At-home work firms accused of fraud
By Michael Gormley, Associated Press, 4/12/2003 13:13
ALBANY, N.Y. (AP) State Attorney General Eliot Spitzer is suing two work-at-home operations that promised people they could earn thousands of dollars doing simple secretarial tasks.
Spitzer said more than 70 consumers statewide complained about the firms that placed classified ads in weekly newspapers and pennysavers seeking workers with the promise of big pay checks to stuff envelopes and fill out forms.
He filed the lawsuit Friday in state Supreme Court in Albany.
Spitzer spokesman Darren Dopp said the practice appears to be widespread among work-at-home companies because of the large number of complaints. No charges were made against the firms' owners.
''Work-at-home schemes are attractive to many people in all walks of life, including homemakers, senior citizens and persons with disabilities,'' Spitzer said. ''It is imperative that consumers investigate a company before making any commitments. In many cases, these appeals involve substantial upfront costs and little or no return.''
Spitzer accuses Magnum Marketing and Promotions, based in Syracuse, of falsely claiming in newspaper ads that it would pay $500 to $3,000 a week for stuffing envelopes at home. Spitzer said people complained to his office that they had to pay a $40 enrollment fee and, instead of receiving envelopes, were sent instructions on how to place classified ads to recruit more participants.
The owner, Frank Russo Jr. of Rome, declined comment through a spokesman, John Leonard.
The other firm accused of civil charges of fraud, false advertising and deceptive business practices is National Marketing Network, based in Rome, Oneida County. Spitzer accuses the firm of placing newspaper ads nationwide promising pay up to $2,000 a week for filling out insurance firms. An upfront fee of $38 to $50 was charged and forms of potential contacts were sent, but contained inaccurate and useless information, according to Spitzer.
Attempts to reach the president, Robert Bruno Castellini, at either National Marketing Network or the parent firm Castellini and Associates were unsuccessful. Castellini had an unpublished home phone number.
None of the consumers who complained to the state earned the advertised income, Spitzer said.
Attorney general's consumer line 800-771-7755.
On the Net: oag.state.ny.us |
