A federal court has ordered the operators of a opportunity scam to pay $16.5 million in consumer redress, according to the Federal Trade Commission. However, a receiver appointed by the court in March 2001 has yet to determine how much money will be available for consumers.
The defendants, Medicor LLC, Andrew Rubin and Matthew Rubin, sold bogus work-at-home medical billing opportunities by telephone to more than 40,000 people between 1999 and 2002, the FTC alleged. The cost to the victims was $375.
Newspaper ads promised large salaries for at-home workers performing medical billing work for doctors in their community. Consumers who dialed the firm’s toll-free number were given inflated salary estimates, and told that the company would help them get work, according to the FTC.
The U.S. District Court for the Central District of California also barred the defendants from selling any medical billing work-at-home opportunities.
The FTC filed its lawsuit against the Van Nuys, CA-based firm and the other defendants in February 2001.
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