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Money for nothing? Not so fast

Get-rich scams are popular here. “We’re not aware of anyone who’s made it rich stuffing envelopes,” says an FTC lawyer.

By WILLIAM R. LEVESQUE
Published August 20, 2006

The business-opportunity scam is as ancient as commerce itself. It always offers the draw of quick riches for little effort. Often, they are fraudulent.

It’s a simple scam. A business offers someone the opportunity to work at home, maybe stuffing envelops, or become a franchisee, as in Global Resources Inc.’s case, selling prepaid cell phones at stores.

“We’re not aware of anyone who’s made it rich stuffing envelopes,” said Michael Davis, a lawyer with the Federal Trade Commission.

The FTC estimates consumers lost at least $100-million to 17 fraudulent business-opportunity companies nationally before the law caught up to them in 2005. Florida numbers were unavailable.

Fraud experts say the scams are neither on the rise or fall. But like a bad flu bug, they never quite disappear. Many experts point to Florida as one of the leading centers for such scams. Some say it’s because of the weather. Others point to easy access to Caribbean banks. And it’s easier in Florida to protect a homestead from creditors.

 “I have a lot of sympathy for victims,” said Bob James, a recently retired regulatory consultant with the Florida Department of Agriculture and Consumer Services. “But I think some have to be either stupid or greedy to believe they’ll work two days a week and make $80,000 a year.”

Brian Drury, 45, who lives outside Houston, lost $32,950 to Global and admitted he could have done more to check the company out.

“But they were pretty good doing what they did to draw you in,” Drury said.

[Last modified August 20, 2006, 22:14:37]