WFG Scam

One common scam is the job interview bait and switch scam.  This is a scam where you are contacted about your resume for a job and offered an interview.  At the end of the interview you are offered a position, but you have to pay a fee to become an independent representative. They do not have a job for you. My subscribers have requested I take a look into the World Financial Group WFG business opportunity.  Here is what I have found.

WFG Scam Claims

We are here to educate the poor working families about how to plan for their futures.

Through our revolutionary business platform, we make a positive difference for families and individuals throughout North America. Our business platform provides our associates with the resources they need to build their own businesses and find limitless success by serving everyday individuals and families who are often overlooked by the financial services industry. This platform helps people create financial turning points that can lead to better futures.

Our associates are committed to:

  • Empowering people with the financial knowledge they need to build a better future
  • Sharing with clients a broad array of financial products and services, offered through our affiliated companies, so they can choose the best option based on their goals
  • Offering people from all professional backgrounds an opportunity to build a business in the growing financial services industry
  • Helping people stay on track to achieve financial success

Here is how the WFG business opportunity is presented to people:

WFG Scam Presentation Video

WFG Scam Reality

World Marketing Alliance (WMA) was founded by Hubert Humphrey after he left Primerica in 1991. In November 1998, WMA was fined $100,000 “for not properly supervising its sales agents” after their clients lost nearly $2 million in unregistered investments. In 2000, WMA was fined $125,000 “for failing to report nearly 900 customer complaints”. In June 2001, select assets of WMA were purchased by AEGON and renamed World Financial Group, Inc.. They have more than 28,000 life licensed associates throughout the United States and Canada.

WFG is a marketing company that gets you to pay them to sell products for the companies they represent. WFG representatives are known for trolling the job boards. They do not offer jobs, but they bring people in for job interviews.

Here is an example of how these job interviews are run:

I wish to warn all job seekers (especially who are laid off or in desperate need to take up a job ) to stay away from them. They find your information from your resume posted online. Then they will call you for the interview and will tell the lie that they have position available in whatever trade/profession you are looking the job in. Once you setup the interview with the caller, just few minutes before you will receive a call from the original caller that he got busy and you will be talking to one of their financial advisers or his peer. He or she will talk to you and will try to convince their great business model where you will try to recruit more people to form a team and be your own boss and they wish to hire you on 1099.
They will start asking your personal financial details to give you financial advice for free as if they are doing some favor on you.

I am not bothered with whatever shitty things they are doing within the legal limits, however I am bothered by their unethical practices (lies) and how they hook people to come to their meetings/Job Interview by taking advantage of the need of simple people who are looking for regular legit job, telling them that “Yes…we have job available for you….same position whatever you are looking for”…so this is same illegal tactics as “Bait and Switch”..

I am surprised that sitting within the USA, how can they pull of these bunch of lies without getting sued?

They are bunch of liars who are feeding on the desperation of unemployed people in these tough times.

About experiences of other people, read Ripoff reports. It is full of their unethical tactics and pyramid scheme.

– Source Yelp

In the World Financial Group System Manual this is what they say about building a successful business with them:

A WFG business is built on a warm-market prospecting system — meeting with people with whom you have a natural trust and pre-existing relationship.

A WFG associate must consistently and continuously bring new people into the business.

In order to build a business with WFG, you must make a commitment to:

Recruiting: You must personally recruit to continually build your team.
Leadership: You must lead by example, think big, but keep things simple.
System: You must commit to duplicating the system and having your team do so.
Positivity and Optimism: People prefer to be around positive, optimistic and motivated people, so set the example for your team.
Duplication: You must keep duplicating the WFG System again and again, even if you are bored with it.

Recruiting is clearly the focus of the WFG business opportunity.

This is what one recruit had to say about the WFG warm-market prospecting system:

“I refused to leech people’s warm markets from them and then leave them out like a fish out of water. Which is what they want you to do. Take their warm markets (friend family) and then let them go at it on their own. I couldn’t do it and would never be ok with it.” – Source Ripoff Report

In 2008, the SEC sued five WFG representatives (KEDERIO AINSWORTH, GUILLERMO HARO, JESUS GUTIERREZ, GABRIEL PAREDES, and ANGEL ROMO) for fraudulently selling unsuitable securities, primarily variable universal life policies (“VUL”), financed through adjustable rate sub-prime mortgage refinancing. The refinancing generated two sources of funds: short term savings in the difference between the old mortgage payment and the new mortgage payment, and equity removed from the investors’ homes. Investors lacked the funds necessary to purchase the securities recommended by the WFG representatives absent the refinancing and lacked the funds necessary to continue to pay for the securities once their mortgage rates adjusted. – Source SEC Lawsuit

Guillermo Haro who was sued by the SEC back in 2008 now has his wife on the WFG stage in 2013 promoting the business opportunity:

You can read more about the WFG plan for keeping you in debt with a mortgage at the following link:

The most common way that people are scammed by WFG representatives is they contact you about a job interview that turns out to not be a job interview.  They then charged you a one time fee and many times a monthly fee. They attempt to sell you an expensive life insurance policy.  Then your warm market is sold to by your training WFG representative and you are left to fail.


Administrative fee of $100

In order to sell the product and services offered by WFG, a WFG associate needs to become fully life-licensed which involves, but not limited to, expenses associated with exam materials, exam fees, registration fees, other educational cost and appointments with insurance companies. This can cost $500-$1000.

All licensed WFG Associates are required to have Errors and Omissions liability insurance (“E&O”) through the company’s E&O provider.  Participation in this program is MANDATORY.

E&O Monthy Insurance: $30 Life Licensed, $100 Registered Rep, $125 Investment Adviser.

They will attempt to sell you an expensive life insurance policy: $200 per month.

Your actual costs to do this business opportunity are not clearly communicated to you when you start.

Products Sold

Life Insurance
Critical Illness Insurance
Disability Insurance
Long-Term Care
Mutual Funds
Segregated Funds (Canada)
Group Insurance (Canada)
Business Solutions
College/Post-Secondary Education Funding
Investment Advisory Services
Financial Needs Analysis

Compensation Plan

Recruitment of representatives is required to be promoted to the higher positions in the compensation plan.

You can receive overrides on people six levels below you.

This compensation plan lures the representative in by telling them that they would not only gain by sales of their own but also gain by sales of agents under them. The agent should understand that although they are earning some from other agent’s commissions, a big chunk of their commissions are also eaten up by agents above him. Therefore, the commission that the agents gets from WFG sales is smaller than the commission they would get when selling the products directly.

Click Here for the compensation and promotions guidelines.

Income Disclosure

No income disclosure is provided for the average income achieved as a starting associate.

Refund Policy

The Administrative fee is non-refundable. – Source

WFG Scam Conclusion

In my opinion, the WFG business opportunity is a recruiting scam. Many people are brought in under the false impression that a job is available for them.   At the end of the interview they are offered a position, but then have to pay a fee to become an independent representative. No job is available.  The actual costs to do this business opportunity are not clearly communicated when you start. No income disclosure is provided for the average income achieved as a starting associate. WFG is a marketing company that gets you to pay them to sell products for the companies they represent. You can receive overrides on people six levels below you. This makes the compensation plan very exploitative of new representatives.  I would avoid the WFG business opportunity.