FROM: U.S. FEDERAL TRADE COMMISSION
FTC and Florida Attorney General Sue to Stop Illegal Robocalls Pitching Worthless Credit Card Interest Rate Reduction Programs
Another Action Targeting Robocalls from “Card Member Services”
At the request of the Federal Trade Commission and the Florida Attorney General, a federal district court has temporarily halted an Orlando-based operation that has been bombarding consumers since 2011 with massive robocall campaigns designed to trick them into paying up-front for worthless credit card interest rate reduction programs.
The court order stops the illegal calls, many of which targeted seniors and claimed to be from “credit card services” and “card member services.” The defendants charged consumers up to $4,999 for their non-existent services.
“Working with the Florida Attorney General, we’re shutting down a scam that blasted robocalls to older people and offered bogus solutions to relieve credit card debt,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “It’s illegal to sell products or services with out-of the-blue robocalls, and if you get one you can expect that the sales pitch is a lie, too.”
“These scammers were making illegal robocalls to people nationwide, some of whom were seniors on fixed incomes. Too often the services promised were never provided, and consumers faced even more credit card debt through charges made without their consent,” said Attorney General Pam Bondi. “My office, in partnership with the FTC, has shut down this illegal credit card interest rate reduction scam and brought those responsible under the control of a federal court receiver.”
Doing business as Payless Solutions, the defendants have been illegally calling thousands of consumers nationwide – including many seniors – claiming that their program will save them at least $2,500 in a short period of time and will enable them to pay off their debts more quickly. After convincing consumers to provide their credit card information, the defendants then charged between $300 and $4,999 up-front for their worthless service. In some cases, they illegally charged consumers without their consent.
The joint agency complaint alleges that the defendants fail to provide consumers with the promised interest rate reductions or savings. Instead, some consumers receive a package of financial education information that they did not request or agree to pay for. In other cases, the defendants use consumers’ personal information to apply for new credit cards, presumably with low introductory interest rates, without consumers’ knowledge or consent.
The complaint also charges the defendants with making many calls to consumers whose phone numbers are on the FTC’s National Do Not Call Registry, and with a number of violations of the FTC’s Telemarketing Sales Rule and Florida’s Telemarketing and Consumer Fraud and Abuse Act.
The FTC and Florida Attorney General’s Office appreciate the assistance of the Florida Department of Agriculture and Consumer Services and the Orange County Sherriff’s Office in bringing this case.
The defendants include: 1) All Us Marketing LLC, f/k/a Payless Solutions, LLC; 2) Global Marketing Enterprises Inc., f/k/a Pay Less Solutions Inc.; 3) Global One Financial Services LLC; 4) Your #1 Savings LLC; 4) Ovadaa LLC; 5) Royal Holdings Of America LLC; 6) Gary Rodriguez; 7) Marbel Rodriguez; 8) Carmen Williams; 9) Jonathan Paulino; 10) Fairiborz Fard; 11) Shirin Imani; and 13) Alex Serna.
The Commission vote approving the joint complaint was 5-0. The complaint was filed in the U.S. District Court for the Middle District of Florida, Orlando Division, on June 22, 2015. That same day the court entered a temporary restraining order freezing the defendants’ assets and appointing a temporary receiver over the business.
Showing posts with label FLORIDA ATTORNEY GENERAL. Show all posts
Showing posts with label FLORIDA ATTORNEY GENERAL. Show all posts
Monday, July 6, 2015
Tuesday, January 14, 2014
MEDICAL ALERT DEVICE OPERATION GETS COURT ORDERED TEMPORARY ASSET FREEZE
FROM: FEDERAL TRADE COMMISSION
At the request of the Federal Trade Commission and the Office of the Florida Attorney General, a U.S. district court has temporarily halted and frozen the assets of an Orlando-based operation that used pre-recorded telephone calls, commonly known as robocalls, to pitch purportedly “free” medical alert devices to senior citizens by false representing that the devices had been purchased for them by a relative or friend. The defendants also allegedly led consumers to believe that the devices were endorsed by various health organizations and that they would not be charged anything before the devices were activated.
The agencies are seeking a court order permanently banning the defendants from engaging in the allegedly fraudulent and illegal conduct, and providing restitution to consumers who were victimized.
“These telemarketers used illegal robocalls to make a sales pitch that was 100 percent false,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “They lied about the product, about whether health organizations had endorsed it, and about its cost. And all the while, their M.O. was to take advantage of older people's concerns about their health. We're so glad to work with our partners in Florida to stop this fraud.”
“We will not tolerate unscrupulous individuals targeting the elderly. This company received more than $13 million in commissions since March 2012, and we will do everything in our power to compensate consumers who lost money due to the fraudulent medical alert scheme,” said Florida Attorney General Pam Bondi. “I thank the Federal Trade Commission for its partnership in this effort, which involved thousands of affected consumers, and the numerous other agencies who joined in the effort to stop these business practices.”
According to the joint agency complaint, the defendants violated the FTC Act, the Commission’s Telemarketing Sales Rule (TSR), and Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA) by blasting robocalls to senior citizens falsely stating that they were eligible to receive a free medical alert system that was bought for them by a friend, family member, or acquaintance. Many of the consumers who received the defendants’ calls were elderly, live alone, and have limited or fixed incomes.
Consumers who pressed one (1) on their phones for more information were transferred to a live representative who allegedly continued the deception by saying that the medical alert systems are recommended by the American Heart Association (AHA), the American Diabetes Association (ADA), and the National Institute on Aging (NIA). In addition, the telemarketers falsely stated that the monthly monitoring fee for the system will be charged only once the medical alert system has been installed and activated. In reality, the defendants started charging consumers who agreed to receive the system immediately, regardless of whether the system had been activated or not.
Based on this alleged conduct, the joint complaint charges the defendants with misrepresenting a range of facts, including that someone the consumer knows already purchased the system for them, that the defendants’ medical alert system is endorsed by the AHA, ADA, and NIA, and that consumers will not be charged until the system has been activated. The complaint also charges the defendants with violating the TSR by making illegal robocalls, including to consumers on the National Do Not Call Registry, and by failing to disclose the caller’s telephone number or identity.
The Commission vote approving the complaint was 4-0. The complaint was filed in the U.S. District Court for the Middle District of Florida, Orlando Division, on January 6, 2014. The following day, the court entered a temporary restraining order, freezing the defendants’ assets and appointed a temporary receiver over their business. A preliminary injunction hearing in the case is scheduled for January 16, 2014.
The defendants include: 1) Worldwide Info Services, Inc., also doing business as (d/b/a) The Credit Voice; 2) Elite Information Solutions Inc., also d/b/a The Credit Voice; 3) Absolute Solutions Group Inc, also d/b/a The Credit Voice; 4) Global Interactive Technologies, Inc., also d/b/a The Credit Voice Inc.; 5) Global Service Providers, Inc.; 6) The Credit Voice, Inc, also d/b/a TCV; 7) Live Agent Response 1 LLC, also d/b/a LAR; 8) Arcagen, Inc., also d/b/a ARI; 9) American Innovative Concepts, Inc.; 10) Unique Information Services Inc.; 11) Michael Hilgar; 12) Gary Martin; and 13) Joseph Settecase.
The FTC and Florida Attorney General’s Office appreciate the assistance of the following agencies, offices, and organizations in helping to investigate and bring this case: 1) the Indiana Office of the Attorney General; 2) the Minnesota Office of the Attorney General; 3) the Florida Department of Agriculture and Consumer Services; 4) the Better Business Bureau Serving Eastern Missouri and Southern Illinois; 5) the American Heart Association; 6) the American Diabetes Association; 7) the National Institute on Aging; 8) the United States Postal Inspection Service, including its Atlanta, Boston, and Houston divisions; and 9) the Seminole County Sheriff’s Office, Financial Crimes Task Force.
At the request of the Federal Trade Commission and the Office of the Florida Attorney General, a U.S. district court has temporarily halted and frozen the assets of an Orlando-based operation that used pre-recorded telephone calls, commonly known as robocalls, to pitch purportedly “free” medical alert devices to senior citizens by false representing that the devices had been purchased for them by a relative or friend. The defendants also allegedly led consumers to believe that the devices were endorsed by various health organizations and that they would not be charged anything before the devices were activated.
The agencies are seeking a court order permanently banning the defendants from engaging in the allegedly fraudulent and illegal conduct, and providing restitution to consumers who were victimized.
“These telemarketers used illegal robocalls to make a sales pitch that was 100 percent false,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “They lied about the product, about whether health organizations had endorsed it, and about its cost. And all the while, their M.O. was to take advantage of older people's concerns about their health. We're so glad to work with our partners in Florida to stop this fraud.”
“We will not tolerate unscrupulous individuals targeting the elderly. This company received more than $13 million in commissions since March 2012, and we will do everything in our power to compensate consumers who lost money due to the fraudulent medical alert scheme,” said Florida Attorney General Pam Bondi. “I thank the Federal Trade Commission for its partnership in this effort, which involved thousands of affected consumers, and the numerous other agencies who joined in the effort to stop these business practices.”
According to the joint agency complaint, the defendants violated the FTC Act, the Commission’s Telemarketing Sales Rule (TSR), and Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA) by blasting robocalls to senior citizens falsely stating that they were eligible to receive a free medical alert system that was bought for them by a friend, family member, or acquaintance. Many of the consumers who received the defendants’ calls were elderly, live alone, and have limited or fixed incomes.
Consumers who pressed one (1) on their phones for more information were transferred to a live representative who allegedly continued the deception by saying that the medical alert systems are recommended by the American Heart Association (AHA), the American Diabetes Association (ADA), and the National Institute on Aging (NIA). In addition, the telemarketers falsely stated that the monthly monitoring fee for the system will be charged only once the medical alert system has been installed and activated. In reality, the defendants started charging consumers who agreed to receive the system immediately, regardless of whether the system had been activated or not.
Based on this alleged conduct, the joint complaint charges the defendants with misrepresenting a range of facts, including that someone the consumer knows already purchased the system for them, that the defendants’ medical alert system is endorsed by the AHA, ADA, and NIA, and that consumers will not be charged until the system has been activated. The complaint also charges the defendants with violating the TSR by making illegal robocalls, including to consumers on the National Do Not Call Registry, and by failing to disclose the caller’s telephone number or identity.
The Commission vote approving the complaint was 4-0. The complaint was filed in the U.S. District Court for the Middle District of Florida, Orlando Division, on January 6, 2014. The following day, the court entered a temporary restraining order, freezing the defendants’ assets and appointed a temporary receiver over their business. A preliminary injunction hearing in the case is scheduled for January 16, 2014.
The defendants include: 1) Worldwide Info Services, Inc., also doing business as (d/b/a) The Credit Voice; 2) Elite Information Solutions Inc., also d/b/a The Credit Voice; 3) Absolute Solutions Group Inc, also d/b/a The Credit Voice; 4) Global Interactive Technologies, Inc., also d/b/a The Credit Voice Inc.; 5) Global Service Providers, Inc.; 6) The Credit Voice, Inc, also d/b/a TCV; 7) Live Agent Response 1 LLC, also d/b/a LAR; 8) Arcagen, Inc., also d/b/a ARI; 9) American Innovative Concepts, Inc.; 10) Unique Information Services Inc.; 11) Michael Hilgar; 12) Gary Martin; and 13) Joseph Settecase.
The FTC and Florida Attorney General’s Office appreciate the assistance of the following agencies, offices, and organizations in helping to investigate and bring this case: 1) the Indiana Office of the Attorney General; 2) the Minnesota Office of the Attorney General; 3) the Florida Department of Agriculture and Consumer Services; 4) the Better Business Bureau Serving Eastern Missouri and Southern Illinois; 5) the American Heart Association; 6) the American Diabetes Association; 7) the National Institute on Aging; 8) the United States Postal Inspection Service, including its Atlanta, Boston, and Houston divisions; and 9) the Seminole County Sheriff’s Office, Financial Crimes Task Force.
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