The Zaken Group
Also known as: The Zaken Corporation, QuickSell, QuikSell.
A court found that more than 99.8 percent of the 110,000 people who bought Zaken QuickSell program earned no money, after being told they would make at least $4,000 in the first 30 days. It entered a $25.4 million judgment.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- United States v. The Zaken Corp. and Tiran Zaken (FTC case 122-3293, C.D. Cal., 2012)
- Jurisdictions
- United States (federal)
The number the court found
More than 99.8 percent of the 110,000 consumers affected by the scheme earned no money.
That finding came on summary judgment, not from an allegation, which is what makes it unusual. The court found that the Zaken Corp. and Tiran Zaken violated the FTC Act and the Business Opportunity Rule.
What was sold
For a fee of $148 or more, the “QuickSell” program was said to help buyers find businesses with excess inventory to sell. Zaken would then find a buyer for that inventory and pay the participant half the sale price.
Buyers were told they would earn at least $4,000 in the first 30 days and, on average, $4,280 per deal.
Once they bought, they were inundated with offers for further business “tools” costing hundreds or thousands of dollars, and encouraged to spend an extra $2,300 if they were serious about making money. Those who did received only a directory of defunct companies’ telephone numbers.
The judgment
On 18 September 2014 a federal court in California permanently banned the defendants from advertising or selling work-at-home or other business opportunities and entered a $25.4 million judgment for consumer redress. The final order for permanent injunction issued on 21 October 2014.
The case was brought by the Department of Justice on the FTC’s behalf in 2012 as part of “Operation Lost Opportunity”, aimed at schemes promising jobs and self-employment to unemployed and underemployed people.
What is not established
The supplied document does not state how much consumers paid in total, only the fee levels and the size of the judgment.
Sources
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- Court filing October 22, 2014
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First recorded October 22, 2014 · Last updated October 22, 2014