Sunday, May 22, 2011

Alberta online firms accused of scamming $450 million

"The U.S. Federal Trade Commission has filed a complaint against an Alberta-based "online operation" that has allegedly bilked customers out of nearly half a billion dollars.
In a statement issued earlier this week, the FTC said the complaint centres on 10 online marketing companies controlled by Jesse Willms, a 23-year-old Alberta man.
The FTC has accused those companies of defrauding customers in the U.S., Canada, the United Kingdom, Australia and New Zealand out of more than US$450 million.
That allegation has not been proven in court, and Willms has not faced any charges.
According to the complaint, which was filed May 16, Willms' companies operate a scam in which customers are offered "free" or "risk-free" trials and are then charged for products or services they never agreed to buy.
The free trials, advertised through spam and pop-up ads, were for items such as acai berry weight-loss pills, teeth whiteners, health supplements, free credit reports, access to government grants and a work-at-home plan."

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