FTC Settles With Brothers on Fraud Charge

Share this content:
Two brothers accused of running a "massive" telemarketing fraud operation agreed yesterday to a permanent ban from telemarketing and a $525,000 judgment, the Federal Trade Commission said.


Harvey and Tye Sloniker, operating "contract rooms" staffed by telemarketing agents in Arizona, sold "nonexistent" advance-fee credit cards and bogus identity-theft and telemarketing-fraud protection services, the FTC said. Often working on behalf of third-party client companies, the Slonikers bilked consumers nationwide out of millions of dollars, the FTC charged.


The brothers engaged in numerous misrepresentations and "pretexting," the act of obtaining consumer financial information under false pretenses for the purpose of charging their credit cards or debiting their bank accounts without authorization, the FTC said. They operated under numerous business names.


The agreement with the FTC prohibits the Slonikers from misrepresenting to consumers that they already possess their credit card numbers and are simply verifying information, or that consumers must provide a bank account number in order to receive a credit card. If the brothers are found to have misrepresented their financial situation, they will be required to pay a $20 million judgment.


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