The architect of an operation that allegedly distributed illegal robocalls offering credit card interest rate reduction programs, extended automobile warranties, and home security systems, is banned from telemarketing under a settlement with the Federal Trade Commission.
The FTC charged Roy M. Cox Jr. and several related companies in December 2011 with illegally failing to transmit their name or their clients’ names on consumers’ caller ID displays when making their telemarketing calls, using generic names instead, such as “CARD SERVICES,” “CREDIT SERVICES,” or “PRIVATE OFFICE.”
The FTC also alleged that they knew, or consciously avoided knowing, that they called phone numbers on the National Do Not Call Registry, and made pre-recorded sales calls to consumers without their written consent.
The settlement bans Cox from telemarketing and imposes a $1.1 million civil penalty that will be suspended because of his inability to pay. The full penalty will become due immediately if he is found to have misrepresented his financial condition.
The FTC and Department of Justice have asked the court to dismiss five of Cox’s co-defendants who could not be served or are defunct – Castle Rock Capital Management S.A., Capital Solutions Group S.A., Transfers Argentina S.A., Public Service and Marketing Strategy Group – and will seek to have default entered against a sixth defendant.