‘Government Imposter’ Scammers Pay $1.2 Million in FTC Settlement
A settlement with the Federal Trade Commission requires three companies controlled by Thomas Henry Fred Jr. to pay $1.2 million for their involvement in a government imposter scheme, as well as a ban on sending further unsolicited direct mail to businesses. The campaign involved mailing thousands of business letters meant to resemble invoices from a government agency. The letters were titled “Labor Law Compliance Request Form” and were used to threaten companies that fail to comply with regulations lead to fines of $17,000.
The FTC claims that the perpetrators have made more than $800,000 from over 9,000 consumers through this scheme. The letters also included deadlines and Business ID numbers, asking victims to send over money through checks and confirm company information on file. The template used by Thomas Henry Fred and his associates was available for free online from government agencies.