The Federal Trade commission is planning to award 1.6 million dollars to thousands of customers who were conned into giving money that they did not owe by scam artists who used threats, harassment and lies to get them to pay up.
In 2003, the FTC sued three companies that were operating under the name, National Check Control. They charged them with harassing and abusing customers. The list of grievances included falsely threatening criminal prosecution, collecting amounts that were not due, illegally communicating with third parties and other violations of federal laws.
Two years later the court ordered that their business be permanently halted and ordered them to pay back the consumers they had tricked The defendants, Check Investors Inc, Check Enforcement Inc, Jaredco, Inc and the companies owner Barry Sussman tried to appeal the case to the Third Circuit Court of Appeals and the Supreme Court in vain.
One day after the appeals court did not agree to consider his appeal, Sussman suspiciously removed a number of coins valued at $335,000 from a bank safe deposit box. The federal court ordered that he turn the coins over to the FTC to pay back the consumers who had been scammed. Later, a federal jury convicted him of two felony counts, one for theft of government property and one for the obstruction of justice. He was sentenced to forty one months in federal prison and is currently serving his sentence.
All in all, the FTC was able to recover 1.6 million dollars to give back to the consumers that were scammed. They plan to distribute the funds to 24,916 consumers who lost a hundred dollars or more as a result of the scam. The victims will begin to receive checks this month.
The Federal Trade Commission is responsible for putting an end to fraudulent, unfair, and deceptive practices that may be harmful to consumers. Also, they provide information to help the consumer in seeing, stopping, and avoiding scams.
Mallory works for a third party collection agency. Using a collection debt agency? Hire the services of a collection attorney.
