Archive

March 5, 2015

Florida Attorney General Pam Bondi’s Office announced the filing of four complaints involving deceptive marketing and sales of computer software and tech support services to Florida consumers, many of whom are senior citizens. The call centers allegedly used deceptive marketing, such as pop up ads warning of viruses or other malware, to lead consumers to call these companies who were then directed through scare tactics to pay for unnecessary computer repairs and support services. Consumers typically paid from $99 to $600 to resolve non-existent computer issues. The companies involved included ASAP Tech Help, LLC, E-Racer Tech, LLC, Protech Support, LLC (d/b/a Rapid Tech Support), and Techfix USA, LLC (d/b/a PC Smart Support and First Class Tech Support). FL

March 5, 2015

Florida Attorney General Pam Bondi announced settlements with home security system providers Security Networks, LLC and Vision Security, LLC to resolve allegations they made false or misleading statements in door-to-door sales of security alarm systems. These misrepresentations included that the companies were affiliated with the consumers’ current security monitoring companies and that the consumers’ products were outdated, in need of upgrades or that the consumers’ current monitoring companies were going out of business. FL

February 13, 2015

The FTC approved a final order against Dallas auto dealer TXVT Limited Partnership (doing business as Trophy Nissan) involving deceptive advertising charges. Under the settlement, Trophy is prohibited from misrepresenting in any advertisement the material terms of any promotion or other incentive, including that it will pay off a consumers’ trade-in or the cost of leasing or purchasing a vehicle. Trophy is also prohibited from failing to clearly and conspicuously disclose material terms of its promotions or other incentives and must comply with the Consumer Leasing Act and Regulation M and the Truth in Lending Act and Regulation Z. FTC

February 13, 2015

New York Attorney General Eric T. Schneiderman announced a felony indictment today charging Moazzam Ifzal “Mark” Malik with stealing over $250,000 from five investors by fraudulently soliciting them to invest in his purported hedge funds, including Seven Sages Capital, L.P. and Wolf Hedge LLC. Malik is accused of luring investors with false representations that he managed a multi-million dollar hedge fund that would guarantee high returns, and then diverted their monies for his own personal use. NY

February 13, 2015

A federal court ordered Scott M. Ross, formerly of Gilberts, Illinois, and his companies, Maize Capital Management, LLC and Maize Asset Management, LLC, to pay $6.7 million in restitution and civil penalties for defrauding investors, mishandling customer funds, and failing to register as a commodity pool operator.  CFTC

February 11, 2015

Ohio Attorney General DeWine announced a lawsuit against Buffalo-based debt collector Nationwide Recovery Group LLC and its owner, Michael P. McCarthy, for violating the Ohio Consumer Sales Practices Act and the Fair Debt Collection Practices Act by allegedly impersonating Ohio government agencies and threatening consumers with arrest while attempting to collect debts. While operating in Ohio, the business also allegedly used the fictitious names Gallagher Mediation and the Law Firm of John McGuire to mislead consumers. OH

February 9, 2015

The FTC obtained a $9.5M judgment against sweepstakes promoter Crystal Ewing for deceptively enticing consumers in the U.S., Canada and the United Kingdom to send money to collect large cash prizes that, in fact, did not exist. FTC

February 9, 2015

New York Attorney General Eric T. Schneiderman announced felony charges against Khawaja Saud Masud for stealing over $1M from a retired pediatrician and his wife by fraudulently soliciting them to invest in his purported hedge fund RKS Capital, LP. NY

February 5, 2015

The CFTC ordered Isaiah Goldman and Brock Catronio, individually, and their companies, Paramount Metals Exchange, LLC and Paramount Credit, LLC, both of Delray Beach, Florida, to pay over $2.5 million in sanctions for engaging in illegal, off-exchange precious metals transactions.  CFTC

February 4, 2015

The CFTC ordered Brian S. Ekasala, a resident of Lake Worth, Florida, and his company, Midwest Metals Exchange, LLC, to pay over $500,000 for engaging in an illegal, off-exchange precious metals transaction scheme.  CFTC