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Defendants Named in FTC Sweep Banned from Engaging in Business Ventures - News Brief.
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NOTE: Here is where you can find advertising law information based on news briefs that appeared in past issues of Advertising Compliance Service, "Your Single Essential Advertising Law Resource," during the month of October 2000.



Vaughn M. Williams, III and Warner Green were banned under default judgments, and John S. Dickson has agreed to be banned, from selling any medical billing or other work-at-home job opportunities, or any business venture. The bans are part of a settlement with FTC.

FTC had filed a complaint in federal district court alleging that Encore Networking Services deceptively marketed a medical billing work-at-home program. According to FTC's complaint, defendants typically made false promises that consumers would earn a specific amount of money, such as $3 to $5 per claim that they processed, and that Encore would supply a list of doctors with whom the company had already had contractual or established relationships. In addition to the bans, the default judgments prohibit Williams and Green, and the proposed settlement would also prohibit Dickson, from falsely representing any material fact in connection with the sale of any other product or service.

The case against Encore was filed in February 2000 as part of "Project Biz-illion$." The complaint alleged that defendants misrepresented the earnings consumers would realize, the existence of established relationships with doctors, and an unconditional refund policy.

The default judgments against Williams and Green, and the proposed Dickson settlement which requires the court's approval, bar defendants, in connection with the sale of similar opportunities or any business ventures, from misrepresenting earnings, the existence of established relationships with doctors, or unconditional refunds.

The stipulated final judgment and order was filed in the U.S. District Court for the Central District of California, in Los Angeles, on August 2, 2000, and the default judgments were entered by the court on September 25, 2000.

NOTE: The stipulated final judgment and order 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.

(Encore, et al., FTC File No. X000048, Civil Action No. 00-1083 WJR (AIJx), October 2, 2000.)




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