Is Dave Ramsey Trying to Whitewash His $150 Million Lawsuit?
Two “Is Dave Ramsey an Idiot” White Papers
Want to download 2-different white papers I and another advisor wrote explaining why we think Dave Ramsey gives terrible advice? These papers provide good information for advisors to discuss with or give to clients/consumers who, for some reason, think Dave gives good advice.
To download my 17-page paper, click on the following: https://advisorshare.com/is-dave-ramsey-an-idiot-ii
To download the 17-page paper written by another advisor, click on the following: https://advisorshare.com/is-dave-ramsey-an-idiot-2013
Dave Ramsey Sued for $150 Million by Fans Who Took His Timeshare Exit Advice
In the doldrums of summer, Dave Ramsey gave us a gift (something to talk about) in the form of a $150 million “negligent misrepresentation,” “unjust enrichment,” and “conspiracy” lawsuit.
To download the actual complaint (WITHOUT a sign-up form), click on the following:
Is Dave Ramsey a Religious Fraud? Many think so and the recent lawsuit provides support.
In a nutshell, the lawsuit alleges that Dave was paid $30 million to endorse Timeshare Exit Team who collected $200 million from clients. Clients were told the exit firm would free them from their timeshare obligations. The promise came with a money-back guarantee.
The lawsuit claims that Dave’s readers relied on his endorsement to hire Timeshare Exit Team.
Dave said on his show: “I never could find anything until I found this company called Timeshare Exit Team,” he said in the segment, which touted the company’s money-back guarantee. “About three years ago, we started endorsing them and I’ve had so much fun pissing off the timeshare people.”
It is alleged that Dave knew of Timeshare Exit Team’s legal troubles and “Instead of acknowledging the deception, Ramsey recorded a nine-minute radio segment in which he lashed out at anyone he felt to be responsible for Reed Hein’s woes.” (Timeshare Exit Team is a DBA of Reed Hein).
To read the Washington State Attorney General’s press release where Reed Hein agreed to pay $2.6 million to “resolve the timeshare exit scheme lawsuit” click on the following:
“Dave Ramsey made false claims about Reed Hein in exchange for his follower’s money”
In the complaint, it is alleged Dave made false statements to his audience about the viability of the exit company’s ability to help and did so to induce his followers to spend money hiring the timeshare exit company. He did so for a percentage of the revenue generated from his listeners.
What is Online Whitewashing?
What is online whitewashing? It first starts with something really bad being published about you online (something you don’t want anyone to know about). Like you were sued for fraud, were sanctioned by the SEC or Dept of Insurance, or lost your license, or committed a criminal act.
When someone searches your name on Google, if the NEGATIVE story gets any kind of high-volume clicks, the first thing someone will find when they search your name is that negative story.
Whitewashing is when you pay a firm to create a bunch of new online content that references your name. Then the goal is to get clicks on those new online links so when someone searches your name, they find not the older post of your losing your license or a lawsuit about fraud, but instead, the first page of Google is filled up with all the NEW content.
Since most people never go to pages 2, 3, or 4 of a Google search, the average web surfer won’t find your negative content.
Does it work? It did with an advisor I knew in Detroit. It worked until I did a newsletter about his issue in one of my newsletters which generated nearly 1,000 clicks from readers. After which the #1 item on Google was the notice about his SEC violation.
Yahoo.com—as part of my morning routine, I read the Detroit Free Press, Pride of Detroit, and Yahoo News. I know Yahoo is very left-leaning, but it’s a good place to see what’s going on in the world.
Historically, from my viewing of Yahoo.com and Yahoo Finance, Dave Ramsey would have an article appear every blue moon. However, after his $150 million lawsuit hit the news on June 1st, I noticed a FLOOD of articles about Dave on Yahoo.com and Yahoo Finance (which I’m still noticing).
This newsletter is already too long, so I’ll just list the post-July 2nd articles I noticed on Yahoo. You can make up your own mind if Dave is trying to whitewash his $150 million lawsuit.
June 2—It’s not a joint venture; it’s a marriage | Dave Ramsey
June 19—’It’s time to clean up your mess’: A Michigan truck driver asked Dave Ramsey how to climb out of debt making $80K/year — here was the guru’s honest advice
June 23—Paying off a mortgage is the first step toward becoming a millionaire | Dave Ramsey
June 23—’You wussed out’: Dave Ramsey reveals the real reason Americans are going broke — and it’s not because of hot inflation. 3 simple steps to secure your financial foundation
June 24—’I Told You So!’ — Dave Ramsey’s Accurate Call on Real Estate 18 Months Ago. What Does The Money Expert Say Is Next?
June 28—Dave Ramsey Just Shared His Top 10 Money Traps To Avoid — and You’ve Probably Fallen for Most of Them
June 28—People are shocked that a man calling Dave Ramsey’s show had $451,000 debt on a $40,000 salary
June 28—Dave Ramsey: ‘Definitely Don’t Go Into Debt To Get a Degree’
June 28—Dave Ramsey Says ‘Money Is Not Just Math, It’s Behavior’ — 5 Bad Habits to Break Today
June 30th Dave Ramsey: 5 Ways To Become a Millionaire Fast
June 30—Dave Ramsey Says 2008 Housing Market Crash Won’t Happen Again: Supply and Demand ‘Won’t Allow It’
June 30— Don’t play corporate con game | Dave Ramsey
July 2nd ‘It’s a miracle of stupidity’: Jordan Peterson told Dave Ramsey that this is the ‘number-one thing’ Americans need to accomplish their goals — and it’s dead simple
July 3—How Much of Your Take-Home Pay Dave Ramsey Says Should Go Toward Your Mortgage