American Business Builders LLC
The FTC alleged that American Business Builders sold a home-based payment processing opportunity using false income and lead-generation claims. Settlements banned the defendants from business opportunities, and the FTC later mailed more than $372,000 in refunds.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC v. American Business Builders LLC (FTC case 122-3191, 2012)
- Jurisdictions
- United States (federal)
Settlements end challenged payment processing opportunity
American Business Builders sold a home-based business opportunity involving payment processing services, credit card terminals, and merchant cash advances for small businesses. According to the FTC’s complaint, the defendants claimed that consumers who paid fees ranging from $295 to $495 could earn substantial income through terminal commissions, merchant cash advances, and merchants’ monthly sales volume.
The FTC also alleged that the defendants sold merchant leads and promised telemarketing campaigns that would generate customers and income. Leads typically cost $10 each, and some consumers paid up to $40,000. The agency alleged that the defendants did not obtain customers for consumers and that consumers earned no income. A court halted the operation in November 2012, froze its assets, and placed the companies into receivership.
Settlement orders entered in May 2014 banned the defendants from selling business and work-at-home opportunities and related services. The orders imposed a judgment of more than $5.4 million, suspended upon the surrender of bank accounts and property. The releases do not state a dollar value for the surrendered assets. In July 2017, the FTC said it was mailing 2,711 checks totaling more than $372,000, with an average check of $137.42.
What is not established
The supplied releases describe the complaint allegations and settlement orders. They do not state that the defendants admitted the allegations.
Sources
Every claim above rests on one of these. Open them and check.
- Enforcement action November 15, 2012
- Enforcement action June 24, 2014
- Enforcement action July 26, 2017
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First recorded November 15, 2012 · Last updated July 26, 2017