Attorney General Pam Bondi filed a lawsuit on Wednesday against an Oldsmar, Florida, company for allegedly making false claims to potential customers.
Telemarketers representing Federal Verification Co. Inc., which does business under the name GSA Applications, allegedly told small business owners that they were with the U.S. General Services Administration (GSA) or falsely identified themselves as affiliated with the government agency. For a $5,000 to $8,000 upfront fee, they promised the business owners a 5- to 20-year GSA contract within 90 days to six months.
GSA contracts allow businesses to sell products to the government at pre-negotiated rates.
The lawsuit says James Dale Sprecher, owner of Federal Verification Co. Inc., offered his company's services using 60 business names and 50 websites. Bondi's office received more than 200 complaints about the company.
Sprecher and his firm face allegations of multiple violations of the Florida Deceptive and Unfair Trade Practices Acts. The allegations include making false and misleading representations about customers obtaining GSA contracts as well as the minimum revenue they could expect to receive, unfairly collecting advance fees and signing customers up for services with disregard for their circumstances or chances of receiving a GSA contract.