FTC Seeks $6.9M in Telemarketing Fraud Suit

Share this content:
The Federal Trade Commission is seeking $6.9 million in restitution from a company that used a telemarketing campaign to mislead citizens, mostly seniors, into investing in a bogus mining operation.

The civil injunction against Global Mining Consulting, Encino, CA, alleges that the company solicited $3.1 million from investors by falsely claiming that several mines in California and Colorado contained "millions and millions worth" of gold and ore.

The lawsuit follows a government settlement in January in which the principals, Mark P. Ford, a former car salesman, and Stephen Noell, a securities broker, admitted no wrongdoing and paid $35,000 in fines.

Federal agents last summer raided the Encino office where 25 telemarketers worked to convince prospects to invest at least $15,000 in a mine the company claimed contains $1.2 billion worth of gold and minerals. Interested parties were mailed a 47-page prospectus that cited false government research and geological surveys confirming the existence of the valuable metals.

No criminal charges have been filed against former Global employees, five of whom are currently working in the same Encino office, selling a new investment.

"In a perfect world, we'd have enough law enforcement to bring charges against the owners and the salespeople," said Connie Wagner, the Federal Trade Commission staff attorney who sued Global. "It's not a perfect world.

-- Nadine M. Kjellberg

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above