Information about http://www.ftc.gov/os/2003/04/onlauctioncases.pdf
OPERATION BIDDER BEWARE …
Tags: action case, auction buyers, business consumers, buyers and sellers, case description, doing business, engle, escrow, internet auction, internet auctions, karen leonard, midwest, midwest region, money, online escrow service, staff attorney, subject type, temporary restraining order, thompson,Pages: 9
Language: english
Created: Wed Apr 30 11:22:02 2003
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OPERATION BIDDER BEWARE
CASE CHART
Agency Subject Type of Action/Case Description Agency Contact
Federal Trade Unknown Parties Posed as Internet auction buyers and sellers, Delores Gardner Thompson,
Commission Deceiving Consumers and an online escrow service to trick Staff Attorney
While Doing Business consumers into sending them money or (202) 326-2264
As or Using merchandise, and then failed to deliver
Premier-Escrow.com anything in return. Complaint filed on 4/16/03 Karen Leonard, Staff Attorney
and temporary restraining order obtained on (202) 326-3597
4/22/03.
Claudia Farrell (202) 326-2181
Federal Trade Thompson, James D. Used stolen IDs to conduct Internet auctions Steven Wernikoff, Staff
Commission Germek, Susan B. and then failed to deliver merchandise. Attorney (312) 960-5630
Midwest Region Complaint filed and temporary restraining
order obtained on 4/16/03. Claudia Farrell (202) 326-2181
Federal Trade Engle, Morgan Failed to deliver musical equipment sold via Robin Rock, Staff Attorney (404)
Commission Southeast Internet auctions. Complaint filed and 656-1368
Region temporary restraining order obtained on
Claudia Farrell (202) 326-2181
4/22/03.
Federal Trade Stetzel, Eric Failed to deliver computer equipment sold via 'Jerome Steiner, Staff Attorney
Commission, Western Internet auctions. Complaint filed on 4/16. (415) 848-5190
Region Preliminary injunction obtained on 4/23/03.
David Newman, Staff Attorney
(415) 848-5123
Claudia Farrell (202) 326-2181
CATCH Morgan, Candice Sold counterfeit Louis Vuitton handbags that Cindy Davis, DCA
San Diego City Attorney she represented as "100% authentic" via (619) 533-5500
Internet auctions. Pled guilty on 12/02/02 to 4
misdemeanor counts. Banned from Internet Maria Velasquez
sales for 3 years and ordered to pay full (619) 533-5800
restitution.
Agency Subject Type of Action/Case Description Agency Contact
CATCH Forte, Michael Failed to deliver plasma TV monitors sold via Michael Groch, DDA (619)
California Attorney Winslow, Michael Internet auctions. Charged on 8/26/02 with 531-3660
General Steinwart, Jennifer computer crimes, grand theft and forgery.
San Diego District Tawnya Boulan, DAG (619)
Attorney 531-3660
Norma Davis (858) 715-2353
CATCH Shcroeder, Brent Failed to deliver diamond sold via Internet Michael Groch, DDA (619)
California Attorney auction. Charged on 11/15/02 with forgery, 531-3660
General fraud, burglary, and grand theft.
San Diego District Tawnya Boulan, DAG (619)
Attorney 531-3660
Norma Davis (858) 715-2353
CATCH Harle, Donald Failed to deliver computer parts sold via Michael Groch, DDA (619)
California Attorney Internet auctions. Charged with computer 531-3660
General crimes, forgery, and grand theft. Prelim
San Diego District hearing 3/20/03. Tawnya Boulan, DAG (619)
Attorney 531-3660
Norma Davis (858) 715-2353
CATCH Whitaker, Trevor Sold stolen merchandise via Internet auction. Michael Groch, DDA (619)
California Attorney Charged with grand theft and buying and 531-3660
General receiving stolen property. Prelim hearing
San Diego District 3/11/03. Tawnya Boulan, DAG (619)
Attorney 531-3660
Norma Davis (858) 715-2353
CATCH Smith, Tara Sold fraudulently obtained dental equipment Bob Molko, ADA
Orange County (CA) Jennings, Edward via Internet auctions. Charged with conspiracy (714) 347-8700
District Attorney to defraud, grand theft, attempted grand theft,
Orange Police selling stolen property, and taking in excess of R. Pawlowski (714) 568-1250
Department $50,000. Pretrial hearing 4/4/03.
Agency Subject Type of Action/Case Description Agency Contact
Delaware Department of Cohen, Michelle Failed to deliver merchandise sold via Internet Dirk Dirstein, DAG
Justice & Attorney Napoli, Vincent auctions. Civil complaint filed on 4/15/03. (302) 577-8510
General
Illinois Attorney General Castillo, David Failed to deliver collectible demonic toys and Adam Sokol, AAG
Sircher, Amanda dolls. Civil complaint filed 4/03. (312) 814-4309
Demonic Toys
Rzeszutko, Sabrina Failed to deliver designer wallets and Adam Sokol, AAG
handbags. Civil complaint filed 4/03. (312) 814-4309
Dachman, Ken Failed to deliver or non-confirming goods (ski Adam Sokol, AAG
jackets). Civil complaint filed 4/03. (312) 814-4309
Engle, Tim Failed to deliver computer electronics sold via Adam Sokol, AAG
Internet auctions. Settled 3/6/03. Full (312) 814-4309
restitution, civil penalty, and injunctive relief
obtained.
Coss, Alejandro Adam Sokol, AAG
Failed to deliver Sony Playstation 2s sold via (312) 814-4309
Internet auctions. Settled 10/30/02. Full
restitution, civil penalty, and injunctive relief
obtained.
Hoffmann, Frederick Karen Winberg-Jensen, AAG
Failed to deliver digital camcorders sold via (217) 782-8703 or Melissa
Internet auctions. Civil complaint filed on Merz (312) 814-2518
11/19/03.
Idaho Attorney General Brad Bottom Financial Failed to deliver merchandise sold via Internet Michele Bartlett, DAG
Services auction. Signed letter of agreement to make (208) 334-2424 or Bob Cooper
restitution. (208) 334-4112
Ward, Paul J. Failed to deliver sunglasses, x-box consoles, Michele Bartlett, DAG
and video game components sold via Internet (208) 334-2424 or Bob Cooper
auctions. Arrested on 2/13/03 on felony fraud (208) 334-4112
charges.
Agency Subject Type of Action/Case Description Agency Contact
Iowa Attorney General Hughes, Greg Failed to deliver candles and clothing sold via Bill Brauch, SAAG & Dir.
Hughes Online Internet auctions. Assurance of voluntary Consumer Protection
Services compliance obtained. (515) 281-8772
Kentucky Attorney Nivar, Vidal Failed to deliver cameras sold via Internet Todd Leatherman
General auction. Indicted on 3/10/03 on charge of theft (502) 696-5389 or Brian
by deception. Wright (501) 696-5642
Louisiana Department of Lindsey, Jermaine; Each separately failed to deliver merchandise Kordice Douglas, AAG
Justice Spencer, Brandon; sold via Internet auctions. Each received a (225) 342-3978 or
Lee, James; warning notice. Pam Laborde
Ainsworth, Debra (225) 339-5133
Massachusetts Attorney Smith, Teresa Failed to deliver computer equipment sold via Jack Christin
General Internet auctions. Civil complaint filed 7/02. (617) 727-2200 x2912 or
Preliminary Injunction obtained. Also charged
with mail and wire fraud by U.S. Attorney's Sarah Nathan
Office and sentenced on 4/10/03 to 4 years, 9 (617) 727-2200 x2049
months in federal prison.
Maryland Attorney Rhymer, Michael Failed to deliver merchandise sold via Internet Philip Ziperman (410)
General auction. Assurance of Discontinuance 576-6568 or Sean Caine (410)
obtained. 576-6357
Johnson, Michael
Failed to deliver merchandise sold via Internet Philip Ziperman (410)
auctions. Cease and Desist Order issued. 576-6568 or Sean Caine (410)
576-6357
Agency Subject Type of Action/Case Description Agency Contact
Michigan Attorney U.S. v. Roy Pourchez Failed to deliver laptop computers sold via Terrence Berg, AAG
General Internet auctions. Pled guilty to mail fraud, (734) 525-4151 or
and was sentenced on 1/10/03 to 33 months in Sage Eastman (517)
prison and ordered to pay restitution. (Worked 241-9137
on case with U.S. Postal Inspection Service.)
State v. Marc Nance Failed to deliver laptop computers offered for
sale via Internet auctions. Pled guilty on Terrence Berg, AAG
1/02/03 and was sentenced to 2 year's (734) 525-4151 or
probation and 60 days either jail or alternative Sage Eastman (517)
work force. 241-9137
People v. Hunter
Failed to deliver computer games and
accessories sold via Internet auctions. Terrence Berg, AAG
Sentenced to probation and ordered to pay (734) 525-4151 or
restitution on 1/25/03. Sage Eastman (517)
241-9137
Agency Subject Type of Action/Case Description Agency Contact
Missouri Attorney General Rowland, Jarrett Failed to deliver merchandise sold via Internet Stewart Freilich
auction. Civil petition filed 4/17/03. (573) 751-7890
Taylor, Dennis Misrepresented that earrings sold via Internet Stewart Freilich
auction were diamonds. Civil petition filed on (573) 751-7890
4/17/03.
Jensen, John Failed to deliver sports trading cards sold via Stewart Freilich
Internet auction. Civil petition on 4/23/03. (573) 751-7890
Merckle, Jo Don Failed to deliver computers and other Stewart Freilich
Merckle, Donald E. merchandise sold via Internet auction. (573) 751-7890
(aka Circle M; Great Arrested on felony charges on 4/15/03.
Computer Works)
Sheehan, John Failed to deliver merchandise sold via Internet Stewart Freilich
auctions. Civil petition filed 4/23/03. (573) 751-7890
Gilmore, Jeremy Failed to deliver computers sold via Internet Stewart Freilich
Gilmore, Cindy auctions. Arrested on felony charges on (573) 751-7890
4/25/03.
Nebraska Department of Jason Beard (dba Failed to deliver merchandise sold via Internet Rebecca Maahs, AAG & Dir.
Justice Synx Solutions) auctions. Assurance of voluntary compliance Consumer Protection
obtained 4/22/03. (402) 471-3839
Mylostclub.com Failed to deliver merchandise sold via Internet Rebecca Maahs, AAG & Dir.
auctions. Consumer Protection
(402) 471-3839
Agency Subject Type of Action/Case Description Agency Contact
Nevada Attorney General Thomas, Susan Failed to deliver art items such as sculptures, Tracey Brierly, DAG
statues and serigraphs sold via Internet (702) 486-3128
auctions. Arrested on 4/8/03 and charged with
six felony counts of theft by obtaining money
under false pretenses.
Zamora, Orlando (aka Used fraudulent escrow account to trick Tracey Brierly, DAG
Michael Alvarez) jewelry sellers out of their merchandise sold (702) 486-3128
Zamora, Paola (aka via Internet auctions. Arrested on 4/2/03.
Sharon Jones)
New Jersey Department Brening, Thomas Sold, or attempted to re-sell, football tickets Benn Meistrich, Chief of Staff,
of Law & Public Safety unlawfully via Internet auctions (ticket Consumer Affairs Division
scalping). Consent Judgment and Order (973) 504-6534 or
obtained on 1/6/03. Genene Morris (973)
504-6327
Wolf, Alexander
Sold, or attempted to re-sell, football tickets Benn Meistrich, Chief of Staff,
unlawfully via Internet auctions (ticket Consumer Affairs Division
scalping). Consent Judgment and Order (973) 504-6534 or
obtained on 11/14/02. Genene Morris (973)
504-6327
North Carolina Attorney Riddick, Charles Failed to deliver athletic clothing and computer Harriet Worley
General equipment sold via Internet auctions. Civil (919) 716-6014
complaint filed and temporary restraining order
obtained on 3/19/03.
Ohio Attorney General McGruder, Gregory Failed to deliver computers and computer Valerie Roller, AAG
Bonds, Antonio (aka equipment sold via Internet auctions. Civil (614) 644-9618 or
Tony Banda) complaint filed on 2/27/03. Preliminary Michelle Gatchell
Jackson, Marvin injunction obtained on 3/7/03. (614) 466-3840
Gordon, Joseph
(all dba God's Toy
Store and Crown
Jewel Computers)
Agency Subject Type of Action/Case Description Agency Contact
Oregon Department of Stevens, Larry Failed to deliver computers and computer Jan Margosian (503)
Justice Xanadu Systems, Inc. parts sold via auctions. Sold used goods as 378-4732
new. Arrested on felony charges on 1/23/03.
Pled guilty to ID Theft charge. Assurance of
voluntary compliance obtained on 1/23/03.
Permanently enjoined from selling on the
Internet.
Harris, Terry
Failed to deliver electronic items sold at Jan Margosian (503)
internet auction sites. Assurance of voluntary 378-4732
compliance obtained.
Wait, Brienne
Failed to deliver computer and electronic items
sold at internet auction sites. Assurance of Jan Margosian (503)
voluntary compliance obtained. 378-4732
South Dakota Attorney Hjellum, Wilma Failed to deliver merchandise sold via Internet Paul Cremer (605) 773-3215
General Hjellum, Curt auctions. Assurance of voluntary compliance
obtained.
Washington Attorney Harper, Kevin Failed to deliver DVD box sets sold via Paula Selis (206)464-7662 or
General Internet auctions. Civil complaint filed 4/10/03. Chris Jarvis (206) 464-6432
Erden, Kenan Failed to deliver gaming systems (i.e., X-Box, Paula Selis (206)464-7662 or
Playstation), gaming software and digital Chris Jarvis (206) 464-6432
cameras sold via Internet auctions. Civil
complaint filed 4/11/03.
Hudson, Jonathan Misrepresented value of baseball cards sold Paula Selis (206)464-7662 or
via Internet auctions. Stipulated judgment Chris Jarvis (206) 464-6432
obtained 3/3/03 enjoining sale of trading cards
over the Internet, requiring payment of
restitution and attorney's fees.
Agency Subject Type of Action/Case Description Agency Contact
Wisconsin Attorney JDS Systems, Inc. dba Failed to deliver merchandise sold via Internet Jim Jeffries (608) 267-8901 or
General Variety Video and auctions. Civil complaint filed 4/21/03. Brian Riselman (608)
Pizza Swenson, 266-1220
Wendell ("Dell")
Dumond, Joyce
Swenson, Dale
Roskaz, Ben
West Virginia Attorney Boggess, Randy Failed to deliver stereo equipment sold via Jill Miles (304) 558-8986
General Randy's Stereo Outlet Internet auctions. Civil complaint filed 2/27/03.