The Federal Trade Commission has filed a lawsuit against Greeting Cards of America alleging that it sold bogus opportunities.
The defendants, which include owners Gerald and Susan Towbin, exaggerated the chances of success in the greeting card business, and used “shills,” or phony references, according to the FTC. Victims were defrauded out of at least $3 million, the FTC continues.
The complaint alleges that GCA promoted the opportunities in print advertising and on radio and the Internet.
The ads promised, “Prime high volume locations are provided for you! With just 30 locations selling only 10 cards per day, you will earn $135,000 per year.”
Also named in the complaint is American Eagle Placements, Stone Mountain, GA, and its owner Forrest Adams.
American Eagle was recommended as a placement service to all purchasers. Victims were required to pay $150 for each sales rack placed by the firm.
Towbin used the alias John Grant to pose as a reference, according to the complaint on file with the U.S. District Court for the Southern District of Florida, Fort Lauderdale division.
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