Attorney General Lockyer Sues to Stop "Do Not Call" Scam Artists
Bogus Operation Falsely Claims Affiliation with Attorney General's Office

November 22, 2002
02-131
FOR IMMEDIATE RELEASE
(916) 324-5500

(SACRAMENTO) – Attorney General Bill Lockyer today announced he has filed a lawsuit to shut down a company falsely claiming to be affiliated with the Attorney General's Office and attempting to sell a service the bogus operation cannot provide – protection against unwanted telemarketing calls.

"These con artists are committing consumer fraud by stealing the government's identity," said Lockyer. "Their get-rich-quick scheme is taking advantage of the elderly and other consumers, and unlawfully exploiting the public's desire to take back their homes and block unwanted telemarketing calls."

The Attorney General's lawsuit seeks to permanently ban the Riverside County-based business -- operating under the name California Consumer Center (CCC) -- from engaging in unlawful business practices, unfair competition and false advertising. Pending a ruling on the permanent injunction request, the Attorney General will ask the court to order CCC to immediately halt its operations. The suit also seeks restitution for victims and civil penalties of at least $1.5 million. The operators of the business, named as defendants, are Renee Launer and Allen Mayea.

The complaint alleges the defendants have attempted to unlawfully profit from the state's "Do Not Call" law, enacted in 2001. The statute allows California consumers to place their home and cellular phone numbers on a list to be established and maintained by the Attorney General's Office by April 1, 2003. The Attorney General must provide the list to phone solicitors, who are prohibited from calling those numbers. The Attorney General's Office is authorized to charge consumers up to $5 every three years to place and maintain their numbers on the list, and can contract with a private vendor to establish and operate the list. The Attorney General has not contracted with any firm maintain the list.

The Attorney General's lawsuit alleges that in phone solicitations and Internet advertising, the defendants have falsely claimed: they are working to create and maintain the "Do Not Call" list in affiliation with the Attorney General's Office or other governmental agencies; the CCC is itself a governmental entity; the CCC can place consumers on the "Do Not Call" list for three years; and the fee is $12, as opposed to the $5 the Attorney General's Office is allowed to charge under the law. Consumers are told they can pay the $12 by providing their credit card information or sending a personal check.

The Attorney General's complaint alleges the CCC has solicited consumers in Los Angeles, Riverside and Orange counties, and possibly other communities. A separate investigation by the U.S. Postal Service has determined the defendants operate the unlawful enterprise from Corona, California.

"Defendants are engaged in an illegal telemarketing scheme designed to deceive seniors and other California consumers into paying for services that Defendants are neither authorized to provide nor able to deliver," the complaint states. "In order to obtain illegal profits, Defendants are exploiting a common and legitimate concern of California consumers – the widespread concern about the onslaught of harassing and unwanted telemarketing calls which often result in identity theft and fraud."

Lockyer earlier this year warned Californians to beware of identity thieves who run scams involving the "Do Not Call" list and other programs by claiming to be employees of the Attorney General's Office or other governmental agencies. Under the guise of government, these con artists seek to steal credit card numbers, social security numbers and other personal financial information.

With today's announcement, Lockyer repeated his earlier warning. "To protect your personal financial information, the rule to follow is simple," he said. "If you have a doubt, don't give it out."

Consumers who believe they have been victimized by a "Do Not Call" scam can register a complaint by contacting the Public Inquiry Unit of the Attorney General's Office at www.ag.ca.gov/consumers, or by calling (800) 952-5225.