After seeing it advertised on local television I attended a free
3 hour seminar in Pasadena California promoting American Cash Flow. Though
the company is based in Florida, the presenter was from a small mid-west
town.
The cash flow industry was described as a broker middleman operation. With
the use of this company's database as part of the purchase price,
you supposedly have access to holders of invoice notices from their
clients and also access to buyers of those invoices for 90 cents
on the dollar.
With a $2000.00 discount if you purchased the training program there,
the total cost was $2,995.00 to become part of the presenters inner-circle.
About 100 people were in attendance. Once the announcement was made
to sign up at the back of the room there was a scamper for the opportunity.
I left because of the urgency to sign up now, the quickness of some
to sign up, and the fact that this company is from Florida.
I have received so many MLM network marketing and other opportunities
from Florida, that I become very concerned once I hear that state
mentioned. Is this what it's cracked up to be?
Danny 09/18/02
American Cash Flow Association™ ( ACFA ),
also known as the American Cash Flow Institute ™ ( ACFI ),
American Cash Flow Corporation™ ( ACFA ), National Mortgage
Investor's Institute ( NMII ), Diversified Cash Flow Institute ™ (
DCFI ), among many other names -- all founded by lawyer Laurence
J. Pino / Larry Pino
The Diversified Cash Flow Institute ™ (DCFI also known as
D.C.F.I.), run by an Orlando lawyer Larry Pino, sells a class on
how to be a note broker for $5,995 through highly-visible national
TV infomercials, 4-page glossy ads in major airline magazines, massive
direct mail campaigns and sales meetings across the country.
While note brokering and investing in cash flows can supposedly
be very profitable, before you invest your money in any seminar,
whether run by the American Cash Flow Institute ( ACFI ) / American
Cash Flow Association ( ACFA ) or any other company, consider this Newsweek article
which is headlined:
"Show Me The Money"
"Larry Pino's pricey cash-flow workshops plug an easy
way to get rich quick.
It's a real business, all right -- but there isn't much easy
or quick about it."
That headline is restrained compared to the ones in newspapers across
the country: "Get Rich Course Will Waste Your $6,000" (Philadelphia); "Keep
Eye On Pitch To Get Rich" (Akron); "Grim Reality
Lurks Behind Sales Pitch" (Washington State); "’Discounted
Notes’ Latest in Get-Rich-Quick Parade" (Ft. Lauderdale); "Road
To Riches With "Discounted Notes" May Be Rocky" (Orlando)
and many, many others.
Newsweek reporter Temma Ehrenfeld, along with
450 others, attended a "free seminar" in New York City
sponsored by DCFI. The magazine said the DCFI pitchman spewed "a
spiel that feeds dreams. 'I'll show you how to make $1,000
with one phone call,' he cries. 'You deserve to be making three
times as much as you're making now.' He claimed that you could
make '$4,900 a month for a few hours' work: $128,367
on your maiden deal.'All this without leaving home."
The price of this dream? Just $5,995 ($2,495 for the tape course).
Newsweek paid the fee and sent Ms. Ehrenfeld to the live
course. Then they waited 15 months to find out how her fellow students
had done:
"We asked them how many $1,000 phone calls
they'd made. Zero, as far as we can learn."
After 15 months she could find only ONE of her 32 DCFI classmates
(of the 18 who responded) who had made any money at all: One deal
for a profit of $750, and one for $300.
$750 + $300 = $1050. The most successful
student she could find is in the hole for $4,945.00 18 months later
(the cost of the class minus the $1050 profit).
$5,995 x 32 students = $191,840 for DCFI.
Quinn reported on two DCFI students (not in the above class) who
said they were happy with their training.
"An “Assurance of Voluntary Compliance” was filed
in court in Davidson County, Tennessee in 1996 and is labeled State
of Tennessee versus Diversified Cash Flow Institute, Inc. (Pino is “President
and General Counsel” of DCFI).
It says “The Division of Consumer Affairs...and the Attorney
General conducted an investigation of [DCFI's] business practices.
These practices include the following:...using earnings claims that
are not representative of the results an average participant in the
training program could expect; making potentially misleading statements
about the value or cost of the training program; stating that the
training program was associated with a university when it was not;...and
overstating the value of certification offered by [DCFI]...the Division
and the Attorney General determined that certain acts and practices
of [DCFI] violated the Tennessee Consumer Protection Act of 1977.
[DCFI] neither admits nor denies any wrongdoing...and gives this
assurance...in order to avoid the expense of litigation.” The
court papers state that the DCFI training program cost $6,995.
Interestingly, the “Assurance” requires DCFI to make “verifiable
substantiation of...illustrations that may not reflect the average
experience of a graduate...available on request.” The word “illustrations” apparently
refers to examples of student success or student testimonials. I
am very suspicious of the testimonials provided by seemingly average
persons on guru infomercials. The Assurance requires DCFI to stop
saying the “cash flow” industry is unregulated when,
in fact, TN law requires a brokers license for some of the activities
DCFI covers. The Assurance orders DCFI to refrain from discouraging
consumers from taking notes or otherwise keeping a careful record
of the information [DCFI] provides during the introductory workshop.
Jane Bryant Quinn cuts to the heart of the issue:
"The question with Pino workshops, and
others like it, is the sales pitch.
Does it give a true picture of what it takes for
success? Or does it prey on people's innocent hopes?"
She then summarizes the key points:
1) "Note brokering isn't as easy as it sounds." In
spite of claims to the contrary in order to sell seminars, successful
note brokers work 50 to 70 hours a week and couldn't earn a living
part-time. A Pino booklet called "Getting Your First 10 Deals
In 10 Days or Less" met with "um, disbelief" among
seasoned note brokers questioned by Newsweek. Pino says he "barely
remembers" what he calls the "broad stroke stuff" booklet.
2) "There's probably not as much money in it as you think." Invoice
buyer John Fox says he has to retrain many DCFI graduates
and finds most of them "unrealistic.. about the opportunities
to really make money." Pino says he doesn’t teach what
Fox requires.
3) "The competition can be brutal. Pino claims that
you’re up against "limited competition" for deals
that are "as plentiful as raindrops." Veteran note broker
Ed Burris calls those claims "baloney." He says he had
almost 1,000 "brokers" on his contact list. Most did one
transaction and disappeared.
4) You need skills. If you are "young or mature," "rich
or poor," or "stuck in a dead end job" you ought to
be a note broker -- at least if you believe the advertising. Not
so, says Dwayne, a Seattle ironworker interviewed by Quinn who was
persuaded by Pino's pitchman to borrow money to attend the class. "I
was taken advantage of," he says. "It's not for working-class
people...You need a background to do this."
"Get-Rich-Quick" Seminar
Subpoenaed
Wisconsin consumer protection officials tried to close the door
Wednesday on what they called another "get-rich-quick" seminar
in Madison.
Officials served a subpoena to the "Millionaires At Home" seminar
sponsors at the Sheraton Hotel in Madison.The subpoena demanded
proof of the seminar claims that people can make hundreds of thousands
of dollars in a few months, without putting their own money at risk.
It's the second time in three week that Wisconsin Department of
Agriculture, Trade and Consumer Protection officials have served
subpoenas to traveling business seminars.
"We are concerned because we see a lot of people who could lose a small
fortune at at these things," said Glen Loyd, consumer protection information
officer.
One of Wednesday's seminar organizers, () recently paid $10,284 in fines
and legal fees for making misleading claims in Tennessee.
Tennessee officials said he used deceptive business tactics. In one instance,
according to Tennessee officials, he claimed someone could earn $500,000
a year on the telephone using "Diversified Cash Flow Institute" practices.
The Madison seminar attracted about 60 people, Loyd said. Consumer
protection officials handed out cautionary information to about 50
of the seminar participants.
Larry Pino with Diversified Cash Flow Institute, was not available for
comment Wednesday.
If the seminar sponsors fail to answer the state subpoena, they are subject
to a $5,000 fine or a year in jail, Loyd said.
"If they come back, at least we have something to grab onto."
From the Wisconsin State Journal, Sept. 4, 1997
www.acfwebpartner.com www.americancashflow.com
Internet Opportunist article by Marnie Ko www.marnieko.com/swindle.htm
gives an example of what the cash flow business can be all about.
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