Phony OSHA Scam Banned from Conning Small Businesses

The defendants pretended to be a federal agency and threatened to shut down or fine newly-opened businesses

Phony OSHA Scam Banned from Conning Small Businesses
Image: Pexels
July 17, 2017

An operation that allegedly conned small businesses into paying for government-required regulatory posters will be banned from selling such materials, which government agencies provide free of charge.

Threatened newly-opened businesses

The settlement resolves charges brought by the Federal Trade Commission (FTC) in 2016, which alleged that the defendants pretended to be a federal agency and threatened to shut down or fine newly-opened businesses unless they bought occupational safety and other government-required posters for their premises. The court halted the operation at that time pending litigation.

In addition to the ban on selling such posters, the order prohibits the defendants from misrepresenting that they are affiliated with the Occupational Safety and Health Administration (OSHA) or any other government agency, from misrepresenting that consumers are required by law to buy goods or services, and from misrepresenting any material facts about any good or service.

The Judgement

The order imposes a judgment of more than $3.8 million, which will be partially suspended upon the surrender of the defendants' assets. The full judgment will become due immediately if the defendants are found to have misrepresented their current financial condition.

The Defendants

The defendants in this case are Sean K. Juhl; D&S Marketing Solutions LLC, also doing business as US Corporate Compliance Office, Office of Compliance and Safety Standards, and Occupational Safety and Compliance Administration; and Grand Marketing Solutions LLC, also doing business as Employer Compliance and Safety Standards, and Occupational Safety and Compliance Administration.