The Federal Trade Commission has filed a complaint against the Tax Club, an organization that claims to help people start successful businesses. Offering a package of consulting services and advice, The Tax Club was actually a web of more than 60 companies and legal entities with a single purpose: to defraud entrepreneurs.
The Tax Club website is very professional and purports to show many happy clients, and its executives have been interviewed on television. But according to the FTC, this was all just window dressing.
Using a combination of online marketing and telemarketing, salespeople would probe potential customers for financial information to determine how much they could pay for the services and try to extract that money from them. In some cases, the sales representatives offered to speak to the customer’s bank to increase their credit limit. Maranda James lost over $10,000 in “services” that turned out to be worthless or were never delivered. The FTC investigated after recieving more than 600 complaints regarding the Tax Club.
Read the full article at Bloomberg Businessweek.
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