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Ariz.: Alleged Job Scammers Fined $4.8 Million

By SHRM Online staff  8/12/2013
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Operators of an alleged federal jobs scam were banned from selling employment products or services and fined $4.8 million, which was partially suspended based on inability to pay, under the terms of a settlement agreement reached with the Federal Trade Commission (FTC).

As part of last year’s Operation Lost Opportunity, the FTC charged Career Exams Inc., O’Brien Marketing Inc., Jeryn B. Lee and Derek Jackson with running deceptive advertisements for nonexistent U.S. Postal Service Jobs.

The defendants were charged with luring consumers into paying $120 each for information about Postal Service jobs available in their geographic area. Rather than job information, the consumers received booklets containing general information about the federal civil service hiring process.

In addition to the current ban on selling, the settlement prohibits the defendants from misrepresenting material facts about any products and services they market or sell in the future. They are required to surrender cash and investments totaling nearly $45,000 and the full $4.5 million judgment will become due if it is found that the defendants have misrepresented their financial condition.

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