Banned for life. hahahahahaha
September 9, 1998
U.S. Fraud Case Ends in Lifetime Internet-Commerce Ban
By JERI CLAUSING
ASHINGTON -- In its continuing battle against Internet fraud, the Federal Trade Commission on Tuesday won an agreement barring a Florida man from engaging in Internet commerce for life as settlement of charges he collected thousands of dollars from people in online auction houses for computers he never delivered.
Christine Thompson / CyberTimes
The case was the commission's first to result in a settlement for a lifetime ban from advertising, marketing or selling goods or services via the Internet. It was also the first involving the increasingly popular online auction houses.
"We've often won bans or limited bans in other kinds of fraud situations, but not one that is this comprehensive," said Jodie Bernstein, director of the FTC's Bureau of Consumer Protection.
Bernstein said the goal was to get fraud artists off the global network as quickly as possible. She said she anticipated seeking more tough orders "wherever we think the facts will justify it." She added: "I think there is a general view among the commission ... to seek more effective remedies for Internet violations, and fraud in general."
Tuesday's agreement, which must still be approved by a federal court in West Palm Beach, Fla., would settle charges the FTC first filed in April against Craig Lee Hare, who operated out of Lake Worth, Fla. Such a settlement, called a consent judgment, does not constitute an admission by the defendants of a law violation.
The FTC, acting on tips from angry consumers and law enforcement officials, accused Hare of collecting money for the computers that were never delivered. Elizabeth Hone, who investigated the case, said Hare collected $20,000 to $30,000 from at least 25 people, but never delivered the merchandise.
The defendant, also known as Danny Hare, used a number of aliases and different company names, including Experienced Designed Computers and C&H Computer Services, according to Hone. No telephone listings could be found for Hare or those companies in the Lake Worth area on Tuesday.
The FTC won a temporary restraining order and seized Hare's assets, pending trial. The settlement announced Tuesday would allow the FTC to make restitution to victims with Hare's assets, and would permanently bar him from participating in any online commerce. It also would bar him from misrepresenting his identity in commercial e-mail and misrepresenting any fact that is material to a consumer's decision to buy any goods or services in any form of commerce. It also would give the FTC power to review personal financial records to monitor his compliance with the order.
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Stephanie J. Herter, also known as Stephanie Branham, also agreed to a settlement. She was named as a defendant because checks Hare received from consumers were deposited in her checking account. In settlement of the charges against her, Herter will release Hare's funds for consumer redress.
Although the case by the FTC was the first involving online auction houses, "it's not an isolated problem," according to Hone, who said there are a "plethora" of auction Web sites where people can barter with each other to buy and sell merchandise.
And it is just one of 38 law enforcement actions the consumer protection agency has filed against people accused of running Internet scams. Several of those cases involved deceptive advertising and billing practices of commercial online service providers. Most, however, have involved old-fashioned scams like pyramid schemes, sweepstakes and get-rich-quick offers.
In its effort to police the Internet, the FTC has also done several sweeps in which investigators search for questionable offers, then alert the online vendors that they are being watched and could face criminal charges.
"We have had an ever-escalating presence on the Internet," Bernstein said. "My goal is to keep the Internet free of fraud."
As part of that continuing effort, Bernstein said the FTC has just completed a new booklet called "Rules of the Road," which lays out in simple terms what the laws are for people wanting to advertise or sell on the Internet. It will be available soon on the FTC Web site.
As for consumers, Bernstein said the best way for them to protect themselves online is to know the person or company they are dealing with, and to use a credit card when making purchases so payment can be halted if there is a dispute.
nytimes.com
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