US: Federal Trade Commission acts on identity spam scam
Every few months, the same old spam scams come around. In recent weeks, we have seen the resurgence of the worthless "university diplomas" and the identity document fraud. Now the USA's Federal Trade Commission is trying to do something about it: The U.S. Federal Trade Commission (FTC) is trying to stop Internet-based marketers selling false international drivers' permits (IDPs). The agency announced on January 16 that it has filed court actions against six different companies or individuals attempting to sell worthless documents over the Internet to immigrants and other consumers seeking an alternative to a driver's license issued by state governments, the designated authority under the U.S. system.
Under a U.N. convention, legitimate IDPs are distributed to individuals who have a valid driver's license issued by an authorized government. An IDP is a booklet translating a license into other languages, and has no use unless held with a genuine driver's permit.
FTC alleges that the six marketers tried to sell IDPs as substitutes for permits issued by an authorized government agency and as legitimate identification documents. "They misled people with limited English proficiency and those whose licenses have been revoked about the value and the purpose of the IDP," said J.Howard Beales, director of the FTC's Bureau of Consumer Protection. "And they charged them exorbitant fees."
The marketers charged between $65 and $375 for the documents the FTC describes as "bogus."
The FTC filed the six complaints against the individuals and organizations in U.S. District courts in California, Maryland, Massachusetts, New York and the District of Columbia.
The FTC filed complaints in federal district court against the following defendants:
1) Yad Abraham (Abraham), also known as (a.k.a.) Tim Thorn and Timothy Thorn, individually and doing business as (trading as) Sharpthorn Internet Solutions and Internex, LLC;
2) Jaguar Business Concepts, LP trading as Libertymall.com, Cheyenne Investment Alliance, LLC (Cheyenne), and Jacqueline Demer, individually and as member/manager of Cheyenne;
3) Jordan Maxwell, a.k.a. Russell Pine, individually and doing business as BBCOA, a.k.a. BBC of America, a.k.a. Better Book and Cassette of America, and Vic Varjabedian, a.k.a. Victor Varjabedian, a.k.a. Varouj Varjabedian, individually;
4) William Scott Dion, individually and trading as PT Resource Center and PTRC, a.k.a. Don Glessner;
5) Carlton Press, Inc., Carlton Press, Ltd., and Kim Fleming Bo Weiss; and
6) one or more parties trading as the Institute for International Licensing (IIL), Aladdin Financial Management, University Systems, and Wheelie International Limited.
In each complaint, the Commission alleges that, in violation of the FTC Act, the defendants falsely claim that their IDPs are a legitimate alternative to a state-issued driver's license, and misrepresent that: 1) their IDPs authorize consumers to drive legally in the United States; 2) their IDPs allow consumers to avoid points or traffic violations, as well as sanctions for driving with a suspended or revoked driver's license; and 3) their IDPs can be used in the United States as an identification document in the same ways that a person uses a government-issued photo identification document. The allegations against each defendant are presented below.
Abraham. According to the FTC, the defendants conducted a nationwide scheme to sell worthless IDPs through the drivelegal.com Web site. The defendants contended that the documents met all the conditions of the U.N. Convention and that they could be used to avoid many types of driving sanctions, such as points. The defendants further claimed the IDP would allow users to obtain auto insurance and rent cars -- neither of which was true. Their IDP costs $350, plus shipping and handling.
Libertymall.com. Using the Libertymall.com Web site, the defendants sold supposedly authentic IDPs, claiming they were developed in compliance with the U.N. Convention. Claiming that their documents would enable visitors to become "permanent tourists," the defendants charged consumers $65 per IDP, which the FTC alleges was simply a laminated card. Each card was signed by a purported "Agent" of the so-called International Travel Association.
BBCOA. The FTC alleges that this defendants' IDPs, which they sold over the BBCOA Web site at a cost of $85 each, were nothing more than a laminated card and an IDP booklet that closely resembled a real IDP -- except that they contained a seal of the so-called International Travel Association. In addition to selling supposedly authentic IDPs, the defendants also marketed credit repair services and "debt termination programs," and the FTC's complaint contains additional allegations regarding these activities.
PT Resource Center. Operating since at least 1995, PTRC's Web site contained statements very similar to those found on the LibertyMall.com and BBCOA Web sites. In addition to providing a supposedly real IDP for $65, the defendants went as far as informing consumers exactly what to say if stopped by the police and stressing that "Your IDP . . . [is] perfectly valid if used in a lawful manner. Following these tips will greatly increase your success rate, and minimize contact with 'Big Brother.'"
Carlton Press. Operating since at least October 2000, the defendants used two Web sites to pitch their supposedly real IDPs for $147 each. The booklets they offered were exactly the same as those sold by BBCOA and PTRC.
Institute for International Licensing (IIL). These defendants also sold their permits over two Web sites, pitching them as a way for consumers with poor driving records or revoked or suspended driver's licenses to get around the system. Consumers wishing to buy a permit from their Web site were asked to mail in certain personal information, while those responding to spam messages were instructed to call a recorded line. Either way, the result was the same -- consumers were sent two IDPs, along with a rubber stamp bearing the company's logo and instructions for using the document.
In each matter, the Commission is seeking either temporary and permanent injunctive relief, as well as other relief as deemed appropriate by the court, to prevent current and future violations of the FTC Act.
There follows a sample spam: Received: from catbox.cats-usa.com [209.135.147.186] by skmail1.sksl.com with ESMTP
(SMTPD32-7.07) id A1911DE0150; Fri, 03 Jan 2003 19:16:33 +0000
Received: from smtp0732.mail.yahoo.com (unassigned-reverse.pcnet.ro [213.154.143.40]) by catbox.cats-usa.com with SMTP (Microsoft Exchange Internet Mail Service Version 5.5.2448.0)
id YD65QR83; Thu, 26 Dec 2002 15:05:07 -0600
Date: Thu, 26 Dec 2002 23:04:07 +0200
From: "Perrine Berman"drive@free.org
X-Priority: 3
To: [this was the first of the list of recipients]
CC: [this is a list of recipients]
Subject: Need a new driver's license?
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Message-Id: 200301031916569.SM01084@catbox.cats-usa.com
X-RCPT-TO: [This was our address, illegally harvested from one of our websites. Note the claim at the end of the spam that we had "opted in" - we know this to be a lie.
Status: U
X-UIDL: 333555472
INTERNATIONAL DRIVER'S LICENSE
Need a new driver's license?
Too many points or other trouble?
Want a license that can never be suspended or revoked?
Want ID for nightclubs or hotel check-in?
Legally avoid tickets, fines, and mandatory driver's education.
Protect your privacy, and hide your identity.
The United Nations gave you the privilege to drive freely throughout the world! (Convention on International Road Traffic of September 19, 1949 & World Court Decision, The Hague, Netherlands, January 21, 1958)
Take advantage of your rights. Order a Valid International Driver's License that can never be suspended or revoked.
Confidentiality assured.
CALL NOW!!!
770-492-2927
Call 24 hours a day, 7 days a week, including Sundays and holidays.
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