FTC Terminates Employment Scam

News release from the FTC:

For Release: 01/31/2012

FTC Action Terminates Nationwide Employment Scam

Agency Cautions Consumers: Be Wary of Job Offers that Charge Fees

An operation that allegedly deceived consumers with bogus promises of nonexistent sales jobs will be banned from marketing any employment products or services under a settlement with the Federal Trade Commission.
The proposed settlement order against National Sales Group and other defendants resolves FTC charges filed as part of a crackdown on scammers who falsely promise employment opportunities to financially distressed consumers. According to the FTC's complaint, the defendants advertised on CareerBuilder.com and other online job boards, and their telemarketers falsely told consumers they recruited for Fortune 1000 employers and had a unique ability to get them interviewed and hired.

The FTC complaint alleged that the defendants charged fees, purportedly for background checks and other services, and often overcharged, taking $97 from consumers who had agreed to pay $29 or $38. The defendants also allegedly charged some consumers recurring fees of $13.71 or more per month without their consent. At the FTC's request, in February 2011, the court halted the allegedly illegal practices and froze the defendants' assets pending litigation.

Under the proposed settlement order, Anthony J. Newton, National Sales Group, and I Life Marketing LLC, also doing business as Executive Sales Network and Certified Sales Jobs, are banned from selling employment products or services. They and co-defendant Jeremy S. Cooley are permanently prohibited from misrepresenting material facts about any product or service, and from violating the FTC's Telemarketing Sales Rule, including misrepresenting the benefits of a good or service or misrepresenting that any person is affiliated with or endorsed by another person or government entity. The defendants also are barred from violating the Rule by billing consumers without their consent and failing, during calls, to clearly and promptly disclose the seller's identity, the call's purpose, and the nature of the goods or services.

The order also bars the defendants from selling or using customers' personal information, failing to properly dispose of customer information, and attempting to collect payments from past customers. In addition, the order imposes a $13 million judgment that will be suspended once Newton has paid $279,000, terminated a lease on a 2009 Mercedes-Benz, and surrendered his interest in a residence in Huntington Beach, California. The full judgment will be imposed immediately if the defendants are found to have misrepresented their financial condition.

The Commission vote approving the proposed consent order was 4-0. It is subject to court approval. The FTC filed the proposed consent order in the U.S. District Court for the Northern District of Illinois, Eastern Division.

For more information, read Job Hunting-Job Scams.