A New York-based telemarketing company has reached a multi-million dollar settlement with the State Attorney Generalâ??s Office over what it calls â??hard-tactic telemarketingâ??.
The Tax Club, Inc., operated out of the Empire State Building and targeted consumers nationwide with deceptive business practices and false advertising, Attorney General Eric Schneiderman says.
The settlement agreement will return money to people across the country, including 26 New Yorkers.
â??As a result of this settlement, former Tax Club executives will be giving up a substantial chunk of their personal assets,â?? said Attorney General Eric Schneiderman . â??Before turning over your hard-earned money to telemarketers, itâ??s important to make sure they have a reputation for delivering what they promise.â??
New York victims were found across the state, including Onondaga and St. Lawrence Counties.
The Tax Clubâ??s telemarketing schemes targeted home businesses and promised services which were never delivered.
The suit claims that, after the initial â??hard-tacticâ?? sale, telemarketers would repeatedly contact victims to sell other services they deemed â??essentialâ??, but were never provided. These services usually cost victims upwards of $3,000 or more, along with monthly payments.
The operators of The Tax Club are now banned from selling business coaching services and other work-from-home opportunities, and have been ordered to return $16 million to the victims of their scams, according to Attorney General Eric Schneiderman.
Information about telemarketing fraud and tips to avoid becoming a victim can be found here.