FTC Slams DR Marketer for $155M
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.