Scam of the day – October 16, 2016 – FTC shuts down telemarketing scam

At the request of the Federal Trade Commission (FTC), a temporary restraining order has been issued by a judge in the Federal District Court for Arizona temporarily shutting down the operation of a telemarketing scam in which three people, utilizing numerous corporations,  lured people into investing thousands of dollars in purported  e-commerce websites.  The scammers targeted older people and veterans from whom they stole millions of dollars with promises of huge profits and fraudulent misrepresentations that the investments were “risk free” and totally guaranteed,   The scammers charged by the FTC are Susan Rodriguez, Matthew Rodriguez and William “Matt” Whitley who did business under the names “Titan Income, ” “Wyze Money,” “Prime Cash,” and “Building Money.”  As alleged by the FTC, the entire operation was a scam and the victims received neither profits nor their investments back when they requested refunds.  The next step in the case against these defendants will be a hearing to replace the temporary restraining order with a more permanent preliminary injunction to stay in affect during the litigation.

Many of the victims of this scam were on the Do Not Call List, which should have been an initial indication to the victims that the “business opportunity” was a scam because calling them to offer a business opportunity was already a violation of the law.

TIPS

Never invest in anything until you have had a chance to do diligent research into the particular investment.  You should be particularly wary of investment “opportunities” that come your way through unsolicited telemarketers.  Also, the federal Business Opportunity Rule, which was ignored by  the defendants in this case, requires that before you invest in any business opportunity you are provided with a one-page disclosure that provides important facts about the business.  In addition  if, as in this case, you are told how much money you can make, you are required to be given another document with greater details.  For more information about the Business Opportunity Rule, the disclosures you should receive and claims that may not be made by people soliciting investments you can go to this link from the FTC.   https://www.consumer.ftc.gov/articles/0172-bogus-business-opportunities