Business Opportunities Scam - the FTC to the rescue?
"Two persons have agreed to settle Federal Trade Commission charges for their roles in a fraudulent business opportunity scheme targeted in early 2005 as part of "Project Biz Opp Flop," a crackdown on violations of the FTC's Franchise Rule, which requires that prospective franchisees must be given a full disclosure document about business opportunities they are offered, and Section 5(a) of the FTC Act, which prohibits unfair and deceptive acts or practices affecting commerce."
These two individuals scammed consumers of a total of over $31 million according to the FTC. As part of the settlement, the two individuals agreed to
"judgments representing the amounts of consumer injury attributed to the two defendants - more than $30.7 million for Rinaldo and more than $491,000 for Holden."
Geez, no jail time but 100% restitution for consumers. Pretty good, eh? No, not really.
The two scammers will actually pay nothing because of their "inability to pay". I see, this business opportunities scam defrauds Americans of over $31 million and nobody goes to jail, nor pays back any money. Worth watching to see if this story gets better.
For those investors who lost $8,000 in this scam, one wonders how much they would have paid for due diligence, which if followed, would have guaranteed that there would not be a loss?
Comments
Well forgiveness of debt is the same as income in the eyes of the IRS. When they can't pay the income tax put em in jail for Tax Evasion.
Posted by: Andrew Scott Carlisle | April 17, 2006 9:11 PM