Government Investigation

March 17, 2015

Illinois Attorney General Lisa Madigan announced a lawsuit against Illinois-based online sports equipment retailer Great Sports, Inc. and now-defunct Legion Global Corp. for dishonest business practices that resulted in consumers losing hundreds of thousands of dollars. According to Madigan’s lawsuit, consumers purchasing goods at any of the company’s websites, www.greaterpowersports.com, www.globaltrailer.net and www.saferwholesale.com, received incorrect orders or damaged products. IL

March 5, 2015

New York Attorney General Eric T. Schneiderman along with the Federal Trade Commission announced an $8 million settlement with Allstar Marketing Group, LLC that requires the direct marketing firm to stop using allegedly deceptive and misleading advertising and ordering processes when selling a variety of products, such as the Snuggie, the Perfect Brownie Pan and the Magic Mesh screen. According to NY, Allstar ran misleading infomercials that featured attractively priced offers for products to lure consumers to place orders and then used deceptive and confusing ordering processes, that resulted in consumers being charged excessive and unauthorized fees and charges. NY

March 4, 2015

Florida Attorney General Pam Bondi’s Office and the Federal Trade Commission have taken action to stop multiple companies engaging in an illegal robocalling operation using political surveys to sell cruise line vacations. Caribbean Cruise Line, Inc., a marketing company, and seven associated companies participated in CCL’s massive robocalling scheme that allegedly circumvented telemarketing laws and made unlawful sales calls to consumers on the Do Not Call Registry. Florida led a coalition of ten attorneys general and joined the FTC in their investigative efforts to shut down this illegal operation that averaged 12 to 15 million illegal sales calls a day and generated millions of dollars for the companies. FL

February 27, 2015

Identity theft topped the FTC’s national ranking of consumer complaints for the 15th consecutive year, while the agency also recorded a large increase in the number of complaints about so-called “imposter” scams, according to the FTC’s 2014 Consumer Sentinel Network Data Book. FTC

February 26, 2015

New York Attorney General Eric T. Schneiderman announced joint lawsuits with the Federal Trade Commission aiming to shut down two abusive debt collection rings operating in the Buffalo area and targeting consumers nationwide. According to the complaints, Four Star Resolution, LLC and Vantage Point Services, LLC used threats and abusive language, including false threats that consumers would be arrested, to collect more than $45M in supposed debts. NY

February 18, 2015

New York Attorney General Eric T. Schneiderman and New York City Corporation Counsel Zachary W. Carter announced the filing of a multimillion-dollar lawsuit alleging that United Parcel Service, Inc. unlawfully shipped over 136 million contraband cigarettes across New York State in violation of federal and state laws. NY

February 11, 2015

New York Attorney General Eric T. Schneiderman announced the sentencing to prison (for 1 1/3 to 4 years) of Haricharan Malhotra, a Suffolk County convenience store operator who pleaded guilty for participating in a multi-year larceny scheme to illegally trade cash for almost $1M in Supplemental Nutritional Assistance Program (formerly known as the Food Stamp Program) benefits. NY

February 10, 2015

Florida Attorney General Pam Bondi, along with the Illinois Attorney General and 41 other attorneys general, asked nine oil companies to collaborate with their franchisees to help eliminate synthetic drugs from retail locations operating under their brand names, including gas station and convenience stores. Included among the oil companies addressed in the multi-state request are: British Petroleum, Chevron Corporation, Citgo Petroleum Corporation, Exxon Mobil Corporation, Marathon Petroleum Corporation, Phillips 66, Shell Oil Company, Sunoco, and Valero Energy Corporation. According to the attorneys general, many of the well-known retail gas stations and convenience stores operating under these brands give the appearance of safety and legitimacy to dangerous synthetic products sold there. FL

February 9, 2015

Ohio Attorney General Mike DeWine announced a settlement of $105,000 with Massachusetts-based Integral Resources Inc. that allegedly solicited Ohioans for charitable donations while misleading consumers into thinking the calls were coming from a charity, versus a business. OH

January 22, 2015

Ohio Attorney General Mike DeWine announced a settlement with northwest Ohio residents who allegedly used their charity, most recently known as Defining Vision Ministries Inc. and previously known as Focus Up Ministries, to solicit funds for an alleged international pyramid scheme called Profitable Sunrise.