The Secret of Successfully mixing Preaching and selling Business Opportunities
The secret will apparently remain unknown, as the FTC announced today that a "U.S. District Court has barred a purported former preacher, his two sons, and his companies from selling a healthcare business opportunity promising consumers millions of dollars if they participated in an alleged network of Medicaid providers. In fact, according to the Federal Trade Commission complaint, the defendants' business model would have required participants to break numerous state and federal laws.
Using "healthcare conferences"at hotels and convention centers across the US, the defendants promised consumers that they would receive "guaranteed" Medicaid patients and would receive help from the lawyers, doctors, and other professionals on their staff in establishing their healthcare businesses. The FTC charged that the defendants misrepresented the assistance they would provide and that participants could legally earn money from the business, and did not provide participants with the required disclosure statement and earnings disclosures for a franchise. A U.S. District Court has granted a temporary restraining order, prohibiting the defendants' from continuing their deceptive business practices, freezing their assets, and appointing a receiver. "
According to the complaint in the FTC lawsuit, "the defendants failed to disclose that their business model would expose participants to either criminal or civil monetary penalties, as it would violate numerous federal and state laws. The complaint also alleges that they misrepresent that purchasers could legally make substantial earnings, and that they will receive assistance in establishing and managing their business venture. Finally, the FTC charged that the defendants failed to provide purchasers with the required disclosure statement and made unsubstantiated earnings claims."
Technorati Tags: federal trade commission, medicaid providers, medicaid patients, ftc, consumers, federal laws, healthcare business, healthcare conferences, healthcare businesses, business model, business opportunity, earn money, preacher, promising
