Court actions end fraud scheme, telemarketing scam

Arizona Attorney General Tom Horne

PHOENIX (CBS5) -

A Phoenix-based business opportunity fraud scheme and a telemarketing scam have been quashed in court action, Attorney General Tom Horne said Thursday. 

Horne announced a court judgment against the business opportunity fraud scheme and one of its operators, and his office has entered into a settlement agreement with a second operator, effectively shutting down the telemarketing scam.

Both judgments found that Allan Farris and Estil Wallace violated the Consumer Fraud Act by misrepresenting the effectiveness of the marketing services and falsely claiming that consumers would realize increased earnings through those services. The online advertising packages sold by the pair ranged in price from $ 500 to $ 40,000.

Full Speed Funding telemarketers called consumers, offering an opportunity to earn money working from home, arranging for the funding of small business loans and/or credit card processing services, Horne said.

Consumers were told that they would earn a commission each time one of their leads made a purchase, Horne said. The pair called consumers who purchased a website a second time and persuaded them to purchase marketing services for their business, according to Horne. Although consumers were told they would receive substantial commissions, they always failed to earn any profit or income as promised.

The state obtained a default judgment against Farris and the two businesses. Farris and Wallace also were ordered to provide restitution to their victims and were assessed a civil penalty.

Copyright 2012 CBS 5 (Meredith Corporation). All rights reserved.

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