False Hopes and Business Opportunity Scams
Federal, State Law Enforcers Complete Bogus Business Opportunity Sweep.
From the press release, "The Federal Trade Commission today announced Project FAL$E HOPE$, a federal and state law enforcement sweep targeting bogus business opportunities and work-at-home scams. The crackdown includes more than 100 law enforcement actions by the FTC, the Department of Justice, the United States Postal Inspection Service, and law enforcement agencies in 11 states. In four of the new FTC cases alone, consumers have lost more than $30 million.
"Bogus business opportunities trample on Americans' dreams of financial independence," said FTC Chairman Deborah Platt Majoras. "If a business opportunity promises no risk, little effort, and big profits, it almost certainly is a scam. These scams offer only a money pit, where no matter how much time and money is invested, consumers never achieve the riches and financial freedom promised."
"When the states and the federal government, civil and criminal enforcers, all work together - sharing information, partnering resources, and coordinating our efforts - we can make very significant progress against these unlawful businesses," said Peter D. Keisler, Assistant Attorney General for the Justice Department's Civil Division. He went on to describe 23 fraud convictions obtained in 2006, and the sentencing of 25 defendants to a total of over 160 years' imprisonment for causing over $86 million in consumer loss." (my emphasis)
Over the next few weeks, I am going to sort out these cases, compare them with earlier cases, and point out how proper due diligence may have prevented these frauds.
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