A federal court has banned a group of Miami-based companies and individuals targeting Hispanic consumers with credit card and other offer from telemarketing. The court has also fined them more than $4 million.
This case was brought by the Federal Trade Commission.
The defendants will also have to pay the proceeds from the sale of certain assets, including condominiums and real estate investments, to settle the FTC charges.
Named as defendants were Remote Response Corp.; Alberto Salama, Samuel Salama, Elias Salama and Joseph Bensabat, co-owners of Remote Response and German Espitia, president of Instant Way Corp.
According to the FTC, these defendants bilked more than 30,000 consumers out of more than $4 million, running nationwide advertising on Telemundo, Telefutura, Galavision, and other Spanish-language television networks.
For fees ranging between $138 and $200, the defendants promised consumers a pre-approved, guaranteed Amerikash Mastercard and a number of incentive items, including free ATM cards, phone cards, and vacation vouchers, the FTC alleged.
The defendants’ telemarketers also offered a free-trial membership in the Amerikhealth discount health plan, which consumers had to cancel before the free-trial period expired to avoid monthly charges, according to the FTC.
In many instances, consumers never received a MasterCard, received only some or none of the free items defendants offered and that the items consumers received often did not work, charged the FTC.
In connection with the Amerikhealth discount health plan, the defendants misrepresented the free-trial offer by failing to provide consumers with a free-trial period at all or by thwarting consumers’ efforts to cancel during the free-trial period, according to the FTC.
The FTC further alleged that the defendants improperly charged consumers’ credit cards or bank accounts for the discount health plan, did not obtain consumers’ express verifiable authorization for the charges, and continued to charge consumers on a recurring basis without their written authorization.
The U.S. District Court for the Southern District of Florida entered stipulated final orders that ban Remote; the Salamas and Joseph Bensabat, co-owners of this company; and Espitia, president of Instant Way — from telemarketing and from ever selling credit, debit, stored value, ATM or phone cards, travel or gas vouchers, vacation package discounts, or health discount plans.
The Court previously entered an order of default judgment and permanent injunction against Instant Way. on Aug. 2, according to the FTC.
Specifically, the orders also enter $4,164,558 judgments — the total amount of consumer injury — against each defendant. The judgments were partially suspended against Remote and the Salamas based on their financial condition and their agreement to turn over funds frozen by the Court and the proceeds from the sale of three condominiums and from their interests in several real estate development limited liability companies, said the FTC.
The judgment was partially suspended against Espitia based on his financial condition and his agreement to turn over funds frozen by the Court and the proceeds from the sale of two condominiums.
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