Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Imposter fraud scheme that used FTC’s phone number shut down, (Sep 9, 2014)

By Greg Hammond, J.D.

The Cuban Exchange, Inc.—a company that operated an allegedly illegal robocall scheme that falsely told consumers they could obtain refunds from the FTC on their behalf—has been permanently shut down by the federal district court in Brooklyn. The company—which also did business as CrediSure America and MyiPad.us, and was allegedly run by Suhaylee Rivera—operated three websites: www.ftcrefund.com, www.credisure.net, and www.credisure.org (FTC v. The Cuban Exchange, Inc., File No. 132-3046, Case No. 1:12-cv-05890-NGG-RML).

According to the Commission’s complaint, The Cuban Exchange and its operator violated the FTC Act and Telemarketing Sales Rule (TSR) by misrepresenting to consumers that they were affiliated or endorsed by the FTC; could obtain refunds or redress from the FTC on behalf of consumers; could reduce FTC refund or redress wait times from 8-to-10 weeks to 5-to-7 business days; know that a consumer is entitled to a refund or redress from the Commission; and have assisted more than 13,000 clients in receiving refunds or redress. In addition, the FTC alleged that the defendants violated the National Do Not Call Registry; failed to transmit caller identification; initiated unlawful prerecorded messages; failed to make required oral disclosures; and failed to pay national registry fees. “Consumers likely have suffered and will likely continue to suffer substantial injury as a result of Defendants’ violations of the FTC Act and the TSR,” the Commission alleged, as the operators allegedly tricked consumers into providing their bank account and other personal information.

The final default judgment and order for permanent injunction prohibit the operators from misrepresenting that they are affiliated with or endorsed by the FTC or any other government entity; know a consumer is entitled to a refund or redress from the FTC or government entity; and can help obtain and reduce wait times for such refunds or redress. The order also prohibits the operators from contacting telephone numbers on the National Do Not Call Registry; failing to transmit caller identification; and operating any website that advertises or promotes government refund or redress services. The operators are additionally enjoined from disclosing any customer information and must destroy such information within 30 days of the order.

Attorneys: David Shonka, William T. Maxson, and Bikram Bandy for the Federal Trade Commission.

Companies: The Cuban Exchange, Inc.

News: ConsumerProtection Privacy FederalTradeCommissionNews