Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Alleged scammers in Medicare card scheme settle FTC charges, (Jul 27, 2015)
Organizations Mentioned:Citadel ID Pro LLC | Sun Bright Ventures LLC | Trident Consulting Partners LLC
By Michael Menzhuber, J.D., LL.M.
Two individuals and their companies have settled FTC charges that they falsely promised consumers new Medicare cards in order to obtain their bank account numbers and debit their accounts, the Commission announced today (FTC v. Sun Bright Ventures LLC, File no. 132-3217).
In October 2014, the FTC filed its complaint, in the U.S. District Court for the Middle District of Florida, Tampa Division. The complaint alleged that Benjamin Todd Workman and his companies, Sun Bright Ventures LLC and Citadel ID Pro LLC, and Glenn Erickson and his company, Trident Consulting Partners LLC: (1) falsely promised consumers new Medicare cards in order to obtain their bank account numbers; (2) debited the consumers’ accounts by hundreds of dollars, providing nothing in return; and (3) falsely promised to provide consumers with identity theft protection services.
Under the proposed settlement orders, Workman and his companies and Erickson and his company will be banned from: (1) selling healthcare-related products and services; (2) selling identity theft protection-related products; (3) creating or depositing remotely created checks or remotely created payment orders, which are used to make bank account debits; (4) billing or charging consumers without their consent; (5) misrepresenting material facts about any product or service; (6) violating the Telemarketing Sales Rule; and (7) selling or otherwise benefitting from consumers’ personal information.
The orders also impose a judgment of more than $1.4 million, which will be suspended upon payment of $35,000 by Workman and the surrender of certain bank accounts. In each case, the full judgment will become due immediately if either defendant is found to have misrepresented his financial condition.
Companies: Sun Bright Ventures LLC; Citadel ID Pro LLC; Trident Consulting Partners LLC
News: ConsumerProtection FederalTradeCommissionNews