Financial Advice

FTC Obtains Court Order Against Envelope-Stuffing Scheme

Defendants Banned from Selling Business and Work-at-Home Opportunities

An envelope-stuffing operation is banned from selling business and work-at-home opportunities under a settlement with the Federal Trade Commission.

The settlement resolves FTC charges that David S. Brookman and his companies falsely told people they could earn up to $5,000 per week by stuffing and mailing “special advertising letters” from home. The letters turned out to be solicitation flyers for another bogus work-at-home program.

Under the stipulated final order, the defendants are also prohibited from misrepresenting any material fact in connection with the sale of any other product or service.

The order imposes a $1.2 million judgment against Brookman, which will be partially suspended when he has paid approximately $44,200 to the FTC. The full judgment will become due immediately if he is found to have misrepresented his financial condition.

The corporate defendants are Capital Enterprises Inc., formerly known as David Gates Inc. and also doing business as Gordon James Enterprises, Maxwell Gates Enterprises, Maxwell Scott Enterprises, Preston Lord Enterprises, and Warner Daniel Enterprises; Carson Lord Enterprises LLC; Java Enterprises LLC; Mason Grace Enterprises LLC, also d/b/a Mason Grace Ventures; and Preston Lord Enterprises of New York LLC, also d/b/a Preston Lord Enterprises.

The Commission vote approving the proposed stipulated final order was 2-0. The United States District Court for the Southern District of New York entered the order on April 20, 2017.

NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.

This article by the FTC was distributed by the Personal Finance Syndication Network.

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