Smilin' Bob Not Smilin' Anymore

Consumerist reports an Associated Press release that Steve Warshak, 42, was found guilty of 93 counts of conspiracy, fraud and money laundering. His 75-year-old mother, who has cancer, was found guilty of conspiracy and other charges, and was sentenced to 2-years, but is free pending appeal. US District Judge Arthur Spiegel, in Cincinnati, OH, denied Mr. Warshak's request to remain free pending appeal, but gave him 30 days to wrap up his affairs and report to prison. Besides Enzyte, Washak's company, Berkeley Premium Nutraceuticals, who also distributes products to boost energy, manage weight, reduce memory loss and aid sleep, will be allowed to stay in business — but must forfeit $500 million. Among their most egregious offenses was a requirement of a Notarized statement from a doctor certifying that they had a small penis. Amazingly, remarkably few customers availed themselves of the refund offer. Unfortunately, it looks like the commercials will still be able to continue...

Comments

Re:Snake Oil

[dubl-u]

I can't blame people quite as much for not understanding how to do proper research on something, or knowing signs of a scam.

Further, we here at Slashdot, who are probably biased heavily to the educated, analytical, and practical, will always see through more of the scams. A scam artist in it for the money only has incentive to improve things to the point where it fools enough of the population to get money.

Not only do they have no need to make their scam better, but there's probably a disincentive. If I got scammed on something, I'd be livid, and I'd have the time, money, and skills to try to get the cops involved. Going after the bottom quartile is not only easier, but probably safer.

Re:Snake Oil

[ScrewMaster]

Probably because most people are clueless about their rights as credit card customers. People simply aren't aware that they can call their credit card company and get instant action on any fraudulent charge.

Yes and no. Last January I had a substantial amount in fraudulent charges racked up on a credit card. All car rentals (same $45.80 charge over and over) at three car rental places, same company but in other states, all on the same day. So, I call up and explain the situation, got through to a fraud officer. He was very cooperative, had no problem admitting the charges were obviously fraudulent or erroneous (I mean, I'd have had to have rented about fifty cars to have been responsible for them.) Now, about a year earlier they'd had an (ahem) "security problem" and had proactively sent me a new card with a new number. What amazed this guy was that all the rental charges had been made with the old number which (as he said) "should have been impossible." So he wrote them off just like that. At this point, all is fine.

Six months later, after what they called a "reasonable investigation", these bastards put all the charges back on my card without warning, including a whole bunch of penalties. So my card is way the hell above its limit now, and they go and charge me overlimit and late fees. I'm completely unaware of this until I tried to pay for dinner one evening, and the thing came back "denied". Then I get a letter saying that they'd put the charges back because I had "activated my new card from my home address in Iowa (I haven't been to Iowa since 1973) at some phone number I've never heard of, because I was "obviously trying to defraud the company." That did it for me ... I called up and told them that they had one, and only one chance to make good on this before I sued them for everything they owed me plus the damage to my credit rating because they'd already reported me. I then found out that the rental company's auditing system had already reversed all the charges anyway!

After multiple conversations with their fraud department, they agreed to perform another investigation. In the meantime, I got issued another card and a new number. I'd been a fifteen year customer of this particular card, and never had a problem before. To say I was pissed off is an understatement.

After a few weeks, they completed their second investigation (I think performed by someone not in India this time, like the first one was.) Needless to say, I don't use that card anymore. Not that I expect any better from other issuers: how can you tell how a company handles their internal security, and how they treat customer relations, until something bad happens?