few days and have not been able to contact a counselor. The answer unit states that they are in training; which has indicated to me that the business is operating in an unusual manner. My total investment was under $4,000.00 over a period of several years. I was preparing to work the business full time but that plan will naturally change now.

  9. JBLunsford says:

    my credit card was only charged once for the start up plan, my first phone call was asking how much i could pay to get training. there goes more money in hopes of making icome. thanks a lot RD. signed
    unemployed two years

  10. Ron says:

    I’m extremely peeved by Russ Dalbey and his bogus DE. He took over $30,000 from me. Each time I bought a new product, training, seminar, convention, I was told that it would make all the difference. It’s obvious to me now that their main focus was not education, but was fledecing their members for all that they could get. I loved their first statement whenever they called: “Mr. Dalbey has asked me to give you a call to find out how we can help your business succeed.” Of coursde this was nothing more than a call to sell you some new “training”. I really hope there is a class action suit on this. I would definitely take part in it.

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