Money Matters, Simplified.
FTC files charges against con artists
by Jaspreet Virk - July 2, 2009 - comments
One of the FTC’S new cases involve five companies, namely John Beck Amazing Profits, John Alexander, Jeff Paul, Mentoring of America and Family Products, accused of selling fraudulent programs real estate and on line businesses
New York, July 2: The Federal Trade Commission (FTC) Wednesday announced series of civil and criminal charges against alleged con artists for luring customers to make upfront payment by promising jobs and services that never materialize.
More than 100 cases have been filed as part of Operation Short Change, comprising FTC, the Department of Justice and officials in 13 states and the District of Columbia.
One of the FTC’S new cases include five companies, namely John Beck Amazing Profits, John Alexander, Jeff Paul, Mentoring of America and Family Products, accused of selling fraudulent programs real estate and on line businesses.
Reasons for rise in scams
With the jobless rate rising, scams are also on the rise. Taking advantage of the economic anxiety, con artists have been offering aid in restoring bad credit and recommending lucrative work-at-home business opportunities.
Addressing the media persons, David C. Vladeck, director of the Federal Trade Commission's Bureau of Consumer Protection, said, "Rising unemployment, shrinking credit, record-setting foreclosures and disappearing retirement accounts are causing consumers tremendous anxiety about making ends meet."
"But to con artists, today's challenging economy presents an opportunity to exploit consumers' fears and bilk them out of money,” he added.
Rising complaints
Complaints to the FTC against con artists have nearly doubled in 2008 from 20,286 from the previous year and are on a continuous rise this year.
Beverly Steward, from the Washington, D.C., area, came across a newspaper advertisement in January for a job and for this she was referred to a company, Job Safety USA. For her job as a cleaner, she had to pay $98 for a certification to handle hazardous material.
"The website looked great. Anybody would have fallen for it," said Steward, who pursued complaints with several government agencies. "I don't want anybody else . . . to be taken for even 5 cents."