Tag Archive for Bogus

Bogus credit repair scheme operators settle FTC charges

Bogus credit repair scheme operators settle FTC charges
News from ConsumerAffairs:

The operators of a bogus credit repair scheme that allegedly tricked Spanish-speaking consumers into paying thousands of dollars each to supposedly improve their credit have settled the charges with the Federal Trade Commission (FTC).

A federal court complaint filed in March claims the defendants did business using the name FTC Credit Solutions, misleading consumers not only about the nature of the alleged credit repair services they offered, but also claiming an affiliation with the FTC that did not exist.

“These defendants were shameless. They scammed consumers who were in need of financial help and used the good name of the Federal Trade Commission to do so,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.

According to the FTC, the defendants — First Time Credit Solution, Corp., Guillermo Leyes, Jimena Perez, Fermin Campos, and Maria Bernal — violated the FTC Act by claiming to be affiliated with or licensed by the Federal Trade Commission. They are also accused of falsely promising they could remove negative information from consumers’ credit reports and guaranteeing consumers a credit score of 700 or above within…………… continues on ConsumerAffairs

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Miami-Dade officer pleads guilty to fraud for role in credit-repair ring
News from Miami Herald:

Moonlighting on the job, a Miami-Dade County cop wrote 159 police reports claiming people with bad credit histories were “victims” of identity theft, according to court records.

The reality: Veteran Miami-Dade police officer George Price fabricated the reports and sold them so they could be used to remove blemishes from the purported victims’ credit histories.

Price, 42, pleaded guilty to a conspiracy charge Friday for his supporting role in an alleged credit-repair ring. Price, who joined the force in 1999, must resign by next week.

He faces up to 20 years in prison on his fraud conviction, but is expected to receive a significantly shorter sentence because he pleaded guilty and has agreed to assist the FBI and U.S. attorney’s office in their investigation, according to a plea deal signed by Price, his defense attorney, Marshall Dore Louis, and the prosecutor, Michael Davis.

In the end, Price didn’t make much for exploiting his badge: $ 7,000. He must turn over to the feds the bribery payments he received in 2010-11.

Price was not operating alone.

Through an intermediary, he was working for Vanessa and Mario Perez, a Miami-Dade couple who already pleaded guilty. They made more than $ 322,000 by clearing up the lousy credit reports of people with bad bill-paying histories, according to court re…………… continues on Miami Herald

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Bogus credit repair firm shut down by FTC

Bogus credit repair firm shut down by FTC
News from Examiner.com:

On Friday, the Federal Trade Commission announced action against a Florida-based credit repair company that allegedly continued to pitch bogus services despite a 2010 court order requiring it to stop. In the most recent action, Latrese and Kevin Hargrave allegedly continued to scam unsuspecting victims through new companies.

Signed by U.S. District Court Judge Marsha Howard, the new order will remain in place while the FTC seeks a contempt ruling against the Hargrave organization for violating its initial cease and desist order. Pending further court action, the Hargraves are banned from all activities involving credit repair and from offering credit-related products, programs, or services.

In 2008, the FTC filed a complaint against the Hargraves and the firms they control, alleging that they advertised bogus credit repair services on the Internet and radio stations. Consumers were charged $ 250 to $ 270 per person and $ 450 per couple. They were also required to pay half or all of the fees in advance of services of being rendered.

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US Attorney: Fresno credit repair firm was scam
News from CBS News:

FRESNO, Calif. — Two Fresno men are charged with conspiracy and money laundering for allegedly scamming dozens of debt-ridden clients of their credit consolidation payments.

U.S. Attorney Benjamin Wagner said Thursday that 36-year-old Sharanjit Kaur and 47-year-old Baljit Singh collected more than $ 400,000 from clients who thought the men were using the money to pay down renegotiated debts.

Wagner said the men instead kept the money, and wired some to another man in India.

According to the indictment, between July 2010 and June 2011 the men ran Consumer Financial Services, Consumer Credit Repair and Client Financial Services. They found clients by using a call center in India. Agents there told the clients to send in monthly payments of $ 500 or more.

Efforts to reach the men’s attorney for comment were not immediately successful.

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