Category: Fraud Law
Prepaid Phone Companies Dial a Wrong Number at the FCC
Companies marketing prepaid phone cards should be on the lookout: the Federal Communications Commission is threatening more-severe penalties for deceptive advertising. The prepaid phone card business is pretty profitable, with the industry raking in billions every year. Plastering phone cards with names like “Africa Magic” and “Hola Amigo,” prepaid calling card companies target immigrant populations,… Read More
Is Unsealing False Claims Act Complaints the Right Answer?
Companies should make vigorous efforts to unseal civil False Claims Act complaints against them earlier in the process in an effort to achieve better results, argues Michael K. Loucks, a former acting U.S. attorney for the District of Massachusetts who is currently a Boston-based partner in a major law firm. Loucks also co-authored a post… Read More
Should FTC Sue Law Schools For Misrepresentation?
On May 25, 2011, a class action was filed against the Thomas Jefferson School of Law (TJSL) in San Diego for intentionally misrepresenting employment data of recent alumni. The complaint states that in order to continue attracting students despite exorbitant law student debt and a depleted legal job market, TJSL has “adopted a practice of… Read More
Bank Hit With FCA Complaint Over Mortgage Lending
On May 3, 2011, the U.S. Department of Justice filed a civil case against Deutsche Bank, Germany’s largest bank, asserting that Deutsche Bank was liable for more than $1 billion to the U.S. government for its statements and actions during the mortgage meltdown of the last few years. This case is one of the few… Read More
FTC Files Suit Against Acai Marketing Sites Disguised as ‘News’
The FTC recently filed suit against ten operations with websites that market acai berry weight loss products. The FTC alleged that the companies’ websites – which look like news websites – deceived consumers who thought the sites were credible journalistic outlets as opposed to elaborate marketing schemes. According to the FTC, the sites contained titles… Read More
Strike Force Hits Hard at Massive Medicare Fraud
Last month, the Federal Medicare Strike Force charged 111 defendants in nine states for their alleged participation in fraud schemes that reportedly cost Medicare almost a quarter billion dollars. Last month’s sweep resulted from the Justice Department’s and Health and Human Services’ work with the FBI, the HHS inspector general, and various state and local law… Read More
Identity Theft Tops List of FTC Complaints in 2010
This month, the Federal Trade Commission released its list of the top ten consumer complaints received by the agency in 2010. This list represents a good indication of some of the areas toward which the FTC may direct its resources and increase its scrutiny. For the 11th year in a row, identity theft was the… Read More
Online Sellers Need to Beware of State Attorneys General
The Pennsylvania Attorney General filed a consumer protection lawsuit last month against Zoommania, LLC, a Philadelphia-based Internet electronics store, for a bait-and-switch scheme the company allegedly employed in online sales and for its creation of new websites to avoid negative customer feedback resulting from the scheme. The complaint, which seeks restitution for consumers, alleges that… Read More
FTC Cracks Down on Merchants’ Empty Promises
On March 2, 2011, the Federal Trade Commission announced “Operation Empty Promises,” a multi-agency law enforcement initiative aimed at cracking down on misleading “work from home” and other business opportunity offers. The campaign includes more than 90 actions brought by various state and federal agencies in the past year, including the Department of Justice, the… Read More
Chargebacks Can Be a Major Problem for Small Businesses
The Wall Street Journal has acknowledged the serious problem that chargebacks pose to businesses in an article posted on its website. Merchants pay a heavy price for these reverse credit card transactions, which cost them a lost sale, the lost product, and a fine imposed by the credit card company. What’s more, courts have equated… Read More
IFRAH Law
