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  • Report:  #320043

Complaint Review: The Coaching Institute - Draper Utah

Reported By:
- Thousand Oaks, California,
Submitted:
Updated:

The Coaching Institute
11734 South Election Road, Suite 295 Draper, 84020 Utah, U.S.A.
Phone:
888-268-7003
Web:
N/A
Categories:
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I am one of many Realtors in California and across the country who have been scammed by The Coaching Institute based in Draper Utah.

THE SALES PITCH

I attended a sales pitch in Agoura Hills, CA in November 2007 given by Paula Workman and her son. The spin she put on the program in her sales pitch was much different than the reality of the program as I have come to learn. Obviously the sales pitch is a finely crafted, scripted and memorized presentation designed to provide just enough information to get someone interested in signing up for their Coaching Program. In hindsight I see that her presentation just skimmed the surface of a lot of different things, but didn't really cover what this program is really about.

I felt pressured to make a decision right on the spot because they said that "this was the only time that I could get into the program for that price" and there was "limited space" and they have had "a lot of interest." They told me that $5,000 was nothing compared to the money I'd make by what I learn through thier Program. It sounded reasonable at the time for what they promised it would deliver. Obviously they wanted me to sign up on the spot because they knew if I left and went online and saw how many people have already been swindled by The Coaching Institute - I would have never signed up. If it was fully disclosed then what this program is really about there is no way me or any other Realtor would have ever signed up for this program!

WEBSITE

I was told the day of the sales pitch that I would get a FREE website. I told them at the sales pitch that I didn't need or want another website because I already have an extensive site that I pay for and maintain. I asked if they could discount the program fee because I don't want the site. They said it is "free" so it doesn't matter, I don't have to use it if I don't want to. Well, come to find out that when the website company called me to set up the site and I told them that I didn't want it, he was surprised. He said, "But you already paid for it." I asked him what he meant because I was told it was "free". He said that Coaching Institute pays them $2,500 of the $5,000 tuition for the site. Then I asked him, "If you don't create a site for me, do you get paid" and he said "NO". So where did my $2,500 go? The Institute is in breach of contract and has knowingly misrepresented what I was charged for and has taken money from me that is not rightfully theirs.

COACH

The Coach that was assigned to me was not impressive. After receiving all the materials and reviewing them thoroughly I became concerned over the "investment strategies" the program promotes. I emailed the Coach I was assigned to and told her I was concerned about the types of tactics they suggest using. I didn't feel they were ethical. She never responded to my email. My first conversation with the Coach was my concern about these strategies. She would not address my concerns directly. She said she would have someone call me and no one did. At a half hour on the dot, she ended the call abruptly. My next half hour call with her consisted of her giving me website addresses for HUD, OCWEN and other places to find REO and foreclosed properties. Strategies that didn't involve swindling people out of their equity. That wasn't exactly earth shattering information that I would pay $5,000 for. I already knew this.

It was obvious that the Coach didn't really care about helping me and explaining the program to me. She just spewed out some random information and watched the clock for the half hour to stop. She told me directly that she just does this for fun. I didn't pay $5,000 to give some retiree something to do to kill half an hour a week.

I suspended my coaching sessions because I was not receiving anything of value and since I only had 10 sessions I wanted to learn more about the program at the 2 Day Workshop before proceeding.

2 DAY WORKSHOP

I attended the 2 Day Workshop given by Lynn Stevens in Glendale, CA on December 5, 2007. It was after going to the 2-day workshop that I confirmed my suspicions of the Coaching Institute's program. I realized quickly that this was just another one of those "real estate guru" "get rich quick schemes" and I had fallen for it. I knew then that I was scammed and it made me furious. Instead of watching an infomercial at 2am, instead I attended a finely crafted, scripted and memorized sales pitch directed to Realtors. I could have gone to Barnes and Noble and bought 2 books that gave me the same information I received from this $5,000 program.

At Lynn's workshop, once again, the surface was just skimmed, but no tangible information was given. At the Sales Pitch we were made to believe that the 2 Day Workshop was an intensive training session that we would gain valuable information from that will help us to become savvy real estate investors. This was NOT at all what happened at this 2 Day Workshop. Lynn only glazed over various topics. At the end of the 2nd day he discussed schemes just like the late night gurus. The only "investing" information presented the entire 2 days was an overview of how to swindle people out of their equity. There was nothing concrete or informative presented. It was a huge waste of time and a big realization that I had been scammed.

CALIFORNIA ASSOCIATION OF REALTORS POSITION

After attending the 2 day workshop and learning what this program was really about, I spoke to the general legal counsel for California Association of Realtors. I explained to him what was discussed at the Workshop and what was outlined in the educational materials I received. He strongly advised against becoming involved with these types of real estate schemes that the Instutute was promoting. Specifically the types of schemes where I, as Realtor licensed in the State of California, knowingly offer someone far less than fair market value for their home for my own personal gain. He said that I am looking for a lawsuit if I structure deals for my personal gain where I know they could do better if I represented them as a Realtor where my fiduciary duty is to look out for their best interest. In fact, I heard that there is currently litigation in California for this very reason.

Unfortunately, I didn't realize it when I signed up for this - because it was never disclosed - that what The Coaching Institute would really be teaching me is how to swindle people out of the equity in their homes. Not only would I not do business in this manner on principals of ethics, but as a Realtor in the State of California, I could lose my license and be sued!!! Why would the Coaching Institute promote these types of schemes to Realtors knowing that we can not conduct business in this way? This was a classic bait and switch scheme and is highly unethical.

This is what infuriates me the most. The Coaching Institute should not be promoting such a program to Realtors that could jeopardize our license and our livelihood.

SCHEMES

Even Lynn Stevens himself at the Workshop used the word "schemes". When I heard that word come out of his mouth I cringed. Definition of a scheme: a secret and cunning plan, especially one designed to cause damage or harm.

In fact, at the two day Workshop, in front of everyone, I expressed my concern for these schemes. I specifically asked Lynn if it would be unethical to knowingly obtain someone's property for less that what I knew it was really worth as a Realtor. In front of everyone, he basically said that maybe I should consider not being a "Realtor" and focus on being an "investor"! He indirectly admitted that this would be unethical for a Realtor.

The way this program was sold to me at Paula's sales pitch is that it was a way to supplement my income as a Realtor by ALSO being an investor.

This is NOT a program that should be marketed to Realtors. As a Realtor, I find the "schemes" outlined in the Coaching Institute's programs to be highly unethical. Then to have it confirmed by the California Association of Realtors Attorney I knew I was scammed!

GROUP MEETINGS

I attended our first group meeting so I could gauge what other people's thoughts were on this program. The first group meeting of the participants who had enrolled in the program was like the blind leading the blind. At Paula's sales pitch she emphasized the group aspect of this program. Although the Institute had promised guidance and direction for the group, none was given. We had no direction, no purpose, no knowledge and no experience. No one there had any experience in investing that's why we thought we signed up for this "Coaching" program. Most of the participants there had not been contacted by a Coach. No one understood what the purpose of the program was and what the purpose of a group was. Everyone was disgusted with the 2 Day Workshop and felt it was just a two day event of smoke blowing and puffery. No one got any tangible information from those two days that they could use to constructively move forward as an "investor".

After the first meeting I decided that this group was yet another waste of time. To me it felt like a room full of suckers that got scammed by The Coaching Institute just like I did.

NO RESPONSE TO MY CONCERNS

In February 2008, I sent a letter outlining this specific information via Certified Mail to the Coaching Institute attention Craig Hendricks President. I demanded an immediate full refund! They have never responded.

This program is a fraud. The Coaching Institute did not deliver what it promised and has breached the contract. The Coaching Institute knowingly sold a program to Realtors that seriously violates the National Code of Ethics that all Realtors must abide by. The Coaching Institute has misrepresented the nature of this program. What was sold in the sales pitch is not at all what this program is about. This is a classic bait and switch. This whole program is fraught with misrepresentation, poor dealings, trickery, and is just plain unethical.

Christina

Thousand Oaks, California

U.S.A.


5 Updates & Rebuttals

Cvh

Thousand Oaks,
California,
U.S.A.
More lies and misrepresentations

#2Author of original report

Fri, August 01, 2008

Boy, they have an answer to everything. Yes, Coaching Institute has contacted me on many occasions - but has never responded to my concerns. Joe Holm called me many times to set up more Coaching Sessions and I told Joe that I did not want to continue with the services until my concerns were addressed. I felt that their program was in direct conflict with my career as a Realtor and I also wanted an explanation about where the money went for the website I paid for but did not get. She said she would follow up on it. I sent her several emails. Sometimes she responded saying she was checking into it and then eventually she never replied again. Someone named Josh also called me numerous times to participate in a "free" program. I told him of my concerns and he said he would look into it. I emailed him a couple times too. He never responded and no one else did either. I did listen to his presentation once and received an email from him to learn about what he was offering. It was an offer to invest in property in Louisiana. I would not give another dime to Coaching Institute or any company associated with them. I dont know how or if he was affiliated with CI or if he is just someone CI gave their list of suckers to see if Josh could make a profit on us too and give CI a cut. CI promises and implies one thing at their seminars and after they get your money you realize that they only rehash the old school "late night guru" schemes for swindling people out of their equity. Schemes that are in direct violation of the Realtor Code of Ethics. The classic bait and switch. This program should not be marketed to Realtors. I want my money back because I did not sign up for a program that would jeopardize my career and livelihood. CI pocked $2,500 from me for a website I didn't get. I know for a fact they did not pay the website developer because he did not create the site for me. He told me directly! At the very least, you think they would be honest enough to give me the money back for something they did not pay for. Nothing they can say will ever want me to do business with them. I know what they are all about. As if this site and others arent evidence enough.


Customer Service

Draper,
Utah,
U.S.A.
Coaching Institute Response #2

#3UPDATE Employee

Wed, May 14, 2008

Christina states that Coaching Institute has never addressed her concerns directly to her nor responded to her phone calls, letters or emails. However, our records indicate that we have spoken to her, left a message for her and/or communicated through email no less than 14 times since her original complaint in December. We have tried several times to address her concerns and move her forward in her program. As all of her concerns have now been addressed, if Christina would like to move forward in her program she needs only to contact our Customer Service department and ask to be rescheduled with a coach. We will be happy to discuss her program with her and clear up any further misunderstandings there may be. We anticipate hearing from her.


Cvh

Thousand Oaks,
California,
U.S.A.
This is the first I have heard from CI regarding my concerns.

#4Author of original report

Mon, May 05, 2008

Funny that Coaching Institue has never addressed my concerns directly with me. This post is the only response I have ever seen and it wasn't even directed to me. They have never responded to my emails, phone calls or letters, which is why I decided to post my concerns on a public forum. They have never attempted to contact me to explain how their program works or have ever tried to clarify anything to me in an attempt to provide any sort of customer service. If there really is a "misunderstanding" of how the program works, you'd think they would try to work it out with me and give me what I paid for. They say that nothing they say could satisfy me. How do they know - they have said NOTHING. Obviously they could care less about helping me or anyone else utilize their program - they got their money.


Dgn

Salt Lake City,
Utah,
U.S.A.
Time for Class Action Lawsuit. I have evidence of fraud against Coaching Institute

#5UPDATE EX-employee responds

Fri, May 02, 2008

The rebuttal from Customer Service was more well crafted misrepresentation with a threat at the end. It too, is full of mis-statements and fraud. This company has convinced itself it is helping people. They do not have thousands of satisfied customers. They have thousands of disgruntled customers. Many just give up and go away because they find it not worth the time or effort. It is my understanding that less than 10,000 people have signed up for coaching from Coaching-Institute. Don't let the rebuttal fool you. I worked for this company and tried to get them to change things only to be terminated and threatened by the owner which I have recorded. The interesting thing is that this company is backed by some pretty big money but it is well hidden. There is a payday for the right firm to pursue this. Fraud pierces the corporate veil and the investors and owners have millions in assets that could be used to make whole those that have been defrauded by Coaching Institute. Many people have gotten their money back because of the sexual harassment received by the male speakers to female attendees. It was not uncommon for the speakers to get your money and then try to get you to go party with them. I am a former employee and I have all of the seminars on DVD or VHS. I have proof of most of what they say is fraudulent. Most of the instructors have NEVER been licensed or NEVER practiced Real Estate. The examples they use are untrue and manufactured. The only way these people have ever made money is by getting you to write a check. Not one of them makes money from being involved in an active real estate practice. So when the material information of what they say entices you to buy and that information is untrue that is fraud. I just want a law firm to begin a class action law-suit. I have documents, recordings, threats from the owner and Video to prove anything. I was terminated because I wanted to clean the company up. I told Craig Hendricks that the company would grow exponentially if we actually provided a service that was congruent with what was promised. Most of the speakers are classified as independent contractors which is also against IRS code.


Customer Service

Draper,
Utah,
U.S.A.
Rebuttal to Complaint filed by Christina Against Coaching Institute at Rippoffreport.com

#6UPDATE Employee

Mon, April 28, 2008

Let us preface this rebuttal by stating that Coaching Institute has thousands of satisfied customers across the nation and thousands of testimonials ascribing to significant life changes upon completion of our program. Such testimonials can be viewed on our website at www.coaching-institute.com. Coaching Institute is extremely proud of the level of service that we are able to provide each client and of the success we have helped thousands achieve. Coaching Institute presenters are professionals. We do not make promises that we cannot keep and we operate on the principle of full disclosure at all times. Our program is designed to assist Real Estate Agents become more successful by teaching them tools to become an investor. As stated at the seminar, our program is not a get rich quick system and will require complete commitment on the member's behalf. We fully stand by our guarantee that if you have not earned or saved at least TWICE the cost of your tuition within 12 months of your training, we will continue coaching until you do. This is not an empty promise, but a GUARANTEE. When you follow the program and utilize the tools given to you, you will succeed. Obviously Christina saw an opportunity to make positive changes that would assist her in becoming more successful in her business. Then, according to the comments she submitted when she submitted her personal assessment to Coaching Institute, Christina had second thoughts about her ability to complete the program successfully. Christina submitted her assessment to Coaching Institute the day following her enrollment in the program. She asked for someone to please call her because she may have gotten in over her head. This statement alone is reflective of Christina's composition. Let alone, the fact that during her first coaching session, Christina requested a refund. She had not even begun to experience the program and had already placed barriers in front of her. Coaching Institute presents our seminars to hundreds of Real Estate Agents, CPA's, Lawyers and other Professionals on a weekly basis. We have thousands of satisfied clients and thousands of testimonial letters from across the nation ascribing to significant life changes upon the completion of our program. Our agents are professionals and do not pressure anyone into making decisions that they do not want to partake in. Christina freely chose to stay and listen to our presentation and freely entered into her contract with Coaching Institute. Her statements are consistent with buyers remorse and fear of the changes and challenges she must face to successfully complete the program. This is the very reason that Coaching Institute's contracts carry a non-cancelable, non-refundable clause. Our seminars are professionally presented and our contracts and the binding nature of them are fully disclosed from the onset of the seminar. Nothing is misleading and nothing can be misconstrued as swindling as all participants are given ample time to review the contracts and terms and conditions before they sign. All information regarding our program is provided right up front and if Christina failed to familiarize herself with the contract and terms and conditions before signing, we fail to see how this can be construed as a deficiency on the part of Coaching Institute. Christina was also provided ample time for questions and answers regarding our program. Christina did participate in this session and obviously, as she entered into the contract - Coaching Institute was able to satisfactorily answer her questions. Again, if she neglected to ask all of her questions at that time, we fail to see how this is our responsibility. To be more specific with her concerns: Regarding the website - the website that is received as part of our package is a trial website and is free of charge for the first thirty days. We aim to provide added value by lining up additional products and services for our clients to try out. Again, we do not pay the companies for this, so there is not a discount for it. It is your decision to use it or not. It is fully disclosed that the website is provided for a period of thirty days and if after thirty days clients decide not to utilize it, they may cancel it without any recompense. Christina is searching for a way to get out of her contract and has misrepresented this information. In addition, Christina paid $4995.00 for her program. Our contract clearly states that the value of the coaching services alone is $6885.00, including resource sessions. She paid a discounted price for joining that day and receives the benefits of the workshops and other related items at no additional cost. As another benefit for utilizing these services and signing up through Coaching Institute all set up fees for the websites are waived through their company. Again, Christina is searching for a way out of her contract and has misconstrued the facts as they were presented. As to her comments regarding her concern with the strategies presented by our coach and the types of tactics we use - The job of the coach is to find out what the goals are of the client, then present strategies that can help them achieve those goals. The strategies presented by the coaches are strategies that have been around for years, and many investors use everyday to help people sell or buy properties, and to help themselves to buy and sell properties. As Christina did not have any clear goals delineated on her assessment, the coach then started presenting many strategies and web sites that are used by investors, real estate agents and realtors alike. Christina has been an agent for four and a half years and even though she has never really invested much, she seems to know more than the rest of us. Hence our confusion on why she joined the program. Again, the details of our program are fully disclosed from the beginning. Christina was fully aware that the coaching sessions she would receive would be for a half-hour on a weekly basis for twelve consecutive weeks and then scheduled at her request for the next nine months following the guidelines in her contract. As you can appreciate, our coaches are very busy and must be accountable to all of our clients, not just Christina. We preach accountability to our clients, and therefore must be accountable ourselves. Christina's next comments center on the two-day workshop and her perception of the events that transpired there. Our presenter, Lynn Stevens, has been in the real estate business since 1969 as a licensed real estate agent and broker (Broker since 1972). He has held real estate licenses in several states, and has helped others complete their real estate transactions, and has completed many transactions for himself over the years. There have been zero complaints and no lawsuits filed against him. That alone says something of his ability to do an honest, straightforward job in the real estate industry. When he starts the seminar, he introduces himself, and lets participants know that he is currently a member of the Board of Realtors and that his goal is to increase the competency of each agent; one agent at a time. Also an important note here would be - he has found that when most real estate agents become investors, they also become better agents. With that in mind, he does not just cover investment techniques, but also basic business practices as an agent, and an investor. At the beginning of the hour he also lets participants know that this is not a get rich quick program; they will have to put in a lot of hours of their time in order to become more organized, learn the investment techniques, and put together a team of people whom they get advice from when doing a real estate transaction for themselves and/or helping their customers. The other very important rule he stresses throughout the seminar is that everyone needs to practice FULL DISCLOSURE. If there is something wrong with the property, or if something was wrong with the property and it was mitigated, then it must be disclosed, and if mitigated, what was done as a corrective action. He then shows the class how this could be used as a positive sales tool rather than a negative. Then, on day two of the seminars, he shows how far he actually takes full disclosure. When a regular agent creates a Comparative Market Analysis (CMA), they usually show what they think the price should be. This is not giving the customer all the information they need to make an educated decision and Christina most likely falls into this group. Sorry, but real estate agents are not appraisers, and should not try acting as one. Trying to do so creates false information for a customer to base their decision on. What Lynn does and teaches is a little more complex, and takes a little more work, but the customer has more information in which to make an informed decision. In graphic form, he shows the low price based on the time it should sell, the medium price, based on the time it should take to sell, and the high price, based on the time it should take to sell, if at all. With this additional information, they can decide how much risk versus the amount of time they would like to sell in. Now, if they want a quick sale (and that is their motivation), then an offer can be made right at that point, and the client can evaluate if they want to accept the offer, list the property or do nothing. That is full disclosure of the price point they want to sell at. What the average agent does not give the customer the level of full disclosure that Mr. Stevens practices and preaches daily. Just a note for the agents in California, there is a law on the books that says if you represent, or purchase property in a pre-foreclosure process (Civil Code Section 1695 through 1695.17) and you violated Sub Section 13 (It is unlawful for any person to initiate, enter into, negotiate, or consummate any transaction involving residential real property in foreclosure, as defined in Section 1695.1, is such per, by the terms of such transaction, takes unconscionable advantage of the property owner in foreclosure), and if you do not have in your contract in 14 point size type REQUIRED BY CALIFORNIA LAW, and then the wording exactly as California law requires, you are subject to fines and other remedies. Coaching Institute, our presenters, employees, agents, etc. are fully aware of the laws practiced in each state and abide by such on a daily basis. Christina alleges that our program is designed to teach her how to swindle people out of the equity in their homes. Unfortunately, Christina missed the section of the workshop that spoke on full disclosure and the agents' fiduciary responsibility, not only to their clients, but also to themselves. Either that, or Christina was looking for a get-rich-quick-scheme that Coaching Institute was unable to provide. Another of the things we encourage is after members have been to the workshop, that they get together to review some of the items, and if they have questions on specifics, they can email the presenter and he will try to answer to the best of his ability. This also creates a forum for them to exchange ideas and information on the real estate market in their area and resources they may be able to share. Our coaching program is also DESIGNED for this very function. Hence, the meaning of the word coach. Christina is not going to be satisfied with any answer that Coaching Institute provides. We have made a faithful effort to fulfill our portion of the contract and detrimentally relied upon Christina to fulfill hers. She has not and continues to resist our efforts to assist her. Coaching Institute takes our business very seriously. Coaching Institute will not tolerate threats, libel, slander, or other fraudulent acts. As the leading technology coaching company in the country with an impeccable reputation, Coaching Institute is willing to fulfill its responsibilities and complete the contract into which it entered. Our commitment to Christina has not diminished, however we cannot force her to participate in her coaching program. This is Christina's choice. As it has been from the beginning. The Real Estate Investment Total Business Building Package involves a high level of accountability. Coaching Institute holds its clients to the same high level of accountability stated in our guarantee. Coaching Institute's philosophy is that failure is not an option. We remain ready, willing and able to assist.

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