Feds, states announce major action against scams with 'hundreds of thousands' of victims
Filed under: Ripoffs and Scams, Fraud, Buyer Beware, Consumer Ally
Targeting scams that prey on people vulnerable because of the down economy, federal and state officials announced today a laundry list of legal actions including a lawsuit against a collection of get rich quick schemes that lured "hundreds of thousands" of victims who paid out about $300 million.The companies allegedly jointly operating the schemes, including John Beck's Amazing Profits and Mentoring of America, marketed them heavily through television infomercials. They sold guides to their supposed systems of quick paths to wealth for $39.95 and charged an additional $39.95 a month after that.
"These promises deliver nothing," said David Vladeck, who heads the Federal Trade Commission's Bureau of Consumer Protection at a press conference this afternoon. "It was the scammers who made the big bucks."
An email sent to John Beck was not immediately answered.
Vladeck urged consumers to exercise skepticism when being offered any kind of deal that promises to deliver quick cash.
"Why would someone share a secret with a perfect stranger when they could spend the time making the money themselves?" Vladeck said.
The FTC even released a video that features a convicted former business opportunity scammer explaining how he took advantage of people.
In addition the FTC announced seven other new legal actions as well as dozens undertaken by 13 states and the District of Columbia since January -- all part of "Operation Short Change." The FTC said it already won temporary restraining orders and had the subjects' assets frozen in six of the new cases.
Other lawsuits announced are against (Note: many of the targeted entities operated under numerous names):
- Wagner Ramos Borges, who operated companies including "Job Safety USA," which allegedly tricked job applicants into paying a fee for a made up credential to work maintenance and cleaning jobs.
- Grants For You Now, which promised access to government grants for a $1.99 fee that led to an undisclosed charge of up to $95 a month.
- Cash Grant Institute, which used robocalls to solicit people to participate in its grant-finding program.
- Mutual Consolidated Savings, which hawked the "Rapid Debt Reduction" plan.
- Google Money Tree, which allegedly duped people into believing they could make $100,000 in six months selling Google ads, but instead charged participants $72 a month.
- Penbrook Productions, an alleged scheme that got people to pay $197 to become high-paid "certified rebate processors."
- Classic Closeouts, which allegedly kept charging customers who bought low-cost household items or clothing from the firm's web site.
Reader Comments (Page 1 of 1)
7-02-2009 @ 7:57AM
aawindoze2 said...
OMGosh man, Its about time they cracked down on the nonsense! I mean enough is enough already!
RT
www.anonymize.tk
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7-02-2009 @ 11:01AM
Bob said...
WARNING - - - If you use AT&T, be sure to check your phone bills for unauthorized charges - especially from an outfit called USBI. It seems it's legal (?) for other phone services and interests to tack on charges to their bills. Since when is FRAUD illegal? It's my firm belief that AT&T and USBI are somehow interconnected in this scheme. I was only hit for $5.95, but others have incurred charges into the thousands of dollars
BEWARE.
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7-02-2009 @ 11:05AM
douginfla said...
Take all there stuff and put them in jail and I but a lot of this kind of thing will go away.
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7-15-2009 @ 11:14AM
Steve Becsey said...
I am really happy to finally hear that something is being done to these low life bastards. They have called me on the phone saying they have this great money making job with Google. I only had to send them a few hundred dollars to be on the Google payrole. I immediately tried to contact the Google offices about this. That in itself was a 3 to 4 day task that I never really completed. There seems to be no-way to contact Google offices. Why is that ? I finally pissed off someone that sent me a link to some bloggers that eventually gave me the answer I needed. That that phone call is indeed a scam.
Now here is a big scam, and they got me for $2,500 to $3,000. It is the SMC home buisness website. It is also working hand in hand with the e-merchant club website. So as SMC ripps you off of your money the blame it on their affilliate Emerchant club and viceversa. Steve Johnson, at the Phoenix, AR. office 800-218-8042 ripped me off of $1800+ and told me that I had bought mechandise from him and e-mechant club for that amount. When I told him he was lying, and of course I have the prof, he laughed and said "Oh Well that's the way it goes, try complaining to your SMC team about it". I don't know what to do about this. I am a disabled Vet. An amputee and this SMC-Emechant club took me of all my savings and are out right laughing at me and the others they have and are still ripping off with their home buisness scam. Is there anyone that can help me ? Is there anything I can do ? Someone PLEASE talk to me.
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7-06-2009 @ 12:55PM
Michael said...
Steve,
1st contact your bank's fraud dept. and inform them that you have an unauthorized charge against your account. They will either send you a form to fill out or advise you to go to your local branch. In either case once they receive the form, they will notify the merchant in question. The merchant has between 30 and 60 days to reply. If they don't, the bank will credit you back the money. If they do, the merchant must supply proof which includes bill of lading and tracking numbers.
2nd Try contacting SMC and see if they can help. If they say they can't or wont, in form they you will contact your state's attorney general. This may light a fire under them.
3rd CONTACT YOUR STATES ATTORNEY GENERAL. They may have a case against this merchant and/or SMC.
4th Contact US Postal Service. They may have a mail fraud case pending
5th Go to the National Better Business website and see if they show anything on either the merchant and/or SMC. If so they may direct you to the agency handling complaints from these companies. Good luck
9-10-2009 @ 12:28PM
Pogoman7 said...
A few years ago I was in financial need and when this carrot dangled before my eyes from several Nigerian scams I took the bait. However I did not gain any money fnor did I lose any. By only the grace of God what only happened to me after I tried to get several fake checks cashed my bank closed my account and my email provider froze my email address. With the help of family I came to my senses. I began to do a lot of research on scams and fraud. Everywhere I looked there was info but no written books on self - help guide that would prevent me and others from becoming a victim of these scammers. I wrote a book 'Scammers Among Us Beware' published by Eloquent Books. This is a self-help guide with web pages and cite pages, how to how not to, what to do if and who to contact if. View it on Amazon.com and purchase it, tell your friends for it just may save you and yours a pile of money. This is a compilation of data from the USA, Canada, the UK, and Interpol. Thank you.
7-15-2009 @ 11:25AM
Steve Becsey said...
Hi Michael, I am sorry that I have'nt replyed to the info you gave me. It's pretty good info. Because of idenity theft I can't have a checking account. All my monatary transactions are done with postal money orders or pre-paid debit cards. But still I willo contact the State Attorny about this. Thank you very much. I hope that all is well with you and that you are having a good day.
Sincerely,
Rev. Steve H. B.
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