WASHINGTON (Legal Newsline) — The Federal Trade Commission
(FTC) announced Feb. 21 that Ian Gamberg will settle FTC allegations in an alleged fake prize scheme that tricked consumers
via mail into thinking that they had won $1 million. Gamberg is one of the defendants.
The alleged scheme would ask for $25
as a processing fee. The operation focused its scam efforts on elderly
consumers, the FT said, adding that hundreds of thousands of consumers were targeted.
Gamberg allegedly printed and mailed the promotions. He allegedly did
so under the names Paulson Independent Distributors, International Procurement
Center, Phelps Ingram Distributors and Keller Sloan & Associates.
An $800,000 fine was levied against Gamberg. Most of it will
be suspended once he pays $1,400. The entire amount will become due if the FTC
learns Gamberg misrepresented his financial situation.
The FTC voted 3-0 to approve the stipulated final order,
which was then filed in the U.S. District Court for the Central District of
California. The FTC notes that stipulated orders have the full force of law
when they have been signed by the district court judge.