Where/When: Stamford, Conn. (today from 9 a.m. to 1 p.m. EDT at the University of Connecticut – Stamford Campus); Nashville, Tenn. (Oct. 4 from 8:45 a.m. to 12:30 p.m. EDT at Vanderbilt University Law School’s Flynn Auditorium located at 131 21st Avenue South) ; San Francisco (Oct. 9, in Walnut Creek, Calif., from 9 a.m. to 1 p.m. PDT at the Rossmoor Retirement Community – Gateway Complex located at 1001 Rain Road); Denver (Oct. 10 from 8 a.m. to 12 p.m. MDT at the Tivoli Building – Turnhalle Auditorium located at 900 Auraria Parkway, Suite 150); Cleveland (Oct. 11 in Beachwood, Ohio, from 8:30 a.m. to 12:30 p.m. EDT at the Montefiore Senior Living Center located at 1 David Myers Parkway); and Miami (Oct. 12 from 9 a.m. to 1 p.m. EDT at the Miami Dade College – in the Chapman Conference Center, located at 245 N.E. Fourth Street, Bldg. 3, Room 3210).
Why: Investment fraud losses have been “staggering,” the Justice Department says.
Since the beginning of 2011, “the Justice Department’s Criminal Division and 85 U.S. Attorneys’ offices have reported that approximately 800 defendants have been charged, tried, pleaded or sentenced in approximately 500 federal prosecutions involving investor fraud. The total reported amount cheated from victims for this time period tops more than $20 billion.”
Summit Sponsors: Department of Justice, U.S. Attorneys’ offices, the FBI, the SEC, the FTC, the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), the CFTC, the Bankruptcy Trustees, FINRA, AARP and the Better Business Bureau.
As the attention of the United States and much of the world is riveted on the oil gusher in the Gulf of Mexico, the Federal Trade Commission is warning consumers that schemers will try to take advantage of the environmental disaster to lines their own pockets.
“It’s no secret that scam artists follow the headlines, and the daily news of the oil spill in the Gulf of Mexico is no exception,” the FTC said today. “[I]t’s likely that scammers will use e-mails, websites, door-to-door collections, flyers, mailings and telephone calls to make contact and solicit money.
“Some may claim they’re raising money for environmental causes or offer fraudulent services like remediation services related to the oil spill,” the FTC warned. “Others may claim they can expedite loss claims for a fee. Still others may knock on your door and talk about placing booms or checking for oil on your property. Chances are they’re trying to gain your trust to get inside your home or get access to your personal information.”
Many scams cropped up after Hurricane Katrina in August 2005, the agency said.
Oil-spill-related scams could included solicitations for donations to bogus charities that use “copy-cat names to cash in on the reputations of older, more established charities,” the FTC said.
“Rather than clicking on a link to a purported website, verify the legitimacy of a nonprofit organization by using search engines and other online resources to confirm the group’s existence, history, mission and nonprofit status,” the FTC advised. “To ensure your contributions are received and used for the purposes you intend, contribute directly to organizations you know rather than relying on other people to make a donation on your behalf. If you get pressure to make a contribution, look for another charity. Reputable charities don’t use those kinds of tactics.”
Job-scammers also could surface in the Gulf region or elsewhere, the FTC cautioned.
“Avoid any job or volunteer opportunities that require you to pay a fee before the job begins,” the agency said.
Because of frauds associated with Hurricane Katrina, the U.S. government formed the National Center for Disaster Fraud (NCDF).
“The NCDF was originally established by the Department of Justice to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region,” the FTC said. “Its mission has expanded to include suspected fraud from any natural or man-made disaster.”
If you suspect someone is trying to pull off a scam related to the oil spill, the FTC recommends that you contact NCDF by phone at 1-866-720-5721; by email at email: disaster@leo.gov; or by fax at 225-334-4707.
NOTE: This story has been republished at a URL that is different than its original URL. Although this post reflects a date of June 13, it is not the original publication date. Click here to read why.
The Federal Trade Commission has announced a major sweep involving numerous companies and defendants — and a new partnership with Craigslist, Microsoft, Monster.com and CareerBuilder to combat employment and work-at-home fraud.
Meanwhile, the agency said it was working with AARP’s Legal Counsel for the Elderly to keep America’s senior citizens’ pocketbooks out of the clutches of scammers.
Dubbed “Operation Bottom Dollar,” the sweep includes seven new civil cases against the operators of deceptive and illegal job and money-making scams, 43 criminal actions by the Department of Justice and 18 actions by state attorneys general.
A separate action by the U.S. Postal Inspection Service is part of the sweep, and the FTC announced updates in four previous cases. “Operation Bottom Dollar” specifically targets “con artists who are preying on unemployed Americans with job-placement and work-at-home scams,” the FTC said.
“Employment and business opportunity fraud causes terrible hardship to those who are suffering the most in these difficult economic times,†said Assistant U.S. Attorney General Tony West. “The Justice Department is committed to prosecuting those who defraud through false promises of employment or financial success.â€
The days of getting away with posting bogus job and money-making offers online are coming to an end, said David C. Vladeck, director of the FTC’s Bureau of Consumer Protection.
Using terse language, Vladeck said scammers should not get too comfortable with the money they’ve stolen.
“If you falsely advertise that you will connect people with jobs or with opportunities for them to make money working from home, we will shut you down,” Vladeck said. “We will give your assets to the people you scammed, and, when it’s appropriate, we’ll refer you to criminal authorities for prosecution.â€
Monster.com, Careerbuilder, Bing and Craigslist will display FTC consumer education material to people who are using the companies’ Web sites to look for jobs, the FTC announced.
Charged in Operation Bottom Dollar were:
Government Careers Inc. – Jon Coover; Richard Friedberg; and Rimona Friedberg. Abili-Staff, Ltd. – Pamela Barthuly; Jorg Becker; and Equitron LLC. Darling Angel Pin Creations Inc. – Shelly R. Olson and Judith C. Mendez; d/b/a/Angel Pin Creations.
Entertainment Work Inc. – Jason Barnes and Racquelle Barnes; d/b/a Resource Publishing Co. Independent Marketing Exchange Inc. – Wayne Verderber, II, d/b/a National Data Management, N.D.M., Global Mailing Services, G.M.S., Independent Mailing Services, Independent Mailing Services Inc., I.M.S., Independent Shoppers Network, Independent Shoppers, Success At Home, Success-At-Home Mailing, IMEX, IMEX, Inc., and Continental Publishing Company.
Preferred Platinum Services Network – Rosalie Florie; d/b/a Home Based Associate Program and PPSN, LLC. and Philip D. Pestrichello, individually. Real Wealth, Inc. – Lance Murkin; doing business as American Financial Publications, Emerald Press, Financial Research, National Mail Order Press, Pacific Press, United Financial Publications, Wealth Research Group, and Wealth Research Publications.
“What makes job scams particularly insidious—and what makes today’s efforts so important—is that these scams most often exploit honest consumers who are trying to make an honest living,†said Ohio Attorney General Richard Cordray.
“Instead of making money, victims end up losing hundreds if not thousands of dollars,†Cordray said.
Other agencies involved in “Operation Bottom Dollar” include AARP’s Legal Counsel for the Elderly; the U.S. Postal Inspection Service, Tampa Field Office; Better Business Bureaus of Southern Arizona, West Florida, New Jersey, the Southland (Southern California), and Coastal, Central, & Southwest Texas; U.S. Attorneys offices for the Southern District of New York, New Jersey and Western District of Missouri; the attorneys general of Florida, New Jersey and Pennsylvania; Florida Department of Agriculture and Consumer Service; Washington State Department of Financial Institutions, Securities Division; Los Angeles County Department of Consumer Affairs; Ocean County New Jersey Department of Consumer Affairs; and the Tucson Police Department.
A promotional video for a multilevel-marketing (MLM) company that pays members to write down license-plate numbers says the program was started “to provide historical location data for lien holders, law enforcement and other entities such as the Amber Alert System.”
The video, which appears to be a sales tool for an MLM downline organization known as Team Trinity International, reproduces the logos of 30 famous companies, offering their parking lots as places members of Narc That Car can go to find cars and license plates in plentiful supply to be recorded.
Segmented by disciplines such as “Retail,” “Grocery Stores” and “Restaurants,” the famous names shown prospects include Best Buy, Kmart, Walgreens, PetSmart, Rite Aid, Bed Bath & Beyond, Food Lion, Kroger, Ralphs, Vons, Piggly Wiggly, Wegmans, Domino’s Pizza, Friday’s, Wendy’s, Red Lobster, Applebee’s, McDonald’s and more.
It was not clear if the Team Trinity promoter had contacted each of the individual companies to determine if they would approve of Narc That Car members recording the license-plate numbers of their patrons.
Such actions could lead to both privacy and safety concerns, putting the companies in the awkward position of shooing gawkers and explaining why people carrying pads and pens were continually appearing on private property and writing down plate numbers.
The video also listed shopping centers, neighborhood businesses, convenience stores, residences and apartment complexes as prime spots to harvest data.
A promotional video for Narc That Car says license plates can ge found aplenty at these stores.
In a separate video, Narc That Car said it had recruited “thousands” of “independent consultants” to write down license-plate numbers and enter the information in a database. Database entries are available to banks, financial companies and firms that specialize in repossessing automobiles, according to the company.
Web records show that several Narc That Car affiliates are making the claim that law-enforcement agencies and the Amber Alert program have endorsed the company. No testimonials from law enforcement agencies or the Amber Alert program appear on the Narc That Car website, despite promoters’ claims.
The U.S. Department of Justice did not immediately return a call seeking comment on claims made by Narc That Car promoters. The Justice Department’s Office of Justice is the national Amber Alert coordinator.
“The AMBER Alert System began in 1996 when Dallas-Fort Worth broadcasters teamed with local police to develop an early warning system to help find abducted children,” the Justice Department said in an FAQ document on the program.
“AMBER stands for America’s Missing: Broadcast Emergency Response and was created
as a legacy to 9-year-old Amber Hagerman, who was kidnapped while riding her bicycle
in Arlington, Texas, and then brutally murdered,” the Justice Department said.
The Narc That Car business is simple, the company says.
“Narc a Few Cars,†the company instructs in a video. “Teach Others How to Narc Cars.â€
NarcThatCar does not list the names of any clients on its website. Nor does the company disclose information on how many database clients it has and how many of them are paying fees to receive a report on a target vehicle.
License-plate consultants are required to act in a “lawful, ethical and moral manner†and perform “with honesty and integrity,†NarcThatCar says, noting it provides instruction on federal and state privacy laws and “fundamental training on the the proper way to gather information.â€
The Dallas branch of the Better Business Bureau says that it contacted Narc That Car Jan. 18 “to request that it substantiate some claims made in its advertising.”
Narc That Car responded to the inquiry, and the matter was “still pending” as of Feb. 2, the BBB said on its website.
The Team Trinity International promo is hosted on Blinkweb, a company that provides free hosting space and web-page creation tools.
NarcThatCar wants you to pay it $100 up front. For that fee, you become a “consultant” qualified to write down the license-plate numbers of 10 cars per month, input the information into a database and earn multilevel commissions by recruiting. After you pay the $100, you’re then charged $24.95 a month for a website, according to Narc That Car.
Some members of AdSurfDaily and Golden Panda Ad Builder now are promoting the NarcThatCar program, which says clients such as major automobile manufacturers, companies that have private liens against cars, banks, car dealerships that do their own in-house financing and commercial vehicle companies are interested in purchasing information from the database.
If the repo man, for example, is looking for a car and the owner is hiding it, NarcThatCar — relying on the input of its team of license-plate gawkers — will sell him a database entry on reported sightings of the car for $99 — and even provide a map of the reported sightings.
The repo man also has the option of offering a “finders fee for information which leads to the location of your collateral,” Narc That Car says. “This option sometimes helps the process along.”
NarcThatCar labels its license-plate gawkers “independent consultants.” It appears as though any independent consultant hit by a car or otherwise injured while while gawking at license plates and recording their numbers would need to rely on his or her own insurance.
The NarcThatCar website does not explain how consultants should proceed if, say, a local merchant calls the police to complain that a strange person appears to be walking around the parking lot and writing down license-plate numbers.
Who else can use the Narc That Car database?
“Law-enforcement agencies, government agencies, missing persons and the Amber Alert program,” Narc That Car says in a video to recruit prospects.
Information on Amber Alerts, which are issued when a child goes missing, scrolls across the bottom of the NarcThatCar website.
The U.S. Department of Justice, which celebrated the 14th anniversary of the Amber Alert program Jan. 13 and maintains an official website on the program, did not immediately return a call seeking comment on the NarcThatCar program.
NarcThatCar does not list the names of any clients on its website. Nor does the company disclose information on how many database clients it has and how many of them are paying fees to receive a report on a target vehicle. Also unclear is whether Narc That Car imposes a fee if the government or the Amber Alert program wanted to use its database.
Narc That Car, however, does disclose that it has rounded up “thousands” of consultants to write down license plate numbers, enter the information in a database and potentially earn MLM commissions at least five levels deep.
The business is simple, Narc That Car explains.
“Narc a Few Cars,” the company says. “Teach Others How to Narc Cars.”
The company says members are required to act in a “lawful, ethical and moral manner” and perform “with honesty and integrity.” NarcThatCar adds that it provides instruction on federal and state privacy laws and “fundamental training on the the proper way to gather information.”
On “the online success zone,” a forum once known as “The Golden Panda Ad Zone,” a Narc That Car sponsor is promoting the program in a thread titled, “ANYONE CAN DO THIS…write down 10 license plates a month get paid.”
The Amber Alert program is referenced in the first sentence (18th word) of the Narc That Car pitch.
“A company out of Dallas needs to grow a data base of license plates to use for Amber Alerts and other reasons,” the pitch begins.
What: Investor Fraud Summits.
