A convicted scam artist has agreed to pay $200,000 in consumer redress to settle Federal Trade Commission charges that he and other defendants bilked consumers via the Web.
Nelson Barrero and his partners, Eduardo Gonzales and Illeana M. Morales, ran a fraudulent work-at-home scheme through the Stuffingforcash.com and Cashforstuffin.com Web sites, according to the FTC.
Barrero pled guilty to two counts of wire fraud, and faces up to five years in prison when he is sentenced on Sept. 5, the FTC reported.
The defendants charged $40 for sales letters and pre-stamped, pre-addressed envelopes, claiming that consumers would earn $2 for every envelope they stuffed, according to the FTC. But many victims received nothing, the commission continued.
A federal judge shut down the Web sites, which had been advertised through bulk e-mail, last July, the FTC added.
The settlement also names Stuffingforcash.com Corp., American Publishing Inc., Sound Publications Inc. and Mailmax Inc.
In a separate development, the FTC reported on Tuesday that it had received 15.3 million registrations for its do-not-call registry. However, it apparently is still having technical glitches due to the high volume, and offered tips to consumers on how to use its do-not-call Web site (www.donotcall.gov).
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