Amerdream/Petromizer--04-04-91

FOR RELEASE:  April 4, 1991

          FTC CITES DECEPTIVE MARKETING OF DIET PRODUCT
                     AND FUEL SAVING DEVICE
             IN CHARGES AGAINST AMERDREAM CORP. AND
                ADVANCED AUTOMOTIVE TECHNOLOGIES

     In a case involving both a diet program and a purported gas-
saving device, the Federal Trade Commission charged in federal
court on Tuesday that Amerdream Corporation and Advanced Auto-
motive Technologies, Inc., as well as principals of both com-
panies, made false and misleading claims in the marketing and
sale of their products.  The court granted a temporary restrain-
ing order against all defendants prohibiting the deceptive
practices late Wednesday afternoon.  The FTC also is seeking a
permanent injunction and funds for consumer redress.
     The products involved in the case are the "Ultimate Solu-
tion Diet Program," and the "PetroMizer," a device purported to
improve gas mileage and reduce emissions.  Named in the FTC
complaint are Amerdream Corporation and Amerdream Securities
Corporation (collectively, "Amerdream"), Advanced Automotive
Technologies, Inc. ("Advanced Automotive"), Frank J. Sarcone,
president of both Amerdream and Advanced Automotive, and Robert
H. Morrison Jr., an officer of Advanced Automotive.

     The court also froze the assets of the corporate defendants
and Frank J. Sarcone.

The Ultimate Solution Diet Program:

     The FTC complaint alleges that, in marketing and selling its
diet program, Amerdream and Sarcone have promised consumers who
tested the program (after paying $230 to $345 each to do so) that
they would receive $1,000 in U.S. Treasury Bonds, and that

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Amerdream/Petromizer--04-04-91)

dissatisfied consumers would receive a full refund.  In fact, the
complaint alleges, Amerdream has failed to deliver any kind of
bond to many consumers, and those consumers who did receive a
bond received only coupon instruments that were neither U.S.
Treasury Bonds nor guaranteed by the U.S. government.  Further-
more, the complaint alleges, Amerdream has not provided refunds
to many consumers who requested them.

     Amerdream also has falsely claimed that a Harvard University
study has shown an ingredient in the Ultimate Solution's "Night
Trim" Diet Tablets is effective for weight loss and for reducing
cholesterol and blood pressure levels, according to the
complaint.

The PetroMizer

     In the same complaint, the FTC alleges that Advanced
Automotive, Sarcone, and Morrison have placed full-page ads for
the PetroMizer in newspapers throughout the country.  The device
sold for $59.95 to $79.95, and has been on the market since at
least September 1990.  According to the complaint, the ads made
numerous false representations, including that:

     -- the device increases gas mileage by more than 28 percent;

     -- the device reduces automobile emissions, including
     eliminating carbon monoxide emissions;

     -- the PetroMizer was developed under a grant from NASA;

     -- the U.S. Army issued an official report on tests of the
     PetroMizer showing its fuel economy benefits; and

     -- the PetroMizer was the "first and only" such device
     "ever" to receive a State of California Air Resources Board
     exemption.

     In addition, the complaint alleges, Advanced Automotive had
no reasonable basis for its mileage-improvement, horsepower and
acceleration-improvement, or emissions-reduction claims.  More-
over, the defendants allegedly failed to disclose that the Cali-
fornia Air Resources Board exemption doesn't state that the
PetroMizer reduces emissions, but merely that the device does not
harm the emissions system of any vehicle in which it is
installed, according to the FTC complaint.

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Amerdream/PetroMizer--04-04-91)

     In its investigation of the claims made for the PetroMizer,
the FTC received information and assistance from law enforcement
agencies in several states that were also looking at the device,
including the Arizona Attorney General's office.  The FTC's
Division of Marketing Practices and its Denver Regional Office
jointly handled the investigation in this case.

     Amerdream has offices in North Miami Beach, Florida and in
Kula, Hawaii.  Advanced Automotive is located in Phoenix,
Arizona.  Both Morrison and Sarcone reside in Arizona.  The case
was filed in U.S. District Court for the District of Arizona, in
Phoenix.

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
defendant has actually violated the law.  The case will be
decided by the court.

     Copies of the complaint are available from the FTC's Public
Reference Branch, Room 130, 6th Street and Pennsylvania Avenue,
N.W., Washington, D.C. 20580; 202-326-2222; TTY 1-866-653-4261.

                              # # #

MEDIA CONTACT:      Bonnie Jansen, Office of Public Affairs
                    202-326-2161

STAFF CONTACT:      Lydia Parnes, Division of Marketing
                    Practices, 202-326-3126

or

                    Claude C. Wilde III, Denver Regional Office
                    1405 Curtis Street, Suite 2900
                    Denver, CO 80202-2393
                    303-844-2271

(Civil Action No. CIV 91-0505 PHX RCB)

(amerdrm)