"Telemarketers aren't just a pain in the neck, they can also be a pain in your bank account," Yost said. "We contacted the FTC when we realized this racket extended beyond Ohio's borders and people nationwide were being hurt."
According to complaints filed, through millions of robocalls, Educare would encourage its customers to consolidate their credit cards to obtain lower interest rates, but the company appears to provide no legitimate services to consumers. Officials said that Educare is not registered with the Ohio Attorney General’s Office as a telephone solicitor. The attorney general’s office said it’s aware of approximately 450 Ohio residents who were victims in the scheme with a combined loss of $300,000.
A press release from the Ohio Attorney General’s Office said Madera and its owner, Bruce Woods, operate as a third-party payment processor charging consumer checking accounts on behalf of Educare and others. Investigators said in the last five years, Madera processed more than $18 million in transactions; more than $11.8 million was for Educare making it the biggest telemarketing client.
Officials said Madera opened more than 60 bank accounts in at least 25 different financial institutions, many of which were closed by the financial institutions within six months as a result of the high return rates. Upon discovering the nationwide scope of the victimization, the Ohio Attorney General's Office notified the FTC and worked cooperatively to develop the cases.
The complaint against Educare and its codefendants alleges violations of three Ohio and federal statutes, for a total of 14 counts. The complaint against Madera and its codefendants alleges violations of two Ohio and federal statutes, for a total of five counts.
Both complaints seek declaratory relief, injunctive relief and consumer restitution.
About the Author