FTC charges marketers with theft of over $40 milllion

The Federal Trade Commission has charged Hornbeam Special Situations LLC and affiliated entities and individuals with duping consumers into thinking they were applying for loans, then using the consumers' bank account information to issue unauthorized electronic remotely created checks (RCCs) to debit those consumer's accounts for a monthly coupon service that involved monthly fees. The FTC alleges that the defendants used the RCCs to withdraw from consumers’ accounts an initial fee ranging from $49.89 to $99.49, and recurring monthly fees of $14 to $19.95.

The defendants in this case are EDebitPay LLC; Dale Paul Cleveland; William Wilson; Keith Merrill; clickXchange Media LLC; Platinum Online Group LLC, doing business as Premier Membership Clubs; Hornbeam; Cardinal Points Holding LLC; Cardinal Points Management LLC, doing business as Clear Compass Digital Group; Gyroscope Management Holdings LLC; Jerry L. Robinson; Earl G. Robinson; James McCarter; Mark Ward; iStream Financial Services Inc.; Kris Axberg; Richard Joachim; and Chet Andrews.

The FTC charged all of the defendants with violating the FTC Act. The Commission also charged the EDP and Hornbeam defendants with violating the Restore Online Shoppers’ Confidence Act. In addition, the FTC charged defendants, except for Mark Ward, with violating the Telemarketing Sales Rule.

• FTC Complaint for Injunctive and Other Equitable Relief filed in US District Court for the Northern District of Georgia - Atlantic Division