Consumer Alert Regarding Grant Writing Scams Directed At Nevada Small Businesses

October 3, 2007 -- The following consumer advisory is offered by the Office of the Nevada Attorney General, Bureau of Consumer Protection, as part of an ongoing effort to educate consumers.

The Nevada Attorney General has received information from consumers regarding grant writing schemes for small businesses which appear to be originating from Las Vegas. The consumers received an unsolicited fax concerning grant money, primarily for small businesses, indicating that "no one has been turned down for a grant in 10 years of business." The “service” must be prepaid at a cost of $2500. Those who have paid money have not received any services. The Nevada Attorney General has also received information from consumers about similar companies making telemarketing calls offering assistance with obtaining grants.

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Grant writing scams have become commonplace. No one can “guarantee” that any applicant will receive a grant upon application. Government grants are usually aimed at the needy, educational institutions, or specialists who can provide assistance to the government. A list of information about government grants and how to apply can be found at www.grants.gov, a service of the U.S. Department of Health and Human Services. Private grants are almost always specifically directed at charitable, educational, or scientific research organizations and, with the exception of scholarship funds, are not generally available to the public at large.

Whenever paying anyone for information or services relating to public or private grant assistance, always research the company. Such companies almost never telemarket, send unsolicited fax advertisements, or advertise by bulk mail to the general public. If the service has an internet website, check out the domain registration at www.whois.net. If the website is registered to a “proxy” address, question why the company does not wish to disclose its identity. Check the company out at the Better Business Bureau at www.bbb.org. Check to see if the company provides a local telephone number, not just a toll-free number. Scammers specifically use toll-free numbers to hide their true identity and location. In all cases, ask for copies of their business license, a list of their grant writers, a list of their past successful grant applications, the names of the agencies which awarded grants, and a list of references.

Eric Witkoski, the Nevada Consumer Advocate, warns consumers to never give out personal information to people you don’t know, especially unsolicited telemarketers and unsolicited fax advertisers. Never pay money to get money. In this scam, it appears that all the victim has to do is pay $2500 to get a “guaranteed” grant, which unfortunately will probably never materialize or be refundable. Deal face to face with local companies with a good reputation. When dealing only over the telephone or over the internet, you do not know if the person or company you are dealing with is who or where they say they are. Many times, such persons are calling from or are located in a foreign country, placing themselves out of the reach of law enforcement in this country.

If you would like further information, please call the Attorney General’s Bureau of Consumer Protection in Las Vegas at (702) 486-3420; or in Carson City at (775) 684-1180. Consumer protection information can also be found on the Attorney General’s Web site at ag.state.nv.us.

Source: Nevada Attorney General