On June 30, a U.S. District Judge in Miami found a Florida telemarketing operation and it's owners, Michael Chierico and , in civil contempt for violating their 1996 agreement with the Federal Trade Commission.
In 1996 as a part of "Operation Copycat," the FTC filed charges against the Chiericos for operating a telemarketing office supply scam. According to the original complaint, they used a variety of deceptive tactics - such as pretending to be a regular supplier reconfirming an order or offering a special price - to get orders for copy machine toner. They did send the toner but at vastly inflated prices. They then used threats of ruined credit and legal action to collect the money, according to FTC allegations. Without admitting guilt, the Chiericos and their companies, American Business Supplies, Interstate Office Systems, and Nationwide Office Products, agreed to settle with the FTC. Under the terms of the settlement, the defendants were to stop using deceptive telemarketing tactics.
However, the FTC discovered that the Chiericos almost immediately started running the same scam again. After the FTC filed a second time, the court found the defendants in civil contempt for violating the terms of their settlement. As a part of the judgment against them, the Chiericos must forfeit a $200,000 performance bond and pay nearly $1 million in fines to the government. They must also provide $2 million for consumer refunds and are permanently banned from telemarketing and direct mail marketing of office supplies.
"The Chiericos doubled their trouble by scoffing at their agreement with the FTC and continuing to bilk consumers," said Jodie Bernstein, Director of the FTC's Bureau of Consumer Protection. "The court's order in this case should encourage compliance and deter others who may think they can get away with thumbing their noses at the law."
Violating a consent agreement with the federal government is a serious offense. Consumers can help stop these repeat criminals by educating themselves and by reporting repeat offenders. Know your rights as a consumer. Read the NFIC telemarketing tips and FTC brochures to avoid schemes like this office supply scam. And if you discover a company continuing to engage in deceptive practices after settling FTC charges, contact the Commission and report the violation.
If you would like more information about this case, check out the FTC press release.
If you have any questions or need to report an incident, call NCL's National Fraud Information Center/Internet Fraud Watch at 1-800-876-7060 or use one of our online forms.
| PRINT PREVIEW |
| SEARCH THIS SITE |
Links for Non-Frames Version | Current News & Views | | Subject Index of Past Articles | | Chronological Index of Past Articles | | About NFIC | About the National Consumers League | | About the Alliance Against Fraud in Telemarketing | | Telemarketing Fraud | Internet Fraud Watch | | Fraud Against the Elderly | | News & Views | Links | For the Media | | How to Report Fraud & Ask Questions | | Back to Welcome Page (Frames Version) |
NFIC is a project of the National Consumers League. All rights reserved. © 1998.