A purported nonprofit that allegedly benefitted from a massive landline phone bill cramming operation has agreed to turn over most of its assets in order to settle Federal Trade Commission charges.
Under the terms of the settlement, relief defendant Bibliologic Ltd., must surrender nearly all of its assets, which the FTC alleges were transferred to it by defendants in the FTC's case against a company called American eVoice, Ltd.
The FTC's original complaint against American eVoice and its co-defendants alleged that the defendants crammed more than $70 million in unwanted and unauthorized charges on consumers' landline telephone bills, according to Collections & Credit Risk. The complaint alleged that the defendants transferred millions of dollars in ill-gotten gains to Bibliologic.
The Bibliologic settlement with the FTC mirrors the terms of a settlement between Bibliologic and the Chapter 7 Trustee of defendant Steven Sann's bankruptcy estate. The FTC is the largest creditor in the Sann bankruptcy case.
The settlement requires that Bibliologic surrender to the Chapter 7 Trustee several assets, including a large tract of land, the contents of multiple bank and investment accounts, gold and silver, and several vehicles.
Under the terms of the settlement, Bibliologic will be allowed to retain $100,000 that must be used for charitable purposes. The settlement imposes a suspended monetary judgment of $100,000 that will become due should any of the money retained by Bibliologic be used for the benefit of any defendant in this case.