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.

Comments (3)
  1. Alyse Azevedo says:

    I really don’t understand this…
    1) Why he’s bankrupt
    2) Why people think it’s a scam, when they don’t do the work in front of them. People need to take responsibility for their failures, not blam it on a company cause they ecpect the money to just come with out doing any work.

  2. Corey Bell says:

    I purchased this system about three years ago, and I hit many pit falls. Of coarse I spent money that I did not have, or could have used for something else, but I fell for the get rich quick schem. It seemed like three months after I purchased the system and was trying to get it up and going, I would get calls and or emails telling me that I needed to purchase more, or come to confrences, I wrote back and emailed back saying that I would if I could actually get some deals to close, but the calls kept and emails kept coming. Finally I had to break away, and start doing my own thing, and learn all things on my own, the ups and downs was not explained to me very well, unless you purchased more information or upgraded your membership. I am not saying that it is or is not a scam, but it seems like something that is suppose to help people financialy, should not be something that you should have to continue to purchase and or upgrade on a constant basis.

  3. Sidewinder says:

    NO! Go ahead and SAY IT! Anything that CLAIMS you’ll acquire/ generate income by using their product and/;or program, which not only FAILS to live up to those claims, but requires you to spend even more money, IS A SCAM! AN OUT and OUT SCHEME, SCAM, CON GAME, and any other similar description
    They took your hard-earned money and in return, you got nothing except a bunch of “sweet nothings”, excuses and apologies, and MORE false promises of HOT AIR, smoke and B-u-l-l- S$$T. Hey, everyone makes mistakes.

    Ya’ know, I’m incensed by those who don the “You should know better”, and “”Serves ya’ right for being, stupid, greedy, _ _ and other like descriptive adjectives”! While it’s important to take precautions and be wary, that DOES NOT make it RIGHT to take advantage of those who are in need, who don’t fully understand the consequences their actions might yield. IN short, two wrongs DON’T MAKE a RIGHT! I
    I’m generally a compassionate person, but I have little compassion for con artists, manipulators and other similar human parasites! They GET EVERYTHING that’s coming to them!

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