The Federal Trade Commission has filed suit to halt the illegal operations of several telemarketing boiler rooms in Montreal, Canada. The agency alleged that the telemarketers bilked thousands of small- and medium-sized U.S. businesses and non-profits, including churches, schools, and charities, out of millions of dollars by deceiving them into paying for listings they never ordered in worthless business directories.
The FTC lawsuits, filed in federal court in Illinois, are part of a joint initiative with Canadian law enforcement authorities called 'Operation Mirage' that is aimed at cracking down on business directory scams. The FTC charged that the three telemarketing operations targeted businesses and other organizations with schemes to mislead them into paying hundreds of dollars each for unwanted business directory listings. The court has issued temporary restraining orders in the three cases.
In their phone calls to businesses and non-profits, the telemarketers often have posed as well-known local 'yellow pages' directories, and have told employees who answer the phone that they are calling to verify addresses and telephone numbers, the FTC's complaints stated. The telemarketers then used the 'verifications' as the basis to claim that these organizations agreed to listings that often cost $400 or more.
The FTC alleged that the companies then sent their victims invoices that again often imply that they are well-known yellow-pages companies. Many businesses and organizations simply paid these invoices. Those that did not were harassed with threatening phone calls and letters. To hide their location, the companies have used mailing addresses around the United States, in Miami; Phoenix; Plattsburgh, New York; Port Barre, Louisiana; Russell, Illinois; Milwaukee, Wisconsin; and Jersey City, New Jersey, the FTC alleged.
The complaints were filed against Reed Publishing, National Yellow Pages Online LLC, Integration Media Inc., doing business as GoAm Media, and others as well as their operators.
The Commission is seeking permanent injunctions that would force the defendants to give up their ill-gotten gains so that those funds can be used for consumer redress.
On a side note, last year GoAm Media wrote to us and threatened to sue 800Notes.com for the posts published at 866-697-0539 & 888-401-3843 stating that "...the statements made in the Blog asserting that the GOAM MEDIA is a 'scam' constitute defamation against the Company.GOAM MEDIA is legitimately formed and engaged in the lawful business of selling advertisements in business directories and is in good standing with all authorities."
