Consumer Fraud Online

Microsoft Cofounder Victim of Identity Fraud

Consumer Fraud — Wed, 01 Aug 2012 22:42:08 +0000

An AWOL soldier has landed in federal custody after he masterminded an outrageous identity theft operation on Microsoft cofounder Paul Allen.

Identity fraud is a major problem in the United States, affecting millions of Americans every year. What makes this particular case so unique is that it involves one of the biggest tech minds in the world. The question that many consumer fraud lawyers are asking is- if Paul Allen couldn’t protect himself from ID theft, how can ordinary Americans, many of who have no idea how easy it is for other people to steal their information, do so?

First, consider how easy it was for Price to gain access to Allen’s bank account. He called Citibank in January, pretending to be Paul Allen, and got the address of the Seattle bank account changed to Pittsburgh. Three days later, he called back again to say that he had misplaced his debit card, and wanted a new debit card sent to the Pittsburgh address.

The operation worked like a charm until that point. The debit card was sent to this address, and he used it to make a $15,000 Western Union Transaction. He also tried to make a payment of $650.81on his Armed Forces bank account, using the debit card. He also tried to make purchases at a video games store and a dollar store. It was at this point that the bank became aware of the fraud.

Many credit card companies offer layered security, but consumer fraud attorneys find that very few customers are aware of these provisions, or take advantage of these. You can use unique passwords to protect your identity, and can sign up for automatic alerts when there are changes in your account information. These are basic steps that you can take to protect yourself from identity theft.

Microsoft Cofounder Victim of Identity Fraud was originally posts on Consumer Fraud Online

More Debtors File Debt Collection Lawsuits in Response to Harassment

Consumer Fraud — Mon, 30 Jul 2012 22:36:37 +0000

Harassment of consumers who owe money is one of the oldest and most frequent types of violations of consumer rights. Fortunately, consumer fraud attorneys are now seeing an increase in the number of debtors who are taking matters into their own hands, and suing debt collection agencies.

In California, there has been an increase in the number of lawsuits filed by consumers against collection agencies. The Sacramento Bee conducted an analysis of more than 5,000 lawsuits that alleged violations of the Fair Debt Collection Practices Act over the past 7 years. Last year, the number of lawsuits filed crossed 1,255.

That’s not all. Consumers are also now making an increasing number of complaints to California’s attorney general about unethical debt collection practices. These complaints have also increased steadily over the past 6 years, peaking last year.

It’s very important for consumers to know that the laws are on their side. The law specifically forbids collection agencies from frequently calling the debtor, harassing him, arriving at his doorstep, threatening him and so on. Unfortunately, many collection agencies continue to indulge in such practices.

Harassment in many cases can be severe. Debt collectors don’t shy back from using foul, explicit or even abusive language to berate debtors. Some debt collection lawsuits in California mentioned that the collection agents had used foul language, calling the debtor ‘irresponsible flake,’ ‘stupid,’ ‘lowlife,’ and ‘crack head.’

Consumer fraud attorneys are pleased to see that many consumers now finally understand their legal rights, and do not hesitate to take action against collection agencies.

If you’re being harassed, or threatened by a debt collection agency, you have rights under the law. Consult with a consumer fraud lawyer about these rights.

More Debtors File Debt Collection Lawsuits in Response to Harassment was originally posts on Consumer Fraud Online

Oreck Product Owners Eligible for Refund after FTC Deceptive Advertising Settlement

Consumer Fraud — Fri, 27 Jul 2012 22:28:33 +0000

With the kind of consumer protection laws that are in place, it shouldn’t be so easy for a company to make false and unsubstantiated claims about the benefits of its products. However, consumer fraud lawyers often find consumers being taken in by excessive claims promoted by unethical companies.

One such range of products that was promoted based on false advertising could have owners eligible for a refund. The Federal Trade Commission has reached a settlement with Oreck Corporation, and under the terms of the settlement, the company will offer refunds to persons who owned two of the company’s popular home cleaning products.

Under the terms of the settlement, consumers who purchased the Oreck Halo Vacuum will be eligible for a refund of $25 for each item purchased. Consumers who purchased the Oreck Pro Shield Plus air cleaner will be eligible for a refund of $24.65 for every item purchased. If you have purchased either of these two items, then you may be eligible for a refund.

According to the Federal Trade Commission, the advertisements used by Oreck Corporation falsely promoted these products as being beneficial in attacking bacteria. The company promoted these products as reducing the risk of flu and a number of other illnesses. The company’s advertisements boasted that these products would ultimately eliminate all kinds of pathogens. One advertisement for the Oreck Halo Vacuum claimed that it had eliminated up to 99.9% of bacteria that were exposed to the light for less than one second.

The company has agreed to stop making false claims that the Pro Shield Plus and the Halo Vacuum could reduce the risk of illnesses like flu, and has also agreed to pay the Federal Trade Commission $750,000. That money will now be distributed as refunds to consumers who purchased these products.

Oreck Product Owners Eligible for Refund after FTC Deceptive Advertising Settlement was originally posts on Consumer Fraud Online

Pom Wonderful Fighting Back FTC’s Deceptive Advertising Decision

Consumer Fraud — Thu, 26 Jul 2012 22:21:57 +0000

Earlier this month, a judge ruled that Pom Wonderful, a company that manufactures pomegranate juice-based beverages had promoted its beverages by making false claims and using deceptive advertising practices. However, the company is not taking those charges lying down. The juice producer has already released an ad that fights back at the federal agency’s claims.

The Federal Trade Commission believes that the claims by the company that its products have a range of health benefits, and prevent everything from cancer to Alzheimer’s disease are false and unsubstantiated. The agency also found that the company’s claims that its pomegranate juice-based beverages could help prevent, treat, or reduce the risk of heart disease, cancer and erectile dysfunction had no solid basis in scientific evidence.

Earlier this month, the Federal Trade Commission sued Pom Wonderful, as well as its parent company Roll International Corporation. A judge then ordered the company to immediately cease all false advertising related to its products, and stop claiming that its products had health benefits.

However, Pom Wonderful has not been suitably chastened. It has hit back at the Federal Trade Commission reminding viewers that although the FTC had found that the juice had been sold through misleading advertising, the agency had agreed that the company’s 100% Pomegranate Juice and PomX do have significant health benefits. The company also goes on to say in its new advertisement that out of 600 of its print and outdoor ads, only 2% were found misleading.

Pom Wonderful Fighting Back FTC’s Deceptive Advertising Decision was originally posts on Consumer Fraud Online

Prosecutors Charge Wine Seller for Hawking Fraudulent Vintages

Consumer Fraud — Wed, 25 Jul 2012 20:34:24 +0000

Federal prosecutors are acting against a wine seller who sold what buyers believed were rare and expensive wines, but were actually cheap wines that were blended to mimic the taste of rare wines.

According to prosecutors, the man, Rudy Kurniawan conducted these operations through a lab in his California home. The scam was a simple one which is why it’s so surprising to consumer fraud lawyers that he was able to get away with it for close to a decade.

Kurniawan established himself as a connoisseur of fine and expensive wines, and managed to gain access into the rarified world of wealthy wine collectors. He conducted tastings at his property, and guests were treated to samples of expensive vintages.

Unknown to the guests however, the wines were nothing but blends of cheaper, low-priced wines, which were modified in the lab to mimic the character and taste of expensive wines.

The modified wines were poured into empty, expensive bottles. The bottles were sealed, and slapped with a counterfeit wine label. The labels were either produced by Kurniawan, or created using stencils and rubber stamps. The bottles of fake wine were placed alongside the genuine bottles, to make it harder to detect the fake wines.

It was a simple scam, and surprisingly successful. The scam allegedly continued for more than a decade.

Kurniawan did slip a couple of times, and it was that which put federal agents on his trail. For example at an auction of wines in April 2008, he consigned 97 bottles of wine that were supposedly from an exclusive Burgundy winery. However, the labels on the bottles had the wrong dates.

Earlier this month, prosecutors charged him with fraud in wine, arts and finance.

Prosecutors Charge Wine Seller for Hawking Fraudulent Vintages was originally posts on Consumer Fraud Online

Sen. Schumer Calls on Airlines to Drop Preferred-Seat Fees for Families

Consumer Fraud — Tue, 24 Jul 2012 20:24:38 +0000

Many airlines have a policy in place that adds a surcharge to the airfare for window seats or aisle seats. Because of the limited availability of these seats, families may not be seated consecutively or together. Children may have to be separated from parents. This only adds to the hassles and stresses of flying for families. Now, New York Sen. Charles Schumer (Democrat) is asking airlines to drop these preferred seat fees when they result in separation of families.

Sen. Schumer recently wrote a letter to Airlines for America, the airline industry’s lobbying group, asking the industry to reconsider its practice, especially when it comes to seating families together. Under the current programs that are in place at many of the country’s airlines, a couple with 2 children traveling together could pay as much as $200 extra to be able to sit together. Some airlines charge as much as $25 extra for a preferred seat.

Flying with children, as any parent knows, is an often stressful experience, and when your children are required to sit away from you, it only increases the hassles of flying for all. Every parent would prefer that his child be seated right next to him, in order to be able to attend to him. Families should not be paying extra for the privilege of being seated together.

In response to Senator Schumer, Airlines for America has released a vaguely-worded statement that says that the industry takes the needs of all passengers who want to sit together very seriously.

The airline industry has continued to inflate airfares by adding fees for everything from changed reservations to extra baggage. In fact, revenues from baggage fees and other hidden fees now account for a large portion of revenues at most airlines. In spite of criticism by consumer fraud lawyers, lawmakers and the public, that trend doesn’t seem to be fading.

Sen. Schumer Calls on Airlines to Drop Preferred-Seat Fees for Families was originally posts on Consumer Fraud Online

Seniors at Specific Risk for Consumer, Financial Fraud

Consumer Fraud — Sun, 22 Jul 2012 19:47:14 +0000

It’s never been a surprise to consumer fraud lawyers that senior citizens are such a soft target for investment scams and financial fraud. Data seems to suggest that such fraud is on the rise.

Seniors may be at a higher risk of financial fraud for a number of reasons. They typically have much higher savings than younger people. Also, seniors are likely to be lonely, and therefore, more vulnerable to fraud. Additionally, seniors may suffer from physical frailties that increase their risks and vulnerabilities. For instance, a person’s cognitive and mental abilities may decline as he gets older, making him a soft target for a scam operation. Additionally, a senior may also have reduced powers of judgment with increasing years.

Consumer fraud attorneys have found an increase in the number of financial scam operations targeting seniors since the recession. Many of these operations involved fraudulent securities that promised high rates of return. According to a study by the MetLife Mature Market Institute, seniors lost $1.9 billion in 2010 in financial fraud. That was an increase of $2.6 million from 2008.

Not all of these operations were scams. Some legitimate schemes were targeted at seniors who were not appropriate candidates for those schemes. A senior citizen in his 80s is not the right candidate for an annuities program that requires that the senior be penalized, if he wishes to liquidate the investment before 15 years from the purchase date.

What consumer fraud lawyers find even more worrying is that the actual number of seniors who are subject to such financial abuse and fraud may be higher, because many of these cases go unreported.

Family members have a significant role to play in protecting senior citizens from financial abuse. Make sure that the senior in your family registers with the National Do Not Call Registry, which limits telemarketing calls. Also, frequently monitor the person’s bank and credit card statements. Look out for large, unusual payments that have been made from the credit card.

Seniors at Specific Risk for Consumer, Financial Fraud was originally posts on Consumer Fraud Online

Service Members Must Be Aware of Mortgage Rescue Scams

Consumer Fraud — Sat, 21 Jul 2012 19:37:58 +0000

A number of mortgage modification scams are now targeting service members. In fact, the fraud risks are serious enough that federal agencies are now warning veterans about the special challenges that they face from such fraudulent agents.

According to the Office of the Special Inspector General for the Troubled Asset Relief Program, members of the armed services may be at a special risk for financial scams that claim to provide mortgage assistance. In many of these scams, the operators claim that the program is part of the Home Affordable Modification Program. Often, service members and their families are approached by the operators of these scams, who tell them that they can get a guaranteed mortgage modification for an upfront fee.

Service members and their families must understand that there are plenty of mortgage modification options and free resources that they can access in order to take advantage of these programs.

The Home Affordable Modification Program scams that many consumer fraud attorneys are now coming across are actually easy to spot. Many of them use the official names or logos of government-run programs and nonprofit organizations. If you are contacted by an agent who says that that he has had great success in achieving home loan modifications, be wary. Also, such agents often guarantee a successful modification if you pay a fee up front. All veterans should know that charging fees for modification help is illegal.

There is no need for you to pay an upfront fee. Any consumer fraud attorney would encourage service members who need assistance with their mortgages to access free help that has been made available for them. Look for advice from US Department of Housing And Urban Development-approved housing counselors. These counselors will give you advice for free.

Service Members Must Be Aware of Mortgage Rescue Scams was originally posts on Consumer Fraud Online

Skechers Owners Eligible for Refund from FTC Consumer Fraud Settlement

Consumer Fraud — Thu, 19 Jul 2012 19:37:53 +0000

Consumers, who purchased Skechers Shape ups and other so-called toning shoes manufactured by the company, have found themselves left with lighter wallets, and not necessarily toner muscles. These consumers may be eligible for a partial refund after the Federal Trade Commission announced that it had reached a settlement with the company.

The Federal Trade Commission has reached a $40 million settlement with Skechers. The criticism against Skechers was that it had used deceptive advertising practices to promote its shoes as being toning shoes that would help tone muscles, and improve posture. Further, the shoes were promoted as helping with weight-loss properties and helping keep the knees and ankles joints healthy.

Consumers shelled out between $50 and $100 for the privilege of having these shoes. Unfortunately, many of them found that the claims that were made in the advertisements were patently false.

The Federal Trade Commission conducted its own studies into the advertisements, and found that far from losing weight, people were actually putting on weight after using the shoes. The agency found that the studies were patently false, and hence now, the settlement. Skechers denies that any of its advertising was inappropriate, but did not hesitate to reach a settlement with the federal agency.

Earlier this year, Reebok settled with consumers over claims that it used deceptive advertising to promote its shoes. Those shoes were also meant to tone legs, and provide all kinds of other health benefits.

Skechers Owners Eligible for Refund from FTC Consumer Fraud Settlement was originally posts on Consumer Fraud Online

Tenet Healthcare to Settle $43 Million False Claims Allegations

Consumer Fraud — Thu, 19 Jul 2012 19:30:00 +0000

Tenet Healthcare Corporation has agreed to settle allegations that it overbilled Medicare for treating patients at certain facilities. The company will pay $43 million to settle the allegations.

The announcement of the settlement was made by the Justice Department. Tenet Healthcare had been accused of treating patients at certain rehabilitation centers, even though the patients were not eligible for treatment at these centers. According to Tenet, it became aware of these discrepancies in 2007 during an internal review of the company’s operations. The company’s compliance department found that there had been overpayments made at a rehabilitation facility at a hospital in Georgia. The patients could have been treated at a much lower level of care, with lower costs. The violations continued over a period of 2 years.

Tenet immediately notified federal officials about these unnecessary admissions at the Georgia facility. Negotiations between the facility and federal regulators continued, and a settlement has now been announced. According to the Department of Justice, this is the single biggest recovery associated with unnecessary admissions in patient rehabilitation facilities.

Healthcare fraud is a widespread problem in the United States, and Medicare/Medicaid fraud is the most frequent kind of health care fraud. Medicare fraud can involve overbilling for certain kinds of procedures, billing for procedures when those procedures have not been performed, billing for tests that were not performed, billing for more expensive equipment and devices when cheaper ones were ordered, and charging for equipment that was never ordered. Many cases of Medicare and Medicaid fraud every year are brought to light by the actions of whistleblowers who work in these companies.

If you work in the healthcare sector, and are aware of false claims that have been filed, consult with a false claims lawyer. Under the Federal False Claims Act’s Qui Tam provisions, whistleblowers are entitled to a portion of the proceeds recovered.

Tenet Healthcare to Settle $43 Million False Claims Allegations was originally posts on Consumer Fraud Online