U.S. Government closes down “work-from-home” scam

About a dozen companies running scams of providing employment came under the hammer on Wednesday, when the Federal Trade Commission (FTC) of the United States Government closed them down.

On Wednesday, 2^nd March, 2011, the Federal Trade Commission launched its “Operation Empty Promises”, which is an initiative to clamp down on various misleading schemes of “work-from-home” and other employment offers.                          

The FTC said that the recruitment agency had given a promise to the people to help in finding a suitable employment. But instead it turned out, they just took their money, with not much services in the return.

This new multi-agency campaign for better enforcement of laws includes 90 actions brought to notice by the Department of Justice, state law enforcement agencies and the U.S. Postal Inspection, since last year.

Davis Vladeck, the director of the FTC’S bureau of Consumer Protection, gave the details of three new cases by the FTC in a press conference yesterday.

Amongst the new cases is one against a company under the name, Ivy Capital Inc. The company had allegedly taken money worth more than $40 million from people. Consumers had paid the thousand of dollars, under the belief that the company would support them to setup their own business on the internet and earn up to $10,000 per month.

According to the FTC, the consumers had paid the Las Vegas based firm, a sum of $20,000 for a coaching program in business, and in return received services and products that were useless.

The FTC obtained an order to put a temporary stop on the company’s illegal practices and froze the organizations assets on February 22.

Another organization which came under the scanner with the FTC, was the National Sales Group from the Santa Barbara, California. The company had put up fake advertisements on a well-known career website, and charged more than 17,000 respondents a fee to conduct background checks. Since the complaints, the career website lost its ratings in the result as well.

David commented on the practices that: “While they were promising work, they were working over their victim.” FTC said that the companies targeted vulnerable consumers who were either unemployed or going through other financial hardships.

Other organizations which were closed by the FTC as part of the campaign include: La Association Nacional de Trabajo, Darling Angel Pin Creations, Global U.S. Resources, U.S. Work Alliance, Abili-Staff and Entertainment Work and Preferred Platinum Services Network.