A U.S. district court has fined Ira N. Rubin, the operator of an allegedly fraudulent telemarketing and credit card payment processing firm, $8.6 million and barred him permanently from engaging in those activities, according to the Federal Trade Commission.
The U.S. District Court in Tampa., FL also settled charges with Kevin Astl, Rubin’s alleged business partner, fining him, prohibiting him from engaging in payment processing, violating the FTC’s Telemarketing Sales Rule (TSR) and preventing him from disclosing customer information, according to the FTC.
The court also imposed a suspended judgment of $5,145,127 against Astl, the Commission noted.
The court also issued default judgments against 22 corporations that Rubin owned or controlled, the FTC said.
Rubin ran Global Marketing Group, an international payment-processing operation that allegedly illegally debited millions of dollars from U.S. consumers’ bank accounts on behalf of numerous telemarketing scams, according to the FTC.
Since at least Jan. 2003, the defendants provided substantial support and assistance to at least nine Canadian telemarketing firms that sold non-existent credit cards to U.S. consumers, the FTC said.
In return for an advance fee of several hundred dollars, which the defendants debited from consumers’ bank accounts on behalf of the telemarketers, consumers expected to receive an unsecured credit card but instead received either nothing or a worthless “benefits package,” the Commission continued.
The FTC alleged that the defendants debited funds from consumers’ bank accounts, deducted their processing fees from the gross proceeds, and forwarded the balance of the proceeds from the deceptive scheme to the telemarketers.
The complaint further alleged that in addition to payment processing, the defendants provided other services to fraudulent telemarketers, including customer service, order fulfillment, and list brokering, according to the FTC.
The Commission filed its original complaint on Dec.11, 2006, alleging violations of the FTC Act and the TSR.
That complaint named Rubin of Tampa, FL, as well as seven corporate entities under his control.
Rubin fled the country in Jan. 2008 after being ordered to appear at a hearing to show cause as to why he should not be held in contempt for, among other acts, according to the FTC.
Rubin remains at large and is believed to be residing in Costa Rica, according to the FTC.
This case is on file at U.S. District Court for the Middle District of Florida in Tampa.
