WASHINGTON (Legal Newsline) —
The Federal Trade Commission (FTC) announced Dec. 16 that it will mail more
than 20,000 checks totaling about $18 million to the alleged victims of the
Tax Club scheme that targeted people attempting to start home businesses.
The FTC, along with the
states of New York and Florida, had brought charges against the defendants for
purportedly alleging they could help home businesses succeed, yet failing to
deliver any promised services such as business coaching, corporate formation
services and credit development services.
The Tax Club surrendered $15
million in assets after settling the case. On average, the alleged victims of
the scheme will receive $914 in refunds. These people should expect a check in
the mail within 60 days.
“Before you put money into a work-at-home business opportunity, ask
questions to determine if it is legitimate,” said Jessica Rich, director of the FTC’s Bureau of Consumer
Protection, in a statement after the settlement. “We encourage consumers to read our consumer
information to learn how to recognize schemes that promise more than they