Internet Marketing Group - Where does $15 million dollars go?
Several weeks ago, the FTC announced that it had ordered the Internet Marketing Group to pay consumers $15 million in relation to a business opportunities scam that started in August 2001. According to the FTC's first press release in 2004, "A federal district court in Tennessee has stopped a common enterprise of seven corporations and five individuals from continuing to operate an illegal business opportunity scheme which has marketed telephone calling cards and multi-purpose public access Internet terminal business ventures to consumers nationwide since August of 2001. In their sales seminars and promotional materials, the defendants made false and unsubstantiated earnings claims, and misrepresented their cancellation and refund policies. The defendants failed to provide consumers with timely, complete, and accurate disclosure statements and earnings claims documents as required by the Franchise Rule. In addition, the defendants' telemarketing campaign resulted in numerous violations of the FTC's "Do Not Call" provision of the Telemarketing Sales Rule (TSR)."
How much actual money, coin of the realm as opposed to judgment dollars, were returned to consumers? Not much according to the FTC, "The order announced today enters a $15 million judgment against the corporate defendants, who have few remaining assets. Their remaining assets, however, will be turned over to the FTC. The orders for each individual defendant also enter a $15 million judgment against each person, suspended based on their inability to pay. Gannon, however, will pay $99,500 and Hatch will pay $97,875.78. If the individual defendants made misrepresentations on their financial statements, then they will be liable for the full $15 million judgment." (my emphasis)
So approximately $200,000 will be paid by the defendants and the receiver's final bill is not due. For three years, this business opportunity scam ran openly, sucked $15 million dollars from the American public, but nobody is going to jail and consumers aren't going to receive a dime. This is much better than robbing banks.
Technorati Tags: public access internet, consumers, internet marketing group, telemarketing campaign, ftc, earnings, terminal business, illegal business, business ventures, business opportunity, internet terminal, franchise rule, sales seminars, disclosure statements, calling cards
