FTC Wins Orders Against ‘Opportunity’ Sellers
The Federal Trade Commission has won several orders against a family run enterprise that allegedly sold bogus business opportunities.
The defendants conned victims into buying healthcare-related business ventures, promising profits of up to $1 million per year, the FTC charged.
The commission won orders against Jeffrey McLain; his sons Alexander and Victor; and several companies. These include Prophet 3H Inc.; Prophet 3H LLC’ Georgia Home Health Care License and Certification Institute Inc.; Healthcare State License and Certification Institute Inc.; and M7 Holdings LC.
All the defendants except Victor McLain are prohibited from making false claims about any food, drug or supplement, the FTC said.
In addition, the FTC won a $26.6 million judgment against Jeffrey McLain, and a $4.9 million one against Alexander McLain. Victor McLain was hit with a $125,900 judgment.
These judgments are suspended based on financial disclosures.
According to the FTC, the defendants presented themselves as “purveyors of a network of healthcare providers that have access to hundreds of millions of dollars in Medicaid funds.”
The offerings were marketed through a Web site, through advertisements, and in live events that drew up to 1,200 people apiece, the FTC continued.
