FTC: Credit Card Scam Stole Millions

Share this content:
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.


close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

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