SALT LAKE CITY (CN) – Douglas Andrew, a radio host, author and sponsor of the website “Missed Fortune: Isn’t It Time You Became Wealthy” is in “financial distress” and owes a Utah limited partnership $427,300, the LP claims in court.
The Meiling Children Ltd. sued Douglas Andrew and his company, Paramount Financial Services, in Salt Lake County Court.
The Meilings claim Andrew borrowed $668,340 in 2008, and promised to use the money to pay premiums on life insurance policies and expand Paramount, but defaulted on the deal in May.
Andrew is the author of “Missed Fortune 101,” “Millionaire By Thirty” and New York Times bestseller “The Last Chance Millionaire: It’s Not Too Late to Become Wealthy.” His program “Missed Fortune Radio,” runs in California, Florida, Illinois, Oregon and Texas.
“Defendant Andrew portrays himself on his radio program and elsewhere to the public as a highly successful, wealthy and successful financial planner. In truth, he is in financial distress, and unable to pay his obligations,” the complaint states.
“Defendant Andrew holds himself out as employing unique strategies ‘to the accumulation of wealth, estate planning, debt management, and retirement planning.’ Defendant Andrew represents that he provides investors liquidity, safety and a high rate of return. Defendant Andrew touts the benefits of maximum funded cash-value insurance contracts.”
After describing the terms of the alleged $668,340 loan, the Meilings say: “Contrary to defendants’ representations, defendant Andrew does not employ unique strategies ‘to the accumulation of wealth, estate planning, debt management, and retirement planning.’ Defendant Andrew also misrepresented that he provides investors liquidity, safety and a high rate of return. Indeed, defendant Andrew is in severe financial distress, and is unable to meet his financial obligations to plaintiff and others.”
The Meilings claim Andrew told them he was worth $15 million, and agreed to 8.5 percent interest on the loan. After defaulting, Andrew tried to dissuade the LP from suing him, the Meilings say.
“Defendants have threatened action by the Utah Attorney General’s Office if plaintiff files a lawsuit. Moreover, defendants made similar representations that if plaintiff took any legal action, defendants would make sure that plaintiff recovered nothing by, among other things, filing bankruptcy,” the complaint states.
Andrew’s website, rated A+ by the Better Business Bureau, states, “Unfortunately, some financial professionals don’t know what they don’t know. Many haven’t taken the time to understand the concepts thoroughly.”
The website, consulted this morning, adds: “Douglas Andrew is a masterful communicator with the unique ability to take complex strategies and make them simple to understand through the use of powerful metaphors.”
Meiling Children Ltd. seeks $427,300 for breach of contract and breach of fiduciary duty and $1 million in punitive damages for fraud.
It is represented by Erik Christiansen with Parsons Behle & Latimer.