FTC Settles With 2 Defendants in Telemarketing Fraud

The FTC settled a lawsuit against two individuals for alleged involvement in a multi-million dollar international telemarketing fraud scheme that targeted U.S. senior citizens. Defendants Marc Ferry and Robert Barczai allegedly withdrew money from the accounts of seniors without authorization, while claiming to sell fraud protection, legal protection and pharmaceutical benefit services for $187 to $397, the complaint said. As part of the settlement, Ferry and Barczai are barred from using remotely created checks, are required to obtain consumers’ consent before debiting accounts and are prohibited from misrepresenting any goods or services. They also must turn over proceeds from the scheme, which the FTC estimates are around $11 million. “Scammers thought they could cover their tracks by operating across borders, but law enforcement caught up with them,” said Jessica Rich, Consumer Protection Bureau director. “We’ve shut down their scheme of lying to older people and stealing their money.” The settlement announced Tuesday is part of a complaint issued against Ari Tietolman and his associates who “established a network of U.S. and Canadian entities to carry out their scam,” the FTC said.