FTC and New York and Florida Attorneys General Amend Complaint Against The Tax Club, Charged with Bilking Consumers Trying to Launch Home-Based Businesses

For Your Information

The Federal Trade Commission has amended a complaint against The Tax Club defendants, who in January 2013 were charged by the FTC and the New York and Florida Attorneys General with deceiving consumers who believed the defendants’ services would help their home-based businesses succeed.  A federal court subsequently issued a stipulated preliminary injunction order that requires the defendants to stop the deceptive practices alleged in the complaint during the pendency of the litigation.

The amended complaint bolsters the agencies’ allegations that the corporate defendants operated as a common enterprise, and that the individual defendants are liable for corporate conduct.

The Commission vote authorizing staff to file the amended complaint was 4-0.  It was filed in the U.S. District Court for the Southern District of New York on April 8, 2013.

NOTE:  The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest.  The complaint is not a finding or ruling that the defendants have actually violated the law.  The case will be decided by the court.

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.

Contact Information

MEDIA CONTACT:
Frank Dorman
Office of Public Affairs

202-326-2674
STAFF CONTACT:
Darren Lubetzky,
FTCs Northeast Region
212-607-2808

Ann Weintraub,
FTCs Northeast Region
212-607 -2815

Savvas Diacosavvas,
FTCs Northeast Region
212-607 -2809