Equity Leadership Group MLM Scam. Herbalife, and Amway clone. Offers faulty financial advice ripoff Aurora Colorado

Well, I'm back. Got some more information for you guys. First of all, one of the agents there got his friend of 10 years to buy cash value life insurance just so he could make money off the commission. That lets you get an idea about just how unethical they are.

Cash value life insurance is dangerous for one major reason. You don't have to make any payments after a few years, however, if the growth isn't enough to cover the premium, you have to pay all the premiums yourself. Some people don't pay for years because they've been told what a great investment it is. So, in essence, they end up having to pay one HUGE lump sum later on.

Another major product they push is the Option ARM. The Option ARM also has some dangerous sides to it. If you choose the minimum payment in which the start rate is 1.25%, you end up having negative amortization and, simply put, you end up paying out the ass later on. Trust me, they'll definitely try to push this Option ARM with all of their "clients".

In short, they say they're there to help people, but in reality they're nothing more than salesmen trying to make money by screwing you and your family over.

I read the first 2 reports about this company. I called a mortgage broker to potentially find one to work with and originate loans. I interviewed with this company and it 'felt' like a scheme.
The reports of 1% ARM and negative amortization are true. This is the 'Power' loan, I believe is what they were calling it. They tout that it was developed in Europe by bankers, and is new to the US.

One of the items that tipped me off most about this company is the offering of stock options. you will get $.25 on every dollar of commission you get in stock options when (if) the company goes public. The commission structure is terrible. You will start at 10% of proceeds from loans, then 25%, then more as you 'build a team', which is recruitment.

The second thing that tipped me off is the team meetings. Everyone there was recruited. The atmosphere was a little wierd with their mantra of show up, talk to people and work their system. This was supposed to be a training and they never went over anything relating to loans, or loan products, just what their system is, and how to work their forms. Also, everyone there didn't look like they were doing too well financially besides the head guy of the office.
I asked about offering conventional loans to people, but was told this is old thinking, and I wouldn't really be 'helping' the clients. They suggest that paying half for their mortgage payment, investing the rest, and paying off their mortgage debt in twice the time is best way. As the person before wrote, there are many risks associated with this program.

First Off:
INSURANCE IS NEVER AN INVESTMENT, ONLY A SAFEGUARD.

I was recruited by this company and thought I would dislike the product that they provide. It turns out that they have a very good sales model and what seemed to be a decent product(especially for the salespeople).

I went to their "seminar" to recruit people and the funny thing was that they didn't really have any testimonies from any customers. This may be because of the goal of that specific seminar but it just seemed curious.

I can't speak on most of their products but the interest-only mortgage really resonated with me. My dad and uncles are multi millionaires and they agree with those principles.

On the basis that they charge you $200 to join, there is absolutely NO WAY that I would ever join that company. To me that really rubs me the wrong way and is complete garbage, especially considering you would only make a MEASLY %10 on the first 5 mortgages/clients you bring in by yourself... all while they make business off of that clients insurance and securities needs.

It's all about who you know and trust. Find some counsel from different professionals, mortgage, real estate, and financial services and bounce ideas off of all of them because you will get a lot less conflict of interest which is what this company or should I say, multi-faceted salesperson can easily screw you over on.

It's good to not have one group or one person take care of all your financial dealings.

I have been working with Equity Leadership Group for about 4 months. I cannot believe the people that are writing these reports are so narrow-minded. This company can do any type of mortgage that any other company can do.



Typically, when people buy mortgages contact a mortgage company and someone tells them the best rate they can do. They do not care if the borrower is informed on where there money is going and where the borrower will be 30 years from now. They sell loans to put money in their pockets. Is that not obvious! How is an educated borrower a bad idea? Please tell me... ELG educates borrowers on other options in investing their money that may be a better idea than giving their principle to the bank and allowing the bank to re-invest their money.



This Option Arm is not for everyone, but it may be a great financial tool for someone who doesn't have the cash flow in their budget to plan for retirement, eliminate their high interest debt, open their child up a college fund, invest in rental property, or aquire life insurance to protect their family. If you cannot see this then you may need to open up your mind a little bit. Some one please write me back and tell me how educating someone is a bad idea. How can giving someone a free financial analysis be a bad thing. How can helping someone, like myself, pay of $15,000 in credit card debt that would take me 6 years to pay of and cost me $25000 in interest?



For those that have filed these reports, please be carefull, your are filing a potentially damaging report against something that you don't know everthing about. That is not very ethical.
And for those of you who may think it is a pyramid scheme, do a little research on pyramids, before you come to that conclusion! it is self promoting and is in no way stuctured as a pyramid.

Thank you for your time, and may God be with you on all your decisions in life.

I read the comments made about this company and I am curious as to how they were ripped off. I have been in the mortgage industry for over 22 years and seen all kinds of scams. When you looked for a mortgage were you given several options that would fit your needs? Probably not. You were told your credit score and the best rate available based on the score and your income. Did the loan officer tell you what his fee was going to be to make the loan? Sure he did but did he tell you that he was going to make a great deal more on the yield spead (what the loan officer makes on you from selling the loan to a specific bank)?

If you did your homework as you stated you had then you found that most investors dealing in real estate prefer the option arm as it allows them to free up money to use elsewhere. An option arm is not for everyone. You have to use the difference in an investment tool or it will be a disaster.

As far as commisions go did you start out making as much as your boss? I would guess not. Someone has to train you and they need to be compensated. As for the $200.00 for a background check, thats a great idea. Its also a business expense that can be deducted from your taxes.

When was the last time you went to a financial planner and told him you have a couple hundered dollars to invest and he put you right at the top of his list of big investors? I can answer that by saying NEVER. I appreciate what ELG has done for my family and I. With what I have learned I will not have to count on social security when I retire and I will enjoy my golden years.

I am simply wondering why all this slandering of a legitamite company is going on.I think what is going on is that Mike is in the mortgage industry and has likely lost business , from Equity Leadership Group. Mike i beleieve you are incorrect about many things you spoke about, as well your "insurance" report, i am simply wondering if you are insurance licensed in the state of California? If so how can you be so wrongly informed about these products? Equity Leadership Group is the greatest thing that has happened to me and my family. Four years ago i was living in an apartment and my dad was barley making ends meet working day and night, and he had to support my siblings and i. ELG has helped my father acuire 6 house and is in the process of buying another, 2 cars paid for, a motorhome paid for , 4 timesshares paid for , as well as help set up his retirement, all this done by a company who had the courage, honor, and heart to care about the customer. And you were saying only the head guy is making money , well i will tell you something my father is not even close to being the number one guy in the company, yet he is still making good money. And now that i have turned 18 i have the pleasure to work for a company that has the same morals that i stand for. Without ELG i would just be a regular 18 year old , but now because of them i am an 18 year old insurance licensed young man on a crusade to help out as many americans as i can. I hope before you try to slander this company anymore than you have, that you will first acuire the correct information about what you are speaking about. And if you have any questions or concerns feel free to give me a call so that i may educate you on what ELG is about.

CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

I am not affiliated with ELG but find the comments posted quite uneducated. Please take a close look at any insurance company, any mortgage company, any real estate company and tell me they are not setup like a "MLM". Every one of those industries recruits people, they pay you a commission and pay an override to someone above you and above them, you earn less as you increase your sales and team. There is absolutely no difference.

Also, the Option ARM is a very valid financial tool and I will only use them if the client invests the savings in something that will outpeform what they are saving on their mortgage. Bottom line is that is what they market, but not the only loan they provide. This is nothing different than any other company on the planet. They market a specific product but generally have others to offer.

The bottom line difference is do you want an opportunity to grow with a company and have your own business thay pays trails, renewals, overrides, commissions, stock options, etc or work for corporate america that gives you zero security and assurances? As hard as it is to be an entrepreneur, the benefits working for someone like ELG, WFG, Primerica, etc. far outweigh being a corporate lackey and depending on a company for your future. I've been burned too many times in corporate america to ever depend on them. So please don't give these types of companies a bad name. Just becuase you may have not have had any success or had any vision, don't knock what they are trying to do. Most people want more out of life and more for their families. I do. And trust me, it won't happen in corporate america. Too many politics, too many idiots running the company, too little pay.

I would like to start by saying that I love ELG and what it has done for my family. Elg has helped us get out of debt, set an emergancy fund,get life insurance that we really needed, so that our spouse or children wouldnt be left with that burden after were gone. They also have allowed my husband to leave his job that he use to live at,and come to work for them making two times the money and will soon be more & he gets to spend more time with the kids.

Oh, and did I forget to mention set up 4, yes I did say 4 college funds to the college of their choice. Now with all this said, I hardly think that if ELG were a scam that they would go this far out of their way for anyone.

So for all those people who think you know what ELG is about, you might want to contact a employee and see what they can do for you. I know that if your like my family and the rest of america living pay check to pay check, you could sure use the help. I would like to say thank you for anyone who took the time to read my personal story , and I hope I helped at least one person.



Sharee GA

I am a client of Equity Leadership Group. I was skeptical at first, it sounded too good to be true. This company has taught me a lot about my finances. This should really be taught in schools. My only regret - I wish I would have know about this 20 years ago.

If you want to be smart and wealthy, pay attention to people who are. Don't pay attention to negative people.

Read books by Ric Edelman and Douglas Andrew and please develop your own opinions.