A few weeks ago I was headhunted on LinkedIn by an insurance agency called Financial Leadership Group (FLG), but I uncovered shady business practices from them. It turns out they were a multi-level marketing scheme (MLM).
How They Reeled Me In
The director of FLG (we’ll call him Rob) messaged me on LinkedIn expressing how he was impressed by my experience and skills and asked if we could meet at his office for an interview.
Naturally, I had to check this out since since I didn’t want to miss an opportunity. It couldn’t hurt to do an interview and besides, I needed to practice doing them.
A few days later, I met with Rob and he explained how he helps middle-class families invest and manage their money, and educates them on things like getting out of debt and budgeting, to name a few. FLG is based on referrals from insurance, so they don’t get money directly from the families but from their insurance.
Rob also explained how not everyone is cut out for this job since it requires entrepreneurship and long-term commitment. Additionally, they’ll run a background check on me, and I would be expected to get my state insurance license and pay for all testing resources out of pocket.
This was the first major red flag that I shouldn’t have ignored, a company who refused to help pay for
FLG was looking for candidates with these qualities since they were in the midst of an expansion and were experiencing record growth. In fact, they were about to move into a bigger office soon.
After the first interview, Rob and his team decided they want to bring me back in for a second interview.
Thrilled, I go back and after the second round, Rob decides to hire me and start the onboarding process immediately by signing an agreement and filling out their job application. I also paid $100 upfront to cover the costs of the state license fee.
That was another red flag I should’ve paid attention to, don’t pay any fees during an application process.
But I thought, FLG seems legit, they require state licensing and background checks and Rob said this wasn’t a get rich quick scheme or
FLG seemed like an honest agency, I toured their office and it was full of employees and it was located in a good part of town. They were also expanding and moving to a bigger office near a luxury mall.
They even offered weekly seminars and training classes and encouraged me to invite family members to come.
Seems legit and open right?
The Warning Signs
This job was so easy to get, I barely had to lift a finger.
That was my first thought when I was hired by Rob. The job had landed in my lap and I was excited because how often does an opportunity come to you?
Not to mention the lucrative income I could potentially earn.
This was how I got duped.
Rob was vague about what FLG actually does and he would repeat his sales pitch, “We educate families on their finances and teach them which insurance plan is best for them.”
It wasn’t until after I got hired and signed their agreement when Rob told me it was all commission based income, no steady salary from FLG. My earnings would come from the number of clients I refer to insurance companies, or from recruiting family and friends to work under me.
Another red flag was having to pay for my state license, courses, and exam. FLG also wanted me to pay for fingerprinting.
According to Johnny Roccia, Praxis’ placement advisor, avoid companies that refuse to pay their employee’s license fees or at least partially cover it because when they charge their own fees, it allows them to overcharge you.
The actual costs of the state exam and license might be $45 instead of $100. This is one example of a shady tactic to try and unethically profit off you.
I’m not entirely certain that FLG overcharged me but it’s a plausible explanation on why they refused to cover me.
These state licenses are legitimate and necessary in the finance field but always let your company pay for it. You are their investment. Their refusal to pay for the fees shows they don’t take care of their employees or invest in them, which is considered an unethical business practice.
On a side note, I personally think this is a form of fraud. You agree to pay for only the state licenses but unknowingly pay unnecessary fees to your employer without your consent.
The Dealbreaker
The dealbreaker was when I tried to bring FLG onboard to become a Praxis business partner.
I introduced Rob to Johnny Roccia, he seemed interested in the apprenticeship program and set up an appointment with him.
But when it was time to talk to Johnny, he ghosted and didn’t pick up. Rob was even bold enough to message me saying that Johnny never called him.
How to Avoid My Mistakes
Don’t dive headfirst into every opportunity, especially if it sounds too good to be true. Thoroughly research every opportunity and listen to your gut instinct.
I talked to a friend of mine who had a similar experience with Amway, which was like FLG, and he said they constantly changed their name to avoid lawsuits. He warned me what would happen if I dived deeper into FLG, that my friends and family will hate me because I would have to aggressively sell life insurance plans and recruit other people.
FLG is a part of a bigger company called World Financial Group and there are plenty of complaints and reviews against them, which leads me to another point, do your research!
If you’re a Praxis participant currently in placement, relay any information about opportunities outside the Praxis network to Johnny Roccia before you take any action.
Also, if your prospective employer asks you to pay any fees during the onboarding process, make an excuse about why you can’t pay them.
Have Johnny vet non-business partners, he is there to look out for you!
A Learning Experience
Despite getting suckered by an MLM and losing $100, this was a valuable learning experience and I want to prevent this from happening to you.
Most of you Praxians are younger than me and probably haven’t had experience dealing with shady people, which also means you have a higher chance of getting reeled in and scammed.
I’ve sniffed out eBay scammers plenty of times and I still got duped. These companies prey on our vulnerabilities and financial insecurity so always do your research before diving headfirst.
If you have gotten as far as I did and you’re concerned about your social security and credit cards, make a Credit Karma account. It closely monitors all your financial activity and alerts you to any suspicious transactions.
Thankfully, I didn’t take it a step further but if things had gotten worse, just know that Praxis has your back.
Good luck on your apprenticeship hunt and if you suspect an MLM is luring you in, feel free to reach out to me.