Financial aid – The Better Business Bureau is warning students and their families to be cautious when facing businesses that promise to support secure scholarships or financial aid for college. The BBB stated in a current bulletin, are companies asking for a fee in advance for aid in securing financial assistance for college are of special issue. In a recent scam, pupils were informed they were final contestants to get a scholarship but had to pay a fee for being considered. Rather than paying fees in advance, students should check with college counselors and educational funding offices for instructions.
Health insurance – Various companies associated with a telemarketing scheme that allegedly misled customers into buying ineffective medical discount plans have accepted repay some victims and also to stop distribute false advertising to consumers. The Federal Trade Commission had accused the companies of targeting people looking for cheap health insurance and getting them to pay for discounted medical plans which were not insurance. In a settlement with the FTC, Health Care One, Americans4Healthcare Inc., Elite Business Solutions Inc. and Mile High Enterprise Inc. as well as their principals consented to cease the method and to surrender profits from the selling of an Aston Martin, a Maserati, a yacht and 2 motorcycles to the government.
Ponzi scheme – The Securities and Exchange Commission has charged a Northern California investment consultant of defrauding clients by making false promises about earnings and the way their funds will be invested. The SEC said John A. Geringer, who managed GLR Growth Fund in Scotts Valley, explained to customers that his fund made between 17% and 25% annual profits when his investments actually were depreciating. He also used new investor funds to cover dividends to previous clients, within a classic Ponzi scheme. Geringer raised over $60 million from investors, the majority of them in the Santa Cruz area, according to the SEC. The SEC is seeking financial penalties from Geringer, in addition to the return of ill-gotten profits.