The South Florida operators of a telemarketing scam that called hundreds of thousands of consumers nationwide to pitch them expensive “extended automobile warranties" have received a lifetime ban.
American Vehicle Protection Corp., headquartered in Pompano Beach, CG3 Solutions, Inc. and Tony Gonzalez Consulting Group, Inc., along with individual defendants, Tony Allen Gonzalez, and his brother, Charles Gonzalez, have agreed to the lifetime ban from the extended automobile warranty and outbound telemarketing industries, the Federal Trade Commission said.
The order instating the ban was signed by U.S. District Judge Rodolfo A. Ruiz II on Monday.
In a complaint filed in federal district court last year, FTC officials said the companies and operators had bilked consumers out of more than $6 million over the previous four years, pretending to represent their dealer or car manufacturer, and providing coverage much more limited than represented.
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In addition to misrepresenting that they either are, or are associated with, the consumers’ vehicle manufacturer or dealer, the defendants’ telemarketers made false promises that they can provide "bumper to bumper" or "full vehicle" coverage for prices ranging between $2,800 and $3,400, the complaint said.
The defendants violated both the FTC Act and the Commission’s Telemarketing Sales Rule by calling consumers, many of whom were on the Do Not Call Registry, and attempting to sell them the warranties.
“AVP blasted consumers with illegal calls and made bogus claims about bumper-to-bumper warranties,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The truth is that the warranties didn’t come from the manufacturer, didn’t cover the repairs people needed, and weren’t sold legally. We are holding AVP accountable.”
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The defendants were also given a monetary judgment of $6.6 million, which is largely suspended based on their inability to pay. But if they've lied to the FTC about the financial status, the full judgment would be immediately payable.
The FTC’s case against the remaining defendants in the case, Kole Consulting Group, Inc., and its owner and manager, Daniel Kole, is still ongoing.
