WESTMINSTER, Colo. (CBS4)– The company that promised to help people get rich, the Dalbey Education Institute, is now broke. The company has filed for bankruptcy.
An investigation into the company’s practices isn’t over. Hundreds of people across America claim they were scammed by the Westminster company.
Russ Dalbey created the company which is best known for its commercials “Winning in the Cash Flow Business.”
His company has filed for Chapter 7 bankruptcy, which virtually eliminates a company.
“It not only calls all the dogs off, it then sells all the assets. So after a Chapter 7 bankruptcy, a company disappears,” said University of Denver’s Daniels College of Business professor.
So far, 308 people have filed complaints with the Colorado Attorney General’s Office claiming they were scammed by the company.
Court documents show gross income for the Dalbey Education Institute in 2011 was more than $21 million. Gross income for 2010 was nearly $50 million and in 2009 it was more than $62 million.
“When the economy was down, the scam was in full swing,” said Colorado Attorney General spokesman Mike Saccone.
The Colorado Attorney General’s Office partnered with the Federal Trade Commission in the spring of this year to file a lawsuit against Russ Dalbey for violation of the Consumer Protection Act.
Although Dalbey has filed for bankruptcy, the state’s investigation into the company’s alleged illegal practices does not go away.
“It’s our position and the State of Colorado’s position that restitution and fines and fees imposed by the state regarding a law enforcement action such as this are not discharable,” said Saccone.
When contacted, Dalbey’s attorney had no comment.
The Colorado Attorney General’s Office said it’s not too late to file a complaint against Dalbey Education Institute if you feel you’ve been scammed.
To file a complaint with the Colorado Attorney General’s Office against the Dalbey Education Institute go to coloradoattorneygeneral.gov. Or call the Colorado Attorney General’s Complaint Line at (800) 222-4444.