US Court Freezes Assets of Internet Enterprise IWorks
28 January 2011
The US Federal Trade Commission (FTC) has announced that a federal court has frozen the assets of 61 corporations (collectively known as I Works) and Jeremy Johnson for making more than US$275 million “by luring consumers into deceptive “trial” memberships, and bogus government-grant and money-making schemes”. The defendants allegedly used websites that pitched money-making programs, touted the availability of government grants to pay personal expenses and offered ”free” information at no risk upon consumers providing credit or debit card details. The consumers were allegedly charged a one – time fee of US$129.5 and monthly fees of US$59.95 thereafter. The FTC also alleges that these websites featured false good reviews and testimonials to attract customers.
FTC’s media release (27 January 2011)