Magic Johnson is facing renewed scrutiny over his business associations, this time because of his involvement with Life Surge, a for-profit company that combines Christian motivational events with financial-education programs.
A recent investigation featured by Pablo Torre and journalist Kiera Butler examined Life Surge’s business model and complaints from former attendees who say they were encouraged to purchase increasingly expensive investing and mentorship programs, in some cases by taking on significant debt. Life Surge disputes the characterization that it pressures customers into harmful financial decisions and says financing is optional and handled through third parties.
Johnson’s connection to the organization comes through appearances as a featured speaker. Life Surge has promoted the Lakers legend and businessman alongside other high-profile personalities at its events, and he is currently advertised for an upcoming San Jose gathering.
Life Surge markets its one-day conferences as faith-based gatherings centered on worship, business, investing and what it calls “Kingdom impact.” Tickets can be relatively inexpensive, but attendees are then offered additional financial-education programs. Previous investigations found that advanced programs can cost tens of thousands of dollars.
Former participants have alleged that Life Surge representatives encouraged them to use credit cards, financing or home equity to pay for those programs. Complaints collected by the Better Business Bureau include customers describing high-pressure sales tactics and substantial debt. Those accounts are allegations from consumers, not court findings that Life Surge committed fraud.
Life Surge has pushed back strongly against those accusations. The company says it does not encourage customers to go into debt, argues that financing options were added because customers requested them, and points to positive reviews and satisfaction scores as evidence that most attendees value its programs.
The renewed attention comes only weeks after Torre separately examined Johnson’s relationship with billionaire Mark Walter and EquiTrust Life Insurance. That earlier reporting focused on a $350 million transaction involving EquiTrust and a Walter-controlled company and questioned the financial relationships surrounding Johnson’s rise as a major businessman. Johnson was not accused of a crime in that report.
Taken together, the stories have placed unusual attention on the business side of one of basketball’s most recognizable figures.
