The Federal Trade Commission agreed to a settlement with telemarketers it accused of deceptively selling medical billing software to consumers who were promised earnings of $4,800 to $8,000 per month.
Four companies collectively doing business as MediWorks and four individuals – Robert D. Seals, Tate Stringer, Cory Dixon and Corinna Krueger – all posted $150,000 performance bonds as a condition of being able to engage “in any future medical billing, employment, work-at-home, business or investment opportunities,” said the FTC.
The defendants, who operated four “telemarketing rooms” in Sherman Oaks, CA, and Studio City, CA, also agreed to tell consumers in the future the success rates of any business venture they sell.
MediWorks told consumers they could earn money using the software to process medical claims for doctors, the FTC said. The company misrepresented the potential earnings, the ease of signing up doctors and the availability of its money-back guarantee, according to the complaint filed by the FTC, which also said that consumers paid $325 to $369 for the software.