Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Fraudulent debt collection scheme targeting Spanish-speaking consumers halted, (Jul 8, 2015)

By Linda O’Brien, J.D., LL.M.

The operators of a fraudulent debt collection operation have agreed to be banned from the debt collection business and telemarketing to settle FTC charges that they took millions of dollars from Spanish-speaking consumers across the country by demanding that they pay bogus debts, the FTC announced today (FTC v. Centro Natural Corp., File No. 142-3159).

In October 2014, the FTC filed a complaint in the federal district court for the Southern District of Florida against Centro Natural Corp., Sumore LLC, Carolina Orellana, Damian Biondi, Jessica Anzola, Javier Sumbre, and Susana Sumbre, alleging that they threatened consumers with lawsuits, arrest, and immigration status investigations if they failed to make payments on phony debts. The complaint also names Bionore Inc., Jager International Inc., Allianza Inmobiliaria Corp., and Jorge Sumbre as relief defendants who profited from the scheme.

According to the FTC’s complaint, since at least 2011, the defendants have held themselves out as court or government officials or lawyers. They demanded that consumers pay them to “settle” phantom debts that typically ranged between $3,000 and $9,000.

The FTC alleges that the defendants often told consumers that they could settle their debts by paying defendants hundreds of dollars. If consumers refused to pay, the defendants often continued to call and threaten them, sometimes using profane language. The defendants also kept calling consumers who asked them not to call again, regularly cold-called consumers whose phone numbers are on the Do Not Call Registry, and failed to pay fees for the Do Not Call Registry.

Under the settlement orders, Javier Sumbre, Carolina Orellana, Susana Sumbre, and the other individual defendants are banned from debt collection activities and telemarketing and are permanently prohibited from making the misrepresentations alleged in the complaint, and material misrepresentations about any product or service. These defendants and the relief defendants are also barred from selling or otherwise benefitting from customers’ personal information.

The settlement orders impose judgments on the defendants totaling nearly $6.8 million, which are suspended upon the transfer of approximately $776,000 worth of assets, including Florida real estate. The order against relief defendant Allianza Inmobiliaria imposes a $172,000 judgment against the company.

Companies: Centro Natural Corp.; Sumore, LLC; Allianza Inmobiliaria

News: ConsumerProtection FederalTradeCommissionNews