Judge Pulls Plug on Web Hosting Firm's Telemarketing Campaign

Share this article:
A federal judge acting at the request of the Securities and Exchange Commission shut down an inbound telemarketing campaign aimed at bringing investment dollars to a Web site hosting firm.


A U.S. District Court judge in Miami issued a restraining order Dec. 29 against Web Hosting Headquarters Partnership, Miami. According to the SEC's complaint, the company placed ads in the New England Journal of Medicine and the Physicians' Travel and Meeting Guide in order to lure physicians.


The company told respondents to the ad that it would use the investment money to expand its operations, according to the SEC. However, 62 percent of the investment money went to pay telemarketers and the company's principals, and 92 percent of all Web Hosting Headquarters' revenues come from sales of securities rather than business revenues, the SEC said.


Web Hosting Headquarters collected $2.5 million from 132 investors in 38 states prior to the date that the judge's order was issued, according to the SEC.


A telephone number listed for Web Hosting Headquarters in Miami was disconnected.
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 Agency

Are You Really Ready for Customer Experience?

Are You Really Ready for Customer Experience?

Marketers can talk a good game about customer centricity, but actions speak louder than words.

Essentials in Content Marketing: Think like a best-selling author

Essentials in Content Marketing: Think like a best-selling ...

Imagine if all the electronic content thrown your way daily was actually printed on paper. To stand out from those piles of worthless pixels, you must offer your audiences intriguing ...

The Mobile-Email Marriage

The Mobile-Email Marriage

Marketers who considered leaving email at the altar are finding renewed passion for the channel as an ever-increasing number of customers triage, read, and click-through email on their smartphones.