Fraud

June 16, 2008 -- A South Carolina tax-relief company that claims to be able to settle your debt with the Internal Revenue Service for "pennies on the dollar" has agreed to stop misleading consumers about its services and pay $1.5 million in refunds, announced West Virginia Attorney General Darrell McGraw today.

"For an exorbitant fee, JK Harris promised to help consumers with their tax problems. Instead of getting tax help, consumers only got deeper in debt," said McGraw.    » read more »

Administration to seek additional safeguards and oversight of life insurance settlements

June 16, 2008 -- HONOLULU – Hawaii Governor Linda Lingle today signed into law a bill to protect individuals – specifically senior citizens and people suffering from chronic or terminal illness – from fraudulent activity relating to the selling and buying of life insurance policies.

While the new law provides added measures to protect consumers, the Governor said it does not go far enough in safeguarding against unscrupulous individuals who exploit and prey on vulnerable residents because of their age or medical condition. The Lingle-Aiona Administration will seek additional protections and industry oversight in the 2009 legislative session.    » read more »

$1 million telemarketing scheme victimized at least 50 people

June 16, 2008 -- TALLAHASSEE, FL - Florida Attorney General Bill McCollum today announced four South Florida men have been sentenced after they pleaded guilty in January to their participation in an illegal boiler room operation that victimized more than 50 people out of more than $1 million. The men were prosecuted by the Attorney General’s Office of Statewide Prosecution.

“Investment scams are particularly harmful because they target individuals who are trying to use their money wisely, perhaps to fund important life decisions such as buying a home or planning for retirement, and it our responsibility to protect our communities from this threat,” said Attorney General McCollum.    » read more »

May 30, 2008 -- SAN DIEGO -- California Attorney General Edmund G. Brown Jr. today announced that Theodore Swain, 60, was sentenced this morning to 24 years in state prison for running a $7 million Ponzi scheme that ripped off 100 investors in Southern California.

“This is the fourth time Swain has been caught ripping people off with his worthless investment schemes,” Attorney General Brown said. “Most recently, he convinced 99 consumers, including a doctor, lawyer and aerospace engineer, to invest tens of thousands of dollars in property which does not exist."

Today, the Honorable Judge Charles Gill sentenced Theodore Swain to 24 years in state prison and ordered him to pay $6.7 million in victim restitution.    » read more »

May 28, 2008 -- Oregon Attorney General Hardy Myers today announced a settlement reached with iMergent, Inc., and its subsidiary, Storesonline, Inc., both Delaware-based companies operating out of Utah, for alleged violations of Oregon's Unlawful Trade Practices Act. In an Assurance of Voluntary Compliance (AVC) filed in Marion County Circuit Court, the company agrees to comply with state consumer protection laws and resolve any future complaints.    » read more »

NY AG Cuomo Urges Consumers Victimized By Dell’s Deceptive Business Practices To File Complaints Online; Follows Court Decision Requiring Dell to Pay Restitution and Penalties for Negligent Customer Service, False Advertising, and Fraud

NEW YORK, NY (May 28, 2008) - New York Attorney General Cuomo today urged customers who were victimized by Dell’s deceptive and negligent business practices to file complaints at www.NYAGDELL.com, a website devoted exclusively to addressing consumer issues with Dell.    » read more »

Agreement Affects Oil Change Customers of 16 Mr. Lubie Locations

May 28, 2008 -- (INDIANAPOLIS, IN) – Hukill Oil Company, Inc., doing business as Mr. Lubie, agreed to provide refunds to customers who paid for a specific, brand-name oil, but received a different, less expensive product announced Indiana Attorney General Steve Carter.

Mr. Lubie sign: Photo by John Stewart (CC)

Under terms of the Assurance of Voluntary Compliance (AVC), Mr. Lubie agreed to refund eligible customers $20 per oil change, within 60 days of the AVC filing in Jackson Circuit Court.    » read more »

Charges Next-G Communication, Inc. with delivering fewer calling minutes than advertised

May 23, 2008 -- AUSTIN – Texas Attorney General Greg Abbott today filed the state’s first legal enforcement action against a prepaid calling card company.

Advertising for Next-G’s prepaid calling cards

Court documents filed in Bexar County indicate Next-G Communication, Inc. produces, sells and distributes prepaid calling cards throughout Texas but consistently fails to deliver the number of minutes it advertises to customers.    » read more »

May 22, 2008 -- SAN DIEGO -- California Attorney General Brown today shut down a team of scam artists that acquired deeds to hundreds of homes in foreclosure by convincing desperate consumers to place their property in a “land grant,” a phony and worthless real estate document.

Federal Land Grant Company—a San Diego-based business run by Bill Hutchings, his wife Xiaoke Li and former wife Shawna Landis—tricked desperate homeowners into believing that they could protect their homes from foreclosure by deeding their property to “federal land grants.” Land grant transfers, used hundreds of years ago when the United States was still acquiring land from other countries, are no longer recognized by any court or county assessor.    » read more »

National operation includes more than 180 actions against instances of telemarketing fraud

May 20, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum, Florida Agriculture and Consumer Services Commissioner Charles H. Bronson, the Federal Trade Commission (FTC), and a series of Florida partners today announced the results of a national telemarketing fraud sweep, including several actions taken throughout Florida over the past few months.    » read more »

May 13, 2008 -- LANSING – The U.S. Securities and Exchange Commission (SEC) recently announced that with the assistance of the Office of Financial and Insurance Regulation (OFIR), the federal agency obtained an emergency court order freezing the assets of Gregory N. McKnight of Swartz Creek, MI, an alleged perpetrator, of an Internet fraud scheme that reaped approximately $72 million from more than 3,000 investors in all 50 states and at least 30 foreign countries.    » read more »

Bright Pages to refund up to $3 million to defrauded customers, reform business practices and pay $150,000 penalty

NEW YORK, N.Y. (May 12, 2008) - New York Attorney General Andrew M. Cuomo today announced a settlement agreement with a national online directory service for defrauding thousands of small businesses and not-for-profits across New York state and the nation.

Under the terms of the court-ordered settlement, the company will pay a $150,000 penalty and up to $3 million in restitution to defrauded customers.    » read more »

May 12, 2008 -- JEFFERSON CITY – As Southwest Missourians begin to recover from the powerful storms that ripped through their communities over the weekend, Missouri Governor Matt Blunt encourages residents to be wary of scammers seeking to profit from mother nature’s destruction.

“Unfortunately, scammers see disasters as prime opportunities to take advantage of those most in need of help,” Gov. Blunt said. “I urge Missourians to take caution and research any home repair company that shows up at their doorstep as they work through the insurance claims process. Missourians can avoid scam artists by working with reputable, local businesses rather than fly-by-night companies.”    » read more »

May 9, 2008 -- NEWARK – Con artists attempting to steal personal information are contacting New Jersey residents and falsely stating that bank account and/or social security numbers must be provided to them in order for economic stimulus checks to be sent to consumers.

Acting Consumer Affairs Director Larry DeMarzo warned residents to be aware of this scam and to not provide any personal information to callers who claim to be U.S. Treasury or I.R.S. officials or to respond to such emails.    » read more »

May 7, 2008 -- Jefferson City, Mo. - Missouri Attorney General Jay Nixon says Missourians are receiving letters in the mail offering mortgage insurance, refinancing and other services. He says while many of those solicitations are designed to look like they come from a consumer's mortgage lender, they actually come from a separate, unrelated company.    » read more »