United States Settles Suit Against VoIP Service Providers for Facilitating Millions of Illegal Telemarketing Calls about COVID-19

Voice over Internet Protocol (VoIP) service suppliers, VoIP Terminator Inc. and BLMarketing Inc., and their proprietor, Muhammed Usman Khan, agreed to a court docket order resolving Federal Trade Commission (FTC) allegations that they facilitated tens of thousands and thousands of unlawful telemarketing calls, together with some calls to numbers listed on the “Do Not Call” Registry and robocalls that displayed “spoofed” or faux caller ID numbers. This stipulated order resolves a lawsuit the United States filed in federal district court docket within the Middle District of Florida.

The authorities’s grievance alleges that Florida-based VoIP Terminator, Virginia-based BLMarketing and Pakistan resident and citizen Khan violated the FTC Act and the FTC’s Telemarketing Sales Rule (TSR). The defendants violated the TSR by helping and facilitating the transmission of unlawful calls for their clients, persevering with to take action even after studying that their providers have been getting used to provoke calls to numbers on the Do Not Call Registry and to position spoofed robocalls. The grievance alleges that the unlawful calls transmitted by defendants included recorded messages about air duct cleansing providers that purportedly filtered out COVID-19, preying on customers’ fears of the virus, in addition to messages involving bank card rate of interest discount and tech assist scams.

The stipulated order bars the defendants from comparable misconduct sooner or later, requires them to display and monitor clients, terminate clients if they’re engaged in improper telemarketing exercise and imposes a $3.2 million civil penalty, fee of which is suspended because of defendants’ lack of ability to pay. This is the FTC’s third case towards VoIP providers suppliers.

The FTC referred this case and the proposed stipulated order to the Department of Justice.  The case was dealt with by attorneys within the Civil Division’s Consumer Protection Branch, together with Trial Attorneys Ellen Bowden McIntyre and Zachary Dietert and Assistant Director Lisa Hsiao, along side attorneys on the FTC’s Bureau of Consumer Protection/Division of Marketing Practices. 

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On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the assets of the Department of Justice in partnership with businesses throughout authorities to reinforce efforts to fight and forestall pandemic-related fraud. Run out of the Office of the Deputy Attorney General, the Task Force bolsters efforts to analyze and prosecute essentially the most culpable home and worldwide actors committing civil and felony fraud and assists businesses tasked with administering reduction applications to stop fraud by, amongst different strategies, augmenting and incorporating present coordination mechanisms, figuring out assets and methods to uncover fraudulent actors and their schemes and sharing and harnessing info and insights gained from prior enforcement efforts. For extra info on the division’s response to the pandemic, please go to https://www.justice.gov/coronavirus.

Anyone with info about allegations of tried fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or by way of the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

United States Settles Suit Against VoIP Service Providers for Facilitating Millions of Illegal Telemarketing Calls about COVID-19 | OPA & More Latest News Update

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