FTC, FLORIDA AG SETTLEMENT STOPS ROBOCALL OPERATION THAT PUSHED SALES OF MEDICAL ALERT DEVICES TO SENIORS

FROM:  U.S. JUSTICE DEPARTMENT
Settlement with the FTC and Florida Attorney General Stops Operations that Used Robocalls to Fraudulently Pitch Medical Alert Devices to Seniors

A settlement obtained by the Federal Trade Commission and the Office of the Florida Attorney General permanently shuts down an Orlando-based operation that bilked seniors by using pre-recorded robocalls to sell them supposedly free medical alert systems.

The settlement order bans the defendants from making robocalls, prohibits other telemarketing activities, and bars them from making misrepresentations related to the sale of any product or service. The order includes a judgment of nearly $23 million, most of which will be suspended after the defendants surrender assets including cash, cars, and a boat.

”This case is a great example of how federal and state law enforcement can work together to stop fraudulent telemarketing targeting older consumers,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “The FTC will continue to work with its state partners to protect senior citizens from pernicious schemes like this one.”

“We must do everything within our power to protect Florida’s consumers. The scheme we have stopped allegedly targeted Florida’s senior citizens, and we, along with our Federal Trade Commission partners, have held these individuals accountable,” said Attorney General Pam Bondi.

According to the joint agency complaint, announced in January, 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 continued the deception by falsely saying that their medical alert systems are recommended by the American Heart Association, the American Diabetes Association, and the National Institute on Aging. In addition, the telemarketers falsely said that the $34.95 monthly monitoring fee would be charged only after the system has been installed and activated. In reality, consumers were charged immediately, regardless of whether the system was activated or not.

The court order settling the agencies’ charges also imposes a judgment of $22,989,609, the total amount consumers paid for monthly monitoring services for their medical alert devices. The judgment will be suspended as to all of the settling defendants once the individual defendants turn over cash and other assets valued at about $79,000, including $24,000 that was transferred in violation of a court-ordered asset freeze.

Assets that will be sold include a 2008 BMW, a 1984 Hans Christian sailboat, a 2004 Mercedes, and a 2008 Lincoln Navigator. In addition, defendant Joseph Settecase is subject to a second judgment of $39,300, which will not be suspended. This judgment reflects the funds that Settecase retained after selling his Ferrari in violation of the asset freeze and transferring a portion of the proceeds to another defendant.

The defendants subject to the settlement 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) Arcagen, Inc., also d/b/a ARI; 7) American Innovative Concepts, Inc.; 8) Unique Information Services Inc.; 9) National Life Network, Inc., and their principals 10) Michael Hilgar; 11) Gary Martin; 12) Joseph Settecase; and 13) Yuluisa Nieves.

One defendant, Live Agent Response 1 LLC, also d/b/a LAR, has not settled, and the FTC and Florida AG are seeking a default judgment against it. In May, the parties stipulated to the dismissal of The Credit Voice, Inc. as a defendant.

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.

TELEMARKETER PERMANENTLY BANNED FROM TELEMARKETING

FROM:  FEDERAL TRADE COMMISSION 

Marketer of Robocalling Services Banned from Telemarketing

The head of an operation that enabled telemarketers to make illegal robocalls, call phone numbers on the National Do Not Call Registry, and mask Caller ID information, is permanently banned from telemarketing and robocalling under a settlement with the federal government.

In November 2011, on the Federal Trade Commission’s behalf, the Department of Justice filed a complaint alleging that Joseph Turpel sold services to telemarketers who were violating the FTC's Telemarketing Sales Rule.  The complaint alleged that Turpel knew, or consciously avoided knowing, that clients used his services while calling numbers on the National Do Not Call Registry, transmitting inaccurate caller ID information, and making illegal prerecorded telemarketing solicitations (robocalls).

According to the complaint, Turpel’s clients offered credit card services, home security systems, and grant procurement programs. He allegedly gave clients the means to hide their identity by transmitting inaccurate caller names, such as “SERVICE MESSAGE” or “SERVICE ANNOUNCEMENT,” on caller ID displays.

In addition to banning Turpel from telemarketing and robocalling, the settlement order imposes a $395,000 civil penalty that is suspended based on his inability to pay. The full penalty will become due immediately if Turpel is found to have misrepresented his financial condition.

The Commission vote authorizing DOJ staff to file the proposed  stipulated final order was 4-0. The final order was entered by the U.S. District Court for the Central District of California on April 15, 2014.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

BOGUS INVESTMENT OPPORTUNITY SCHEMER SETTLES WITH FTC

FROM:  FEDERAL TRADE COMMISSION 
FTC Settlement Bans Precious Metal Marketers from Selling Investment Opportunities
Court Orders Defendants to Pay $3.6 Million for Refunds to Consumers

The operator of a bogus precious metals investment scheme that bilked millions of dollars from investors, including many senior citizens, is permanently banned from selling any investment opportunities under a settlement with the Federal Trade Commission.

The settlement resolves FTC charges that Anthony J. Columbo and his companies, Premier Precious Metals Inc., Rushmore Consulting Group Inc., and PPM Credit Inc., conned consumers into buying precious metals on credit without clearly disclosing significant costs and risks, including the likelihood that consumers would subsequently have to pay more money or lose their investments.

In addition to banning the defendants from selling investment opportunities, the settlement order permanently prohibits them from misrepresenting material facts about any products and services, violating the FTC’s Telemarketing Sales Rule, failing to provide consumer information to the FTC so it can administer consumer redress, selling or otherwise benefiting from consumers’ personal information, and failing to properly dispose of customer information. The order also requires them to record all of their telemarketing calls for ten years.

The order imposes a judgment of more than $3.6 million against the defendants, which will be partially suspended after Columbo relinquishes to the FTC assets estimated to be worth about $3 million, including Florida real estate, personal property, and bank and investment accounts. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition.

For information about investing in precious metals, read the FTC’s Message sent, message received: Precious metal marketers agree to FTC settlement, Investing in Gold?, Investing in Bullion and Bullion Coins, and Investing in Collectible Coins.

The Commission vote authorizing the staff to file the proposed stipulated order was 4-0.  It was entered by the U.S. District Court for the Southern District of Florida on February 25, 2014.

NOTE: Stipulated orders have the force of law when approved and signed by the District Court judge.

FINAL SIX 'RACHEL ROBOCALL' DEFENDANTS BANNED FROM TELEMARKETING

FROM:  FEDERAL TRADE COMMISSION 
Final Six Defendants in 'Rachel Robocall' Scheme Settle FTC Charges

They Will Be Permanently Banned from All Telemarketing and Debt Relief Services

The final six of 10 defendants named in an alleged “Rachel from Cardholder Services” scam have agreed to settle Federal Trade Commission charges that they misled consumers with bogus claims that they would lower their credit card interest rates.

The FTC settlement bans Emory L. “Jack” Holley IV, Lisa Miller, and the remaining corporate defendants from telemarketing and marketing debt relief services or assisting others in such conduct, prohibits them from misrepresenting any products or services, and imposes a partially suspended $11.9 million judgment.

The FTC filed its complaint in this matter in October 2012, alleging that the defendants violated Section 5 of the FTC Act and the agency’s Telemarketing Sales Rule (TSR) by charging illegal up-front fees during telemarketing calls in which they made false promises to reduce the interest rate on consumers’ credit cards and save them thousands of dollars.

In the complaint, the FTC also charged the defendants with making other misrepresentations, such as claiming that consumers who bought their services would be able to pay off their debts much faster as a result of the lowered credit card interest rates and making false claims about their refund policies.

The other four Key One defendants agreed to settle the FTC charges against them in June of this year. They allegedly defendants participated in the scheme by opening merchant and bank accounts in their names for processing consumer payments obtained in connection with the deceptive sales of credit card interest rate-reduction and by providing substantial assistance, such as web pages, mail drops, customer service, and shipping of CDs with general debt and other financial information to consumers.

Under the settlement announced today, Emory L. “Jack” Holley, Lisa Miller, and the companies they control, will be permanently banned from all telemarketing, with extremely limited exceptions to allow them to engage in legitimate business activities. The settlement also bans the defendants from advertising, marketing, promoting, offering for sale, or selling any debt relief-related products or services. Several of the defendants are repeat offenders, and this ban will permanently stop them from preying on consumers in financial distress.

The final order also prohibits the six defendants from making any misrepresentations related to any financial product or service, and requires them to substantiate any claims they make to consumers in the future about the potential benefits or effectiveness of any product or service. Finally, the order imposes a partially suspended judgment of $11.9 million jointly against the corporate and individual defendants. The defendants' assets, currently being held in receivership, will be paid to the Commission.

The Commission vote approving the proposed consent decree announced today was 4-0. It was filed in the U.S. District Court for the District of Arizona on October 16, 2013, and entered by the court the next day. The final order settles the FTC’s allegations against: 1) ELH Consulting, LLC, also doing business as Proactive Planning Solutions; 2) Purchase Power Solutions, LLC; 3) Allied Corporate Connection, LLC; 4) Complete Financial Strategies, LLC; 5) Emory L. Holley IV, a/k/a Jack Holley, individually and as the sole member of ELH Consulting, LLC; and 6) Lisa Miller, individually and as the sole member of Allied Corporate Connection, LLC, Complete Financial Strategies, LLC, and Purchase Power Solutions, LLC.