Telemarketers barred, must pay $6.9M

FTC: A group of telemarketers defrauded customers by making false claims in order to get bank or credit card information.

April 30, 2013 at 2:46PM

Five people, operating under a dozen business names, including NHS Systems Inc., were barred from telemarketing and ordered to forfeit the $6.9 million they made by defrauding customers, according to the Federal Trade Commission on Wednesday. The defendants made sales calls claiming they were affiliated with the federal government, a U.S. District Judge in Pennsylvania found. Consumers were told they needed to provide bank or credit card information to receive a tax refund or to continue to receive Medicare benefits. Many found themselves enrolled in a "discount health care program," the FTC said. "All defendants have … demonstrated their continued ability, desire, and success in committing the same deceptive acts. The danger of recurrent violations is real," said Judge Juan R. Sánchez. Read the full announcement and related court documents on the FTC's website.

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Jane Friedmann

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