Irvine Telemarketing Firm Accused of Bilking Investors : Ventures: The FTC says three companies used false claims about wireless technologies to reap millions from customers.
The Federal Trade Commission charged an Irvine company and two others Thursday with bilking consumers out of millions of dollars by making false investment claims about new wireless technologies.
The alleged schemes are just the latest high-technology twist in what has proved to be the most prevalent type of investment fraud among unscrupulous telemarketers, the agency said.
“Complaints about these investment frauds have increased sharply,” FTC Chairman Robert Pitofsky said. “When offers come through cold telephone calls, you really ought to watch out.”
The agency also issued a warning to those burned in such scams to beware of telemarketers asking for upfront payments to help recover lost investments. The FTC said fraud victims can call the commission’s telemarketing hot line at (800) 876-7060.
In the Irvine case, the agency charged Satellite Broadcasting Corp. and two related companies and individuals with allegedly misleading consumers about investment opportunities in an emerging market. The agency alleged that the company touted an investment in direct broadcast satellite TV programming as a “low risk,” “instant income” venture.
The company could not be reached for comment.
The other two cases involved sales pitches for interests in partnerships that claimed they would obtain valuable airwave licenses and develop highly profitable wireless interactive television systems.
But the FTC alleged that the two telemarketers pocketed most of the money they raised and that investors face a substantial risk of losing most, if not all, of the their investment. The cases alleged that the defendants misled investors about the kind of returns they could expect and the amount of risk they faced.
The companies also allegedly misrepresented or failed to disclose that the partnerships would need millions of dollars in additional capital to build the new wireless networks.
The FTC estimated that consumers have invested close to $25 million in the two alleged schemes, the first federal cases in the emerging area.
The agency filed its charges in one case against Chase McNulty Group Inc. in St. Petersburg, Fla. The company could not be reached for comment.
The other case involved Digital Interactive Associates Inc., which has offices in Denver and Fort Lauderdale, Fla., and Market Logistics Group in Orlando, Fla. An official at Digital Interactive Associates denied the FTC’s allegations.
“We have our own witnesses to call and our own evidence to present and we believe the FTC . . . is wrong,” said Larry Meis, compliance officer at Digital Interactive. “They do not have the evidence.
