Operator of Work-from-Home Scam Settles FTC Charges

Operator of Work-from-Home Scam Settles FTC Charges
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March 2, 2016

A Utah man settled a Federal Trade Commission (FTC) complaint that he and three of the companies he operated conned millions of dollars from consumers using work-from-home schemes.

According to the complaint, Ken Sonnenberg and his companies falsely promised consumers they could earn thousands of dollars a month by purchasing business coaching services. Instead, they lost thousands of dollars to the scam.

Under the terms of the settlement order—Ken Sonnenberg, Apply Knowledge LLC, eVertex Solutions LLC, and Supplier Source LLC are prohibited from making claims, or assisting others in making claims, about likely earnings without reliable, written substantiation.

They are also barred from violating the Telemarketing Sales Rule, and from misrepresenting endorsements, material aspects of investment opportunities, and material facts, such as the total purchase cost, performance characteristics, and any restrictions or conditions on the use of a product or service.

The FTC order imposes a $500,000 judgement against the companies.

Under a related settlement reached in June 2015, David Gregory Bevan was banned from selling business coaching programs and prohibited from making false earnings claims, misrepresenting investment opportunities and material facts about any product or service, profiting from customers' personal information, and failing to dispose of it properly. A $32.3 million judgment against Bevan was suspended upon payment of $116,871.19.

Related lawsuits are still ongoing.