(Media-Newswire.com) - A U.S. district court has shut down several Web sites that scammers have been using to falsely claim that they can help consumers get free government grant money, the Federal Trade Commission announced today.
At the request of the FTC, the court issued an order closing the Web sites of several related companies that falsely promised consumers that their “Easy to Use Program,” Grant Connect, could help people “instantly find the grant that’s right for [them],” while using pictures of President Obama, Vice President Biden, and the American flag to give the false impression that they were connected to the government. The FTC also charged the companies with using bogus testimonials, failing to disclose the actual cost of their product, bundling multiple other products together for sale without adequate disclosures, and debiting consumers’ bank accounts on a recurring basis without permission.
On July 28, 2009, the court entered an order that temporarily halts these companies’ illegal activities. Subsequently, five of the 12 defendants in the case agreed to a preliminary injunction halting these practices until the matter is decided at trial. The court has set a preliminary injunction hearing for the remaining defendants for September 11, 2009. The FTC is seeking to permanently stop these practices and force the companies to return their ill-gotten gains so the funds can be used to reimburse consumers who were defrauded.
According to the FTC, the operators sell many products online, including Grant Connect, which they describe as “a unique, consumer-friendly US government grant program that delivers all of the tools for the consumer to search multiple databases, write grant proposals, and deliver polished plans...” While the companies claim that consumers will be charged only a few dollars at most, they instead bundle other products and services, such as identity theft protection services, credit offers, and purported health benefits plans with their offer, ultimately charging consumers as much as $70 per month.
Using an affiliated network of Web sites, including www.grantconnectoffer.com and others, they make claims such as: “Grant Connect - $15 Billion of Free Money Available;” “Over $10 Billion Issued in 2009 Already;” and “EASY TO USE PROGRAM: Instantly find the Grant that’s right for you!” They also claim that Grant Connect “makes the process FAST and EASY, so all you have to worry about is where to spend your money!” In addition, the Grant Connect site features “testimonials,” including photos of people who supposedly got grants from the company, including one that states, “It’s so easy! I got my first grant for $300,000. All I have to do is search and click.”
To further persuade consumers into purchasing their product, the Grant Connect site has used images of the President and Vice President in an effort to suggest an affiliation with the U.S. government. For a time, the site featured a photo of President Obama and Vice President Biden standing in front of an American flag, next to the Grant Connect logo and a caption that read, “CHANGE Is Here! $15 BILLION in FREE Government MONEY for you!”
Unfortunately for consumers, according to the FTC, Grant Connect provides little more than outdated, useless information and worthless grant writing “tools.” Few, if any, grants are available to consumers who sign up for the program, and those that are require applicants to meet strict eligibility requirements before they are even considered for the grant.
In addition, while the Web sites tell consumers they can get the Grant Connect service for a one-time fee of as little as 99 cents to $2.78, they do not adequately disclose that buyers will be automatically signed up for other products and services costing up to $70 a month. While the Web site contains some disclosure language in small, densely packed type, few consumers realize they will be charged monthly for services such as “SmartHealth Gold medical and lifestyle benefits” and “VComm International and Long Distance Calling Service” unless they cancel these memberships.
The FTC charged the Grant Connect defendants with violating federal law by: 1 ) making deceptive representations regarding Grant Connect, 2 ) failing to adequately disclose the material terms and conditions of their offers, and 3 ) violating the Electronic Funds Transfer Act by debiting consumers’ bank accounts on a recurring basis without their authorization.
The Commission vote authorizing the complaint was 4-0. It was filed in the U.S. District Court for the District of Nevada on July 27, 2009. The complaint names Grant Connect, LLC; Global Gold, Inc.; Horizon Holdings, LLC; O’Connell Gray, LLC; Pink LP, Vantex Group, LLC; Vertek Group, LLC; Rachel A. Cook, manager of Vantex, and Vertek; James J. Gray, managing member of Grant Connect, Horizon Holdings, and O’Connell Gray; Steven R. Henriksen, president and owner of Global Gold; Juliette M. Kimoto, owner of Vertek and General Partner of Pink; and Randy D. O’Connell, managing member of Horizon Holdings and O’Connell Gray.
The five defendants who agreed to the preliminary injunction entered by the court on August 18, 2009, are: Grant Connect, LLC; Horizon Holdings, LLC; O’Connell Gray, LLC; James J. Gray; and Randy D. O’Connell.
The FTC appreciates the assistance of United States Attorney’s Office for the District of Nevada, the Better Business Bureau of Northern Nevada, the Better Business Bureau of Southern Nevada, the Las Vegas Metropolitan Police Department, and Reno Police Department ( Financial Crimes/Computer Crimes Department ) in this matter.
The FTC has announced several other grant fraud cases as part of the “Operation Short Change” law enforcement sweep targeting economic stimulus frauds, as well as a complaint
against a company that promised consumers “guaranteed” $25,000 government grants. Information about these cases can be found on the Commission’s Web site at: http://www.ftc.gov/opa/2009/07/shortchange.shtm and http://www.ftc.gov/opa/2009/07/gwi.shtm.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court.
Copies of the Commission’s complaint can be found on the FTC’s Web site and as a link to this press release. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP ( 1-877-382-4357 ). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.
MEDIA CONTACT:
Mitchell J. Katz,
Office of Public Affairs
202-326-2161
STAFF CONTACT:
Roberto Anguizola
Bureau of Consumer Protection
202-326-3284
Tracey Thomas
Bureau of Consumer Protection
202-326-2704
( FTC File No. 092-3126; Civ. No. 2:09-CV-01349 )
( Grant Connect.final )
Monday, August 24, 2009
FTC closes government grant scam websites...
Friday, March 27, 2009
Government Grant Scams... cont...
We've done several posts on this topic and the feedback to date has been mostly positive.
Here's a little more details on what the underworld of the internet is up to:
The FTC described Jessica's blog in our video and apparently there are 100's like her:
http://wafflesatnoon.com/2009/01/10/scam-alert-website-list/
If you recall we mentioned these scams infest Google Adwords. Apparently we aren't the only people who noticed, here's a funny photo shoot of the people who are allegedly running the adwords fraud:
http://wafflesatnoon.com/2009/02/23/the-fake-google-grant-guys/
And here's a woman who got a little angry at the whole idea:
http://blogs.myspace.com/index.cfm?fuseaction=blog.view&friendId=5791054&blogId=471495587
And don't forget Snopes which recognizes the same thing we did... This year has marked a huge increase in scam type ads. This article focuses on emails however it does appear to be the same type of ruse.
http://www.snopes.com/fraud/advancefee/grants.asp
I love this article at clickz http://www.clickz.com/3633002
To be fair, Google isn't the only ad network allowing this. Yahoo also has similar websites infesting it's ad network. Interestingly, Yahoo allows it's advertisers to pose as Matthew Lesko while offering the scam which leaves the vicitim thinking Matthew scammed them. Which generates odd customer service issues when the victim sends an email demanding a refund for products that Matthew doesn't sell.
In the end, if you are looking for legitimate money opportunities from the US government, visit their websites or get down to your library and check out a Lesko book for free. Or consider buying the latest Lesko offer for up to date information and help.
Tuesday, March 24, 2009
The $1.98 Grant Scam Exposed By Matthew Lesko
Watch this video of Matthew Lesko and a government newcast on how a particular internet scam is being operated.
Tuesday, November 18, 2008
Scam! A look at google adwords advertisers
Last year we did a blog post about various individuals who run around the internet calling everything a scam or fraud while peddling a variety of items including multi level marketing, unregulated banking scams, questionable commodity investment's and real estate schemes. This year is no different except to say that there are many more than in the past.
To explain further: Every year in mid fall, famous names and product keywords are purchased in google/msn/yahoo/ask with the intent to mislead users from obtaining legitimate information about a person or product in order to gain the confidence of the victim (You).
It's easy to spot these ads as they usually claim they've been scammed or they reviewed the product or have a special report you really need to read. Generally the websites present unsubstantiated claims, poorly written personal opinions or flat out lies by the self proclaimed "expert". This is almost always followed by linked statements of "This is the only thing I've found that works" or something very similar. If you click the link you're taken to another page/website and handed a sales pitch for all sorts of rubbish that has nothing to do with your original search. In your mind you are thinking "hey this guy saved me from buying this product" maybe he's got something real here...
In this post we'll look at one ruse that Google apparently allows to advertise on over 400 keywords. The keywords purchased rarely match what the website is really peddling. Below is one ad (out of dozens) that occurs under the keyword "Matthew Lesko":
Looking at that ad, you would think that the author has some revealing details that you need to know before buying a Lesko book. Clicking on the link reveals the website is a front for something called the "reverse funnel system" which is routinely called an upside down pyramid scheme.
The shocking truth about Matthew Lesko turns out to be 4 misleading sentences and a plug for the reverse funnel system:
"Mr. Lesko will give you information on getting grants from the government for $60." Much of the information is outdated. He never really tells you how to apply. There are many bad reports on the internet about this man. I would stay away. Please check this out. "
Apparently this person has never seen the 2 year old government money club which is updated daily, has a librarian to help you find a program, costs $20 a month and does indeed show you how to fill out applications. As for bad reports, if you count websites like this... yes there are many misleading sites with bad reports. In reality, the only report that matters is the bbb which is clean after 25 years and millions of books sold.
If you poke around the site, there are dozens of people/products with "shocking truths" about them. Including an ebook called the Rick Jerk ... Which actually outlines exactly what this person is doing:
"I first found nothing, but self promoting information. I had to dig deep for the research. The Rich Jerk must be doing alright or he would not be able to block my Google searches with his thinly veiled advertisements. (What is this guy talking about?) Finally I found the dirt. The book has been reported as a total fraud. There is nothing worth anything in it. You cannot get a refund. I would stay as far away as possible. Here is a good deal. Try it."
I read the "Rich Jerk" ebook. I think it cost me $29. It wasn't the best nor was it the worst. It did outline techniques for getting products, advertising in Google, writing websites and of course how to claim everything is a scam. Some stuff was basic but the concepts are different. It's OK for beginners and experienced google advertisers who might be looking for a new approach or a rehash of things they already understand. As for no refunds, this book is sold by clickbank and they do give refunds (within 60 days).
What is a reverse funnel system?
Who knows? Most people involved won't explain it (which is a red flag). All I can say is that it apparently costs $50 to find out how to pay $3000 for a vacation club membership that also allows you to resell the $50 information and the $3000 membership while paying $300 a month for a sales website. Some people have reported a $5000 bill due for marketing purposes as well. Hmmm... our hero/expert above doesn't like $30-$60 books and is pointing you towards a minimum $3,350 bizop/mlm/inverted pyramid something... What a nice guy.
Here's the wikipedia description of what the reverse funnel system apparently is:
http://en.wikipedia.org/wiki/User:WH_Coordinator/Reverse_funnel_system This description matches several pages around the internet with posts from people who apparently got involved and wanted out.
Why does google allow misleading ads?
I don't know, but you can ask them:
In conclusion,
Google ads that scream scam rarely have your interest in mind and are hotbeds of misleading information. They're designed to gain your confidence by trashing whatever you are looking for. They tend to steer you towards products/services that may or may not be legitimate or even related to what you were searching for. Be very cautious of websites using this ruse.
Tuesday, November 6, 2007
SCAM!
It seems lately that it's all the rage to claim some TV personality is a scam and then turn around and try to push some unrelated product or service (More posts here). Here's an article that declares Matthew is a scam and never actually identifies why. I notice the article here is very clear on why Kevin Trudeau and his latest book are considered a scam but it fails to mention anything that would lead a reader to think, gee maybe Lesko is a scam. Additionally, the writer fails to categorize the products correctly: "the get rich quick on other peoples money topic." I'd love to know if he has ever read a Lesko book? (They're free in just about every library). The books have nothing to do with "getting rich quickly". He seems to be the only person in history to claim they're a "get rich quick scheme".
FYI: The books contain 1000's of leads into the government and it's programs. Yes, not everyone will be eligible for every program which is why the books tend to be 4 inches thick. There is usually something for eveyone in the books. That's the nice thing about government money, everyone is included somewhere.
BTW: On the homepage of leskobooks.com you'll find a blurb regarding 3 individuals who used the information in various free money books to locate and fund various needs. These people were located by the Washington Post and written up in July 07. I guess it's a good thing they didn't see this ridiculous and factless article.
One more thing, it's hard to be a scam if you provide 90 day "no questions asked" guarantees. Which is why the BBB report on Information USA Inc. has zero unresolved complaints out of Millions of satisfied customers. Not even Microsoft has a record like this.
