PROJECT SCOFFLAW CASE SUMMARY
[B] (back to the top)
Beardall, Douglas
U.S. v. Utah Bureau of Collections, Inc., C-80-0574-A (D. Utah)
Result
(2000) (criminal) 24 months in jail for contempt, mail fraud and perjury
Contemptuous Conduct
violated order and FDCPA by failing to provide debtors with required notices and making misrepresentations
Underlying Final Order
(1981) debt collection
Related Press Release
December 15, 2000
Beardall To Spend Two Years In Federal Prison After Pleading Guilty To Mail Fraud, Perjury And Contempt Charges
Berggren, Keith
FTC v. Giving You Credit, Inc., No. 96C2088 (N.D. Ill.)
Result
(1997) (civil) banned from credit repair services
Contemptuous Conduct
continued to misrepresent credit repair services
Underlying Final Order
(1996) credit repair services
Related Press Releases
March 26, 1997
FTC Settles Contempt Action Against Clear Your Credit, Inc. By Banning Company From The Credit Repair Business
April 11, 1996
Credit Repair Firms Still Bilking Consumers Out Of Millions
FTC, State Law Enforcers Announce 15 Cases From Joint Crackdown, Launch Consumer Education Program
[C] (back to the top)
Cano, Nia
FTC v. Credit Development International, No. 97-7947 (C.D. Cal.)
Result
(2005) (criminal) Nia Cano sentenced in Utah state court to three consecutive 10 year prison terms
Contemptuous Conduct
continued to misrepresent material facts in connection with the sale of business opportunities
Underlying Final Order
(1998) Internet pyramid scheme
Related Press Releases
June 30, 1998
CDI Pyramid Promoters Settle FTC Charges; Nearly $2 Million For Consumer Redress
November 5, 1997
FTC Halts Internet Pyramid Scheme; Promises Of High Income, Pre-approved Credit Cards Were False
Champion, Joe
FTC v. Satellite Broadcasting Corp., No. SACV-95-336 (C.D. Cal.)
Result
(2000) (criminal) sentenced to 21 months in jail for mail and wire fraud
Contemptuous Conduct
made misrepresentations re: investments in software in violation of order
Underlying Final Order
(1996) FCC license investment scam
Related Press Release
January 25, 1996
California Telemarketers Charged With Misrepresenting Investment Opportunity
Satellite Broadcast TV Systems Agree To Pay Over $700,000 To Settle FTC Charges
Chierico, Michael
FTC v. Michael Chierico, 96-1754-Civ. Moore (S.D. Fla.)
Result
(1998) (civil) 4 days of jail; ordered to pay $3 million, including $2 million in redress; (2001) (civil) banned from telemarketing and direct mail of office supplies
Contemptuous Conduct
continued to fraudulently telemarket toner and failed to pay court-ordered redress
Underlying Final Order
(1996) toner-phoner scam
Related Press Releases
February 13, 2001
Defendants In Office Supply Scheme To Pay More Than $2 Million For Consumer Redress
July 2, 1998
U.S. District Judge Finds Couple In Violation Of 1996 FTC Order
Defendants In Office Supply Scheme Banned From Telemarketing And Ordered To Pay More Than $2 Million For Consumer Redress
November 20, 1996
Million Dollar Settlement With Office Supply Telemarketer
Cohen, Harris
U.S. v. Harris Cohen, No. 05-CR-60029-Gonzalez (S.D. Fla.)
Result
(2005) (criminal) defendant indicted and charged with mail fraud conspiracy, mail fraud, and criminal contempt
Contemptuous Conduct
involved in new business opportunity scheme to sell pre-paid Internet service and phone card franchises
Underlying Final Order
(2000) Franchise Rule violations re: pre-paid telephone card vending business opportunities
Related Press Releases
February 22, 2005
Boiler Room Operators/Telemarketers Criminally Charged In Multi-Agency Crackdown Of Business Opportunity Schemes
June 23, 2000
Two Defendants In Pre-Paid Telephone Cards Scam Settle FTC Charges
October 5, 1998
Court Halts Pre-Paid Telephone Cards Scam Following FTC Charges
Cypers, Rory
FTC v. American Fortune 900, CV96-305-RAP (C.D. Cal.)
Result
(1999) (criminal) 60 months incarceration for contempt
Contemptuous Conduct
failed to post bond and fraudulently telemarketed precious metals as investments
Underlying Final Order
(1996) 900-number investment scam
Related Press Releases
September 23, 1996
American Fortune 900, Strategies Telecom, Inc. Settle FTC Charges Over High-Tech Investment Claims
August 19, 1996
Defendants In FTC Cases Targeting High-Tech Telescams To Pay Redress, Post Bonds
[D] (back to the top)
Dante, Ronald (aka Ronald Pellar)
U.S. v. Ronald Dante dba Perma-Derm Academy, 90-CV-945 (C.D. Cal.)
Result
(1998) (criminal) sentenced to 67 months in jail for contempt
(2004) (criminal) sentenced to 8 months in jail for a second contempt
Contemptuous Conduct
failed to make required disclosures re: permanent makeup classes and misrepresented potential earnings in connection with paralegal training
Underlying Final Order
(1991) misrepresented training and certification given to attendees of his permanent makeup workshop
Related Press Releases
February 25, 1998
FTC “Project Scofflaw” Defendant Sentenced
November 28, 1997
Federal Trade Commission’s “Project Scofflaw” Nets Two Convictions
April 14, 1997
Two Defendants In FTC Cases Charged With Criminal Contempt – FTC Launches “Project Scofflaw” To Halt And Deter Violations Of Court Orders
Davis, James Ronald
U.S. v. Davis et al., 1:03-cr-00667 (N.D. Ga.)
Result
(2005) (criminal) James Ronald Davis sentenced to 4 years in prison and ordered to pay up to $781,243 in restitution
Contemptuous Conduct
involved in new business opportunity scheme to sell pre-paid cell phone, pager, calling card, and air time card franchises
Underlying Final Order
(1996) Franchise Rule violations re: snack food or camera and film distributorships
Related Press Releases
March 4, 2005
Peterson, Davis Sentenced In Investment Phone Scheme
April 12, 1996
FTC Announces Two More Settlements In Project Telesweep Vending Machine Business Opportunity Cases
Delgado, Augustino
FTC v. Fortuna Alliance, No. C96-799M (W.D. Wash.)
Result
(1998) (civil) court ordered defendants to pay 15,622 consumers refunds
Contemptuous Conduct
failed to provide additional $2.2 million for consumer refunds
Underlying Final Order
(1997) illegal pyramid scheme
Related Press Releases
July 22, 1998
$5.5 Million In Refunds To Victims Of Fortuna Alliance Pyramid
October 30, 1997
FTC Seeks Civil Contempt For Pyramid Promoter, Fortuna
Drew, Jordan
FTC v. Falcon Crest Communications, Inc., No. CV-95-4881 (E.D. N.Y.)
Result
(2004) (criminal) sentenced to 15 months in prison for securities fraud; ordered to pay $120,000 in criminal restitution
Contemptuous Conduct
violated order by failing to comply with its reporting requirements
Underlying Final Order
(1997) brokerage or listing service scam for licenses issued by the FCC
Related Press Release
June 30, 1997
Falcon Crest Defendants Settle FTC Charges
Duvall, Gregory
FTC v. Infinity Corp. (Makiko Kato, d/b/a), CV 95-4819-R (C.D. Cal.)
Result
(2001) (civil) 1996 agreement modified to add performance bond and more stringent restrictions
Contemptuous Conduct
continued to misrepresent medical billing services opportunity
Underlying Final Order
(1996) Franchise Rule violations in offering medical billing franchises
Related Press Releases
March 2, 2001
Modified Commission Order: Infinity Corporation (“Infinity”) And Defendant Gregory Duvall
March 14, 1996
FTC Announces Settlements In Six “Project Telesweep” Cases
[F] (back to the top)
Febre, Robert J.
FTC v. Pase Corp., No. 94C 3625 (N.D. Ill.)
Result
(2002) (criminal) stipulated to obstruction of justice charge; sentenced to 14 months in jail (maximum sentence under guidelines)
Contemptuous Conduct
credit repair scam, business opportunity scam and violating asset freeze
Underlying Final Order
(1996) work at home scam
Related Press Release
October 10, 1996
Court Halts Phony Work-At-Home Marketer: $16 Million Restitution For Defrauded Consumers
Ferrara, Robert
U.S. v. Ferrara Foods, 4:2002cr00016 (W.D. Mo.)
Result
(2002) (criminal) Ferrara sentenced to 125 months in prison and ordered to pay $102,674.90 in restitution
Contemptuous Conduct
involved in new business opportunity scheme to sell bottled water franchises
Underlying Final Order
(1984) Franchise Rule violations re: snack food distributorships
Related Press Releases
October, 2003
Most Recent Update 10/03 - United States Department of Justice
June 20, 2002
State, Federal Law Enforcers Launch Sting On Business Opportunity, Work-At-Home Scams
June 11, 2002
Busted Opportunity Criminal Actions Being Announced By DOJ
April 24, 2002
Business Franchisor Pleads Guilty To Violating Court Order, Defrauding Investors
Fidler, Judith Takala
Fidler, Sheldon
FTC v. World Traders Association, Inc., No. CV05-0591 (C.D. Cal.)
Result
(2005) (criminal) indicted for contempt of court
Contemptuous Conduct
violated the asset freeze in the temporary restraining order
Underlying Final Order
(2005) surplus goods work-at-home business opportunity
Related Press Release
February 22, 2005
Criminal And Civil Enforcement Agencies Launch Major Assault Against Promoters Of Business Opportunity And Work-At-Home Schemes
Finkelstein, Lon
U.S. v. Lon Finkelstein, No. 05-CR-60029-Gonzalez (S.D. Fla.)
Result
(2005) (criminal) criminal information filed charging defendant with one count of conspiracy to commit mail fraud, and one count of criminal contempt
Contemptuous Conduct
continued misrepresenting the profit potential of perfume and cologne display rack business opportunities
Underlying Final Order
(2003) perfume and cologne display rack business opportunities
Related Press Releases
February 22, 2005
Boiler Room Operators/Telemarketers Criminally Charged In Multi-Agency Crackdown Of Business Opportunity Schemes
January 21, 2004
FTC Cracks Down On Bogus Business Opportunities
June 20, 2002
State, Federal Law Enforcers Launch Sting On Business Opportunity, Work-At-Home Scams
[G] (back to the top)
Gill, Keith
FTC v. Keith Gill, No. 98-1436 (C.D. Cal.)
Result
(2001) (civil) Gill subject to $1,000 daily fines if fail to send rescission notices
Contemptuous Conduct
defendant failed to comply with order’s monitoring provisions
Underlying Final Order
(1999) credit repair
Related Press Releases
August 7, 2001
Court Holds Defendants Liable For Civil Contempt For Violating 1999 Court Order
June 12, 2001
FTC Seeks Civil Contempt Liability For Defendants’ Violations Of Court Order
Goddard, Dennis
FTC v. Goddard Rarities, Inc., 93-CV-4602 (C.D. Cal.)
Result
(2000) (criminal) sentenced to 24 months in jail for contempt
Contemptuous Conduct
failed to post bond and misrepresented 900-number investment opportunities
Underlying Final Order
(1994) rare coins investment opportunity
Related Press Releases
October 20, 1994
California Rare-Coin Marketers Settle FTC Charges
August 16, 1994
California Rare-Coin Marketer Settles FTC Charges With Bond Requirement, Injunctions
August 13, 1993
FTC Charges Rare-Coin Sellers Misrepresented Profit Potential And Risk Of Investments
Grey, Andrew
FTC v. Enforma Natural Products, CV-00-04376-JSL (CWx) (C.D. Cal.)
Result
(2005) (civil) defendants agreed to a modified order and several third parties agreed to orders settling two civil contempt actions filed in 2002. The principal and companies agreed to be banned from advertising or marketing weight loss products (except exercise programs or equipment), and to pay $300,000 in redress. The other parties agreed to orders requiring possession of competent and reliable scientific evidence before making specified claims.
Contemptuous Conduct
(1) continued to advertise Fat Trapper and Exercise in a Bottle products and (2) started selling new weight loss products, Acceleron and Chitozyme, by making false and unsubstantiated claims
Underlying Final Order
(2000) prohibits unsubstantiated claims for weight loss products, including Fat Trapper and Exercise in a Bottle supplements
Related Press Releases
January 18, 2005
Sellers of “Fat Trapper Plus” And “Exercise In A Bottle” Banned From Advertising Weight-Loss Products
January 24, 2003
Commission Authorization To File Appeal
July 25, 2002
FTC Files Second Civil Contempt Action Against Enforma Defendants: New Contempt Charges Filed Against Enforma Employee And An Additional Company
January 10, 2002
FTC Seeks Civil Contempt Liability For Defendants’ Violations Of Court Order
September 1, 2000
FTC Files Charges Against Additional Defendants Involved In The Deceptive Advertising Of “The Enforma System”
April 26, 2000
Marketers Of “The Enforma System” Settle FTC Charges Of Deceptive Advertising For Their Weight Loss Products
Golden, Spencer
FTC v. Federal Data Service, Inc., et al. Case No. 00-6462-CIV-Ferguson (S.D. Fla.)
Result
(2004) (criminal) indicted for contempt, conspiracy, mail fraud, wire fraud, and money laundering (pending)
Contemptuous Conduct
violated temporary restraining order by continuing to misrepresent employment services; violated final order by assisting others in the marketing of employment services and assisting others in telemarketing without obtaining performance bond
Underlying Final Order
(2001) employment fraud
Related Press Releases
February 5, 2001
Florida Company Agrees To Settle Charges Of Misrepresenting Availability Of U.S. Postal Service And Federal Wildlife Jobs
April 17, 2000
Florida Company Charged With Misrepresenting Availability Of U.S. Postal Service And Federal Wildlife Job Opportunities
[H] (back to the top)
Hoffecker, Charles
FTC v. Uni-Vest Financial Services, No. 89-6382-civ-Gonzalez (S.D. Fla.)
Result
(2003) (criminal) defendant indicted in the District of New Jersey and charged with conspiracy to commit mail fraud and mail fraud; trial is scheduled for June 2005
Contemptuous Conduct
violated order that prohibited defendant from selling leveraged commodities
Underlying Final Order
(1991) scam related to telemarketing of leveraged investments in precious metals
Related Press Release
July 10, 1991
FTC Settlements In Precious Metals Case Include Telemarketing Ban And Consumer Redress
[J] (back to the top)
Jordan, Jeffery
FTC v. Meridian Capital Management, Inc., CV-S-96-63 PMP (D. Nev.)
Result
(1997) (criminal) sentenced to 3 months in jail for contempt
Contemptuous Conduct
violated asset freeze
Underlying Final Order
(1997) recovery room scam
Related Press Releases
November 28, 1997
Federal Trade Commission’s “Project Scofflaw” Nets Two Convictions
April 14, 1997
Two Defendants In FTC Cases Charged With Criminal Contempt - FTC Launches “Project Scofflaw” To Halt And Deter Violations Of Court Orders
[K] (back to the top)
Kingsfield, Samuel
FTC v. Western Trading Group, Ltd., No. 92-4194 (C.D. Cal.)
Result
(2004) (criminal) defendant indicted and charged with mail and wire fraud, among other crimes; trial is scheduled for July 2005
Contemptuous Conduct
violated order in connection with the offering of commodities as investments
Underlying Final Order
(1993) scam related to telemarketing of leveraged investments in precious metals
Related Press Release
May 24, 1993
Key Defendants In Precious Metals Telemarketing Scheme Agree To Settle Federal Trade Commission Charges
Kuykendall, H.G., Jr.
FTC v. Diversified Marketing Service Corp., No. CIV-96-388-M (W.D. Okla.)
Result
(2005) (civil) appellate court upheld contempt ruling against corporate defendant and current principal; $39 million for consumer redress suspended
Contemptuous Conduct
continued to make various misrepresentations in connection with the telemarketing of magazine subscriptions in violation of agreed - to order not to do so
Underlying Final Order
(1996) deceptive telemarketing of magazine subscriptions
Related Press Releases
March 18, 2002
Court Awards $39 Million For Consumer Redress
February 4, 2002
FTC Charges Telemarketer With Contempt; Asks Court To Order $51 Million In Consumer Redress
October 21, 1996
Magazine Telemarketers Agree To Settle FTC Charges Of Debiting Consumers’ Checking Accounts Without Authorization
[L] (back to the top)
Love, Christopher
FTC v. Federal Data Service, Inc., et al. Case No. 00-6462-CIV-Ferguson (S.D. Fla.)
Result
(2004) (criminal) 45 days in prison, 180 days home detention, 5 years supervised release for contempt
Contemptuous Conduct
violated temporary restraining order by assisting named defendant to misrepresent employment services
Underlying Final Order
(2001) employment fraud
Related Press Releases
February 5, 2001
Florida Company Agrees To Settle Charges Of Misrepresenting Availability Of U.S. Postal Service And Federal Wildlife Jobs
April 17, 2000
Florida Company Charged With Misrepresenting Availability Of U.S. Postal Service And Federal Wildlife Job Opportunities
[M] (back to the top)
Maldonado, Daniel
FTC v. Federal Data Service, Inc., et al. Case No. 00-6462-CIV-Ferguson (S.D. Fla.)
Result
(2004) (criminal) 27 months in prison for wire fraud
Contemptuous Conduct
assisted named defendant under order to misrepresent employment services
Underlying Final Order
(2001) employment fraud
Related Press Releases
February 5, 2001
Florida Company Agrees To Settle Charges Of Misrepresenting Availability Of U.S. Postal Service And Federal Wildlife Jobs
April 17, 2000
Florida Company Charged With Misrepresenting Availability Of U.S. Postal Service And Federal Wildlife Job Opportunities
Michel, Ronald Henry
FTC v. Golden Oak Numismatics, Inc., No. 91-6741 (C.D. Cal.)
Result
(2001) (criminal) pled guilty to two counts of wire fraud, two counts of mail fraud and one count of money laundering; sentenced to 84 months in jail
Contemptuous Conduct
ran fraudulent investment scheme involving wireless cable
Underlying Order
(1993) fraudulent telemarketing of rare coins investment opportunity
Related Press Release
April 3, 2001
Pacific Palisades Man Pleads Guilty In $12 Million Scam
January 21, 1993
California Rare Coin Marketer And Its President Agree To Halt False Claims, Monitoring Of Future Activities To Settle FTC Charges
Mishkin, Steven
U.S. v. Steven Mishkin, No. 05-CR-60037-Cohn (S.D. Fla.)
Result
(2005) (criminal) defendant pled guilty to both counts of a two count criminal information charging him with conspiracy to commit mail fraud and criminal contempt
Contemptuous Conduct
involved in new business opportunity scheme to sell pre-paid Internet service and phone card franchises
Underlying Final Order
(2000) Franchise Rule violations re: pre-paid telephone card vending business opportunities
Related Press Releases
February 22, 2005
Boiler Room Operators/Telemarketers Criminally Charged In Multi-Agency Crackdown Of Business Opportunity Schemes
June 23, 2000
Two Defendants In Pre-Paid Telephone Cards Scam Settle FTC Charges
October 5, 1998
Court Halts Pre-Paid Telephone Cards Scam Following FTC Charges
Murkey, Richard
FTC v. Richard Murkey, No. 98-1436 (C.D. Cal.)
Result
(2001) (civil) Murkey must pay consumers full restitution and is subject to $5,000 daily fines if he violates ban, misrepresents credit repair services, or demands payment for such services and is subject to $1,000 daily fines if fail to send rescission notices
(2005) (criminal) Murkey pled guilty to four counts of criminal contempt and sentenced to 51 months and ordered to pay $126,000 in restitution for criminal contempt
Contemptuous Conduct
continued to sell credit repair services in violation of ban and failed to comply with order’s monitoring provisions
Underlying Final Order
(1999) credit repair
Related Press Releases
March 1, 2005
Las Vegas Man Sentenced To More Than Four Years For Operating Bogus Credit Repair Business
March 4, 2004
US v. Richard Murkey, Sr. - United States Department of Justice
March 4, 2004
United States v. Murkey, Crim. No. 04-CR-167 (C.D. California)
August 7, 2001
Court Holds Defendants Liable For Civil Contempt For Violating 1999 Court Order
June 12, 2001
FTC Seeks Civil Contempt Liability For Defendants’ Violations Of Court Order
Myers, Charles Edward
FTC v. Uni-met Credit Corp., No. 92-5759-RSWL (C.D. Cal.)
Result
(2003) (criminal) defendant indicted in the District of New Jersey and charged with conspiracy to commit mail fraud and mail fraud; trial is scheduled for June 2005
Contemptuous Conduct
violated order that required defendant to make certain disclosures in connection with any leveraged investment
Underlying Final Order
(1994) scam related to telemarketing of leveraged investments in precious metals
Related Press Release
December 19, 1994
Newport Beach Financiers For Precious Metals Telemarketers To Pay $1.9 Million In Settlement Of FTC Charges
[N] (back to the top)
Norton, Thomas
FTC v. Jordan Ashley, Inc., 93 2257-Civ-Nesbitt (S.D. Fla.)
Result
(1999) (civil) jailed until complied with reporting requirement
(2004) (criminal) sentenced to 60 months in jail, and ordered to pay $2,042,250 in restitution
Contemptuous Conduct
(civil) failed to notify Commission of new employment
(criminal) violated final order in connection with telemarketing business opportunity
Underlying Final Order
(1995) greeting card franchise scheme
Riley, Patricia M.
FTC v. Jordan Ashley, Inc., 93 2257-Civ-Nesbitt (S.D. Fla.)
Result
(2004) (criminal) 24 months for contempt and $2,042,250 restitution
Contemptuous Conduct
assisted husband, Thomas Norton, violate final order
Related Press Releases
April, 2005
Most Recent Update 4/05 - United States Department of Justice
May 30, 2003
Individuals Face Charges For Fraud Scheme Involving Spam Email, An Internet Web Site, And Telemarketing
April 13, 1994
FTC Prevails In Fraudulent Display-Rack Distributorship Case; Judge Orders Permanent Receivership For Company, Orders Over $9.1 Million In Redress
[O] (back to the top)
Olenec, Edward
U.S. v. Elliston Funeral Home, No. 92-C-4294 (N.D. Ill.)
Result
(2000) (criminal) sentenced to 1-month home detention for contempt and fined $125,000
Contemptuous Conduct
failed to provide employees with copy of court order and failed to provide price lists to consumers
Underlying Final Order
(1992) Funeral Rule violations
Related Press Releases
September 22, 2000
Chicago-Area Funeral Home Violated 1992 FTC Order
Owner Held In Criminal Contempt
July 2, 1992
FTC Charges Chicago-Area Funeral Home Violated Funeral Rule; Settlement Includes Civil Penalty And Consumer Redress
Orth, Joan
FTC v. Metropolitan Communications Corp., 1:1994cv00142 (S.D. N.Y.)
Result
(1997) (criminal) sentenced to 6-months home detention
Contemptuous Conduct
violated asset freeze
Underlying Final Order
(1997) FCC license investment scheme
Related Press Releases
November 25, 1997
FCC License Investment Scheme Defendants Settle FTC Charges
September 18, 1997
Defendants In FCC License Investment Scheme Settle FTC Charges; More Than $1.6 Million Obtained For Consumer Restitution
[P] (back to the top)
Pestrichello, Philip
FTC v. First Credit Alliance, Inc., No. CV: 3:00CV1049 (CFD) (D. Conn.)
Result
(2004) (criminal) defendant pled guilty to mail fraud; sentenced to prison for 36 months, supervised release for 3 years; ordered to pay $133,765 in restitution
Contemptuous Conduct
violated order that banned defendant from any involvement in credit-related goods or services
Underlying Final Order
(2001) advance fee credit card scam
Related Press Release
December 12, 2001
FTC Settlements Halt Advanced Fee Credit Card Scam Aimed At Consumers With Poor Credit
[Q] (back to the top)
Quincy, James R.
FTC v. Paradise Palms Vacation Club, C81-1160D (W.D. Wash.)
Result
(1996) (civil) court ordered defendant jailed approximately 60 days until paid $50,000
Contemptuous Conduct
failed to post performance bond and make required disclosures
Underlying Final Order
(1988) timeshare travel scam
Related Press Release
July 2, 1992
FTC Charges James R. Quincy, Atlanta Telemarketer, With Violation Of Federal Court Order
[R] (back to the top)
Reiber, Mark
U.S. v. Mark Reiber dba Credit Repair Counselors, C-1-98-171 (S.D. Ohio)
Result
(2000) (civil) 1999 order modified to ban him from offering credit repair
Contemptuous Conduct
continued to misrepresent credit repair services
Underlying Final Order
(1999) credit repair scam
Related Press Release
January 27, 1999
“Operation Eraser” Defendants Settle Deceptive Credit Repair Charges
Remmers, Lonny
FTC v. PAL Financial Services, Inc., Media Management, Inc., SACV-95-473 (C.D. Cal.)
Result
(1998) (criminal) sentenced to 46 months in jail for contempt
Contemptuous Conduct
operated new telemarketing scam and failed to post performance bond
Underlying Final Order
(1996) investment scam involving satellite television programming
Related Press Releases
December 3, 1998
FTC “Project Scofflaw” Defendant Sentenced
Lonny Remmers Receives 46-Month Prison Term
September 17, 1998
California Telemarketer Pleads Guilty To Criminal Contempt Charges
January 26, 1998
California Telemarketer Charged With Criminal Contempt In FTC Investment Opportunity Case
January 25, 1996
California Telemarketers Charged With Misrepresenting Investment Opportunity In Satellite Broadcast TV Systems Agree To Pay Over $700,000 To Settle FTC Charges
Riley, Patricia M. (see under husband, Thomas Norton)
FTC v. Jordan Ashley, Inc., 93 2257-Civ-Nesbitt (S.D. Fla.)
[S] (back to the top)
Sacks, Lee
FTC v. JK Publications, CV 99-0044 (C.D. Cal.)
Result
(2002) (criminal) Sacks sentenced to 6 months in jail for contempt
Contemptuous Conduct
Lee Sacks, an attorney, violated asset freeze by helping the primary individual defendant access an off-shore bank account that the defendant failed to disclose in court-ordered sworn financial statements
Underlying Order
(2000) original defendant Kenneth Taves involved in illegal billing scam for x-rated internet sites
Related Press Release
September 7, 2000
FTC Wins $37.5 Million Judgment From X-Rated Web Site Operators
Saferstein, Neal D.
FTC v. Mercury Marketing Of Delaware, Inc., No. 00-CV-3281 (E.D. Penn.)
Result
(2004) (civil) court finds defendants in contempt, but suspends $58, 249,441 disgorgement
Contemptuous Conduct
violated order by continuing to bill consumers for Internet-related services without consumers’ authorization
Underlying Final Order
(2001) Internet-related scam
Related Press Releases
August 12, 2003
FTC Charges Web Site Billing Service With Contempt
March 13, 2001
Website Crammers Settle FTC Charges
Salley, Jeffrey
Salley, Terri
U.S. v. Worldwide Coffee, Inc., No. 00-8137-civ-Graham (S.D. Fla.)
Result
(2005) (criminal) Jeffrey Salley sentenced to 70 months in prison; Terri Salley sentenced to 4 years probation; defendants ordered to pay $203,218 in restitution
Contemptuous Conduct
violated order by failing to provide prospective purchasers with the information required by the Franchise Rule
Underlying Final Order
(2000) Franchise Rule violations re: espresso coffee vending business opportunities
Related Press Releases
February 22, 2005
Criminal And Civil Enforcement Agencies Launch Major Assault Against Promoters Of Business Opportunity And Work-At-Home Schemes
July 8, 2004
FTC, DOJ, U.S. Attorney Announce Indictment Of Worldwide Coffee Franchisors
April 17, 2001
Two Vending Machine Franchisors Pay Civil Penalty To Settle FTC Charges
Schaefer, Ronald
FTC v. Worldwide Classics, 92-CV-3363 (C.D. Cal.)
Result
(2000) (criminal) sentenced to 37 months for mail and wire fraud upheld on appeal, remanded to district court
Contemptuous Conduct
continued to misrepresent investment opportunity
Underlying Final Order
(1993) stamps and art investment scam
Related Press Releases
April, 2005
Most Recent Update 4/05 - United States Department of Justice
December 16, 1993
Principal Defendants In FTC’s First Stamp Fraud Case Agree To Settle Charges Of Misrepresenting The Investment Potential Of Stamps
April 22, 1993
Two Defendants In Stamp Fraud Case Agree To Settle Charges They Misrepresented Investment Potential Of Stamps
Schrold, Jack L.
U.S. v. Jack Schrold, No. 98-6212 (S.D. Fla.)
Result
(2005) (civil) court entered a stipulated modified order banning defendant from credit repair business and requiring him to pay a $100,000 civil penalty to resolve civil contempt allegations
Contemptuous Conduct
violated order by charging customers for credit repair services before all services had been fully performed
Underlying Final Order
(1999) credit repair scam
Related Press Releases
May 25, 2005
FTC Bans Bogus Operator From Credit Repair Business
December 21, 2004
Florida Attorney Ordered To Show Cause Why He Should Not Be Held In Civil Contempt For Violating 1999 Order
April 1, 1999
Fort Lauderdale Attorney Agrees To Settle Deceptive Credit Repair Charges
Sterling, Kenneth
U.S. v. American Vending Corp., 99-CR-6105-ALL (S.D. Fla.)
Result
(1999) (criminal) sentenced to 7 months in jail for contempt
Contemptuous Conduct
violated Franchise Rule and made misrepresentations in connection with vending machine business opportunity
Underlying Final Order
(1996) vending machines business opportunity
Related Press Releases
May 20, 1999
DOJ, U.S. Attorney, FTC Announce Indictment Of Franchisor
June 5, 1996
Four More “Project Telesweep” Defendants Settle FTC Charges In Business Opportunity Cases: Three Of The Cases Net Civil Penalties
[T] (back to the top]
Tankersly, William
FTC v. Think Achievement, 2:98-CV-12-TS (N.D. Ind.)
Result
(2001) (civil) defendant jailed 32 months; relief-defendant spouse jailed 6 months
(2001) (criminal) Tankersly sentenced to two concurrent 24-month sentences for contempt
Contemptuous Conduct
(civil) failed to repatriate assets
(criminal) asset freeze violation
Underlying Final Order
(2000) postal service job scam
Related Press Release
November 8, 2000
FTC Wins $28 Million Judgment Against Postal Jobs Scam Artists
Taves, Kenneth
FTC v. J.K. Publications, CV 99-0044 (C.D. Cal.)
Result
(2004) (criminal) Taves sentenced to 135 months in jail for fraud (parallel criminal contempt dismissed as part of plea agreement)
Contemptuous Conduct
violated asset freeze and failed to disclose all assets
Underlying Final Order
(2000) illegal billing scam for x-rated internet sites
Related Press Release
September 7, 2000
FTC Wins $37.5 Million Judgment From X-Rated Web Site Operators
Taylor, Barry
FTC v. Telecommunications of America, No. 95-693-CIV-ORL-22 (M.D. Fla.)
Result
(2000) (civil) $656,257 judgment and banned from franchise or business opportunities
Contemptuous Conduct
greeting card rack business opportunity scam
Underlying Final Order
(1996) pay telephone business opportunity scam
Related Press Releases
November 1, 2000
U.S. District Judge Finds North Carolina Man In Violation Of 1996 FTC Order
http://www.ftc.gov/opa/2000/11/taylorcontempt.htm
March 14, 1996
FTC Announces Settlements In Six “Project Telesweep” Cases
http://www.ftc.gov/opa/1996/03/tele.htm
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Valenty, Benjamin
FTC v. National Art Publishers and Distributors, Inc. (S.D. Cal.)
Result
(1997) (civil) 1994 order modified to impose stricter ban on telemarketing and payment of $150,000 for consumer redress
Contemptuous Conduct
continued to make misrepresentations in selling art as investment
Underlying Final Order
(1994) art investment scam
Related Press Releases
June 26, 1997
Marketer Of Art As Investments Banned From Telemarketing For Life
August 26, 1994
FTC Garners Ban On Investment Telemarketing By Defendant In Movie Poster Fraud Case
Vaughan, III, Dennis W.
FTC v. Parade of Toys and Dennis W. Vaughan, III, 97-CV-2367 (D. Kan.)
Result
(2002) (criminal) sentenced to 84 months in jail for contempt, conspiracy to commit wire fraud, and money laundering; also ordered to pay $13,800,400 in restitution to victims
Contemptuous Conduct
promoted business venture in violation of ban and failed to notify FTC of new employment
Underlying Final Order
(1999) business opportunities scheme
Related Press Release
April, 2005
Most Recent Update 4/05 - United States Department of Justice
December 21, 2004
Tenth Circuit Court Of Appeals Order Upholding Vaughan’s 84 Month Sentence
January 16, 1998
Parade Of Toys Defendants Settle “Operation Trade Name Games” Charges
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Wilson, Alan
FTC v. Integrated Capital, Inc., No. CV-N-03-0412-DWH (D. Nev.)
Result
(2005) (civil) court ordered defendants to offer full refunds to dissatisfied consumers
Contemptuous Conduct
violated order by failing to make certain disclosures in connection with the marketing and sale of academic goods or services
Underlying Final Order
(2003) college financial aid scam
Related Press Releases
April 29, 2005
Court Holds National Student Financial Aid In Contempt: Defendants Violated Terms Of A 2003 Court Order
July 28, 2004
FTC Charges College Financial Aid Company With Contempt
Agency Alleges National Student Financial Aid Continues To Deceive Consumers
August 1, 2003
Marketers Of College Scholarship Services Settle FTC Charges Of Misrepresenting Ability To Obtain Financial Aid For Students
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