Two defendants in one of six companies charged by FTC with making fraudulent claims about government auctions and foreclosed properties agreed to settle FTC's charges. The company, Infodirect, Inc., was charged as part of FTC's "Operation Auction Guides," a law enforcement and consumer education campaign intended to shut down fraudulent operators who deceptively market "how to" guides that make a variety of alleged misrepresentations about government auctions. Under the proposed settlement, Jason McComb and Thomas Fletcher, the two individual defendants in the case against Infodirect, generally would be banned from selling information guides and from telemarketing.

A federal district court issued a temporary restraining order with an asset freeze against the defendants on November 19, 1998. On April 20, 1999 the court entered a default judgment against Infodirect.

The proposed settlement orders against McComb and Fletcher generally would ban them from engaging in the marketing and sale of information guides and telemarketing. It also would bar them from making false representations in connection with the sale of any good or service and from placing any charges on a consumer's credit card or telephone bill without first obtaining express verifiable authorization from the consumer.

The proposed consent judgment was filed in the U.S. District Court, Central District of California, Western Division on December 20, 1999. It is subject to court approval.

The Commission vote to authorize the proposed consent order was 5-0.

NOTE: This consent judgment is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Consent judgments have the force of law when signed by the judge.

(Infodirect, Inc., FTC File No. 990011, December 20, 1999.)