STOP Tom with Home Protection (Home Security Alarms)

Announced today 3/12/14:

http://www.ftc.gov/news-events/press-releases ... called-millions

FTC Reaches Settlement With Home Security Company that Called Millions of Consumers on the National Do Not Call Registry

The Federal Trade Commission, with the assistance of the U.S. Department of Justice, has settled a complaint against a Massachusetts-based home security company that illegally called millions of consumers on the FTC’s National Do Not Call (DNC) Registry to pitch home security systems.

According to the FTC, Versatile Marketing Solutions (VMS), under the guidance of its owner, Jasjit Gotra, called millions of consumers whose names and phone numbers VMS bought from lead generators. The lead generators claimed that those consumers had given VMS permission to contact them about the installation of a free home security system, but in reality, they had not. In its complaint, the FTC alleges that the defendants’ tactics violated the Commission’s Telemarketing Sales Rule.

The sales leads were obtained by illegal means through rampant use of robocalls from “Tom with Home Protection,” fake survey calls, and calls to phone numbers on the National Do Not Call Registry. According to the complaint, VMS subsequently called these consumers without first checking to see if they had registered their telephone numbers on the DNC Registry.

In addition, the complaint alleges that VMS ignored warning signs that the lead generators were engaged in illegal telemarketing practices. For example, many consumers contacted by VMS complained that they had not given the company permission to call, nor had they given permission to receive a robocall. Despite mounting complaints, VMS continued buying leads from the same lead generators, and calling consumers using those leads.

“Companies that use lead generators must exercise due diligence when they buy lists of phone numbers,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection, “or else they can be on the hook for illegal telemarketing. Relying on a say-so that the numbers were obtained legally, or that the consumers have agreed to be called, even if their numbers are on the Do Not Call Registry, isn’t enough.”    

According to the complaint, between November 2011 and July 2012, VMS made more than two million calls to consumers to try to sell home security goods and services. Of those calls, at least one million were to phone numbers listed on the DNC Registry, and more than 100,000 were to consumers who had previously told VMS not to call them again – another violation of the DNC rules.

The stipulated final court order settling the charges prohibits VMS and Gotra from making abusive telemarketing calls and from calling any consumer whose number is on the DNC Registry, unless they can prove that they have received written permission to make the call or that they have an established business relationship with that consumer. Further, it bars defendants from calling any consumer who has previously told VMS not to call them again. The order also places restrictions on how defendants can obtain and use lead-generated phone numbers in the future.

Finally, the order imposes a $3.4 million penalty judgment against the defendants, with all but $320,700 suspended due to their inability to pay. The entire amount will become due if the defendants are found to have misrepresented their financial condition.

The court settlement announced today resolves the FTC’s complaint against Versatile Marketing Solutions, Inc. also doing business as VMS Alarms, VMS, Alliance Security, and Alliance Home Protection; and its owner, Jasjit Gotra.

The Commission vote authorizing the staff to refer the civil penalty complaint to the Department of Justice, and to approve the proposed consent decree, was 4-0. The DOJ filed the complaint and proposed consent decree on behalf of the Commission in U.S. District Court for the District of Massachusetts on March 10, 2014. The proposed consent decree is subject to court approval.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. Consent judgments have the force of law when signed by a district court judge.

Information for Consumers and Business

The FTC has a new blog post for consumers on the DNC Registry, as well as two consumer education videos explaining robocalls and describing what consumers should do when they receive one. The Commission also has a new blog with business education information. General information on the DNC Registry is also available on the website.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Thanks for catching this and posting it!
It's good news whenever a bad guy gets busted, and this one really needed to get shut down.

I agree with Turnipman on this, always good to see the idiots caught and busted and have to pay !!!

But they "only" have to pay pennies on the dollar of the full sanctioned fine (unless) the gov't finds they have "hidden" assets".
Not much of a real deterrent - they will just pay the fine and set up shop under different name(s), numbers, etc and start doing it again in a few months, rinse/repeat (see "Rachel from card services").

Yes, a look at some company numbers that cover up to 2011 shows that was what they held in the petty cash account. It's great that they were found out and the FTC took action but until you start cutting some heads off these snakes little will change. http://www.sba.gov/sba-100/versatile-marketing-solutions

I just received a call from an automated message offering a home security service. Since my phone number is on the donotcall.gov list I was shocked to get this call. The message said that I needed to be a home owner and that a "friend or neighbor" provided my number, so that therefore it was "not an unsolicited sales call."  Yeah, right. None of my friends would ever provide my number, and I don't know any of my neighbors as I am somewhat new to this neighborhood.

I pressed 1 to get a person and woman who identified herself as a "screener" came on the line and asked for my name. I asked her the name of her company and she said that the company name was "Home Protection Services" and that she had already said that once before (as if I am some idiot). I told her that her company name sounded like a description and not like a brand name, so I was merely getting clarification. She asked for my name so that she could arrange a "proper introduction." I told her that she didn't yet need my name. She then quickly thanked me and hung up the line. The number on my caller ID from them is 231-337-2230 and the name says "McBain MI".

In most cases, the numbers are spoofed. They are making illegal telemarketing calls and do not care if your on the list or not. In all reality, its only a matter of time before you get these calls DNC list or not.  

ROT, don't answer calls you do not recognize, do not press any numbers as all your doing is verifying they have a live number.  They will not remove you from their call lists anyway. I don't even allow them to go to the answering machine. Try to catch on first ring and pick it up and hang it up quickly.

Your best bet is to see about getting a call blocking device or phone. And do report the numbers:

By State DNC lists:
https://800notes.com/faq/state-do-not-call

Federal:
https://www.ftccomplaintassistant.gov/#&panel1-1
https://esupport.fcc.gov/ccmsforms/form1088.action
https://complaints.donotcall.gov/complaint/complaintcheck.aspx?panel=2
http://www.consumerfinance.gov/complaint/
http://www.stopfraud.gov/report.html
http://www.fraud.org/

Actually there are a couple of posts on the number thread-here's the link to it: https://800notes.com/Phone.aspx/1-231-337-2230

Maximum Security Alarms, Inc. of Sacramento, CA, owned by Higgins family, showed up on my credit reports although they never gave out their true name. Apparently the credit reports were run when investigative appointments were attempted to be made to see which local authorized retailer for Monitronics, Inc. and Max Security would show up.  Also got tow ADT authorized retailers to show up for "appointments." The two ADT representatives were caught by surprise when the topics of discussion at the ADT appointments were junk faxes and robocalls by a lead generator who sold the lead to a Newport Beach/Costa Mesa, CA retailer/installer.

   And setting up an "appointment" with a telemarketer using illegal robocalls and junk faxes does NOT constitute consent to the call - the consent must be obtained BEFORE the call is ever initiated, for an illegal call remains illegal. If it were otherwise, number spoofing and using fake alias company names like "Security Systems" would be legitimized.

  The identities of home remodeling contractors,carpet cleaners, and air duct cleaners using illegal telemarketing are also best discovered by setting up an "appointment" -  the look on their faces when they've driven 40+ miles one way to discuss written DNC policies instead of a bathroom remod is Mastercard Priceless!!

For those who have the time and inclination, setting up an "appointment" to learn who "Home Protection Services" actually is will unmask the perps.  And "Home Protection Services" may also leave their "calling card" on your credit report, for they often run it before coming out.

I just spoke with "Security Services", they claim to be out of Tampa, FL.  Previously, they told me that they were called "Home Protection".   Either way, they promised to block my number, then hung up even though I asked to speak to a manager.  

Now, when I call them, I get into a blocked loop where I can't call them either.  So angry at this organization right now.  Wish I had enough information to file a complaint.

See Emmy's posting above.

Another MasterCard Priceless moment yesterday when a SolarMax Technology, Inc. sales rep, driving a late model Audi A6, showed up for the "appointment" only to find the discussion topics were incessant telemarketing and the need to send a written dnc policy in the U.S. Mail. Plus I confirmed SolarMax was actually making all but the initial call - that first one was handled by their lead generator calling on their behalf.

Do you happen to have  any Information about the lead generating company.  I have a pending case against the solar company in small claims court and the more data I have the better .   Thanks

even if the company is shady it's not the installers fault. These are hard working employees who are just doing there job and don't have anything to do with the telemarketing or sales. By setting a false appointment or being an ass to chase of a tech, your not effecting the alarm company just the Tech

Why are you working for crooks who break the law multiple times per day violating the DNC list?