Monday, July 27, 2009

Court Halts Operators’ Deceptive Pitches for Grant Writing Book and Services

At the request of the Federal Trade Commission and three state Attorneys General, a U.S. district court judge has stopped an operation from falsely claiming that it could help consumers secure a "$25,000 Grant" -- guaranteed -- from the U.S. government. The case is the latest in a Commission crackdown on scammers trying to capitalize on the economic downturn by targeting people facing financial hardship. The FTC is working with federal and state law enforcement agencies nationwide to bring such actions.

In a complaint filed this week, the FTC, jointly with the Attorneys General of Kansas, Minnesota, and North Carolina, charged that Grant Writers Institute, LLC and its related entities ( together, GWI ) falsely told consumers that they were eligible for grants as part of the recently announced economic stimulus package. The complaint alleged that the defendants' false and deceptive claims violate federal law, state consumer protection laws, and the FTC's Telemarketing Sales Rule. The complaint seeks a court order permanently stopping the defendants' illegal conduct and forcing them to return money to consumers injured by the scheme.

"Stamping out grant fraud and other types of schemes that take advantage of consumers in dire financial shape continues to be one of the Federal Trade Commission's highest priorities," said David Vladeck, Director of the Bureau of Consumer Protection. "There is no such thing as a guaranteed grant. But to consumers in financial trouble, the chance for extra income – guaranteed or otherwise – can unfortunately be a huge draw."

According to the FTC, since at least 2007, GWI has mass mailed postcards to consumers across the country falsely claiming that the consumers "are Guaranteed a $25,000 Grant from the U.S. Government." Consumers who call the number are pitched a $59 book titled "Professional Grant Writer ‘The Definitive Guide to Grant Writing Success.'" The company's telemarketers falsely claim that the book will explain how to get government grants -- including the "guaranteed" $25,000 grant. GWI and its North Carolina-based telemarketers, also named as defendants in the complaint, then call consumers who have bought the book, trying to get them to pay hundreds of dollars or more for grant research, writing, or coaching services, falsely claiming a 70 percent success rate in securing grant funding. In reality, few, if any consumers ever receive any grant money.

The Commission contends that in addition to falsely claiming consumers were "guaranteed" to receive grants, GWI used the current government stimulus package to make its pitch. For example, when consumers called the number on the mass-mailed postcard, they heard a recording that said, "If you've been reading the papers you know that recently our government released $700 billion into the private sector. What you probably don't know is that there is another $300 billion that must be given away this year to people just like you." The recording continues, "And if you're one of the lucky few who knows how to find and apply for these grants, you will receive a check for $25,000 or more, and we guarantee it . . . If you don't get a check for $25,000 or more, you pay nothing."

The Commission vote to issue the complaint – jointly with the Attorneys General of Kansas, Minnesota, and North Carolina regarding the alleged telemarketing violations – was 4-0. The complaint contains additional charges and remedies to address state-specific violations.
It was filed on July 20, 2009, in the U.S. District Court for the District of Kansas, and the court granted the Commission's request for a temporary restraining order on July 22, 2009. The FTC thanks the state Attorneys General for their substantial contribution to investigating and filing this complaint.

The complaint announced today was filed against the following defendants: 1 ) Affiliate Strategies, Inc.; 2 ) Landmark Publishing Group, LLC ( d/b/a G.F. Institute and Grant Funding Institute ); 3 ) Grant Writers Institute, LLC; 4 ) Answer Customers, LLC; 5 ) Apex Holdings International, LLC; 6 ) Brett Blackman, individually and as an officer, manager, and/or member of Affiliate Strategies, Inc., Landmark Publishing Group, LLC, Grant Writers Institute, LLC, Answer Customers, LLC, and Apex Holdings International, LLC; 7 ) Jordan Sevy, individually and as a manager of Landmark Publishing Group, LLC; 8 ) James Rulison, individually and as president of Answer Customers, LLC, all located in Kansas.

In addition, the complaint names the following North Carolina entities as defendants: 1 ) Real Estate Buyers Financial Network LLC ( d/b/a Grant Writers Research Network ); 2 ) Martin Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC; and 3 ) Alicia Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC.

The Commission recently announced several other grant fraud cases as part of the "Operation Short Change" law enforcement sweep targeting economic stimulus frauds. More information about these cases can be found at: http://www.ftc.gov/opa/2009/07/shortchange.shtm.

15 comments:

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Jack Parsley said...

It's a relief to see the court take action against deceptive pitches for grant writing books and services. This decision protects many from being misled and ensures only reputable offerings remain. For those seeking genuine assistance, reputable ghostwriting services can provide high-quality, trustworthy support for creating grant proposals and other essential documents.






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Salman Muhammad Yousuf said...

As a marketing strategist, I find it troubling when deceptive practices like these undermine trust in legitimate services. Transparency is crucial, especially in industries offering support like grant writing. This ruling is a necessary step toward protecting consumers and restoring integrity in the marketplace.

Liam said...

The recent court action against deceptive grant schemes is an important step in protecting consumers from misleading promises, especially during times of financial hardship. False guarantees like a “$25,000 grant” not only exploit vulnerable individuals but also damage trust in legitimate services. Strong collaboration between the FTC and state authorities shows how serious this issue has become.

In any industry, honesty and transparency should always come first. Whether it’s financial services or local businesses like Roof Cleaning tucson az, customers deserve clear information and realistic expectations. Building trust takes time, but misleading claims can destroy it instantly.

This case is a reminder for consumers to stay cautious, verify claims, and work only with reputable providers. At the same time, it encourages businesses to maintain ethical practices and focus on delivering genuine value rather than making unrealistic promises to attract customers.

Aiden said...

The recent action by the Federal Trade Commission highlights the growing concern over scams that target individuals facing financial hardship. Fraudulent claims about guaranteed government grants can mislead vulnerable people who are already searching for stability and support. In difficult times, many families look for legitimate assistance options such as community programs, financial guidance, or even searching online for services like foster care near me to find reliable support systems for loved ones. Unfortunately, scammers exploit this urgency and hope by offering unrealistic promises.

This enforcement effort sends a strong message that deceptive practices will not be tolerated, and consumer protection remains a top priority. It is important for individuals to verify any grant or assistance program through official government sources before sharing personal information or paying fees. Awareness and education play a key role in preventing fraud, helping families focus on trustworthy services and legitimate opportunities that truly support their needs and long-term well-being.

Parkle said...

The action taken by authorities against misleading grant schemes highlights the importance of transparency and trust in every industry. False promises, especially those targeting individuals in financial distress, can cause serious harm and erode public confidence. At Enviro Hospitality Solutions, we strongly believe that honesty and compliance should always come first when serving clients. Whether it’s providing health and safety services or supplying essential hygiene products like Alcohol Swabs, our goal is to deliver exactly what we promise nothing more, nothing less.

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Alice said...

This is an important and timely action taken by authorities to protect consumers from misleading and deceptive schemes. Situations like these highlight how vulnerable people can be when they are facing financial difficulties, and how easily scammers try to take advantage of that. The idea of a “guaranteed grant” is clearly misleading, and it’s reassuring to see organizations like the FTC stepping in to stop such practices and hold offenders accountable.

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Awareness and education are key in preventing fraud. This case serves as a reminder for everyone to verify claims carefully and rely only on trusted sources when making decisions that affect their finances and well-being.

James said...

This case highlights how important it is for consumers to stay aware and cautious when dealing with offers that sound too good to be true. The idea of a “guaranteed grant” clearly shows how scammers take advantage of people during difficult financial times. It’s encouraging to see authorities like the FTC taking action to stop deceptive practices and protect the public from financial harm. Transparency, honesty, and realistic expectations should always be the foundation of any service offered to customers.

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Jason Jack said...

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Julia Anna said...

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Aiden said...
This comment has been removed by the author.
Aiden said...

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Jule Lana said...

Copyright law and copyright information are essential for protecting original work, ensuring creators receive proper recognition and legal security for their ideas. Understanding these rules helps maintain fairness and respect in professional environments. Similarly, electrical safety inspections play a crucial role in maintaining safe systems and preventing hazards. Just as copyright laws protect intellectual property, regular safety inspections protect people, equipment, and workplaces from potential electrical risks and failures.

Kathy Flow said...

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