Read anything interesting or outrageous from our wonderful friends in the telemarketing industry?  E-mail it to us! It may be our next quote of the week.

December 26, 2010

"Not only do we maintain jobs in our community, we get jobs for our veterans.  That is wonderful.

"The only reason I'm doing this is to save 400 jobs. Otherwise, I'd shut it down.

"If any payment is missed, the case will be converted to Chapter 7."

Chief U.S. Bankruptcy Judge Thomas P. Agresti giving the 397-employee Creditron more time to arrange for a sale with a prospective buyer from Alexandria, Va. -- a new telemarketing company that specializes in employing disabled military veterans and that said it would add 400 jobs to Creditron's current work force.

Creditron, at 1567 W. 38th St., filed for Chapter 11 bankruptcy protection in July 2008. The judge overseeing the case, upset over Creditron's failure to pay its taxes or solidify its finances over the past two years, starkly narrowed the options for the family-owned company on Friday.

Agresti gave the prospective buyer, Veteran Call Center, until Dec. 20 to reach a sales agreement with Creditron, and he set Feb. 28 as a closing date for the sale. Veteran Call Center's chief executive said the company plans to pay $3 million to $4 million to buy Creditron, which also does business as Telatron.

If the deal falls through, Agresti said, he will shut down Creditron by converting the bankruptcy case from a Chapter 11 reorganization, in which a bankrupt company stays in business and tries to restructure to pay it debts, to a Chapter 7 liquidation, in which a bankrupt company must sell its assets to satisfy creditors.

Agresti also said he would order Creditron liquidated if, while waiting on the deal with Veteran Call Center, Creditron fails to remit any of its employee withholding taxes to the federal, state or local governments.

Creditron's liabilities for withholding taxes have grown since it filed for bankruptcy, with its total tax debts now at more than $4 million, including $2.6 million due the Internal Revenue Service, $1.3 million due the state Department of Revenue and $422,000 due the city of Erie and neighboring municipalities, according to court records.

From Go Erie.com, 400 jobs at risk at Creditron Financial Corp., December 11, 2010.  Judge Argesti can be reached, via the US. Bankruptcy Court, at: (814) 464-9760.

CATS Comment:  While we, here at CATS, commend the Judge for trying to save jobs, the end result will be yet another telemarketing company offering false hope to applicants, and unwanted calls to consumers.  It might be better in the end to let it die, our veterans who have risked their lives deserve better jobs than trying to hawk over the phone, some unwanted product or service.   Now really, is this the best we can do for them?

December 19, 2010

"The scheme was like a tsunami of consumer calls," pitching the bogus warranties to homes while overwhelming businesses and even targeting government offices in all 50 states and several other countries."

Steve Wigginton, the top federal prosecutor for southern Illinois commenting on two executives with a Florida-based telemarketing company admitting in federal court that they sold bogus auto-service warranties in a scheme federal prosecutors say garnered nearly $40 million from 15,000 customers over two years.

Christopher Cowart, 49, of Fort Lauderdale, Fla., and Cris Sagnelli, 45, of Boca Raton, Fla., pleaded guilty in U.S. District Court to a felony count of using a fictitious name as part of a mail-fraud scheme they carried out while doing business as Transcontinental Warranty Inc.

Cowart was president and Sagnelli vice president. Prosecutors say the company perpetuated the scheme from June 2007 until a federal judge in Chicago ordered it to halt its use of deceptive "robo-calls" warning people their auto warranties were expiring and offering to sell them new service plans.

That injunction followed a lawsuit against Transcontinental and a similar company by the Federal Trade Commission, which sought to halt a wave of as many as 1 billion automated, random, prerecorded calls about auto-service warranties.

Cowart and Sagnelli, who were freed on bond after the hearing, each face up to five years in federal prison and as much as $250,000 in fines when sentenced March 21. Because the crime involved telemarketing, both men also could face an additional five years behind bars.

Under federal law, restitution is mandatory, though federal prosecutor Bruce Repper, told the judge that figure remains unclear.

According to court documents, automated calls from a company Transcontinental hired told consumers their vehicle's factory warranty would expire or soon lapse, then transferred people to Transcontinental telemarketers who falsely said they were staffing the "Warranty Service Center." But Transcontinental had no affiliation with automakers and no ability to extend or reinstate the manufacturer's warranty. Instead, they sold third-party "vehicle service contracts."

Where Transcontinental went wrong, Wigginton said, is that it led people to believe the calls were on behalf of automakers and used a fictitious name in dealings with consumers. The company also suggested it was capable of extending or reinstating warranties and that the product being sold was an actual warranty instead of a service contract, which often includes a waiting period for the repair and allows repair shops to use replacement parts from junkyards.

From CarmiTimes.com, Two executives admit auto-service telemarketing scam, December 13, 2010.  Steve Wigginton can be reached, via the US Department of Justice, at (618) 628-3700.

CATS Comment:  Go get 'em Steve.  We, here at CATS did our part to slow them down.  We told them that we had a 1912 Baker Electric (yes-there was such a car) and they spent over 20 minutes researching that car because we told them that we wanted a warranty on that vehicle.  It was a hoot when they figured out that they were being played for a sucker.

Even though we messed with them, they called back 2 more times and we played with them again!  By wasting their time, you cost them $$$,  Nice thought!

December 12, 2010

"Telemarketers reach into the homes of millions of people and may sometimes obtain personal information from the consumer.  The laws governing telemarketing are there to provide some protections for the public. We take violations of the law very seriously and will pursue legal action in these cases."

Florida Agriculture and Consumer Services Commissioner Charles Bronson announcing the arrest of Jose A. Negron, 28, who is accused of providing inaccurate information about his criminal history on an application for his commercial salesperson license.

According to the Office of Agricultural Law Enforcement, Negron answered “no” to several questions about previous arrests and convictions.

Records revealed that Negron had been arrested and convicted of several crimes, including grand theft, burglary, dealing in stolen property and selling drugs.

The application makes it clear that falsifying information is a third-degree felony.

From the Fort Meyers, FL News  Press, Lee County man charged with falsifying information on state documents, December 9, 2010.  Commissioner Bronson can be reached at: (850) 488-3022.

CATS Comment:  Ah yes, you meet the nicest people on telemarketing calls, felons, child molesters, illegal aliens, buglers, and drug dealers.

Even more interesting is the fact that many of these folks are telemarketing for law enforcement charities!

Need we say more?

December 5, 2010

"I think people get tired of constantly receiving telephone calls from telemarketers.  Our citizens have responded in a positive manner, and we have actually been able to raise more money each year through this direct mail campaign than we were previously able to raise through telephone solicitation.”

Sergeant Jim McCoy, a member of the Fayette County Fraternal Order of Police (FOP) Memorial Lodge 118, commenting on how direct mail and their "Shop with a Cop" program achieved better fundraising than telemarketing.

The Shop-With-A-Cop program and the fundraiser benefit more than 100 needy children each year in Fayette County.

In cooperation with Wal-Mart and members of Fayette County FOP Memorial Lodge 118, police will treat children to a pizza party and a shopping trip.

Members of Lodge 118 are encouraging citizens to donate as much as possible.

Donations may be mailed to the Fraternal Order of Police at P.O. Box 352, Oak Hill, WV 25901. People may also drop off contribution at the Fayette County sheriff’s office, the Oak Hill Police Department or the Fayetteville Police Department.

From the West Virginia Register-Herald.com, Public can help Fayette County Shop-With-A-Cop, November 29, 2010.  Sergeant McCoy can be reached, via the FOP, at (304) 640-4680.

CATS Comment:  More proof that telemarketing does not work effectively to raise funds anymore.  People have "gotten wise" to the fact that most of the donated funds go to the telemarketer.

As always, never donate to a telemarketer, no matter how good the cause.

CATS founder Robert Arkow often tells "Police Telemarketers" seeking donations that he is a drug dealer and does not want to get involved with the police.  Often the telemarketers, trying to act as cops, threaten to arrest him.  In 15 years of using that excuse, no officer has ever come to his home, but it does waste a lot of the telemarketers time.

One telemarketer for the "Sheriffs Booster Club" spent 10 minutes of time trying to "track him down" after Arkow told him that the number he called was forwarded several times to avoid detection.  Finally frustrated, the telemarketer hung up.

We, here at CATS, wish all a happy and telemarketing free Holiday Season.

November 28, 2010

"We've received a few calls from people, which isn't surprising.

"We did receive one complaint from your area.  The gentleman was going to call the OPP." [The local police]

"Perhaps in that case it was misconstrued."

Captain John P. Murray, APR, Divisional Secretary for Public Relations and Development, the Salvation Army, commenting about A Salvation Army telemarketing campaign that flies in the face of common anti-fraud advice has attracted nearly 20 calls of concern from citizens, including one unhappy person who went to police.

Murray said this is the first year that telemarketers are calling people at home in eastern Ontario, including Ottawa and Kingston, seeking to reactivate lapsed donors.

The program has run, without complaint, according to Murray, for the past two years in Toronto.

The Sally Ann contracts a firm to make the calls. People called are asked if they'd like to resume donations and if they'd like to make a contribution immediately, by giving credit card information over the phone.

The Canadian anti-fraud centre website, operated by the federal government in conjunction with law enforcement, warns: "never give out your personal financial information ... over the phone, or at the door."

Murray acknowledged that their technique is at odds with the advice, but he said anyone who is uncomfortable with the request to make an immediate donation can simply say no and call a local Salvation Army citadel or go to the national website where contributions can be made directly by credit card.

From the Montreal Whig-Standard, Phone blitz concerns some citizens, November 26, 2010.  Captain Murray can be reached at: (416) 998-0117.

CATS Comment:  The Salvation Army just doesn't "get it" when it comes to telemarketing.  While the Army has free speech rights both in the US and Canada, the offensive delivery of that speech is likely to tarnish the Salvation Army's good name (their brand).

So next time you go shopping and you come across a bell ringer from the Salvation Army, simply tell them that you do not want to support an organization that uses telemarketing as a fund-raising method, then walk away failing to donate anything.  Perhaps that might change their mind about using such an offensive and invasive marketing method.

November 21, 2010

"Indiana's Do Not Call registry does more than just cut down on disruptive telemarketing calls - it makes it easier to spot a potential scam.  If you receive an unwanted call from a solicitor even though your number is registered, that is a big red flag they may not be doing business legitimately because they are willing to violate Indiana's telephone privacy laws."

Indiana Attorney General Greg Zoeller reminding Indiana residents that the next deadline to register for the state's Do Not Call list is Tuesday, November 16. Phone numbers placed on the list by 11:59 PM (EST) November 16 will begin receiving benefits of the law starting January 1, 2011.

More than 1.8 million phone numbers are currently registered on the Do Not Call list, which represents about 60 percent of eligible phone numbers in Indiana. However, the percentage of registered phone lines varies widely in different parts of the state.

The Attorney General's office encourages all Hoosiers to register, especially senior citizens who are particularly vulnerable to telephone phishing scams targeting individuals receiving Social Security and Medicare benefits.

Indiana law also forbids the use of autodialers to deliver pre-recorded messages without a live operator obtaining consent to deliver the message. These calls are often referred to as "robo-calls." The Attorney General's telephone privacy division responds to consumer complaints related to possible Do Not Call and Autodialer violations and enforces the state law prohibiting unsolicited fax advertisements. 

Individuals who are on the Do Not Call list and receive an unwanted telemarketing call or unsolicited fax advertisement can submit a complaint to the Attorney General's office. These complaints help the office to enforce Indiana telephone privacy laws.

From the Indiana Attorney General's web site, Tuesday is deadline to register on Indiana's Do Not Call list, November 15, 2010.  Attorney General  Zoeller can be reached, via his office, at: (317) 232-0168.

CATS Comment:  Due to our California Attorney General turned Governor, Californians do not have any protections offered by the State of California. Thank you Jerry Brown for failing to protect California residents from intrusive telemarketing calls.  But fear not Californians, the Federal Telephone Consumer Protection Act (TCPA) with its "private right of action" clause offers us all a chance to take the callers to court and collect money from them.

November 14, 2010

"U.S. Fidelis allegedly used deceptive, misleading or false information to convince thousands of Pennsylvania consumers to spend thousands of dollars on used car warranties that may not have provided the protection they were seeking.  The company is also accused of disregarding 'Do Not Call' programs and other restrictions on telemarketing, flooding homes and cell phones across the country with an estimated one billion unwanted sales calls.

"Drivers across Pennsylvania were bombarded by calls and letters loaded with misleading statements about 'factory warranty coverage' and 'last chance' offers.  These confusing and high-pressure sales pitches urged consumers to spend up to $4,000 for service contracts that were supposed to protect them against costly repairs.

"Based on deceptive ads, mail solicitations and sales calls, many consumers falsely believed that they were buying vehicle warranties directly from U.S. Fidelis.  In reality, U.S. Fidelis was simply re-selling service contracts that were offered by other warranty companies, and had no direct authority over the payment of consumer claims or other decisions about coverage."

Pennsylvania Attorney General Tom Corbett commenting about a lawsuit his office filed last April against one of the largest used car warranty sales companies in the country, Missouri-based U.S. Fidelis Inc., along with the co-owners of that business.

The lawsuit was filed against U.S. Fidelis Inc., formerly known as National Auto Warranty Services Inc. and doing business as Dealer Services, of Wentzville, Missouri.  The consumer protection suit also names company President Darain E. Atkinson, of Lake Saint Louis, Missouri, and Vice-president Cory C. Atkinson, of Wentzville, Missouri - brothers and co-owners of the company.

Corbett said the lawsuit seeks full restitution for all consumers who suffered losses as the result of unfair trade or deceptive business practices, along with civil penalties of up to $1,000 for each violation of Pennsylvania Consumer Protection Law and Do Not Call program (up to $3,000 for each violation involving senior citizens).

Additionally, the lawsuit asks the court to order Darain and Cory Atkinson, along with their businesses, to forfeit all money generated by their illegal practices and to permanently prohibit them from doing any business in Pennsylvania

Corbett said today's consumer protection lawsuit in Pennsylvania is the result of a multi-state investigation that also includes similar lawsuits filed in Iowa, Idaho, Kansas, North Carolina, Ohio, Texas, Washington and Wisconsin.

From the Pennsylvania Attorney General's web site, Attorney General Corbett announces lawsuit against U.S. Fidelis over deceptive vehicle warranty sales, April 29, 2010.  Attorney General Corbett can be reached, via his office, at: (717) 787-3391.

CATS Comment:  Better stand in line Mr. Corbett--it seems that the telemarketers have found a way to beat the laws.  Do a massive, illegal, blast of calls, collect the cash from unsuspecting customers, hide the profits, and then file for bankruptcy.  While you may be successful in prosecution of the law breakers, the reality is that none will do jail time and just resurface as another business in a year or two.

Case in point, Fax.com was hit with a 5 million dollar fine, the principle of the company fled to his native South Africa.  The lawyers are still trying to sort out that mess from 5 years ago.

Since you are aware of fact that the other States that have filed similar lawsuits, you had better stand in line to get any kind of settlement.

We, here at CATS, wonder why that so many law enforcement officials can't figure out that they are being scammed.  Are they that dumb?

November 7, 2010

"These calls are typically are generated by the thousands from locations outside the United States. Stopping this practice is difficult because the true identities of the callers are buried behind a line of entities that lease and then release the telephone numbers to others.  As a precaution, never respond to a telemarketing call, television or radio advertisement or mail solicitation without first checking whether the company is licensed in Nevada."

Nevada Attorney General Catherine Cortez Masto warning consumers of prerecorded telemarketing calls offering credit repair or loan modification services. Some consumers report they are receiving multiple calls per day.

During the call, a recording tells the consumer they qualify for a loan modification or credit repair and the call may quote a loan account number to make the offer appear authentic. However, when the consumer pushes the telephone button to talk to a representative, the recording states that no one is able to take the call. The recording asks the consumer to provide their name, address, account number and even social security number, promising someone will call them back. This is a scam to collect personal identity information from the unsuspecting victim.

The consumer is warned to not respond to these calls and never provide private information over the telephone. Providing private identification in this manner is an easy way to become a victim of identity theft.

The caller ID telephone numbers displayed when receiving these prerecorded telemarketing calls are fake and used in a process called “spoofing.” Current technology makes it possible to spoof a telephone number to display the source of the call. While spoofing phone numbers is illegal, it is virtually impossible to trace the source of these calls.

From the Nevada Attorney General's official web site, LOAN MODIFICATION TELEMARKETING SCAM ALERT, November 3, 2010  Attorney General Cortez can be reached, via her office, at: (775) 684-1100.

CATS Comment:  You go girl!  It's too bad that our current California Attorney General, Jerry Brown, spent his time getting elected as Governor instead of protecting Californians against telephone scammers.

Perhaps the next Attorney General will do better.

Until then, heed our advice when telemarketers call.  You should waste their time and do not buy their products or services----EVER!

October 31, 2010

"When cash-strapped consumers are trying to sell their property, the last thing they need is to lose thousands of dollars to scam artists who promise a quick sale, but then provide no services at all."

David Vladeck, Director of the Federal Trade Commission's (FTC) Bureau of Consumer Protection commenting about a  federal district court decision that put a stop to a deceptive telemarketing operation that allegedly scammed millions of dollars from property owners hoping to sell their timeshares.

The FTC charged that the ring, operating out of South Florida, conned consumers by promising that they had buyers lined up and waiting.  Only after making a hefty up-front payment did the consumers learn that there were no buyers, and that it was nearly impossible to get their money back from the defendants, many of whom have long criminal histories.

The case is part of an ongoing FTC effort to crack down on con artists who use fraud and deception to take advantage of consumers hit hard by the recent economic downturn.  Many of the defrauded consumers needed to sell their timeshares to help pay their living expenses.  According to the FTC, the number of complaints related to fraudulent timeshare resales has more than tripled over the past three years, as more consumers have attempted to sell their timeshares.

In this case, the defendants allegedly defrauded consumers nationwide out of millions of dollars before being shuttered by the court.  They also are well known to the South Florida Better Business Bureau (BBB) which, together with the FTC and the Florida Attorney General's Office, has received hundreds of complaints from consumers about their conduct.  The BBB has given the firm, Timeshare Mega Media and Marketing Group, an F rating, the lowest rating it can give a business.

According to the FTC's complaint, Timeshare Mega Media, two related companies, and six individuals used a telemarketing boiler room in Ft. Lauderdale, Florida.  They told timeshare owners who were attempting to sell their units that a buyer was lined up and a deal had been negotiated on their behalf, but that before the sale could be completed, consumers would have to pay an up-front fee, usually $1,996, by credit card. 

The FTC's complaint charges that Timeshare Mega Media's representatives typically claimed the fee was for sale-related costs, such as realtor fees, closing costs, title searches, or document processing.  They also told consumers that this fee would be refunded at closing.  In some cases, if a consumer owned an expensive timeshare, the fee could be more than $1,996, ranging up to 10 percent of the asking price.  Consumers also were told that their timeshare sales would close quickly, often in as few as 30 days.

The FTC alleges that, after the consumers paid the fee, they were told to expect a contract from Timeshare Mega Media.  What they received turned out to be a contract to market and advertise their timeshare, and not a sales contract.  According to the FTC's complaint, many consumers signed and returned the contract thinking it was a sales contract.  Those who questioned its validity were given the run-around by the company and falsely told that a sales contract would follow.  In fact, according to the agency, the company never had any timeshare buyers lined up.  When consumers discovered this and demanded their money back, they found it nearly impossible to get a refund, or even get a call back.

The FTC's complaint was filed against Timeshare Mega Media and Marketing Group, Inc., also doing business as (d/b/a) Timeshare Market Pro, Inc.; Timeshare Market Pro, Inc.; Tapia Consulting, Inc.; Joseph Crapella, also known as Joseph John Philbin; Pasquale Pappalardo; Lisa Tumminia Pappalardo; Pasqualino Agovino; Louis Tobias Duany; and Patricia A. Walker.

The Commission vote approving the complaint was 5-0.  It was filed on October 19, 2010, in the U.S. District Court for the Southern District of Florida in Ft. Lauderdale.  The court entered a temporary restraining order against the defendants on October 20, 2010.

In filing the complaint, the FTC is seeking to permanently stop the defendants' allegedly illegal conduct and to provide money back to consumers who were harmed by their violations of the FTC Act and Telemarketing Sales Rule.

From the FTC's web site, Psst...Hey Buddy, Wanna Sell a Timeshare?. October 29, 2010.  David Vladeck can be reached at: (202) 326-2234.

CATS Comment:  Way to go David.  This is yet another reason that we, here at CATS, say that when you receive a telemarketing call, "play along" with the telemarketer, and waste as much time as possible.  If we all waste one minute of a telemarketer's time, then they can only call 60 consumers an hour.  At that rate, they cannot make enough calls per hour to stay in business.

Do this, and you will be the winner of the battle.  If we all waste their time when they call, the industry will grind to a halt.

October 24, 2010

"Unlike the standard telemarketing frauds ... these weren't people hiding behind a phone number you couldn't call -- a voice you couldn't recreate. These were people who left telephone numbers and would talk to you."

Paul Allvin, a vice president of the Make-A-Wish Foundation commenting on how the Make-A-Wish Foundation's good name has been exploited by a massive Costa Rica-based phone scam escalating in recent months.

Based in Costa Rica, alleged swindlers wanted by Interpol such as Andy Leimer use Internet phone technology to disguise their location and pretend to be from a government agency such as the Internal Revenue Service or the Federal Trade Commission to call potential marks in the United States -- sometimes every day for weeks saying they've won a million-dollar sweepstakes.

All they have to do is pay tax and insurance fees in the range of hundreds of thousands of dollars.

U.S. officials, in concert with top Costa Rican authorities, conducted a raid on 16 boiler rooms in the Costa Rican capital of San Jose in 2006 that resulted in 37 people behind bars, ABC news said, but many escaped the raid.

Leimer, married to a Costa Rican, cannot be extradited but proclaims his innocence, says he will not go to the United States to clear his name.

When approached for comment, Leimer's lawyer said, "Gringo, go home."

From UPI (United Press International), Costa Rica phone scammers back, October 22, 2010.  Allvin can be contacted, via the Make a Wish Foundation, toll free, at: (800) 965-WISH (9474).

CATS Comment:  Ah yes, our good friends, the Costa Rican scammers are back.  All the more reason not to donate to any charity over the phone.  With slick language, and caller-ID spoofing you never know who is really on the other end of the line.

Smart consumers "play" with telemarketers, and try to keep them on the line as long as possible.

That is the best way to fight back against the unwanted callers.

To see the consent judgment click here.

October 17, 2010

"We caught CSI’s telemarketers in the act of violating a court order by trying to mislead prospective donors.  We obtained eight recordings on our undercover phone line, and every single recording contained violations.

"Having caught them in repeated deceptions we made them agree to cover the enforcement costs of keeping them in line.

"Realistically, that probably means they’re out of Iowa forever.  And with their track record, that’s a good thing for Iowa consumers."

Iowa Attorney General Tom Miller his office caught a telemarketing company allegedly making deceptive calls in violation of a court order.

A Wisconsin telemarketer has agreed to stop making fundraising calls into Iowa for at least seven years, and to pay a substantial penalty if it resumes fundraising in Iowa. In an Assurance of Voluntary Compliance, filed today in Polk County District Court, Community Support, Inc., or “CSI,” a professional fundraiser headquartered in Milwaukee, agreed to the ban to settle a consumer fraud enforcement action filed by the Attorney General in July 2010.

Miller’s office had previously obtained a consent judgment against CSI in May of 2009, when earlier undercover tapes showed that CSI’s telephone fundraisers were misleading Iowans about who was calling, where they were located, whether the caller was a volunteer, and how much of the money donated would actually go to the charity. In fact, Miller said, typically only 15% to 20% of every dollar raised from Iowans by CSI went to the charity, and the telemarketing operation kept the rest.

According to the settlement agreement, CSI is required to pay $5,000 to cover the recent costs of a state investigation, and CSI has agreed that any future violations will give rise to a civil penalty of $40,000 per violation unless CSI can prove that the violation was an honest and isolated error. CSI denies any wrongdoing.

Under its fundraising contracts, Community Support Inc. typically retains 80% or more of funds that it solicits for various organizations, including the American Foundation for Disabled Children; Children’s Cancer and Leukemia Relief Fund; National Vietnam Veterans Foundation; Reserve Police Officers Association; Woman2Woman Breast Cancer Foundation; and others.

Miller has the following tips for avoiding charity fraud: 

Don’t let a sympathetic charity name fool you – some fundraisers exaggerate or fabricate their support for veterans or military families, law enforcement, fire fighters, victims of disease, and children’s causes.

Ask questions. Be wary of claims that the caller is a charity worker or volunteer, that most of your donation goes to the cause, or that your donation will be used locally.

Ask phone solicitors to send written information. Be suspicious if they insist on a pledge before they’ll send you information. Check them out at the national Better Business Bureau “wise giving” site – http://www.give.org.

Don't give your credit card or checking account numbers over the phone to someone you don't know.

Give directly to a known charity of your choice. 

Bottom line: Keep giving generously, but give wisely! Giving to a known charity you’re confident about is often the best option.

From the Attorney General's official web site, Attorney General alleges the company made deceptive calls in violation of a court order, company agrees to stop soliciting Iowans, October 15, 2010.  Attorney General Miller can be reached, via his office at: (515) 281-6699.

CATS Comment:  Hold the phone.  Where was our California Attorney General at when Californians were receiving the illegal calls?  Oh, we forgot, he is too busy running for Governor.

October 10, 2010

"Our office will continue to prosecute any business, regardless of its size, when it makes unlawful telemarketing calls to Missourians registered on our no-call list.

"It is a consumer's right to demand that illegal telemarketing calls that violate Missouri's laws stop, and no matter how aggressively it fights, no business is immune from Missouri's no-call law. We will continue to go after those who violate the law."

Missouri Attorney General Chris Koster telling consumers that he has obtained a preliminary injunction against a satellite radio company.

Sirius XM Radio allegedly repeatedly called consumers on the Missouri no-call list. Earlier this month, Koster filed a lawsuit against the company and obtained a temporary restraining order to keep it from continuing the alleged calls.

Koster's suit alleges that telemarketers for the company made harassing solicitation calls selling satellite radio subscriptions to consumers.

Sirius XM officers contested the preliminary injunction at an evidentiary hearing in St. Louis, with the court finding that Koster's office had established a probability of success at trial on the merits.

A judge ruled that the Missouri citizens on the no-call list would suffer a hardship if the preliminary injunction was not granted and ordered the preliminary injunction to stay in place throughout the litigation until the full trial on the permanent injunction.

The court ordered Sirius XM to stop making repetitive calls to consumers on the no-call list who notified the defendant that they rejected the Sirius XM subscription or after their free trial period expired. The only exception is if a consumer expressly authorized Sirius XM to call.

From LegalNewsLine.com, Sirius XM barred from sales calls in Missouri, October 8, 2010.  Attorney General Kostner can be reached, via his office, at:  (573) 751-3321.

CATS Comment:  Hold the phone.  Where was our California Attorney General at when Californians were receiving the illegal calls?  Oh, we forgot, he is too busy running for Governor.

October 3, 2010

"Consumers called my office and complained that they were receiving unwanted and annoying telemarketing calls, even though they were registered on the No Call List.  My office properly served the companies and with the complaints, but the company officials never responded and have been found liable by default.

"US Fidelis was also found in violation of the No Call Law by utilizing an automated dialing system or any like system that uses a recorded voice message to communicate with consumers."

Mississippi Southern District Public Service Commissioner Leonard Bentz saying that his office has fined several companies for violating the Mississippi Telephone Solicitation Act (MTSA), also referred to as the No Call Law.

The companies that were fined were found in violation of the No Call Law by failing to register with the Public Service Commission as a telephone solicitor, for failing to purchase the No Call list, and for contacting consumers that registered on the No Call List.

Companies fined are Super Timeshare of Lutz, Fla., $15,000; Brian Tisdale d/b/a Medco Solutions of Amory, $15,000; On Point Media of Irvine, Calif., $15,000; US Fidelis d/b/a National Auto Warranty Services, Inc. of Wentzville, Mo., $50,000.

The companies that were fined were found in violation of the No Call Law by failing to register with the Public Service Commission as a telephone solicitor, for failing to purchase the No Call list, and for contacting consumers that registered on the No Call List.

Companies fined are Super Timeshare of Lutz, Fla., $15,000; Brian Tisdale d/b/a Medco Solutions of Amory, $15,000; On Point Media of Irvine, Calif., $15,000; US Fidelis d/b/a National Auto Warranty Services, Inc. of Wentzville, Mo., $50,000.

Commissioner Bentz noted that the companies that were fined today are prohibited from making any solicitation calls until they have registered with the PSC as a telephone solicitor, purchased the MS No-Call list, and paid all fines.

The Mississippi Telephone Solicitation Act  was enacted in 2003 and directed the Mississippi Public Service Commission to establish and operate a “Do Not Call”

Registry that is commonly referred to as the No Call List. The Registry provides a mechanism by which Mississippi consumers can register their phone numbers as unwilling to receive telephone solicitations, with certain exemptions.

CATS Comment:  Hold the phone.  Where was our California Attorney General at when Californians were receiving the illegal calls?  Oh, we forgot, he is too busy running for Governor.

September 26, 2010

"What happens is, you send in the money and all of the sudden you get this call saying, ‘Well, they backed out.  It’s a ripoff because in most cases (the agent never had) a buyer for that time-share.”

Florida  Agriculture Commissioner Charlie Bronson telling about a crackdown on unscrupulous time-share resale agents.

The weeklong sting resulted in four arrests and $125,000 in fines from telemarketing operations

Bronson said the most common scam involves a resale agent promising a time-share owner that a buyer is lined up, only to renege on the deal.

Bronson’s office visited 67 telemarketing firms between Sept. 13-17, and it issued 137 cease-and-desist orders for unlicensed sales workers and unregistered businesses.

Of the $125,000 in fines, $31,000 came from the Tampa Bay area.

Of the four arrests, two were in the Tampa Bay area.

A salesman with Vacation Property Resales Inc. in Tampa was accused of telemarketing without a license.  Darren Daniels, 45, was arrested on unrelated warrants for drug possession and violating probation.

Stacy Blossom, who worked for Consumer Credit Group Inc. in Pinellas Park, was arrested on charges of unlicensed telemarketing. Bronson’s office says that Blossom, 46, was given the opportunity to voluntarily comply with state licensing guidelines, but she refused.

From Bradenton.com, State targets time-share resale scams, September 25, 2010.  Commissioner Bronson can be reached, via his office, at: (850) 488 - 3022.

CATS Comment:  We love the Florida Department of Agriculture.  They have busted more telemarketers than many State Attorney Generals.

What is really amazing is how so many telemarketers think that they are above the law.  The example in this article of Ms. Blossom is typical of telemarketers and their "freedom of speech" mantra.

Go get 'em Charlie, we love it!

September 19, 2010

"This court order now takes effect and puts professional fundraisers on notice that we’re watching for deceptive practices,

"I want Iowans to know that there are many reputable charities deserving of your generosity.  Miller said.  “Our focus is on fraudulent operators who mislead Iowans and divert much-needed money from worthy causes."

Iowa Attorney General Tom Miller telling consumers that a professional fundraising company accused of consumer fraud is now under court order to cease all fundraising activities and is no longer allowed to remain in business.

On May 27, 2010, a Polk County District Court judge ordered Public Safety Communications (PSC), Incorporated, a Des Moines-based fundraising company, to cease fundraising in Iowa and to Iowans effective July 15, and to dissolve the company.  “This court order now takes effect and puts professional fundraisers on notice that we’re watching for deceptive practices,” said Miller.

In May of 2009, Miller filed a consumer fraud lawsuit against PSC, accusing the company of misleading Iowans about who was soliciting, where donated funds were used, and the percentage of donations that actually went to purported charities.  PSC solicited on behalf of purported charitable organizations such as Handicapped Children’s Services of America; American Veterans Network; the Association for Firefighters and Paramedics; and the State Police Officers Council, which is a non-profit labor organization.

Miller alleged that PSC typically kept 80 to 90 percent of its solicited donations, while sending only 10 to 20 percent to the purported charities.  In recorded phone calls, PSC told potential Iowa donors that a much higher percentage of their donations would go to charity; deceptively claimed that donations would stay in Iowa when, in fact, in many cases they were sent out of state; and misled consumers about what collected donations would be used for.

In one fundraising call recorded in Iowa in March of 2009, PSC solicited on behalf of Handicapped Children’s Services of America.  The phone solicitor claimed 80 percent of contributions benefited the charity, when in fact only 20 percent went to the purported charity.  The caller also claimed, “We’re helping handicapped children here in Iowa,” when in fact the purported charity conceded it had never funded any Iowa charitable functions.

In another fundraising call recorded in Iowa in February of 2009, a PSC solicitor, who claimed to be a volunteer, told a potential donor that the individual’s entire contribution would go to the State Police Officers Council to be used for a child identification program.  In his consumer fraud lawsuit, Miller alleged that, in fact, only 25 percent of the money went to the Council.

On May 27, 2010, Andy D. Constantine, as an officer of Public Safety Communications, doing business as “Public Safety, Inc.,” and “Public Safety,” signed a consent decree, which was then entered by a Polk County District Court judge.  The decree enjoins the company, effective July 15, from engaging in fundraising from Iowa or fundraising directed to an Iowa resident.  The decree also orders the company to dissolve and dispose of its assets.  Constantine and Public Safety Communications deny wrongdoing or liability, but agreed to the consent judgment.

From a press release on the Attorney General's web site, Attorney General Shuts Down Professional Iowa Fundraiser, July 29, 2010.  Attorney General Miller can be reached, via his office, at: (515) 281-5164.

CATS Comment:  Our hat's off to you Attorney General Miller.  Not only do you do great work, but you posted the "sting" recordings of the telemarketers lying on your web site.

They are a hoot!  You can hear them by clicking here and here.

Great work Tom, keep it up!  We love it!

September 12, 2010

"When Missourians register with our No-Call list, they do so with the reasonable expectation that they will not receive these unsolicited, harassing calls  No business, no matter the size or reach, is immune from Missouri's law, and we will continue to go after those who violate it."

Missouri Attorney General Chris Koster talking about a temporary restraining order he obtained against Sirius XM Radio, Inc., for making solicitation calls to Missourians who had previously placed their names on the state's no-call list.  Koster filed a lawsuit against Sirius as a result of numerous complaints filed with the No-Call Division of the Attorney General's Office.

Koster's lawsuit alleges violations of the Missouri Merchandising Practices Act and the Telemarketing No-Call List Act.  Koster said telephone solicitation calls were made to consumers soliciting satellite radio subscriptions.

Koster asked the court to issue a temporary restraining order prohibiting the defendant from making calls to Missourians on the no-call list who have no established business relationship with the company.  Sirius may still make calls to existing customers, unless a customer directs Sirius not to call them.  Koster also is seeking a civil penalty of $5,000 for each violation of Missouri law, costs of the investigation and prosecution, and all court costs.

Koster reminds Missourians they can sign up for Do-Not-Call and can file a complaint about receiving harassing solicitation calls on his website at www.ago.mo.gov or by calling 1-866-BUZZOFF (1-866-289-9633).

From the Missouri Attorney General's web page, Attorney General Koster sues Sirius XM Radio for violations of Missouri no-call laws --wins temporary restraining order to get Sirius to stop calls--, September 8, 2010.  Mr. Koster can be reached, via his office, at: (573) 751-3321.

CATS Comment:  Go get 'em Chris, good for you.  Too bad our own California Attorney General, Jerry Brown, still consistently fails to go after telemarketing law violators.  Oh, that's right, Attorney General Brown is too busy running for California Governor.

September 5, 2010

"Cell phone customers usually pay for a text-messaging plan, and to have the available texts eaten up by telemarketing messages is aggravating.  The bottom line is people do not want unsolicited contacts from telemarketers, and they deserve to have their privacy respected."

Pennsylvania State Representative Seth Grove, (R-Spring Grove), talking about how he is sponsoring legislation, House Bill 2675, that would make it illegal for telemarketers to solicit via text message to anyone who has registered for the state's Do Not Call list.

Under Grove's bill, any company charged with sending unsolicited text messages to consumers on the Do Not Call list would be assessed fines of up to $1,000 and up to $3,000 if the call is made to someone 60 or older.

Grove said he has received an unwanted text advertisement from Papa John's after giving his cell phone number for a pizza delivery.

Tish Muldoon, a spokeswoman for Papa John's International Inc., said some franchises might use text messages to advertise, but the corporation does not support it. However, there are no consequences for franchises that do so.

From PennLive.com, Bill would add Do Not Text to Do Not Call, September 3, 2010.  Represent Grove can be contacted at: (717) 767-3947.

CATS Comment:  Guess again Papa John's and Representative Grove, there is already a law on the books regarding text messages.

The Telephone Consumer Protection Act or TCPA already prohibits such messages to cell phones.

The TCPA reads as follows:

It shall be unlawful for any person within the United States.... 

to make any call (other than a call made for emergency purposes or made with the prior express consent of the called party) using any automatic telephone dialing system or an artificial or prerecorded voice -

to any telephone number assigned to a paging service, cellular telephone service, specialized mobile radio service, or other radio common carrier service, or any service for which the called party is charged for the call (emphasis added).

The TCPA provides consumers with a "private right of action" in other words, the right to sue the offending party (like Papa Johns) for violations of the act.

Here is the actual law:

A person or entity may, if otherwise permitted by the laws or rules of court of a State, bring in an appropriate court of that State -

(A) an action based on a violation of this subsection or the regulations prescribed under this subsection to enjoin such violation,

(B) an action to recover for actual monetary loss from such a violation, or to receive $500 in damages for each such violation, whichever is greater, or

(C) both such actions. If the court finds that the defendant willfully or knowingly violated this subsection or the regulations prescribed under this subsection, the court may, in its discretion, increase the amount of the award to an amount equal to not more than 3 times the amount available under subparagraph (B) of this paragraph.

This means that instead of waiting for some government bureaucrat to investigate and bring legal action against a commercial text messenger, you can take the offender to small claims court and enforce the law yourself, and you make some money as well.  For the record,  many consumers have done just that.

Instead of promoting an new law, which has no provisions for enforcement costs, Representative Grove should let consumers in his District know about the TCPA, and their rights under Federal Law.

Perhaps Representative Grove should take Pappa John's to court and show consumers how to enforce their rights.  Now that would be leading by example!  How about it, Seth?

August 29, 2010

"It’s a free speech issue.  The legislature and the federal government determined you can’t prohibit those types of calls"

Shawn Conroy, spokesman for the Georgia Governor’s Office of Consumer Affairs responding to Georgia resident Dixie Short's complaint about the stream of political robocalls sent to her residential phone during election season.

The  Loganville was recovering from cataract surgery when the first phone call came.  

Sedated and wearing a patch over her left eye, she rose from her chair to answer. It was an automated call from some politician seeking her vote the next day, July 20.

Short hung up and sat down. A few minutes later, another call, another politician. Then another. And another.

She started jotting tally marks on a piece of paper to keep track of them all. When the day was over, she had 21 marks. But her ordeal wasn’t over.

Short had cataracts removed from her other eye on Aug. 9, the day before the runoff election. She got 16 more calls. She was furious.

“I don’t have the right to call their home all day long,” Short said. “Why do they have the right to dial my number when I don’t want it?”

Though some people find them annoying, there’s nothing illegal about those political “robocalls.” And with hotly contested races for governor and other offices, Short and other Georgians can expect more calls as the November general election approaches.

Most telemarketers are prohibited from contacting consumers who sign up for the registry. But there are exceptions, including charitable and religious groups, firms with which you do business (like your credit card company) and political campaigns.

Robocalls have become an inexpensive but effective campaign tool for many candidates. Local political consultant Seth Weathers said robocalls costs about 2.5 cents a call, while mailing a campaign postcard might cost 55 cents.

Weathers said candidates generally use calls to target hardcore voters, most of whom are very interested in politics and don’t mind the calls. If voters don’t want to receive the calls, Weather said campaigns will oblige people who call and ask them to stop.

Short isn’t sure that would help her.

In addition to her two ill-timed cataracts surgeries, the 73-year-old has had two back operations and a knee surgery. It’s hard for her to get up from a chair. Short said rising to answer 21 phone calls the day before the July primary was a burden.

Short said she couldn’t unplug her phone because she has a critically ill sister, children and grandchildren who depend on her. Her husband was in and out and couldn’t field the calls. She tried calling the state Public Service Commission, which regulates telecommunications, but learned there was nothing it can do.

“I’m on the ‘do not call' list,” said agency spokesman Bill Edge. “I got all the same phone calls.”

Short isn’t the only local resident fed up with robocalls. Eleanor Gilreath, a retired teacher living in Lawrenceville, got 26 calls the day before the July primary.

“I was getting over a fall and had a broken arm,” Gilreath said. “But even on a good day I would not have wanted 26 calls.”

Short can’t remember all the candidates who called. She knows she got calls on behalf of Republican gubernatorial candidates Nathan Dean and Karen Handel. Beyond that, it’s a blur.

“I’m so mad at all of them, I’m not going to vote for any of them,” she said.

Vote or not, Short knows another election is coming. And that means more phone calls.

Consumers have long complained about telemarketing calls. In response, Georgia established a “do not call” registry in 1999. In 2003 the federal government established a nationwide registry.

From the Atlanta Journal Constitution, Tired of political robocalls? Not as much as this Loganville woman, August 22, 2010.  Mr. Conroy can be reached, via his office, at: (404) 651-8600.

CATS Comment:  Freedom of speech?  Not really.  Laws restricting telemarketing do not restrict free speech, they regulate the methods how that speech is delivered.

Suppose Ms. Short put a loudspeaker in her car and drove around the Governor's mansion with her message blasting.  You can bet that the local police would put a stop to that.

So much for the freedom of speech issue.  Mr. Conroy, you should know better.

We, here at CATS, find it amazing that someone running for office would use such an invasive and offensive method to get their message out.  Good for you Dixie, if a politician calls, don't vote for them.  Perhaps this will cause them to choose a better method to campaign.

August 22, 2010

"While there are more than 12 million New York telephone numbers on the registry - we are one of the leaders - we continue to inform and educate, and raise awareness about the importance of this particular protection.

"So, if a telemarketer leaves a voice message on an answering machine of a telephone number that was registered on the Do Not Call Registry, that could be deemed a violation."

Mindy Bockstein of the New York State Consumer Protection Board telling how the Consumer Protection Board enforces the Do Not Call Law, which first took effect in 2001.  The fact is that many New Yorkers still don't know how easy it is to register their numbers on the list.

The fact is that telemarketers have been getting around the state's Do Not Call Law by using prerecorded "robo-calls" calls and other tactics. Now an update to the law has been approved that, among other things, extends it to cover "robo-calls" and those that only leave recorded messages.

You can get on the national Do Not Call list by registering your home number - and/or your mobile phone number - online at www.donotcall.gov. Once you're on the list, you're on it for good, says Bockstein. You can ignore those bogus email messages that circulate, urging you to act before your cell phone number is given to telemarketers.

Bockstein advises consumers that these warnings are scams.  According to Bockstein, they a way of trying to capture your personally-identifying information and it's a way of possibly falling victim to identity theft.

New York Governor David Paterson says he'll sign the law, which will take effect four months after his signature.

CATS Comment:  New Yorkers HATE telemarketers and often give the unwanted callers a hard time.  The fact is that some telemarketing companies actually pay their telemarketers more to call New York residents.

When it comes to the unwanted telemarketing calls, we should ALL be New Yorkers!

August 15, 2010

"A number of constituents have called the office, reporting that they have received harassing phone calls at all hours of the day from people who demand personal information.  Not only is this a nuisance at the very least, but often, these scammers are aggressive, call repeatedly and use threatening language as a means to try and get what they want from potential victims. This is illegal and should be reported to the State Consumer Protection Board.”

New York Assemblyman William A. Barclay advising New York Consumers that there are several scams taking place in the area, particularly targeting seniors. He said seniors should know what to avoid so they can protect themselves. Loved ones of seniors should also be on the alert to help prevent scammers from victimizing seniors.

New York citizens believe they have been a victim of a telemarketing or a mail scam, they are encouraged to contact the State Consumer Protection Board at 1-800-697-1220 and to report it the local authorities as well. In some cases, there are investigations underway and your experience may help investigators.

The State Consumer Protection Board publishes a helpful guidebook called Smart Senior. According to the guidebook, people over the age of 65 make up almost 13 percent of the United States population but represent 30 percent of scam victims. Every year, seniors lose thousands of dollars responding to telemarketing calls selling a variety of products, worthless services, and overvalued or risky investments.

According to the State Consumer Protection Board, it is a $40 billion a year business for scam artists who often use high-pressure sales tactics and make offers on the phone that can sound too good to be true.

From CNYLink.com, Constituents report harassing phone calls to State Assembly Office. August 8, 2010.  Assemblyman Barclay can be reached, via his office, at: (518) 455-5841.

CATS Comment:  New York takes measures to protect its senior citizens against telemarketing scammers, but California does nothing.  Our Attorney General, Jerry "moonbeam" Brown, is too busy running for Governor, and does not have time to protect Calfornia seniors.

August 8, 2010

"If somebody's calling you unsolicited always be wary, if it's something that sounds too good to be true most of the time it is, don't be afraid to contact local law enforcement to inquire about some unusual phone call".

Scottsbluff Nebraska Police Captain, Kevin Spencer commenting about a recent rash of telemarketing calls where the telemarketers are hijacking local phone numbers in an attempt to get people to answer their phones.

Many people will not answer out of state calls they do not know. There is an obvious fear that picking up the phone around dinner time when the caller ID reads “unknown” or “out of area” will result in a lengthily sales pitch. This practice of avoiding such caller ID designations and not answering out of state calls is obviously not unwarranted.

Residents in North Platte, Nebraska, population 23,878, have complained that telemarketers have been disguising their presence. Those same individuals who don’t answer out of state calls were now being hit by telemarketers calling from a “local number”. Presumably, these telemarketers are hijacking local phone lines so those residents with caller ID cannot identify them.

There have not been any reports of this scam in the Scottsbluff area but police are warning citizens to be prepared in case it does happen.

It gets weirder. The number was not automated. Victims said they could call the number back. The person who answered told them they had not called.

From KOTA-TV (ABC) News, Telemarketers hijack phone numbers in Western Nebraska, July 31, 2010.  Captain Spencer can be reached, via his office, at (308) 630-6261.

CATS Comment:  Does anyone need more proof than this that telemarketers are scum?  It won't be long before a telemarketer uses a phone number for a caller-ID that is the number of some poor person that upset the telemark.  The result of the telemarketer calling thousands of people with a false caller-ID will result in that person getting hundreds of angry callers to their residence.

There is a lawsuit in the making here.  And more legislation as well.  This practice must stop.

August 1, 2010

"People would not donate if you were honest and said, 'By the way, 80 percent of your donation will go to the telemarketing firm.  Every dime that goes to all that overhead is a dime that doesn't go to a worthwhile group."

Oregon Attorney General John Kroger talking about how that how telemarketers for Veterans of Oregon told donors their money would feed, house and provide medical care for homeless and ill vets. Instead, 80 percent of the cash raised over two years -- about $500,000 -- went to the Michigan telemarketing firm making the calls.

The Oregon Department of Justice has sued the nonprofit veterans group and its for-profit fundraiser, Associated Community Services, saying it "spent nothing or only token amounts on the programs described" in solicitations. The state alleges that much of the remaining 20 percent went to founder John Neuman and his associates' expenses for the $6 medals and travel to award ceremonies.

The complaint is part of a larger Kroger campaign to stop charities that keep most of the money they raise. Veterans are among the "hero" charities, like firefighters and police, that enjoy wide support and are thus easily exploited, charity watchdogs say. There are 187 active nonprofits registered in Oregon with names indicating they serve veterans or soldiers.

Kroger asked his staff to investigate after he noticed that three of the 20 worst in Oregon in 2009 raised money for veterans. The Department of Justice lists the charities that spend 80 to 98 percent of donations on overhead.

Kroger, a Marine Corps veteran, said that in the midst of two wars, a nonprofit can easily exploit the desire to support and honor military service.

In May, the Justice Department also sued a Central Point non-profit, No Veterans Left Behind Association. Its founders sold embroidered vet hats and raffle tickets outside large retail stores in Marion and Klamath counties. They told donors 80 percent went to needy veterans.

Instead, the organizers, including registered sex offenders David Gilbert and Jeffrey Grischkowsky  and associates Kenda Young and Molly Hicks, allegedly spent 80 percent of the $17,000 raised on themselves. They paid for rent, food, salaries and a truck for their landscaping company, Attorneys at Law. The complaint was filed after they failed to show up for a May meeting with the Department of Justice staff. They could not be reached for comment.

The state also sued and settled with The Veterans Fund and its Florida telemarketing firm for making false statements. The two agreed to pay a combined $180,000 in fines and to never solicit money in Oregon again.

From OregonLive.com, Oregon Attorney General wants to shut down Veterans of Oregon nonprofit, July 19, 2019.  Attorney General Kroger can be reached at:  (503) 378-4400.

CATS Comment:  That's right folks, when you get a call from a charity telemarketer, and you donate to the charity, the telemarketer gets around 80-95% of your donation.  And worse yet, your personal information winds up on a "sucker list" so that other charity telemarketers can call you as well.

Do you really want to give your personal information to registered sex offenders?

If you really must donate to that charity, donate DIRECTLY and don't give your address or phone number.

July 25, 2010

"Our feeling is that he greatly facilitated the crime. But the telemarketers who actually spoke on the phone with the elderly vulnerable victims and took their money are in some sense equally or more culpable.  This is the result of great co-operation between Canadian and U.S. law enforcement who have been battling this kind of crime."

Assistant United States Attorney Ellyn Lindsay commenting on her recent prosecution of John Bellini, a Canadian engaged in cross border wire and telemarketing fraud.

Mr. Bellini, a Canadian resident, was scheduled to begin a trial in August in a U.S. district court. He faced 25 fraud-related counts in a case alleging he was the leader of a telemarketing ring that preyed on elderly people. Instead, he appeared before a judge in the federal courthouse in Los Angeles Thursday and entered a guilty plea to one count of wire fraud.

He is scheduled to be sentenced on Nov. 1.  A presentencing report was ordered to be prepared for the hearing to help determine a potential sentence. A probation agency will investigate the nature of the offence and Bellini's past before making their recommendation. What likely won't help Bellini's case is that he once served a 2-½ year prison term for possession of drugs with intent to traffic in a Montreal case that ended in 2001.

The fact the telemarketing fraud involved preying on elderly victims vulnerable to slick-talking fraudsters won't help either.

In December 2006, the Royal Canadian Mounted Police (RCMP) arrested 39 people, mostly Montrealers, who were believed to be tied to a ring Bellini oversaw. At the time, the RCMP alleged the telemarketers called 500 people a week and estimated it made between $8 million and $13 million over roughly three years. But in an statement of facts read out in court yesterday, it was estimated Bellini "and others caused losses to over 50 victims of approximately $1.2 million." The lower figure is based on losses investigators were able to verify with certainty.

Bellini is described, in an indictment filed in 2007, as the leader of the ring. Telemarketers called elderly people in the U.S. and Canada and told them they had won substantial sums of money in a lottery or sweepstakes.

The telemarketers, posing as attorneys, law enforcement personnel or lottery officials, induced the victims into sending them money by claiming the administrative fees were required to obtain their lottery winnings.

Bellini wasn't extradited in the telemarketing case, but was arrested in the U.S. last year after he managed to sneak across the border. He was arrested near the Akwesasne Reserve by a U.S. border patrol agent who found it odd that someone was riding in a taxi near the border. Bellini provided a fake name when he was arrested but his fingerprints were taken and run through a computer database which revealed his true identity and the fact he was wanted in California in the telemarketing case.

Twenty-two people, including Bellini, out of the 39 arrested in 2006 ended up being charged in an indictment filed in California in 2007. Lindsay said paperwork requesting the extradition of the others named in the indictment is currently being prepared.

Only one other person has since settled his case. Alexander Andriopoulos, 59, was sentenced to three years probation on February 22. Another accused, Rayme Freedman, 29, of Pierrefonds, might have a trial in 2011. Freedman is alleged to have supplied Bellini with a contact list used by the telemarketers.

Alberino Magi, the brother of construction magnate Tony Magi, was also indicted in the U.S. case. He was yet to appear in court in California.

From the Montreal Gazette.com, Montreal man pleads guilty to fraud charges in California, July 23, 2010.  Ms. Lindsay can be reach at: (213) 894-2434.

CATS Comment:  You go girl!  Nice work.  Too bad our wonderful California Attorney General didn't go after these fraudsters.  It seems that he is too busy running for Governor in California.

Jerry Brown could learn a lot from you.

July 18, 2010

"The last thing debt-ridden consumers need is to be deluged by illegal robocalls – especially when all the calls are offering is a scam."

Federal Trade Commission (FTC) Chairman Jon Leibowitz commenting about actions the FTC has taken against three telemarketers. 

The FTC’s complaint alleged that AMS, Rapid Reduction, PDMI, and their owners violated the FTC Act and the Do Not Call and other provisions of the Telemarketing Sales Rule by:

• deceptively promising consumers they could reduce their credit card interest rates; 

• misleading consumers about their refund policies; 

• illegally calling numbers on the National Do Not Call Registry; 

• failing to honor consumers’ requests not to be called again; and 

• making pre-recorded telemarketing calls to consumers without their express written consent. Nearly all such calls have been illegal since September 1, 2009 (see press release at: http://www.ftc.gov/opa/2009/08/robocalls.shtm).

U.S. District Judge Lonny Suko has issued an order appointing two receivers to take over the businesses, and freezing the assets of Advanced Management Services NW LLC, doing business as AMS Financial, Rapid Reduction System’s [sic] LLC, and their principals Ryan Bishop and Michael Rohlf, all of Spokane, Washington, and PDM International, Inc., doing business as Priority Direct Marketing International, Inc. (PDMI) of Bedford, Texas, and its principal William Fithian, of Colleyville, Texas.

The FTC vote approving the complaint was 5-0. It was filed under seal in the U.S. District Court for the Eastern District of Washington on May 10, 2010. The court granted an order temporarily barring the alleged conduct on May 10, 2010. The seal was lifted on May 11, 2010, the day the Commission served the temporary restraining order.

The FTC acknowledges the assistance of Better Business Bureau of Eastern Washington, Northern Idaho, and Montana, and the BBB of Fort Worth, Texas, the U.S. Postal Inspection Service; the Bedford, Texas, Police Department; and the attorneys general of Illinois, Minnesota, North Carolina, North Dakota, Washington, and West Virginia. The FTC also acknowledges that the Internal Revenue Service, the Federal Bureau of Investigation, and the U.S. Secret Service are conducting a separate but parallel criminal investigation and that they executed search warrants on one business and one individual’s home when the FTC served the temporary restraining order.

From www.frc.gov, At FTC’s Request, Court Stops Deceptive Telemarketing Calls Pitching Credit Card Interest Rate Reduction, May 20, 2010.  Mr. Leibowitz can be reached at: (202) 326-3400.

CATS Comment:  Go get 'em Jon, the scams are everywhere.  California cell phone users are getting an unsolicited pre-recorded "public service announcement" that is nothing more than a pretext for a telephone solicitation pitch for a debt relief company.

CATS founder Robert Arkow "sweet talked" the telemarketer and got the identification of the caller which traced to a company in San Francisco.  Arkow will be filing suit against them soon.  Details to follow.  Stay tuned!

July 11, 2010

"It is clear that the [Canadian national] do-not-call list is a great idea but under this government it has been totally useless for many Canadians.

"It is time to start enforcing the rules, collect the fines and put a stop once and for all to these unwanted telephone calls."

Canadian Senator Percy Downe commenting that the Canadian Government has imposed $73,000 in fines in less than two years -- but collected only $250 as of March 1.

The National Do Not Call List is a free service that is supposed to restrict the number of unwanted telemarketing calls and faxes people receive.

Telemarketers are barred from dialing a number once it is on the list, and are supposed face stiff fines if they do -- up to $1,500 for individual telemarketers and $15,000 for companies, if a registered household files a complaint.

There have been 11 fines imposed since the list was launched in September 2008, said the response from the office of Industry Minister Tony Clement.

The minister's office said the CRTC first seeks voluntary compliance from violators. Failing that, it issues a "notice of violation" setting out penalties. Violators can contest the fines in writing.

The commission publishes status reports on its website monthly. 

Violators' names are not published if they comply with the terms of a notice of violation. But they are published along with details of their violation and fine if they contest a notice and lose.

From CTV News, Do-not-call fines total $73,000; only $250 collected, July 10, 2010.  Senator Downe can be reached, via his office, at: (613) 943-8107

CATS Comment:  It looks like Canada has some real problems with their "Do-Not-Call" law.  But don't worry, the US is not far behind.  With fines issued for pennies on the dollar the result is the same...more illegal and unwanted calls.

Hats off to you Senator, for pointing out the truth!

July 4, 2010

"We're seeing news reports of some violence among telemarketers in Jamaica. There are several that are competing, there's been some fighting over sucker lists.

"It's a nasty business

"And once you start responding to those, you're going to get a lot more calls.

"Once they think they've got you nibbling, they are very aggressive, very aggressive."

David Horn, Assistant Regional Director of the Federal Trade Commission's Northwest Regional Office, comment on the new hotbed telemarketing contest and lottery fraud, Jamaica.

There seems to be a lot of lottery scams coming from Jamaica.  The caller will tell that you have won a lottery, and in order to collect your winnings, you have to pay the taxes on the winning and wire the  money via Western Union.

The reality is that there are no winners, except for the people running the scam.

Dave Horn says that complaints are going up fast.  Sucker lists are the leads used by these scammers to contact their victims.

There's more. Federal agents say gangs are behind this criminal enterprise using the cash from scams to smuggle weapons into Jamaica and drugs to the United States.

Horn suggests that if you have caller ID, look for the Kingston, Jamaica area code of "876." If you don't know anyone from there, it's probably a scammer.

Don't sign up for any "foreign lotteries" - it's where some of the gangs get their call lists.  Finally, don't engage with the caller.

Finally, if you do get a call, report it to the Federal Trade Commission and Immigration and Customs Enforcement right away.

From KING5.com, channel 5 news in Seattle Washington, Bad contest phishes for the wrong victim, June 29, 2010.  Mr. Horn can be reached at: (206) 220-4483.

CATS Comment:  No law will protect you better than the law of common sense.  Remember the old adage: If it sounds too good to be true, it probably is.

Dave, you rock, go get 'em!

June 27, 2010

"We keep seeing it happen, and now we're realizing the amount of money that people are forking over.

"We have had one person call and notify us that they were contacted.  You never know how many other people have received the call and chose not to notify us.

"Number one: Don't give them anything," she said. Number two: Go to the (Federal Trade Commission) website. We don't do telemarketing, and we never call and ask for donations."

Krachel Greenwood, spokeswoman for Make-A-Wish Foundation of Utah talking about a nationwide scam alert that has been re-issued by the Make-A-Wish Foundation as people across the United States -- including one reported from Utah -- have been targeted by scammers demanding money.

Greenwood said the scam is not new and an alert was initially sent out in December last year, but she said the foundation is continuing to get reports of people paying large sums of money in the scam.

Victims have been tricked into believing they would be paid hundreds of thousands, even millions, of dollars in return for paying taxes on the money in advance. Greenwood said one victim had been tricked out of more than $20,000, and another lost $200,000 to the scam and had her identity stolen.  Greenwood said that seven cases of the scam were reported last Friday, the most in any single day. One case from Utah was reported on Monday.

From the Ogden Utah Standard-Examiner, Scam Alert: New one claims Make-A-Wish affiliation, June 18, 2010.  Ms. Greenwood can be reached, via the Make-A-Wish Foundation of Utah at: (801) 262-9474.

CATS Comment: This is an example why all charity telemarketing should be banned.  The Make-A-Wish Foundation does not engage in telemarketing, and due to a lack of enforcement, the fraudsters are collecting money from unsuspecting people.  Too bad the Make-A-Wish Foundation can't file a lawsuit claiming that the illegal telemarketing hurts their brand name.

By the time Foundation finds out who the perpetrators are, they have long since vanished and they have hidden their assets.

June 20, 2010

"If you want to sell insurance in California, you must obtain a license, have adequate financial reserves and you must not deceive consumers.  In order to protect California consumers, there are specific requirements for insurance companies seeking to do business in California. If companies do not abide by these requirements, they will not be permitted to sell insurance in our state."

California Insurance Commissioner Steve Poizner commenting on a cease and desist order against two California men and several corporations for allegedly operating unlicensed insurance companies and using deceptive and illegal telemarketing.  Robert Lewis Chapman, James C. Sletner and several corporations they own and manage, including SafeData Management Services, Inc., d.b.a. Consumer Direct Warranty Services, Warranty Administration Services, Inc., and Warranty Administration Solutions, Inc., face substantial fines.

Chapman, Sletner and Consumer Direct contend their insurance policies are product warranties because they require consumers to put additives in their cars. The additives supposedly protect the car from mechanical breakdowns. The Department of Insurance maintains that the additives have virtually no effect in preventing breakdowns and are a sham to avoid insurance regulation. CDI alleges that Consumer Direct is not licensed to act as an insurance company, lacks the financial capital to do so, and therefore poses a hazard to consumers.

In addition to the licensing violation, Consumer Direct has generated numerous complaints around the country and in California alleging high-pressure and deceptive telemarketing calls, illegal calls to cell phones and people on the Do Not Call list. In addition to these alleged violations, the Department also accuses Consumer Direct of failing to honor claims and failing to properly handle cancellation refund requests.

From a press release issued by the California Insurance Commissioner, Commissioner Poizner Orders Vehicle Warranty Company to End Illegal Telemarketing, Stop Operating as Unlicensed Insurance Company, June 17, 2010.  Commissioner Poizner can be reached, via his office, at: 916-492-3566.

CATS Comment: Poizner lost his bid for Governor in the primary and now wants to finish his term as Insurance Commissioner.  Going after insurance fraud and illegal telemarketers seems like a good way to finish.

June 13, 2010

"No one is too big to be beyond the law's reach, not even Bank of America.  This result sends the message that the law will be enforced fairly, no matter who's on the other side".

"This case is another example of how the Attorney General's office continues to aggressively enforce our No-Call laws.  We investigate all complaints received from Missouri consumers, and when appropriate, we take action against the telemarketer in question."

Missouri Attorney General Chris Koster telling about the fact that Bank of America has agreed to pay the state of Missouri $195,000 to settle allegations that it violated Missouri's telemarketing and telephone solicitation laws.

Koster reached an Assurance of Voluntary Compliance (AVC) with Bank of America Corporation as the result of complaints filed by Missouri consumers on the No-Call List who received unwanted telephone calls from Bank of America and third-party affiliates. The AVC was filed in St. Louis City Circuit Court.

Koster said in addition to paying the state $195,000, Bank of America must maintain a comprehensive telemarketing do-not-call program designed to ensure compliance with all applicable Missouri and federal telemarketing and no-call laws. The program will also include:

• designating an employee or employees to coordinate and be accountable for the telemarketing program, and training employees to ensure third-party representatives are aware of the telemarketing and no-call requirements of applicable Missouri and federal law;

• maintaining reasonable safeguards to control risks associated with telemarketing, and maintaining procedures that ensure telemarketing and no-call issues get escalated and reported to an appropriate supervisor in a timely fashion in accordance with the requirements of applicable Missouri and federal law;

• maintaining a program to reasonably monitor employees and telemarketing subcontractors or vendors through appropriate contractual arrangements to comply with applicable Missouri and federal telemarketing and no-call requirements as they currently exist or may be amended in the future; and

• maintaining policies and contractual requirements that subject employees and covered third-party vendors who violate Bank of America's telemarketing and no-call policies and procedures to disciplinary action up to and including termination of employment or contract.

From a press release on Missouri Attorney General's web page, Attorney General Koster signs agreement with Bank of America over allegations of No-Call violations --telemarketers to pay state $195,000--, June 10, 2010.  Attorney General Koster can be reached at: (573) 751-3321.

CATS Comment: Way to go Chris!  Bank of America is a long time violator of  the do not call rules.  CATS founder Robert Arkow successfully sued them back in 1995 and they continue to break the law today.  You would think after 15 years they could comply with a relatively simple law.

Isn't  B of A the bank that advertised "higher standards" a few years ago?  So much for that!

June 6, 2010

"It seems so shocking, doesn't it, but that is not unusual.  In the case of these professional fundraisers, if you were to just tell a donor [that the professional telemarketing firm making the call usually pockets over 70% of the donation] people would refuse to give. They'd hang up on you."

Laurie Styron, an analyst with the American Institute of Philanthropy talking about how so-called "professional fund raisers" keep the lion's share of the money donated from telemarketing campaigns.

Contracts mostly call for professional telemarketers to pocket more than 75 percent of the donations they solicit for Oklahoma charities, according to information on file with the Oklahoma secretary of state and Internal Revenue Service.

A few of the telemarketers keep as much as 90 percent of the funds they collect, according to records filed in 2009 and 2010.

Information published by the Oklahoma attorney general's office encourages people to ask if they're talking to a volunteer or professional fundraiser and how much of the donation goes to the charity.

From Smartgrid.tmc.net, Funds for Oklahoma charities go in part to fundraisers, May 30, 2010.  Ms. Styron can be reached, though her organization, at: (773) 529-2300.

CATS Comment: No surprise here, charities have been doing this for years.  What is new is that consumers are more informed than ever.  Ever since the National "Do-Not-Call" list came into operation, the non-profit side of telemarketing (which is exempt from the law) has been dutifully fleecing their flock of uninformed victims.

Knowledge is power, and peace in your home.  Once you give these leeches a nickel, you can forget being left alone in your home.  The phone will ring constantly, so save yourself some grief.  Waste the telemarketer's time and don't give him the time of day.

May 30, 2010

"It seems so shocking, doesn't it, but that is not unusual.  In the case of these professional fundraisers, if you were to just tell a donor [that the professional telemarketing firm making the call usually pockets over 70% of the donation] people would refuse to give. They'd hang up on you."

Laurie Styron, an analyst with the American Institute of Philanthropy talking about how so-called "professional fund raisers" keep the lion's share of the money donated from telemarketing campaigns.

Contracts mostly call for professional telemarketers to pocket more than 75 percent of the donations they solicit for Oklahoma charities, according to information on file with the Oklahoma secretary of state and Internal Revenue Service.

A few of the telemarketers keep as much as 90 percent of the funds they collect, according to records filed in 2009 and 2010.

Information published by the Oklahoma attorney general's office encourages people to ask if they're talking to a volunteer or professional fundraiser and how much of the donation goes to the charity.

From Smartgrid.tmc.net, Funds for Oklahoma charities go in part to fundraisers, May 30, 2010.  Ms. Styron can be reached, though her organization, at: (773) 529-2300.

CATS Comment: No surprise here, charities have been doing this for years.  What is new is that consumers are more informed than ever.  Ever since the National "Do-Not-Call" list came into operation, the non-profit side of telemarketing (which is exempt from the law) has been dutifully fleecing their flock of uninformed victims.

Knowledge is power, and peace in your home.  Once you give these leeches a nickel, you can forget being left alone in your home.  The phone will ring constantly, so save yourself some grief.  Waste the telemarketer's time and don't give him the time of day.

May 23, 2010

"It's contemptible that people would take advantage of decent, charitable Missourians by promising to use their money help the brave people who keep us safe.  This action should be a message to fraudulent charity fundraisers that we will not tolerate this behavior in Missouri."

Chris Koster, Missouri Attorney General commenting on his successful suit against participants in a charity scam.  Violators will have to pay restitution and civil penalties totaling $544,933 for deceptive solicitations in Missouri.  Koster's office had filed suit against the individuals for running an operation to scam Missourians by pretending to help veterans, firefighters and law enforcement officers. 

Koster said Jeffery Duncan and Kathy Clinkenbeard, of Santa Ana, California, operated three sham nonprofit corporations: Coalition of Police and Sheriffs, Inc. (COPS); Disabled Firefighters Fund, Inc. (DFF); and American Veterans Relief Foundation, Inc. (AVRF).

COPS purportedly provided financial assistance to police officers and sheriffs' deputies who were disabled while on duty, and to families of officers and deputies killed in the line of duty, as well as promote public awareness of the dangers of law enforcement. 

DFF claimed  to offer financial assistance and enhance the qualify of life to disabled firefighters and families of firefighters who lost a spouse or parent in the line of duty; to support burn trauma centers that assisted burn victims; and to provide grants to organizations that furthered DFF's goals.

Ostensibly, AVRF would identify and provide assistance to veterans who had fallen through the cracks of the system through financial support to homeless veterans' facilities and veterans with nowhere else to turn.  In addition, the company misrepresented to potential donors that it provided financial support to veterans' memorials.

Duncan and Clinkenbeard hired Valerie Hellwege, a Missouri-based professional fundraiser, to solicit donations in Missouri based on the numerous misrepresentations of COPS, DFF, and AVRF.  In fact, less than 5 percent of the donations went to charitable programs, with the remaining donated funds going into the pockets of Duncan, Clinkenbeard, Hellwege, and the corporations' employees and contractors.

From the Missouri Attorney General's web site, Attorney General Koster wins suit against charity scam artists,  May 6, 2010.  Attorney General Koster can be reached, via his office, at: (573) 751-3321.

CATS Comment:  Great work Chris.  Here is just another reason to not donate to any charity that uses telemarketing to solicit funds.  These companies use the fear that if you do not donate and you later need the police or fire department, your call will be ignored or delayed.  Nothing could be further from the truth.

Remember, that person on the other end of the line, is probably NOT a firefighter, police officer, or whatever they claim.

Nancy Regan had the best answer...."Just say no."

May 16, 2010

"We are having a customer service backlash.  It does reflect poorly on our brand. None of these agents are authorized by us to sell."

Mark Harris, vice president of audience development for Emmis Publishing commenting about telemarketers that are calling magazine subscribers to renew their subscriptions.  The problem is that Emmis Publishing does not use telemarketing in their business model.  The calls are a scam.

At least one scammer has landed the subscriber list for Indianapolis Monthly magazine and is calling customers to renew subscriptions at special rates and asking for credit-card numbers.  The magazine, with 38,000 paid subscribers and published by Emmis Communications, has received about a dozen complaints from customers upset about the rude and aggressive behavior of the fake telemarketers.

Harris said he isn't sure how the scammers managed to get the subscriber list and has no idea who they are. The telemarketing calls are coming from many locations across the country, including Nebraska, Ohio, Oklahoma and Utah.

Indianapolis Monthly probably isn't the only target of scammers, so customers should be on the lookout for any magazine renewal call they receive, according to the Indiana attorney general's office.

Harris said his customers are getting as many as eight to 10 bogus calls a day, and the telemarketers are very aggressive.

The Magazine Publishers of America said Tuesday this was the first it had heard of the scam in Indianapolis but said it would be watching for similar occurrences nationwide.

From IndyStar.com, Scam targets subscribers of local magazine, May 14, 2010.  Mr. Harris can be reach, via Emmis Publishing, at: (317) 266-0100.

CATS Comment:  What a recipe.  Data theft and telemarketing.  Now that's a great combination.  We, here at CATS, are betting that Emmis' customers are getting hot under the collar, and coming to a slow boil.  Throw in a little rude telemarketing and credit card info theft, and serve cold with garnish.

All the more reason to never buy from any telemarketer.

May 9, 2010

"This temporary restraining order is beyond the pale and is violating the First Amendment rights of people who want to criticize Houlihan Smith.

"Houlihan Smith waltzed into state court and made incorrect allegations about the nature of the operator's involvement. If there was a true defamation case here, Houlihan Smith should go after the Does - the anonymous posters - not the woman who hosts the website."

Paul Alan Levy,  an attorney for Public Citizen,  telling a court that a website designed to air criticisms of telemarketers should operate freely, and a temporary restraining order that blocked comments on it should not be extended.

Public Citizen is representing Julia Forte, operator of 800notes.com and Whocallsme.com, sites that host online message boards about telemarketers. With less than 90 minutes' notice to Forte at her home in North Carolina, Houlihan Smith & Company, an investment banking firm headquartered in Chicago, went to court April 16 and obtained a temporary restraining order against Forte. The order, filed in Illinois state court and since moved to federal court in Chicago, prohibits people from posting factual comments about Houlihan Smith or any of its employees until Friday, May 7.

This isn't the first time Public Citizen has defended Forte. Rather than try to sue the people who posted critical comments on the website, companies have attempted to sue Forte for content on her website, even though she does not write any comments on the site herself. Federal law protects Web hosts like Forte from being sued for what the public says on her website. Moreover, people have a First Amendment right to criticize companies on the Internet.

Houlihan Smith is trying to dress its defamation claims up as trademark dilution and claims that Forte embedded information about the company in title tags, meta-data or other code on the Web pages about the company, an accusation that is false, Levy said.

Since 2007, roughly 250 messages - many, but not all, unflattering - have been posted on 800notes.com about Houlihan Smith. Houlihan Smith said the comments constituted trademark misappropriation, dilution and right of publicity violations because its name and employees' names were used in the posts.

The first Forte heard about Houlihan Smith was April 12, four days before the company went to court, when Houlihan Smith's lawyer sent Forte a demand letter, insisting that 90 attached messages criticizing the company be removed from the Internet and future postings be blocked. Forte responded that Houlihan Smith could defend itself online in the comments, as she tells other companies complaining about criticism. Anyone can post on the site, but Forte has instructed commenters to provide truthful information and to avoid offensive language.

The temporary restraining order expires May 7, but Houlihan Smith's lawyer is pushing to extend it through a preliminary injunction. Public Citizen filed a brief late Monday saying there should be no injunction and that Forte should not be pursued at all - that Houlihan Smith should instead pursue the posters for their comments.

Houlihan Smith's lawyer is due to respond to the brief on Wednesday; the case will be heard before Honorable Virginia Kendall in U.S. District Court in the Northern District of Illinois in Chicago on Thursday.

L. Steven Platt of the Chicago firm of Arnold & Kadjan is local counsel for Forte.

Public Citizen is a national, nonprofit consumer advocacy organization founded in 1971 to represent consumer interests in Congress, the executive branch and the courts.

From a press release by Public Citizen, Court Should Allow Criticisms of Telemarketing Investment Bank to Be Posted on Web, Lift Ban on Comments on 800notes.com.  Public Citizen Defends Website Operator in Federal Court, Says Temporary Restraining Order Was Improper, May 4, 2010.  Paul Alan Levy can be reached, via Public Citizen, at: (202) 588-1000 x7725.

CATS Comment:  The Internet is the latest battleground that allows ordinary citizens to make negative comments that could impact a company's bottom line.  So it does not surprise us that such a suit would happen.  It's too bad that the courts don't allow attorney's fees as part of the judgement.

Our freedom of speech, and privacy in our homes, are rights that we must jealousy guard.  Hats off to Public Citizen!

May 2, 2010

"Take the time to research charities. Those that are legitimate will welcome your donation tomorrow just as much as today,  Don’t succumb to pressure to give money on the spot, and be sure to use independent means to do your research.”

"It’s also important to get the full name and location of the charity being solicited for. People should be absolutely certain of what organization they’re giving money to and be wary of charity names that may closely resemble the name of a well-known charity, but are different."

Better Business Bureau of Mississippi President/CEO Bill Moak warning of telemarketing charity scams as the number of bogus telemarketing calls continues to increase in Mississippi.

Recipients of these types of calls should also ask for information about what the charity does. If they can’t clearly explain what they do, it’s probably a warning sign.

People should never hesitate to hang up the phone or ask for time to research and consider the solicitation before giving a donation. No legitimate organization will force someone to make an immediate decision or be uncomfortable with people doing research about them.

Mississippians are being urged to use caution when responding to telephone solicitations for charitable donations.

Mississippi’s reputation as one of the most giving states in the nation makes it an attractive target for con artists looking to make an unscrupulous dollar.

From the Daily Corinthian, Telemarketing scams pose as charities, April 29, 2010.  Mr. Moak can be reached at: (601) 856-9357.  

CATS Comment:  With hurricanes and the current oil spill disaster hitting Mississippi, Mr. Moak offers good advice to consumers.  It is best to get the name of the chairity and then hang up.

Sadly, some people will still fall for the scams.  Don't let it be you.

April 25, 2010

"We realized that the Indian mobile user has been for long seeking a solution that would help them to enable Do Not Disturb option, discreetly duck, drop or divert unwanted calls without offending the caller."

Rahuldev Rajguru, Co-Founder & CEO of Aquilonis Inc., a telecom software company located in India telling about his company's new application for Windows that blocks telemarketing calls from cell phones.

With even policy guidelines and rules & regulations failing to curb the menace of telemarketing calls on mobile phones, Bangalore-based Aquilonis’s new application, ‘XBLOCKR’ aims to fill in the latent demand from subscribers in addressing this issue.

Aquilonis's new application promises to prevent such calls and claims that the application is already being used by 25,000 users on over 250 types of handsets as well as platforms including Symbian, BlackBerry and Windows. IT says over 5000 downloads were registered for the application within a week of launch.

While the application is available for free download on www.XBLOCKR.com, users can also avail the application on Airtel App Central store, Nokia OVI and Microsoft Marketplace for Windows.

The company claims that the application occupies minimal space in the handset memory and works real time, thus addressing key challenges of mobile applications.

While directly offering the application to end-consumers, the company is also exploring tie-ups with mobile service providers for enhanced uptake of the services.

From TelecomTiger.com, Indian Mobile Subscribers can shoo away telemarketing calls with XBLOCKR application, April 24, 2010.  Mr. Rajguru can be reached, via Aquilonis, at:  (845) 345-1216 

CATS Comment:  Wow!  India, the country that makes thousands of unwanted and illegal telemarketing calls a day now has a company that (for a fee) will block those calls.  Talk about working both sides of the issue!

April 18, 2010

"Like most other Arkansans I too received repeated robocalls related to the sale of automobile warranties and I could certainly relate to the annoyance these calls caused,

"My office still receives occasional robocall complaints and we are investigating these complaints. It is gratifying that the portion of the telemarketing industry that used this improper sales tactic now understands that these robocalls will not be tolerated.

"My office continues to pursue the other lawsuits we filed. While each of those telemarketers has abandoned robocalls, we intend to see that they don’t resume the practice."

Arkansas Attorney General Dustin McDaniel commenting that his office has reached a settlement with Florida-based Explicit Media, one of the six companies which the Attorney General had accused of placing thousands of unsolicited calls including prerecorded commercial messages to Arkansas residents.

The lawsuit filed by the State alleged that Explicit Media and its owners violated state and federal telemarketing laws by calling Arkansas consumers on their home phones and cellular phones to offer extended automobile warranties. In addition, the State further alleged that the defendants violated state and federal telemarketing laws by playing a prerecorded message on the consumer’s telephone and displaying a phone number on the consumer’s caller ID that was not the phone number for the company.

The settlement requires Explicit Media to cease making any prerecorded calls and to refrain from ever utilizing an automated system for the selection and dialing of telephone numbers. In addition, the settlement requires the defendants to refrain from displaying any fictitious or misleading information on a consumer’s caller ID.  The settlement further requires the defendants to cooperate with the State as part of any current or future lawsuit involving the auto warranty industry. Finally, the defendants must pay the State $40,000 to defray the cost of the State’s enforcement effort. As part of the settlement the defendants agreed to follow the law but make no admission of any prior violations.

From ArkansasMatters.com, No More Robocalls in Arkansas, April 15, 2010, Mr. McDaniel can be reached, via his office, at: (501) 682 2007.

CATS Comment:  The press release fails to say how many calls were illegally made in Arkansas.  While we, here at CATS, commend the Attorney General for his actions, we just can't help but wonder what the "cost per call" the $40,000 settlement  represents.

If it is like most other settlements, the company got off cheap, since the fine, defined by law, is $11,000 per call.  As long as Attorney Generals and the Federal Government engage in settlements that represent "pennies on the dollar," illegal telemarketing is here to stay.

April 11, 2010

"This type of misrepresentation has unfortunately become common with deceptive telemarketing calls.  My office has investigated too many complaints from Ratepayers and this will help safeguard Mississippians and bring deceptive callers to justice.

"My staff is available to register Mississippians on the Mississippi Do Not Call List.  Cell phone users may register their numbers on the National Do Not Call list and we can easily direct them to that program."

Southern District Public Service Commissioner Leonard Bentz announcing the passage of Mississippi's new Caller ID Anti-Spoofing Act, which will outlaw deceptive techniques such as showing a different number on a person’s caller ID than the one that is actually being used to make the call.

The Caller ID Anti-spoofing Act (House Bill 872) becomes effective July 1, 2010. Anyone found guilty of violating the Act can be fined, as a misdemeanor, up to $1,000 or prosecuted as an unfair trade practice under existing state law.

From a press release issued by the Mississippi Public Service Commission, Bentz Announces Passage of Caller ID Anti-Spoofing Act, March 18 2010.  Commissioner Bentz can be reached, toll free, at: (800) 356-6429.

CATS Comment:  What a great idea!  Leonard Bentz's idea should become a national standard.  While many comedians poke fun at Mississippi as a "backward state," clearly they are on the edge when it comes to consumer privacy.  Hats off to you, Commissioner Bentz!

April 4, 2010

"Their history of noncompliance with the law, with other court orders, and with this court's prior orders, supports a finding that violations will likely continue with injunctive relief."

U.S. District Judge Donetta W. Ambrose of the Western District of Pennsylvania commenting at the sentencing of a telemarketing company in East Pittsburgh.  Her order included more than $4.7 million in restitution to consumers.

Federal Trade Commission (FTC) lawyers argued that Magazine Solutions Inc. engaged in a nationwide telemarketing scam that targeted young mothers with promises of valuable coupons when, in fact, they were luring them into buying unwanted magazine subscriptions.

Instead of receiving $1,000 worth of coupons, the suit said, the consumers were typically saddled with monthly payments that added up to more than $770.

The suit alleged that Magazine Solutions violated the Telemarketing Sales Rule in several ways. Often, the suit said, callers did not tell consumers up-front that to get the coupons they had to buy the subscriptions; sometimes they claimed the magazines were free or that the consumers only had to pay shipping and handling.

And when consumers tried to cancel their orders, the suit alleged, many found it was nearly impossible to do so, and were stuck with subscriptions to magazines they never wanted in the first place. Others who refused to pay the bills would later see them as bad debts on their credit reports.

In her 34-page opinion in FTC v. Magazine Solutions Inc., Ambrose enjoined Magazine Solutions and its owner, Joseph Martinelli, from engaging in "any further telemarketing programs involving the sale of magazines or the marketing of coupons."

Ambrose also permanently enjoined the company from engaging in any further collection actions against current or former customers, and ordered Magazine Solutions and Martinelli to "remove all negative information that they placed or caused to be placed on their consumers' credit reports."

In an interview, FTC attorney Dana C. Barragate said she was "especially pleased" with the judge's order that negative information be removed from credit reports because it will have immediate and direct benefits for consumers.

Attorney Martin A. Dietz, who defended Magazine Solutions and Martinelli, argued in his post-trial brief that his clients never enjoyed much in the way of financial rewards from the magazine sales program.

Ambrose granted an award of $4,782,011 in restitution "for misrepresentations made regarding the value of the coupons consumers would receive."

That figure is about $700,000 less than the FTC requested because Ambrose offset the award to account for the value of magazines actually received by the consumers.

From Law.com, Federal Judge Orders $4.7 Million in Restitution in Telemarketing Case, March 23, 2010.  Ms. Ambrose can be reached, via her publicly listed courtroom phone, at: (412) 208-7350.

CATS Comment:  You go girl!  Donetta - You rock!

This is one of the few times that the FTC has obtained a judgement restitution for consumers in a telemarketing case.  Let's hope this trend continues.

March 28, 2010

"Minnesotans are generous people who are always willing to lend a hand to help a good cause.  Especially in this bad economy where so many budgets are stretched thin, people should research any organization that calls asking for money to make sure their generosity goes to reputable charities.

"Many nonprofits have had to do more with less money as donations have fallen and the need for their services has risen in this recession.  People should do their homework before responding to telemarketing solicitation calls so that their donations are used as intended."

Minnesota Attorney General Lori Swanson telling about her lawsuit against a California nonprofit corporation that sold college entrance test preparation materials to trusting Minnesota parents by misleading them into believing that their child had requested the materials, that the organization was affiliated with the child’s school, and that the proceeds from their purchase would be used to make extensive scholarships to underprivileged children.

According to a October, 2009 report by GuideStar USA, 51 percent of charities that accept public donations saw a decline in donations in the first nine months of 2009 compared to the same period in 2008, and 62 percent reported an increase in demand for their organization’s services.

The lawsuit--filed against Dream Scholars Foundation, a San Diego, California nonprofit corporation--alleges that Dream Scholars sells college entrance test preparation materials and other products by misleading parents.

The lawsuit alleges that Dream Scholars calls Minnesota parents asking them to purchase test preparation software for the SAT and ACT college entrance exams for $165, often calling this amount a “donation” or “contribution.”  Dream Scholars often misleads parents into purchasing the software by falsely telling them that their children wanted to purchase the products and that the child’s school had sponsored or endorsed the products.  Dream Scholars also enrolls parents who purchase the test preparation materials into a free “30 day trial” of its online scholarship and college entrance test “study desk” databases without adequate notice or permission, for which it charges their credit cards a $55 monthly fee unless they cancel.

In telephone solicitations, written materials, and on its website, Dream Scholars tells parents that money from their purchase will help provide scholarships to underprivileged kids.   For example, in written materials, Dream Scholars states:

• Dream Scholars Foundation mission is to transform the lives of underprivileged high school students through the realization of a college education.  Dream Scholars Foundation college scholarships and grants are designed to remove the financial obstacles hindering otherwise qualified and deserving students, transforming their dreams of a higher education into reality.”

• Dream Scholars Foundation is a non-profit organization that depends on private contributions to fund our scholarship programs and our mission.  Your purchase will help support hundreds of deserving college-bound students who aspire to learn, grow, and give back.”

• The purpose of Dream Scholars Foundation is to provide financial assistance to underprivileged but academically qualified high school students.  This assistance is provided through funds raised from private/corporation donations as well as through other fundraising activities.”

In fact, Dream Scholars has not received 501(c)(3) or other tax-exempt status as a charity from the Internal Revenue Service and is not registered to solicit charitable contributions with the Minnesota Attorney General’s Office.  Dream Scholars earned revenue of at least $1,575,000 since it was formed in 2008.  Dream Scholars admitted that as of November, 2009, it had not awarded any scholarships directly to students and that it made only $23,000 in charitable contributions since its inception.  The lawsuit, filed in Hennepin County District Court, accuses Dream Scholars of consumer and charities fraud and of soliciting charitable contributions in Minnesota without being registered as a charity with the Attorney General’s Office.

From a press release from the Minnesota Attorney General's office, ATTORNEY GENERAL SWANSON SUES CALIFORNIA CHARITY THAT MISLED PARENTS IN TELEMARKETING SALES OF COLLEGE ENTRANCE TEST PREP MATERIALS, March 24, 2010.  Attorney General Swanson can be reached, via her office, at: (651) 296-3353.

CATS Comment:  Let's see if we have this straight.  A company in California runs a phony non-profit charity that used telemarketing to defraud people, and the only protection (if you can call it that) is that the Minnesota Attorney General files suit against them.

Where is our California Attorney General, Jerry Brown on this?  Oh sorry, we forgot, he's busy running for Governor.

Good work Lori, you go girl!  Perhaps you should be California's Attorney General.  The weather here much better than Minnesota, and judging from our current Attorney General's record, there are plenty of illegal telemarketers here in California to keep you busy.

March 21, 2010

"Consumers have a right to say 'no,' and we have a duty to enforce that right."

Connecticut Attorney General Richard Blumenthal commenting about legislation that Sen. Thomas Colapietro, D- Bristol,  is sponsoring that would let Connecticut levy an $11,000 fine against "Do Not Call" violators.

Colapietro wants the General Assembly to pass Senate Bill 187 before the sessions ends, and said he will call on Gov. M. Jodi Rell to sign it.

The state Department of Consumer Protection, which enforces the existing "do not call" law, received 260 complaints about unwanted sales calls last year, Colapietro said.

The Connecticut AARP and other organizations of senior citizens support the bill because, they say, unethical telemarketers single out older residents for telephone scams. Telemarketing trade associations insist that sales calls are popular with the public because they offer a convenient, quick way to buy merchandise or services.

Colapietro led the drive to pass the state's original "do not call" law in 2000; violators can be fined $5,000 or less. This year, Colapietro proposes penalties of up to $11,000 per violation. His measure is being co-sponsored by four other lawmakers, including Rep. Frank Nicastro, D-Bristol.

From the Hartford Courant, Bristol Legislator Wants Tougher 'Do Not Call' Penalties, March 13, 2010.  Mr. Blumenthal may be contacted via his office, at: (860) 808-5318.

CATS Comment:  While we, here at CATS, welcome the fact that telemarketers face greater fines, the fact is that most telemarketing cases are settled for pennies on the dollar.  Making such settlements do not prevent telemarketers from continuing to break the law.  The fines are usually just passed on to the consumer as a cost of doing business.

In California, our Attorney General is not even going after telemarketers, that's because he is busy running for Governor.

March 14, 2010

"Consumers closely guard their right to say no to telemarketing. The No-Call list currently contains more than 2 million numbers, almost half of which are cell phone numbers."

Secretary Rod Nilsestuen of the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) commenting about the fact that Violations of the No-Call law continue to be the #1 consumer complaint on Wisconsin's Top 10 list, a position they have held since the law was enacted in 2003.

Consumers filed 2,187 complaints with the department about telemarketers violating the Do Not Call list 2009.

Governor Jim Doyle appointed Rod Nilsestuen as Secretary of the Department of Agriculture, Trade and Consumer Protection in January 2003. Secretary Nilsestuen appointed his deputy secretary, Randy Romanski, and his executive assistant, Marty Henert.

From a press release from the Wisconsin Department of Agriculture, No-Call Complaints Remain #1 Consumer Issue in Wisconsin, March 3, 2010.  Mr. Nilsestuen can be reached, via his press office, at: 608-224-5020.

CATS Comment:  No surprise here.  As telemarketers continue to break the law, and the Government fails to issue meaningful fines to violators, the telemarketer will continue to call us.  After all, the low fines issued are just a cost of doing business to the telemarketing companies.  They pass on the costs on to the consumer that buys the products or services.

March 7, 2010

(Telemarketing) "provides a valuable, informative service designed to promote and advance good health." She adds, "It does not compromise any state interest.

"This absolute ban is not the least restrictive, or most appropriate methodology"

Dr. Christine Morten commenting about her lawsuit against the State of Nebraska over State laws restricting the use of telemarketing to advertise medical services.

Dr. Morten claims that says Nebraska is enforcing an unconstitutional law that prohibits her and members of her profession from telemarketing to car accident victims. Christen Morten says the Nebraska attorney general threatened to prosecute her for violating the law, which prohibits chiropractors from "solicitation of accident victims."

Morten says the law unconstitutionally applies only to her profession, and violates protections of commercial free speech and the state's expressed interest in preventative health care.

Morten works for co-plaintiff MoPac Trail Chiropractic in Lincoln, the state capital.

Morten says her clinic's ad "provides a valuable, informative service designed to promote and advance good health." She adds, "It does not compromise any state interest."

Morten and MoPac Trail say it is common practice for lawyers, chiropractors and others to review publicly available traffic accident reports and solicit business from the victims.

"These services and contacts with accident victims are offered to promote health and increase awareness, offer care and prevent enhanced harm from undetected injuries," the complaint states.

To limit this practice, and to do so only for chiropractors, is a "highly paternalistic" act, Morten says. She adds that the state pushes preventative health through its own programs, and it's not fair to bar chiropractors from doing so as well.

The clinic seeks declaratory judgment that the law is unconstitutional., and it wants the state to end its investigation of Morten. The chiropractors are represented by David Domina of Omaha

From Courthouse News Services, Chiropractors Seek Adjustments in Nebraska, March 3, 2010.  Ms. Morten can be reached at: (402) 372-9900.

CATS Comment:  This is proof positive that telemarketing Chiropractors and Lawyers do rub people the wrong way!

February 28, 2010

"Since the launch of PrivacyStar just a few weeks ago, we’ve seen incredible growth in our user base and it’s clear that our customers are blocking callers, filing complaints and looking up numbers at record levels every day.  We are excited that now through our partnership with MobiHand, BlackBerry users in both the United States and Canada have a new way to take control of their phone."

Jeff Stalnaker, president of First Orion describing the features of their new product to stop unwanted calls to cell phones, Privacy Star.

PrivacyStar is a simple-to-use yet powerful privacy app that enables users to take complete control of their phones by reporting potential telemarketing violators to regulatory enforcement authorities, blocking any and all unwanted callers, using Caller Lookup to identify unknown callers and providing the flexibility to change their privacy preferences directly on the BlackBerry or on their own synchronized personal web portal account.

The new PrivacyStar app is the first and only mobile privacy app that helps authorities identify and locate potential telemarketing violators. PrivacyStar captures detailed information about possible violations including date, time, number and identity and allows the user to provide this information to law enforcement authorities for investigation.

The PrivacyStar app allows users to easily view all their information and make any changes through the application or through a personal web portal. The web portal is fully integrated and synchronized with the device and any changes made through either the portal or the device is automatically synched with the other.

PrivacyStar is free for the first 30 days and is available immediately for download. Following the free trial period, PrivacyStar is available for $2.99 (USD) per month. To download the PrivacyStar app visit: www.PrivacyStar.com, BlackBerry® App World or text myprivacy to 74700.

From TMC Net, First Orion's PrivacyStar Mobile App Available via MobiHand, February 22, 2010.  Mr. Stalnaker can be reached, via public relations department, at: (831) 401-3175.

CATS Comment:  What a cool idea!  The fact is that the U.S. Government has failed to control the telemarketing industry to the point that consumers are willing to PAY to be left alone.  Telemarketers view the fines, which are pennies on the dollar, as a cost of doing business.

Perhaps some cellular provider will include Privacy Star as an incentive to buy their service.

We, here at CATS, are going to keep an eye on this one.

February 21, 2010

"Idaho businesses should not be harassed by telemarketing companies offering a service and then threatening them with collection for a service they never purchased."

Idaho Attorney General Lawrence Wasden commenting about a New York website design company that telephone solicited Idaho businesses has been stopped from telemarketing in Idaho thanks to his efforts.

The settlement is the result of the Attorney General’s investigation of complaints received from Idaho businesses who received telephone solicitations from World Web Pages offering its website design services. The Idaho businesses claimed that World Web Pages did not obtain their consent to purchase a website, yet World Web Pages billed the Idaho businesses for monthly service fees. When the Idaho businesses attempted to cancel the unauthorized service, they were told that their accounts would be turned over to a collection agency.

The Attorney General’s Office alleged that World Web Pages violated the Idaho Telephone Solicitations Act, as well as the Idaho Consumer Protection Act. Telemarketers offering a service to individuals or businesses must be registered before soliciting in Idaho.

Without admitting any wrongdoing, World Web Pages agreed to immediately stop soliciting in Idaho. The company must register to telemarket before it may resume telephone soliciting in Idaho. The company also paid a $500 civil penalty and reimbursed the Attorney General Office for its fees and costs.

World Web Pages also canceled the accounts of the Idaho businesses that complained to the Attorney General. The settlement provides for a $20,000 civil penalty if the company fails to register and continues to call Idahoans

From the State of Idaho Attorney General's page, Wasden: World Web Pages.net Must Stop Telemarketing in Idaho, February 11, 2010.  Lawrence Wasden can be contacted, via his office, at: (208) 334-2400.

CATS Comment:  The National Do Not Call list prohibits calls to residents and cell phones, but businesses are still fair game to telemarketers, and fraud is the name of the game for many of these calls.

One business answers these calls by telling the caller that, in order to sell to that business, they have to be approved as a vendor.  They tell prospective vendors that they need to fill out a form and pay a $50.00 application fee in order for their application to be considered and investigated.  If they are approved, the $50.00 fee is refunded with the first order.

The telemarketer is then told, that they are now on a list, and if they call again they will be sued.

This is a brilliant strategy, and most telemarketers hang up and never call again.

February 14, 2010

"Both companies often used the insurance terms 'coverage, deductible, co-pay, premium' in order to further dupe and mislead consumers.  The companies would tell people things like 'we offer 80/20 coverage' or 'we pay 80, you pay 20'.

"With insurance premiums rising and health care reform stalled, health discount plans are filling the void. The problem is they don't provide the financial protection people need if they get sick."

Minnesota Attorney General Lori Swanson talking lawsuits she filed against two companies, alleging they exploited Minnesotans by misrepresenting health discount plans as traditional insurance.

The lawsuits target Direct Medical and Family Care, two Texas-based for-profit companies that sell plans designed to be used for discounts on prescription drugs and medical care by select providers.

Swanson said both companies turned down request from consumers to send printed materials before the sale was made. When consumers realized they'd been deceived, and asked to cancel their plans, the companies refused to refund their enrollment fees and premiums.

The attorney general said consumers are especially vulnerable to fraud now because so many people have lost their insurance coverage during the recession, either because they lost their jobs or their employers could no longer afford to offer plans.

A recent study by the University of Minnesota estimated the portion of Minnesotans without health insurance rose from 7.2 percent in 2007 to 9.1 percent in 2009.  More people are now on the open market trying to buy individual plans, which are especially hard to come by for those with pre-existing conditions.

Swanson noted that 58% of Direct Medical's customers cancelled their plans within the first month, and more than 95% of the 1,216 Minnesota consumers who signed up with Direct Medical since 2007 have since cancelled.

Similarly, more than 90% of the 3,411 Minnesota consumers who signed up with Family Care since 2004 have since cancelled, with 71% percent cancelling in the first six months.

Both lawsuits were filed in Hennepin County District Court and seek injunctive relief, restitution for consumers, and civil penalties

From KARE, channel 11 Minneapolis-St. Paul Minnesota, A.G. sues discount health care companies, February 11, 2010.  Attorney General Swanson can be reached, via her office, at: (651) 296-3353.

CATS Comment:  As usual, the insurance company denied the charges.  In a statement Gregg Trautmann, a New Jersey attorney who represents Direct Medical, told KARE Wednesday that a third party telemarketing firm is behind the problems.  He said Direct Medical's sales scripts make it clear that the limited medical discount plans are not traditional insurance.

Direct Medical's own investigation, according to Trautmann, led the company to believe that employees of United States Health Benefit Group, a telemarketing firm owned by Amacore, went "off the script" by telling prospective customers they would be getting a real insurance plan.

We, here  at CATS, would like to ask Attorney Greg Trautmann, if his client even checked out the telemarketing company they hired.  Did Direct Medical even ask for the telemarketing company's written "Do Not Call" policy as a test to see if the telemarketing company complied with the law?   We doubt it.

February 7, 2010

"The topics for our 2010 seminars will build on the successful events we’ve provided for the past five years to deliver the knowledge and awareness necessary for professionals to properly operate based on best practices supported by the ATA [American Teleservices Association]”

Tim Searcy, ATA chief executive officer telling TMC Net that The ATA will also be presenting updates on legislation and regulations at the ATA Washington Summit that is taking place April 25-28, 2010 at the Marriott Washington, in Washington, D.C. FTC (News - Alert) Commissioner David Vladek will give the keynote address. There will be sessions on self-regulation, the law in the contact center, legislating social media, and worldwide regulatory trends plus a 2010 preview on legislative and regulatory issues.

Corporate sponsors supporting this educational series are title sponsor Contact Center Compliance and supporting sponsors PossibleNow and Neustar. These companies have all demonstrated a long-term commitment, says the ATA, to the association’s educational efforts in the area of compliance.

The ATA will also be presenting updates on legislation and regulations at the ATA Washington Summit that is taking place April 25-28, 2010 at the Marriott Washington, in Washington, D.C. FTC (News - Alert) Commissioner David Vladek will give the keynote address. There will be sessions on self-regulation, the law in the contact center, legislating social media, and worldwide regulatory trends plus a 2010 preview on legislative and regulatory issues.

 Attendees will also have a chance to be heard at the Capitol Hill Legislators Reception. There will be a Knowing How to Lobby Breakfast and legislative visits by appointment only.

From TMC Net, ATA Telemarketing, Labor Regulations Compliance Education Series Coming to Six Cities, February 3, 2010.  Mr, Searcy can be reached, toll fee, at: (866) 500-4272 x103.

CATS Comment:  Tim is at it again.  Remember, the ATA used to be known as the American Telemarketing Association - Representing telemarketers; that is, unit the pubic went ballistic on the organization and jammed their phone lines.

Now the ATA acts like it is on the side of the consumer, but fear not, telemarketers are still up to their old tricks.

Most consumers are smarter that that, even though ATA hopes that they can still take advantage of the CON in CONsumer.

January 31, 2010

"Consumers across the country have complained about companies using shady telemarketing techniques to sell so-called extended vehicle warranties that failed to live up to their promises.   This settlement will force one of these companies to obey the law or quit doing business in Oregon.”

Oregon Attorney General John Kroger announcing a settlement last week with a Missouri company and its owners who were accused of falsely advertising the sale of motor vehicle service contract.

The Better Business Bureau gave Dealer Warranty Services an “F” rating based on more than 150 consumer complaints that the company used misleading sales or advertising practices; falsely claimed that it was associated with a manufacturer or dealer; refused to honor cancellation requests or provide refunds; consistently failed to cover needed repairs; provided poor customer service; and employed harassing sales calls and solicitations.

The Oregon Department of Justice received nearly two dozen inquiries and complaints about Dealer Warranty Services. Consumers complained about getting postcards and phone calls telling them that the manufacturers warranty for their vehicles had expired and that the company could extend it. Instead, Dealer Warranty Services sold motor vehicle service contracts provided by an independent third-party.

Some consumers reported that the motor vehicle service contracts did not live up to advertised expectations.

The settlement requires the company and its owners, Theodore B. Conrad and Jeffry E. Zykan, to pay $10,000 to the Oregon Department of Justice and restitution to Oregon consumers who have filed complaints. The settlement also includes injunctive terms that prohibit the company and owners from using illegal tactics that consumers complained about. Failure to abide by the terms of the settlement will result in an additional $10,000 payment.

The Oregon Department of Justice is also investigating similar claims against other companies purporting to sell “extended warranties.”

From the Portland Business Journal, ‘Extended warranty’ sellers settle with state, January 27, 2010.  Attorney General Kroger can be reached, via his office, at: (503) 378-4400,

CATS Comment:  Great job John.

What is our California Attorney General doing about the robo calls that continue to plague the State?  Oh, We forgot, He's running for Governor.

January 24, 2010

"These fundraisers manipulate sympathetic donors in order to raise money for the only cause they truly care about - themselves.  Exploiting generous New Yorkers, especially in these times of economic distress, is reprehensible, and we must put these operations out of business.  However, we cannot let a few rotten apples spoil the whole bunch.  As we continue to aggressively pursue fraudulent fundraisers, New Yorkers should feel even more confident in giving now."

Attorney General Andrew M. Cuomo announcing that announced that his office has filed lawsuits to shut down four professional fundraising companies that lie, manipulate, and deceive to get charitable donations.  During telemarketing calls, these four companies consistently violated New York laws by disguising their status as paid professional fundraisers and lying about the programs that the donations would support.

The lawsuits against the four companies - Caring People Enterprises, Inc., Marketing Squad, Inc., Stage Door Music Productions, Inc., and Suffolk Productions, Inc. - are part of the Attorney General’s ongoing initiative to fight fundraising scams and to make sure generous donations from New Yorkers are being properly collected and used.  Over the past three years, these companies have collectively reported raising $16 million.  On average, they keep seventy-six percent of the funds raised.

It is illegal to fundraise in New York using deceptive or misleading practices.  Anyone soliciting for charities in New York must, among other things, provide a clear description of the programs and activities for which donations are requested or state that such information is available from the charity, disclose the name of the professional fundraising company, disclose the name of the individual professional telemarketer, and disclose the fact that the telemarketer is being paid.

In addition, professional fundraisers are required to register and file reports with the Attorney General’s office. 

As part of the Attorney General’s investigation, undercover investigators secured jobs with fundraising companies, where they were trained to carry out fraudulent practices and where they observed employees making false statements to the public during phone solicitations. 

• The investigation revealed that at times the telemarketers:

• Used aliases and illegally failed to disclose that they were paid fundraisers to make it seem that donors were giving directly to a charity

• Changed the names of charities so they sounded similar to well-known charities or causes, and were thus more appealing to donors

• Lied about the programs client charities actually provided

• Created the false impression that they were law enforcement officials

• Filed false annual documents with the Attorney General’s

• office containing fake scripts that were made to seem like the ones used by their telemarketers; however, telemarketers actually ignore the scripts and engage in deceptive practices

From Fox News, WICZ 40, Cuomo Sues to Shut Down Telemarketers for Charity Scams, January 10, 2010.  Attorney General Cuomo can be reached, via his office, at: (800) 771-7755.

CATS Comment:  Great job Andrew.  Going undercover was a great idea--and it worked!

In 1995 CATS founder Robert Arkow went undercover to a telemarketing convention with Dateline NBC and had similar results.  In the Dateline NBC segment, one predictive dialer salesman at the convention proudly exclaimed "We interrupt a quarter of a million dinners a night."

This was just after a spokesman for the telemarketing industry said that "We don't want to call anyone that does not want to be called."

It is interesting what happens when telemarketers don't think they are being watched.

January 17, 2010

"Sadly, we encounter these types of scenarios over and over again.  While it’s hard to believe people fall for ploys like this, you have to remember the telemarketing con artists are incredibly persuasive and they purposely prey primarily on the elderly, who tend to be more trusting."

Joseph Adiano,  an Inspector for the USPIS (United States Postal Inspection Service), telling how his agency, working with Investigators from U.S. Immigration and Customs Enforcement (ICE) returned $7,000 to an elderly San Jose couple victimized by Canadian con artists who told them they had won a multi-million dollar Canadian sweepstakes.

ICE and USPIS investigators handed the octogenarians a check for a portion of the funds they forwarded to a Canadian postal box over the course of the last several months. The money was ostensibly to pay the Canadian "luxury" tax on the sweepstakes winnings so they could collect the prize. Like many elderly victims targeted in this and similar telemarketing scams, the couple believed the man who called them last year claiming to be an attorney responsible for alerting them about their sweepstakes win. In response to repeated appeals, the couple mailed multiple cashiers checks and packages containing cash to various Canadian addresses.

This week marks the second time in as many months ICE agents have intervened in a case involving an elderly local resident targeted by Canadian telemarketing con artists. In November, they returned $4,000 to a San Jose woman who sent that sum in cash to Canada after receiving a call from a person claiming to be her grandson. The male caller said he was in jail and needed bail money immediately. Soon after, the woman received a call from a man purporting to be her grandson's attorney who urged her to send the money without delay. Only later did the women learn that her grandson was not in jail and never had been.

Initiated in 1998, the goal of Project COLT is to identify, disrupt, and dismantle telemarketing fraud operations. As part of the initiative, law enforcement officers strive to intercept funds - often cash and cashier's checks - so they can ultimately be returned to victims. Project COLT investigators also work to prevent further victimization, both through public education and the prosecution of those who commit the fraud.

Since its inception, Project COLT has resulted in the seizure and return of more than $25 million to telemarketing fraud victims in the United States and Canada. Telemarketing fraud has become one of the most pervasive forms of white-collar crime in Canada and the United States, with annual losses in both countries in the billions of dollars. These criminal organizations are heavily involved with international and violent organized crime, including the Hell's Angels motorcycle gang, and as such they represent a significant assault on the United States homeland and upon the financial security and livelihood of its citizens.

From the US Customs and Immigration web site, Feds return money to Bay Area elderly scammed by Canadian con artists, Investigators warn public to be wary of callers soliciting money, January 12, 2010.  Special Agent Adiano can be reached, via the US Postal Inspection Office in San Francisco at: (877) 876-2455.

CATS Comment:  Another story about senior citizens beng scammed and recovering some of their money.  According to the San Jose Mercury news,  one victim was an elderly lady in her 80's.  She lost $300,000 and the government recovered $7,000.

Because so many scams are delivered by phone, we here at CATS, warn you to be very careful when someone on the other side of the telephone line says that you are a winner.  If you really want to be a winner, take up a lot of their time and report then to the authorities.

January 10, 2010

"This couple was very fortunate that investigators were able to recover all of their money.  Unfortunately, that’s often not the case. While ICE and its enforcement partners are doing everything possible to stop this kind of fraud, the first line of defense is for people to be suspicious of anyone who calls and asks them to send money"

Wayne Wills, special agent in charge for the ICE [Immigration and Customs Enforcement] office of investigations in Hawaii commenting about action taken by special agents with U.S. Immigration and Customs Enforcement (ICE) Tuesday.  Their actions returned nearly $7,000 to an elderly Pauoa Valley couple victimized by Canadian con artists who told the pair the money was needed to aid a female relative who had run afoul of the law in Canada.

On January 5, 2010, ICE agents handed the octogenarians 10 money orders totaling $6,995. Four months ago, the couple sent the money orders to Canada after being contacted by an individual claiming to be an attorney for a distant family member purportedly arrested in that country on drunken-driving charges. In a series of phone calls, the couple also spoke with a woman they believed was a relative who said the funds were to pay her bail and related legal costs. She further claimed the attorney was holding her hostage until he received payment. The woman’s voice and pleas were sufficiently convincing that the couple forwarded the money orders as instructed. It was only later after speaking with the actual family member, who resides in Utah and advised she had never visited Canada, that they realized they had been scammed.

The money returned to the couple was recovered as part of Project COLT (Center of Operations Linked to Telemarketing), a bi-national effort involving numerous agencies, including: ICE, the FBI, U.S. Customs and Border Protection (CBP), the U.S. Postal Inspection Service, the Royal Canadian Mounted Police, and the Quebec Provincial Police.

Alert personnel from the Canadian Postal Service and CBP, who routinely inspect suspicious parcels believed to contain fraudulent telemarketing funds, intercepted the money orders and coordinated with ICE to arrange their return. The case is under ongoing investigation by Canadian authorities.

ICE agents say that while the ploy used on the local couple is somewhat unusual because it was highly personal, it is quite common for Canada-based telephone fraudsters to target senior citizens. One of the most frequent scams involves telemarketers posing as “customs agents” who tell victims they have won the Canadian lottery but must send a “processing fee” or “customs duty” before they can collect their winnings.

Initiated in 1998, the goal of Project COLT is to identify, disrupt, and dismantle telemarketing fraud operations. As part of the initiative, law enforcement officers strive to intercept funds – often cash and cashier’s checks – so they can ultimately be returned to victims. Project COLT investigators also work to prevent further victimization, both through public education and the prosecution of those who commit the fraud.

Since its inception, Project COLT has resulted in the seizure and return of more than $25 million to telemarketing fraud victims in the United States and Canada. Telemarketing fraud has become one of the most pervasive forms of white-collar crime in Canada and the United States, with annual losses in both countries in the billions of dollars. These criminal organizations are heavily involved with international and violent organized crime, including the Hell’s Angels motorcycle gang, and as such they represent a significant assault on the United States homeland and upon the financial security and livelihood of its citizens.

From a press release from US Immigration and Customs Enforcement in Hawaii, ICE returns money to elderly couple targeted by Canadian con artists, Agency warns public to be wary of callers soliciting money, January 7, 2010.  Mr. Wills can be reached, via his office, at: (808) 532-3746.

CATS Comment:  Its nice to see that the victims got their money back.  That does not happen too often.  Perhaps the State of Hawaii has a bit of paradise, thanks to you Wayne.  Mahalo.
(Mahalo means goodbye and thank you in Hawaiian.)

January 3, 2010

"Every year it [complaints about telemarketing] seems to go up some but that was quite a significant increase.  I don't know if we can attribute that to the poor economy; people are a little more concerned about being taken or maybe telemarketers are working harder to try to earn money. I'm not really sure but that is quite an increase."

Florida Department of Agriculture spokeswoman Liz Compton commenting about the fact that The Florida Department of Agriculture and Consumer Services has compiled the top 10 list of complaints that were received in the past year. For the fifth year in a row, complaints involving violations of the Do Not Call List made the top spot.

There were more than 6,500 complaints filed in 2009 about unsolicited phone calls from people on the state's Do Not Call list. That's 1,500 complaints more than in 2009. The agency says it's hard to say whether the economy is to blame for the increase.

Under state law, Floridians can pay an initial fee of $10, with a $5 annual renewal fee, to have their home and cell telephone numbers placed on the list and avoid unwanted sales calls. Fees collected go towards administration of the Do Not Call List.

Anyone caught violating the Do Not Call List can pay hefty fines.

The complaints to Division of Consumer Services can range anywhere from telemarketing scams, problems with vacation and travel deals, motor vehicle sales, auto repairs, banking and finance, to real estate disputes.

The department's Division of Consumer Services regulates 11 industries but also attempts to mediate problems consumers have with unregulated businesses. A total of 37,881 complaints were filed in 2009.

From CBS TV 4 WFOR's web site, Unwanted Phone Calls Floridians' #1 Complaint, December 30, 2009.  Ms. Compton can be reached, via her office, at: (850) 488 - 3022.

CATS Comment:  WOW! People in Florida actually PAY to avoid telemarketing calls.  Considering the fact that there are so many illegal calls made and the complaints are so high, we here at CATS, wonder if they are getting their money's worth.  After all, you can get on the Federal "Do-Not-Call" list for free, so why should anyone have to pay money to get on the Florida list?

CATS wishes all a happy and telemarketing free new year.