Eusonic Hair Dryers Recalled
Name of Product: Eusonic Hair Dryers
Units: About 4,000 (14,000 hair dryers were sold in Mexico)
Importer: Saroj International Inc., of Vernon, Calif.
Hazard: The electric hair dryer’s power cord does not have an immersion protection plug. Therefore, if the hair dryer falls into water during use, it can pose a shock and/or electrocution hazard.
Incidents/Injuries: None reported. Read more
FDA Announces Convictions in Illegal Blood Diversion Scheme
The U.S. Food and Drug Administration's (FDA) Office of Criminal Investigation (OCI) today announced that Martin J. Bradley III and Martin J. Bradley, Jr., officers of Bio-Med Plus, a Florida pharmaceutical wholesale distributor, were convicted on March 29, 2006, of more than two hundred and forty-seven criminal counts as the result of an extensive OCI investigation of an illegal medical products diversion scheme which defrauded the Medicaid and Medicare programs of more than $45,000,000. The criminal counts on which the Bradleys were convicted included wire fraud, money laundering, conspiracy, and racketeering. Albert Tellechea, president of Infustat Inc., was also convicted of conspiracy to commit wire fraud and for paying kickbacks to health care providers. Read more
SEC Charges Entertainment Promoter Jack Utsick and others
The Securities and Exchange Commission today announced that it filed a civil injunctive action in the United States District Court for the Southern District of Florida charging Worldwide Entertainment, Inc. and Entertainment Group Fund, Inc. and their principal John P. (Jack) Utsick, and American Enterprises, Inc. and Entertainment Funds, Inc. and their principals Robert Yeager and Donna Yeager, in connection with a fraudulent offering that raised over $300 million from over 3,300 investors nationwide.
The Commission also requested the appointment of a receiver over all four corporate defendants. Simultaneously with the complaint, the Commission filed consents executed by all the defendants, with proposed judgments. Defendants, without admitting or denying the allegations of the complaint, consented to the entry of a permanent injunction, an asset freeze, repatriation order, repayment of amounts they received, and penalties. Read more
SEC Brings Settled Charges Against Tyco
The U.S. Securities and Exchange Commission today filed a settled civil injunctive action in the United States District Court for the Southern District of New York against Tyco International Ltd. The Commission's complaint in that action alleges that, from 1996 through 2002, Tyco violated the federal securities laws by, among other things, utilizing various improper accounting practices and a scheme involving transactions with no economic substance to overstate its reported financial results by at least one billion dollars.
"This enforcement action shows that, in addition to looting the company, Tyco's Kozlowski-era management lied about the company's financial results," said Linda Chatman Thomsen, the SEC's Director of Enforcement. "Tyco benefited from this fraud, as the penalty in this case reflects." Read more
FTC Bans Repeat Offender from Telemarketing
April 18, 2006 by Bill
Filed under Scams & Frauds
Scammers Sold Bogus Bartender and Mystery Shopper Certification Programs
Two companies and their owner, who were charged with selling bogus bartender and mystery shopper certification programs, have now been banned for life from telemarketing. The owner also will pay $115,000 and turn over his Porsche convertible to settle the Federal Trade Commission’s charges. The owner, Stevan P. Todorovic, is a repeat-offender who also is under a court order from October 2001, following FTC charges that he deceptively sold auction information guides.
According to the FTC, the defendants placed “help wanted” ads in local newspapers seeking bartender trainees and mystery shoppers. When job-seekers responded to the advertisements, the defendants’ telemarketers represented that positions were available, but only for those consumers who had been “certified” by defendants as bartenders or mystery shoppers. The defendants led consumers to believe that upon being “certified,” they would receive concrete information on available job openings. Yet after charging consumers between $58.90 and $98.90 for their at-home certification programs, the defendants provided consumers with only general lists of potential employers that are available elsewhere at no cost. The listed employers often had never heard of the defendants and attached no significance whatsoever to their “certifications.”
In the previous case, the FTC had accused Todorovic of running a similar scheme. In that case, the FTC maintained that he had deceptively telemarketed auction guides, promising consumers unique information on what would be available at specific auctions, but delivering only general information on local auction houses, comparable to what consumers could find in the Yellow Pages. The order in the earlier case banned him from selling auction guides and also prohibited the deceptive practices alleged in the FTC’s complaint.
In addition to Todorovic, the order announced today also applies to American Bartending Institute, Inc. and Intuitive Logic, Inc., the corporations through which Todorovic operated his latest schemes. On November 18, 2005, the federal court hearing the case granted the FTC’s request for a preliminary injunction, banning the defendants from doing any telemarketing while the case was pending. The order announced today makes that telemarketing ban permanent. The remaining defendant in the case, Michael G. Harvey, previously settled the FTC’s charges. The final order against Harvey also includes a lifetime telemarketing ban.
In addition to the ban on telemarketing, Todorovic and his companies are prohibited from misrepresenting any material fact about any product they may sell. The order also prohibits each of the deceptive practices challenged by the FTC, including: billing consumers without authorization or in amounts greater than authorized, failing to disclose fully their refund conditions and shipping and handling fees, making false earnings claims, and “upselling”
third-party products to consumers without identifying the seller or that the purpose of the conversation is to make a sale.
The order also includes a $6,192,612 suspended judgment against the defendants. If they misrepresented their financial status, or Todorovic fails to pay the portion of the judgment that was not suspended, then the defendants will be responsible for the full amount.
The FTC received invaluable assistance in this matter from the Better Business Bureau (BBB) of the Tri-Counties, the BBB of the Southland, and the Santa Barbara Police Department.
The Commission vote to authorize staff to file the stipulated final order was 5-0. The stipulated final order for permanent injunction was filed in the U.S. District Court for the Central District of California on April 14, 2006.
Two Spam Merchants Settle FTC Spamming Charges
April 18, 2006 by Bill
Filed under Scams & Frauds
Two spam merchants who hijacked consumers’ computers and turned them into spamming machines have agreed to settle Federal Trade Commission charges that they sent illegal e-mails hawking mortgage opportunities, a device for improving gas mileage, and other products and services.
The settlement follows last year’s cross-border crackdown on “button pushers” who triggered millions of unwanted e-mails to people across the nation while concealing the real sender. Working with U.S. Attorneys, the FBI, the U.S. Postal Inspection Service, Canadian consumer protection officials, and three state attorneys general, the FTC filed charges against numerous defendants for sending spam with false “from” information and misleading subject lines, and for failing to provide an “opt-out” option or a physical address. Read more
Blackstone Medical Recalls ICON Modular Fixation System
On December 27, 2005 Blackstone Medical, Inc. informed the FDA of a voluntary recall of its ICON™ Modular Fixation System. A notice was sent the same day to distributors and surgeons implanting the ICON™ Modular Fixation System. The product has been marketed since June, 2005. Components in the system may fail after the devices have been implanted. Read more
Boca Medical Products Issues Nationwide Recall of Insulin Syringe Product
Boca Medical Products, Inc., of Coral Springs, Florida is initiating a recall of 3984 boxes of Ultilet Insulin Syringe 30g 1/2cc product lot number 5GEXI as displayed on the inner case. The product is being recalled because of possible bacterial presence of Bacillus Cereus and Staphylococcus Intermedius. This present a risk of local infection due to soft tissue injection with a contaminated syringe as well a risk of introduction of contaminating organism into previously sterile vial. The introduced contamination may degrade the insulin, which could lead to problems maintaining insulin levels. Boca Medical continues to evaluate possible risks.
Consumers who have Ultilet Syringe Insulin product lot 5GEXI, should stop usage and return the specific product. Wholesalers should stop retail and return the product lot. Send the product to Boca Medical Products Inc, 3550 NW 126 th Ave, Corals Springs, FL 33065. Attention: Recall Contact. For any question related to the case consumers should call 1-800-354-8460.
The recall include the following product:
Product Description – Ultilet Insulin Syringe 30g ½ cc
Lot – 5GEXI
NDC # – 08326-3002-50
A single complaint and a reported event prompted a Company investigation, which is on going. The compliant stated that when the syringe was used, the color of the insulin solution entering the syringe chamber changed. The firm decision to recall the product lot is voluntary. The firm has placed all inventory of the product on hold. FDA has been apprised of this action.
No serious injury has been reported. No other lot is included on this Recall. Read more
Nordstrom Recalls Egg-Shaped Candle Holders
Name of Product: Egg-Shaped Candle Holders
Units: About 5,300
Importer: Nordstrom, Inc., of Seattle, Wash.
Hazard: The candle holder is constructed of plastic and could ignite if exposed to flame, posing a fire hazard to consumers.
Incidents/Injuries: Nordstrom has received one reported incident involving the holder igniting. Minimal smoke damage occurred. No injuries have been reported. Read more
Colorado Custom Hardware Recalls Mountain Climbing Camming Anchor
Name of Product: Camming Anchor (used in climbing)
Units: About 4,100
Manufacturer: Colorado Custom Hardware (CCH) Inc., of Laramie, Wyo.
Hazard: The cables that support climbers using these devices can fail, causing climbers to fall.
Incidents/Injuries: CCH Inc. has received one report of an anchor cable failing a climber during use. Read more