FTC Slams DR Marketer for $155M

Share this content:
A former direct response radio marketer agreed to pay $155 million last week to settle charges that he lied about his financial condition in order to get a less severe penalty for fraud charges filed against him in December 2002.

The Federal Trade Commission originally charged Harry Siskind, founder of Mark Nutritionals, San Antonio, with making unsubstantiated claims about weight-loss products in DR ads played on 650 radio stations in 110 cities nationwide, selling $199 million worth of products. Siskind settled that charge in fall 2003 for $500,000 based on sworn statements that he had no remaining assets, but the agreement contained an "avalanche clause," requiring him to pay $155 million if he lied.

According to the FTC, Siskind deliberately misrepresented the value of assets worth $600,000 and failed to disclose another $300,000. In May 2004, the FTC asked the U.S. District Court in San Antonio to enact the avalanche clause for the full $155 million.

Siskind has agreed to cooperate in locating and liquidating or transferring his remaining assets to make full payment, the FTC said.


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