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Popular Finance Consultant Sued for Scam

Financial consultant and popular radio host Dave Ramsey is being sued by a group of former listeners over his role in promoting a company alleged to have defrauded customers of millions of dollars.

The class-action lawsuit claims that Ramsey’s Lampo Group, earned about $30 million from 2015 to 2021 endorsing Timeshare Exit Team. This Kirkland, Washington company received over $200 million in revenue by promising to relieve clients of their costly financial obligations from time share agreements.

In 2021, Timeshare Exit Team paid $2.61 million as part of a settlement with the attorney general of the state of Washington over what it claims were deceptive business practices. This included advising clients to stop paying timeshare fees and issuing fake property deeds in an attempt to convince clients they were free of their obligations. The complaint reads, “When customers finally discovered the schemes and demanded their refunds, [Timeshare Exit Team founder] Reed Hein fabricated excuses not to honor the promises or stopped returning their calls.”

The lawsuit seeks $150 million in damages, claiming that the actions of Ramsey Solutions, Timeshare Exit Team, and Happy Hour Media Group, conspired to commit “negligent malrepresentation” and “unjust enrichment” in violation of the Washington Consumer Protection Act.

Ramsey has repeatedly denied wrongdoing, but plaintiffs in the suit claim that Ramsey should have known better. The lawsuit reads:

Reed Hein made many claims that any competent financial advisor with Dave Ramsey’s knowledge and skill would know to be false, and it engaged in many activities Dave Ramsey would have known to be illegal. Ramsey never returned any of the tens of millions of dollars Reed Hein and Happy Hour Media Group paid him from his own listeners’ hard-earned money. Instead, Ramsey has chosen to profit from his listeners’ money.

Possible Preaching Angle:

Anyone who preaches financial accountability must be willing to submit their own behavior to that same standard. We lose credibility in the community of faith when we have standards for others that we do not adopt for ourselves.

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