Markets Wired

The architect of an operation that allegedly distributed illegal robocalls offering credit card interest rate reduction programs, extended automobile warranties, and home security systems, is banned from telemarketing under a settlement with the Federal Trade Commission.

The FTC settlement against Roy M. Cox, Jr., is part of the FTC’s ongoing efforts to stop illegal robocalls.  In December 2011, the FTC charged Cox and several related companies with illegally failing to transmit their name or their clients’ names on consumers’ caller ID displays when making their telemarketing calls, using generic names instead, such as “CARD SERVICES,” “CREDIT SERVICES,” or “PRIVATE OFFICE.”  The FTC also alleged that they knew, or consciously avoided knowing, that they called phone numbers on the National Do Not Call Registry, and made pre-recorded sales calls to consumers without their written consent.
           
The settlement order bans Cox from telemarketing and imposes a $1.1 million civil penalty that will be suspended due to his inability to pay.  The full penalty will become due immediately if he is found to have misrepresented his financial condition.  The FTC and DOJ have asked the court to dismiss five of Cox’s co-defendants who could not be served or are defunct – Castle Rock Capital Management S.A., Capital Solutions Group S.A., Transfers Argentina S.A., Public Service, and Marketing Strategy Group – and will seek to have default entered against a sixth defendant.

The Commission vote to approve the proposed consent judgment was 3-0-2, with Commissioners Ohlhausen and Wright not participating.  The Department of Justice filed the proposed consent judgment on behalf of the Commission in the U.S. District Court for the Central District of California.  The Court entered the consent judgment on January 31, 2013.
           
NOTE:  This consent judgment is for settlement purposes only and does not constitute an admission by the defendant that the law has been violated.  Consent judgments have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.