The Federal Trade Commission filed a complaint in U.S. District Court charging Christopher Mallett, a Texas resident, with multiple violations of the Federal Trade Commission Act for misrepresenting his affiliations with federal agencies, misrepresenting that the services advertised on his Web sites were government-approved and making deceptive debt relief claims.
The FTC alleged that Mallett, described as a “lead generator,” impersonated the FTC and other government agencies, soliciting consumers and referring them to companies selling mortgage, tax and debt relief services with promises that their debts would be substantially reduced or eliminated, according to the FTC complaint.
The FTC says Mallett's claims violated the FTC’s Telemarketing Sales Rule and Mortgage Assistance Relief Services Rule. Mallett did business as: Department of Consumer Services Protection Commission, U.S. Debt Care, World Law Debt, U.S. Mortgage Relief Counsel, gov-usdebtreform.net, worldlawdebt.org, usdebtcare.net and FHA-homeloaninfo.
For example, Mallett’s Web sites associated his business with a fictitious government agency – the “Department of Consumer Services Protection Commission” – that appears to combine two real government agencies, the Federal Trade Commission and the Consumer Financial Protection Bureau.
To further this false message, the Web sites depicted the FTC’s official seal, copied language about the fictitious agency’s supposed consumer protection mission almost verbatim from the FTC’s site, and claimed that the fictitious agency “monitors and researches” member companies that provide financial assistance to American consumers, the complaint alleges.
According to the FTC, Mallett also deceived consumers by using the name of another fictitious government agency that he called the “U.S. Mortgage Relief Counsel” on his Web site, FHA-HomeLoan.info. The site also included a picture of the U.S. Capitol building and promised that the “Counsel” would direct consumers to “officials licensed with the National Mortgage Licensing Service (NMLS), persuant [sic] to the SAFE act of 2008.”
According to the FTC, neither Mallett nor any of his Web sites have ever been affiliated with the FTC or any other government agencies.
Mallett also allegedly claimed that consumers who responded to his solicitations could have their debts substantially reduced, in some cases citing specific percentages. In one instance, a Web site depicted a “success stats chart” for his business that purported to show that his customers’ debts were settled for 16% to 40% of the amount owed.
