FTC: Credit Card Scam Stole Millions

Share this article:
The Federal Trade Commission has sued two men on charges that an Arizona telemarketing operation they ran swiped millions of dollars from consumers through the sale of bogus credit cards and credit-protection plans.


A U.S. District Court in Phoenix ordered the assets of Harvey and Tye Sloniker, who operated under a variety of corporate names including Corporate Marketing Solutions and Corporate Industries, frozen and placed in receivership at the FTC's request. The FTC said it feared the Slonikers would destroy evidence and dissipate their funds.


According to the FTC, since 1998 the Slonikers, acting on behalf of third-party clients, operated deceptive telemarketing centers, which they dubbed "contract rooms," and "employed large numbers of telemarketers trained to deceive consumers."


Agents represented that consumers were pre-approved for a major credit card if they paid an advanced fee, and they upsold credit-protection services and offered to take consumer personal data off the Internet, where they said it was vulnerable to identity thieves, the FTC said.


The FTC complaint alleges that the Slonikers and their agents were not affiliated with any financial institutions and that no consumer ever received a promised credit card. Furthermore, the FTC charged the Slonikers with obtaining consumer personal data through false pretenses, a violation of the Gramm-Leach-Bliley Act.


The relationship between the Slonikers was not specified.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

B2B Marketers Can Now Self-Serve Ads on Facebook Exchange

B2B Marketers Can Now Self-Serve Ads on Facebook ...

Sitescout's new integration with FBX opens up access to any size marketer, minus campaign spend minimums, according to the RTB company.

Day Two at DMA2014

Day Two at DMA2014

It was awards day in San Diego, with Teradata's Lisa Arthur being named Marketer of the Year, and Google Japan being feted for its direct mail prowess.

Today's Forecast: Chilly With a 10 Percent Lift in Parka Sales

Today's Forecast: Chilly With a 10 Percent Lift ...

The Weather Company launches a website offering marketers free advice on how to take advantage of shifts in the weather.