Government Begins Crackdown on Business Opportunity Fraud

Monday, March 6th 2000, 12:00 am

By: News On 6

They destroy dreams and take millions of dollars from trusting victims. Now the federal government is fighting back. The Federal Trade Commission announced a nationwide crackdown on business opportunity fraud involving 29 states including Oklahoma Monday

The advertisements are very appealing. You can make big bucks operating your own vending machine business. Or cash in on the booming popularity of cigars. Or even set up your own ATM machines.

The truth is that every year Americans waste tens of millions of dollars on bogus business opportunities. "Sometimes people lose their life savings, their retirement savings, their shildren's college funds," said Federal Trade Commission spokesperson Eileen Harrington. "It's a really serious problem."

To combat these criminals, state and federal prosecutors are suing dozens of companies that are selling false dreams, and taking money from people like Ken Jarvis. Jarvis paid $360 to a firm that told him he could make a killing doing medical billing on his home computer. "Well, If I go on their calculation, you can make two, three thousand, four thousand dollars a month," he said. "According to them, you could make some serious money." In the end, Jarvis didn't make anything. The company still has his money, and he can't get it back.

The government's crackdown on bogus business opportunities includes some fraud cases in Oklahoma. The state's department of securities targeted two companies. Encore Communications offered money to people who found locations for pay telephones. Absolute Solution Technologies sold software for medical billing and promised to find clients. Both of the companies advertised in Oklahoma newspapers.

The government says you should remember that anyone who promises big money for your little amount of work is probably trying to rip you off.

For more information about business opportunity fraud, go to http:// www.ftc.gov/bizop