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 deliver.”