Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Participant in phone bill cramming scheme settles FTC charges, (Apr 18, 2016)

By Linda O’Brien, J.D., LL.M.

A purported nonprofit entity that allegedly benefitted from a massive landline cramming operation, placing more than $70 million in unauthorized charges on consumers’ phone bills, has agreed to settle FTC charges, the agency announced today (FTC v. American eVoice, Ltd., File No. 122-3008).

According to the FTC complaint, Steven Sann, owner of American eVoice, Ltd. and various other entities, “crammed” more than $70 million in unwanted and unauthorized charges on consumers’ landline telephone bills. The complaint alleged that the defendants transferred millions of dollars in ill-gotten gains to Bibliologic, a charitable religious organization set up by Sann.

The complaint was filed in the U.S. District Court for the District of Montana in January 2013.

Under the terms of the settlement, relief defendant Bibliologic will be required to surrender nearly all of its assets, which the FTC alleges were transferred to it by the defendants. The Bibliologic settlement with the FTC mirrors the terms of a settlement between Bibliologic and the Chapter 7 Trustee of defendant Sann’s bankruptcy estate.

Specifically, the settlement requires that Bibliologic surrender to the Chapter 7 Trustee several assets, including a large tract of land, the contents of multiple bank and investment accounts, gold and silver, and several vehicles. However, Bibliologic will be allowed to retain $100,000 that must be used for charitable purposes. The settlement imposes a suspended monetary judgment of $100,000 that will become due should any of the money retained by Bibliologic be used for the benefit of any defendant in the case.

Companies: Bibliologic, Ltd.

News: ConsumerProtection FederalTradeCommissionNews