Update: July 22, 1998
Final Refund Checks Mailed
The contempt citation against Fortuna and Augustine Delgado cleared the way for the final mailing of refund checks this week. This mailing brings to 15, 625 the total number of consumers receiving refunds. The FTC's case against Fortuna returned approximately $5.5 million to investors in the U.S. and 70 foreign countries (see List of Refunds by Countries). The contempt citation could provide an additional $2.2 million in consumer redress that will go to consumers who received partial refunds. There will be no further payments (above the 60% shares) unless we can collect additional monies from defendants. We cannot accept any new refund claims against Fortuna or Fortuna Allaince II.
On June 5, 1998, Federal Judge Walter T. McGovern found Augustine Delgado and Fortuna Alliance in civil contempt. They wilfully failed to make sufficient payments for consumers to receive full refunds. The Court found that the Fortuna's "challenges" to refund claims had made no significant difference in the end result except to substantially harm consumers, who had to wait months for their refunds. The Court also found that defendants had benefitted by their delay because they had use of the funds properly due consumers.
The contempt order prohibits defendants from promoting any marketing or investment program until the $2 million deficiency, plus interest, is paid in full. Any person who promotes a Fortuna or Delgado scheme with knowledge of this prohibition may be subject to contempt proceedings as well.
Update: May 19, 1998
FTC Files Second Contempt Action
On May 8, 1998, the FTC charged Fortuna Alliance, Augustine Delgado, Libby Gustine Welch, and Donald Grant with failing to pay a $2 million deficiency due for consumer refunds. The FTC called the refund claims "challenge" process bogus, noting that out of 4,000 "challenges" by Fortuna, fewer than 100 were even partially substantiated by Fortuna. The FTC has asked the federal court to find the defendants in contempt for failing to pay the deficiency. The court has set a hearing date of June 5, 1998.
Please do not call the Federal Trade Commission about your refund claim. We will post new information here as it becomes available.
For more information, choose from the selections below:
- Press Release - Final Payments
- List of Number and Amount of Refunds, by Country
- Contempt Order
- Compliance Order
- Background on Contempt
- Contempt Action
- Refund Delays
- News Release - Settlement
- Refund Notice
- Stipulated Final Judgment - Applies to Fortuna-Alliance, Augustine Delgado, Libby Gustine Welsh, and Donald Grant.
- Stipulated Final Judgment - Applies to Monique Delgado.
- Original Complaint