Posted on 02/24/2005 7:38:28 AM PST by Born Conservative
Earn up to $800 a week assembling refrigerator magnets at home, the advertisements declared.
The government says a Bradford County couple who did the advertising duped 30,000 people into investing in a work-at-home scam.
The Federal Trade Commission filed a civil complaint recently in U.S. District Court for the Middle District of Pennsylvania in Scranton against Misty and William Stafford of Gillett as part of a crackdown against more than 200 businesses nationally.
The businesses falsely presented work-at-home opportunities and other dubious business activities that bilked consumers out of $100 million, the government announced Tuesday. The FTC, Justice Department, U.S. Postal Inspection Service and state agencies filed criminal and civil measures alleging fraud or consumer protection violations resulting from the 14-month probe.
The FTC charges the Staffords' company, National Home Assemblers, used mail solicitations and newspapers to advertise a work-at-home scheme for assembly of cat refrigerator magnets. The advertising indicated assemblers could earn up to $800 a week or $3,200 a month by piecing together the magnets and shipping them back to the company.
The FTC says consumers paid $38 for registration and start-up materials and a $12 inspection fee. Although the ads declared no special ability was necessary to do the assembly, the FTC said, "in many, if not all, instances, the defendants rejected consumers' work for 'quality' reasons and the consumer lost all the money spent."
The FTC is seeking to close the business and wants rebates for consumers. Court records show the Staffords agreed last week to a temporary federal restraining order that halts the advertising of National Home Assemblers. An injunction froze the couple's assets, requires an audit of their holdings and named a receiver to oversee their business. William Stafford, reached at home by phone Wednesday, declined to comment.
"There's a thousand things I'd like to say, but I've been advised not to," he said.
The couples' lawyer, Samuel C. Stretton of West Chester, said government agents and postal inspectors raided the operations of National Home Assemblers in Bradford County and closed it down about two weeks ago.
He said the Staffords received no notice of wrongdoing before government action.
"They had no knowledge at all that what they were doing was improper," Stretton said Wednesday. "They thought it was a legitimate business."
Stretton said the couple has not decided yet whether to contest.
Some of those hill billies are pretty slick.
Maybe these ill-fated entreprenuers can look forward to stuffing envelopes for the Federal Bureau of Prisons.
"Make BIG money at home, sharpen saws and earn extra cash!"
Their people can claim as their defense that they were just proving Barnums law.
I work at home and you can too! For instructions please FReepmail me $20....
So they bilked consumers out of $100,000,000 in $50 hits? They had TWO MILLION SUCKERS????? This sounds a bit exaggerated to me. I'd be lucky to get 10 dummies if I were running the scam. 2/3 of 1 pct of the entire US population is a pretty good success rate for any crooked scam except social security.
Don't know ALL the details,but I don't see a problem with this.This is no different than a company(or our government) sub-contracting work.Now,if a company subs out work and it doesn't meet quality standards,the company is not obligated to continue to do business with the sub.I know that many times,the government will cancel a contract due to a sub-contractors quality issues or even because they found a cheaper rate.
Somehow,I missed that entire paragraph.That would take quite a bit of time.
I think the 100 mill. was accounted from the 200 business'.
Attention all members, don't listen to Drango. He's trying to rip you off.
FReepmail me just $10 and I'll tell you how he is doing it!
I live in that area during summers. There is a huge area in north central PA and south central NY that does not take a backseat to W VA.
I'll tell you how they are both doing it, for the low low price of $4.99. Shipping and handling extra.
For $5 I'll point you to a lawyer's phone number so you can take action when you become dissatisfied with either of the previous posts.
I misread that into thinking that all 200 were run by these same folks. Makes more sense now.
Beat me to it. You must be doing something illegal. I'll lower my price to $4.50, only because I believe in justice and the American way.
I was just in Gillett on Monday. Dayum, that place really is way the hell out in the middle of nowhere. I coudln't even get there from here, I had to go somewhere else first...
Is Gillett near Troy, and right by the NY border? I went to college in Mansfield, and vaguely remember passing through there one time.
To get to Gillett, I drove through Mansfield to Troy, then North on 14. You've got it right. Nothing but moocows and firewood.
Beautiful country.
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