Why Some People Always Buy From Fraudsters
The FTC, on May 8th, 2007, announced that Richard C. Neiswonger, based in Las Vegas, Nevada, his business partner, William S. Reed, and their firm, Asset Protection Group, Inc. were Repeat Offenders Permanently Banned from Telemarketing and Selling Business Programs.
The con criminals told consumers that "told consumers with no sales experience that by purchasing their "APG Program" they would become well-paid business consultants selling APG’s "asset protection" services. For $9,800, consumers received training materials, a one-day training session, and a business affiliation with APG, which defendants claimed would provide consumers with carefully-screened "qualified prospective clients." Consumers were supposed to make money by selling APG’s asset protection services to clients who wanted financial privacy and wanted to make their assets less obvious to potential litigants or creditors. These services involved guidance on forming Nevada corporations and creating offshore corporations. The defendants promised consumers that they would readily make a six-figure income; the company even provided references that consumers could call who would back up their claims."
Now strange as it seems, the consumers were not provided with carefully-screened qualified prospects. Why would the defendants sell their sucker list for $9,800 if it really was filled with "qualified prospective clients."?
"In fact, consumers paid thousands of dollars for cold call lists, rather than pre-screened clients. Not only were they unable to achieve six-figure incomes, according to the receiver appointed to oversee the business, approximately 94 percent of the consultants failed to earn back their initial purchase fee for the program. Only one person ever earned a six-figure income, while hundreds of consumers lost money. The company’s references were, in fact, paid to deliver positive reviews of their experience. In addition, the 1997 order required that Neiswonger provide written proof to the FTC of a $100,000 performance bond to the Commission before marketing any program, which he failed to do while continuing to market his business opportunity program."
So why are some people always scammed by fraudsters? Because they cannot use the search button on the www.ftc.gov site: try "Neiswonger" on www.ftc.gov, for fun. You might find this interesting read.
