Consumer Protection Mission (Detail)
Innovative Telemedia, Inc.; Frederick O. Buckley (a/k/a Westy Monroe)
The Commission filed a complaint alleging that Innovative Telemedia and its officer made false earnings claims about the businesses they sold and failed to pay investors the agreed-on portion of revenues. The business ventures consisted of investments in pay-per-call information or entertainment programs that consumers access by calling 900-numbers. The Commission won a temporary restraining order and is seeking a court order that would include consumer redress or disgorgement of illegal profits to the U.S. Treasury and that would bar the defendants from similar deceptive practices in the future.
Intelinet Data Services; Stratified Advertising and Marketing, Inc.;
Patrick Donaghy; Thomas F. Frontera; Robin L. Murphy
The Commission filed a complaint alleging that Intelinet, also doing business as Stratified, and three company officers engaged in the fraudulent marketing of employment services. According to the complaint, the defendants falsely advertised available government jobs and charged consumers upfront fees, but few if any consumers received the job placement assistance promised. The Commission is seeking a court order permanently barring the challenged practices and ordering the defendants to pay redress to injured consumers.
J.C. Penney
The Commission filed a settlement with J.C. Penney, one of the largest retail store chains in the country, that requires payment of a $225,000 civil penalty to settle allegations that it violated consumers' rights to receive written notice of the reasons for a denial of credit. The Commission alleged that when Penney denied consumers' credit applications, it either failed to explain the reasons at all or gave the wrong reasons. Under the proposed settlement, Penney would also be required to give consumers who were denied credit in the past a written statement of the correct reasons for denial and to comply with federal laws requiring such explanation in the future. The consent decree requires the court's approval to become binding.
J.P. Meyers Company, Inc.; Joseph Shapiro
The Commission filed a complaint alleging that J.P. Meyers and its officer violated the Franchise Rule, which requires franchisors to give potential buyers certain pre-purchase information. The defendants sold business ventures consisting of investments in pay-per-call information or entertainment programs that consumers access by calling 900-numbers. The Commission is seeking a court order that would include consumer redress or disgorgement of illegal profits to the U.S. Treasury and that would bar the defendants from similar deceptive practices in the future.
Law Center, The; Consumer Law Center, The; Walter D. Channels; James Martin Coose
The Law Center and The Consumer Law Center are two names under which Walter Channels and James Coose have done credit repair business. The Commission filed a complaint alleging that the defendants violated the credit repair provision of the Telemarketing Sales Rule by saying that their services as a law firm would force credit bureaus to remove negative or bad credit. In fact, federal law allows credit bureaus to report all truthful information, including negative information, for seven years. The Commission is seeking permanent injunctive relief and redress for consumers.
Linc II, Inc.; Joel Ancelowitz (a/k/a Jim Manti); Betty Busler
The Commission filed a complaint alleging that Linc II and two individuals ran a fraudulent job placement service. According to the allegations, the defendants solicited consumers through advertisements in newspapers and falsely claimed that they had access to a nationwide "hidden" job market and could obtain job interviews for clients, but few if any clients received job listings, interviews, or jobs themselves. In fact, the complaint said that the clients did not even receive rejection slips from potential employers, leaving them uncertain as to whether the defendants did anything to market their job skills. The Commission is seeking a permanent injunction.
Marketing Response Group, Inc.; Marketing Response Group and Laser Company, Inc.;
Palm Harbor Holdings, Inc.; Pete-Nik Holdings, Inc.; Service Bureau International, Inc.;
William S. Kilichowski; Peter J. Porcelli, Jr.
The Commission filed a complaint against Marketing Response and its officers and affiliates for allegedly acting with numerous telemarketers nationwide to defraud consumers with direct-mail promotions that falsely promised quick land sales, guaranteed awards, and free vacations. According to the complaint, Marketing Response devised the promotions, created the standard mail pieces, selected the mailing lists, and printed, addressed, and mailed the deceptive solicitations on behalf of its client telemarketers. The Commission is seeking injunctive relief and funds for consumer redress.
Metro Data, Inc. (a/k/a Metro Dade); Dennis R. Bell; Marilyn Naylor Koblasz; Cassandra Stone
The Commission filed a complaint against Metro, its president, and two other principals, alleging that they engaged in the fraudulent marketing of employment services. According to the Commission, the defendants charged consumers upfront fees but provided lists of companies that were not hiring or were out of business. The Commission is seeking a court order permanently barring the challenged practices and ordering the defendants to pay redress to injured consumers.
Michael P. McGowan (a/k/a Michael McGovern, d/b/a Industrial Chemical, Inc., Med-Amna First Aide, Med-Amna First Aide Care, National Safety,
National Safety Supply, and National Safety & Supply);
Amna Medical Products Corp. (d/b/a Amna Medical, Med-Amna, Med-Amna First Aide, and Med-Amna First Aide Care);
Industrial Chemical Corporation (d/b/a Industrial Chemical, Inc.)
The Commission filed a complaint alleging that the defendants, office supply telemarketers, violated the Telemarketing Sales Rule by sending unordered supplies to small businesses and nonprofit organizations, followed by invoices charging inflated prices. When victims complained or tried to return the goods, they were allegedly harassed and charged substantial "restocking" or shipping fees. The Commission is seeking a permanent injunction and consumer redress.
Micom Corporation; Joseph M. Viggiano; Lawrence Williams
The Commission filed a complaint alleging that Micom and two principals offered deceptive application services for specialized mobile radio and paging licenses issued by the Federal Communications Commission (FCC). The complaint alleged that the company misrepresented the value of the licenses and that some consumers did not receive either their licenses or refunds of the fees paid. The Commission is seeking an injunction.
Multinet Marketing, LLC; American Family Sweepstakes, LLC;
American Readers Service, Inc.; World Class Vacations, Inc.;
Clarence Jack Servaes; Jack Michael Servaes
The Commission filed a complaint against four companies and two of their principals, alleging that Multinet Marketing solicits consumers, telling them that they have won prizes; however, when consumers call to claim the prizes, the telemarketers request credit card numbers to charge between $300 and $600 for "major" prizes, other promotional items, and magazine subscriptions. In addition, Multinet Marketing allegedly misrepresents the value of the prizes it awards. Further, according to the complaint, American Readers Service sponsors the Multinet Marketing prize promotion and provides customer and credit card services, in violation of the Telemarketing Sales Rule. The Commission is seeking a permanent injunction and consumer redress.
National Business Distributors Company, Inc.; Deborah L. Azari; Raphael Ralph Azari
The Commission filed a complaint alleging that the defendants violated the Telemarketing Sales Rule by engaging in misrepresentations and fraudulent practices in connection with telephone sales of office supplies. According to the complaint, the defendants sent unordered merchandise to small businesses and nonprofit organizations and billed at inflated prices. Victims who complained or tried to return the supplies were harassed and charged substantial "restocking" and shipping fees. The Commission seeks permanent injunctive relief and consumer redress.
National Talent Associates, Inc.; Jerome P. Ashfield
The Commission filed a complaint alleging that National Talent Associates and its president misrepresented their ability to place children in high-paying modeling and acting jobs and violated a 1975 order that barred them from doing so. The Commission has asked for civil penalties of up to $10,000 for each violation of the previous order and a requirement that the defendants post a performance bond before resuming work in the talent brokerage business.
Network Communications Group, Ltd.; Alliance Communications, Inc.;
Joseph Messina; Oliver Porter
The Commission filed a complaint alleging that the defendants misrepresented their offering of application services for specialized mobile radio and paging licenses issued by the Federal Communications Commission (FCC). The defendants allegedly misrepresented that consumers would receive FCC licenses through their services and misrepresented the investment value of the licenses. The Commission is seeking permanent injunctive relief.
Oasis Southwest, Inc.; Ray Jojola; Michael A. Portalatin
The Commission filed a complaint alleging that Oasis Southwest, a telemarketer, and two principals conducted a fraudulent prize promotion. The complaint alleged that Oasis Southwest promised consumers that they would receive an award if they purchased "Say No to Drugs" paraphernalia and that the award would be worth more than the purchase cost. However, the awards consumers received, if any, were allegedly not worth more than what the consumers paid. In addition, the complaint alleged that the defendants violated the Telemarketing Sales Rule by failing to disclose that no purchase was required to enter the promotion or to win a prize. The Commission is seeking a permanent injunction and consumer redress.
Omega Promotions, Inc.; Regency Services, Inc.; Richard Devon Grant;
Lisa Phillips (a/k/a Lisa Warnock Grant, Lisa Marie Warnock,
and Lisa Phillips Warnock); Michael Warnock
The Commission filed a complaint alleging that Omega, Regency, and their corporate officers engaged in the fraudulent telemarketing of employment services. According to the complaint, the defendants conducted multiple operations promoting job openings, charging advance fees, and debiting consumers' bank accounts without authorization. The Commission is seeking a court order permanently barring the challenged practices and ordering the defendants to pay redress to injured consumers.
O'Neill, Incorporated
The Commission filed a complaint and a consent decree against O'Neill, the largest seller of wetsuits in the United States. The company agreed to settle allegations that it failed to accurately list the fiber content of its garments, in violation of federal law and a previous consent order. According to the complaint, in 1992 the Commission issued a consent order settling allegations that O'Neill violated the Textile Fiber Products Identification Act by mislabeling certain wetsuits. Since that time, the company has sold thousands of wetsuits labeled as 100 percent nylon bonded to neoprene, even though they also contained polyester bonded to neoprene. The proposed settlement requires payment of a $10,000 civil penalty and permanently bars O'Neill from future violations of the order.
Pioneer Communications of Nevada, Inc.; Glen E. Burke; Mike Luther
The Commission filed a complaint alleging that Pioneer and its officers violated the Franchise Rule by failing to give investors required pre-purchase information. The defendants sold business ventures consisting of investments in pay-per-call information or entertainment programs that consumers access by calling 900-numbers. The Commission is seeking a court order that would include consumer redress or disgorgement of illegal profits to the U.S. Treasury and that would bar the defendants from similar deceptive practices in the future.
Publishers Award Bureau; Marc Duboise; Gerald E. LaFrance; Kenneth E. Nelson
The Commission filed a complaint alleging that Publishers Award Bureau sends solicitations to consumers telling them that they are "guaranteed to win" seemingly valuable prizes; however, when consumers call to claim their prizes, they are told they must pay several hundred dollars for magazine subscriptions to be eligible. In addition, according to the complaint, the prizes actually won are of little value. The complaint also alleged that the company violated the Telemarketing Sales Rule by failing to disclose that no purchase was required to enter the promotion or to win a prize. The Commission is seeking a permanent injunction and consumer redress.
Silver State Western Publishing, Inc. (d/b/a Prime Time Marketing
and Prime Time Publishing); John A. Pieri
The Commission filed a complaint alleging that Silver State, doing business as Prime Time, and principal John Pieri violated the Telemarketing Sales Rule in connection with a "Say No to Drugs" program. The complaint alleged that the defendants enticed consumers into purchasing materials or magazine subscriptions by telling them they would receive "extremely valuable" prizes or awards in exchange for their purchases, which was a misrepresentation. The court ordered a temporary halt to the allegedly deceptive prize-promotion solicitation scheme. The Commission is seeking permanent injunctive relief and redress for injured consumers.
Sparta Chem, Inc.; Dennis J. Saccurato (d/b/a Compu-Kleen, Inc.)
The Commission filed a complaint alleging that the defendants, office supply telemarketers, violated the Telemarketing Sales Rule by sending unordered supplies to small businesses and nonprofit organizations, followed by invoices charging inflated prices. When victims complained or tried to return the goods, they were allegedly harassed and charged substantial "restocking" or shipping fees. The Commission is seeking a permanent injunction and consumer redress.
Student Aid Incorporated; Adel Kovaleva; Adel Tager; Raimma Tagiev
The Commission filed a complaint alleging that the defendants falsely represented their ability to help students obtain scholarships or grants. According to the complaint, the defendants told consumers that they could obtain at least $1,000 in scholarships or grants, but provided lists of unsuitable or expired scholarships and grants. They also required students to provide rejection letters from each source to get promised refunds and debited consumers' checking accounts without authorization. The Commission obtained a temporary restraining order and is seeking a permanent injunction and consumer redress.
Student Assistance Services, Inc.; Student Financial Services, Inc.;
Fred Markowitz; Donald McGovern
The Commission filed a complaint alleging that the defendants offered fraudulent scholarship search services for an upfront fee and guaranteed to refund the fee if students did not get a scholarship or grant. According to the complaint, the defendants provided lists of unsuitable and expired scholarships or no lists at all and did not honor their refund policy. The Commission obtained a temporary restraining order and is seeking a court order permanently barring the defendants from similar schemes and requiring them to give refunds to their customers.
Telecommunications Protection Agency, Inc.; Charles Fulton; Jennifer Fulton
The Commission filed a complaint alleging that Telecommunications Protection and its principals violated the Telemarketing Sales Rule. According to the complaint, Telecommunications Protection claimed that, for an upfront fee of $5,000 or more, it would assist consumers in recovering money that they had lost in previous telemarketing schemes. In fact, the complaint alleged that, in most if not all instances, the money was not recovered. The Commission is seeking a permanent injunction and consumer redress.
Tower Cleaning Systems, Inc.; David A. Gansky
The Commission filed a complaint against Tower, which has commercial janitorial cleaning franchises in 11 states, alleging that the company and its president violated the Franchise Rule. The complaint alleged that the defendants made inflated earnings claims, did not give required pre-purchase information to potential franchisees, and refused to make refunds as promised in its contracts. In a consent decree filed with the complaint, Tower agreed to pay $50,000, which will be used for consumer redress or disgorged to the U.S. Treasury. The proposed decree would prohibit the defendants from such violations of the Rule in the future.
Universal Credit Corporation (Gabrielle Ellis and Mark Thomas Ellis, d/b/a)
A federal district court ordered a temporary halt to an allegedly deceptive "credit repair" scheme run by two individuals doing business as Universal Credit. The order followed a Commission complaint alleging that the defendants falsely represented that they could remove negative information from consumers' credit files, even when the information was accurate. The complaint also alleged that the defendants made unauthorized withdrawals from consumers' checking accounts and falsely implied that they had posted a bond to cover money-back guarantees. The Commission is seeking a court order permanently prohibiting the deceptive practices and requiring a monetary payment to be used for refunds for consumers.
USA Channel Systems, Inc.; Two-Way Systems, Inc.; Charles Bernard Bayne
(d/b/a Page 8, as co-partner); Rick Havil (d/b/a Page 8, as co-partner)
The Commission filed a complaint alleging that two companies, both jointly run by two individuals, ran a fraudulent application mill for federal paging licenses. According to the complaint, the defendants misrepresented the lease or resale value of the licenses, the number of licenses available in a given geographical area, and the income or profit that consumers could realize from purchasing the licenses. The Commission is seeking a permanent injunction and monetary relief.
USA Credit Services, Inc.; Steven Spence
The Commission obtained a temporary restraining order and an asset freeze against USA Credit and its president, Steven Spence. The Commission filed a complaint alleging that Spence violated the Telemarketing Sales Rule by making false claims about his credit repair service. According to the complaint, Spence claimed that he could remove negative information from consumers' credit reports even if the information was accurate and timely. In addition, Spence allegedly violated the Rule by seeking an upfront fee for his services. The Commission is seeking permanent injunctive relief and consumer redress.
Worldwide Wallcoverings & Blinds, Inc.; Martha Kazak; Bruce Sears
The Commission obtained a federal court order temporarily halting the operations of Worldwide, a company that advertised discount wallpaper and window blinds and promised delivery within two or three days. The Commission filed a complaint alleging that Worldwide defrauded thousands of customers by, in many instances, simply taking their money and not shipping any merchandise at all. According to the complaint, the company obtained millions of dollars through this massive fraud, which prompted record numbers of complaints to Better Business Bureaus and the Illinois Attorney General's office. The Commission asked the court to issue a permanent injunction against Worldwide and its principal officers and to provide for a consumer redress fund.