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The Federal Trade Commission requested a federal court to freeze the assets of the corporations collectively known as “I Works” and its leader, Jeremy Johnson for allegedly scamming more than $275 million dollars from consumers duped into deceptive “trial” memberships and non-existent grant and money-making schemes.
The defendants used websites to offer money-making programs and government grants, which were offered for “free” and at no-risk to the consumers, but required a small fee for shipping and handling. However I Works charged the victims a one-time fee of up to $129.95 and monthly recurring fees of up to $59.95. Consumers complained to credit card companies, which resulted in more than 500,000 chargebacks. The defendants were charged fines by VISA and Mastercard and prevented from using their processing systems. The defendants responded by creating 51 shell companies that appeared “clean” to banks who then issued payment processing privileges, which allowed the defendants to continue to scam people.
To read more about this complaint, visit the Federal Trade Commission.