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Co’s Reach Job Marketing Settlement

September 14, 2000

WASHINGTON (AP) _ Four individuals and four companies Wednesday reached a settlement on charges they deceptively marketed job opportunities to consumers.

The companies, collectively called MediWorks, have each agreed to post $150,000 bonds before marketing any future medical billing work-at-home job opportunities and disclose the success rate of any future job opportunity or business venture.

The four proposed settlements, which still need court approval, also require each of the defendants to post a $150,000 performance bond before engaging in any future medical billing work-at-home business or investment opportunities. The settlement with defendant Tate Stringer would require him to pay $20,000 in redress.

The companies had promised consumers a specific earnings level of up to $8,000 a month and promised to provide a list of doctors ready to hire MediWorks’ customers to process their claims.

The Federal Trade Commission filed a complaint against the companies in federal court in February of this year.

The FTC’s complaint named Mediworks, Inc.; MediDistribution, Inc.; United Legal Associates; Mediworks; Robert D. Seals; Tate Stringer; Cory Dixon, doing business as MediPros; and Corinna Krueger. The defendants operated telemarketing rooms located in Sherman Oaks, Calif., and Studio City, Calif.

The complaint charged that the defendants, through newspaper and Internet advertising, misrepresented how much consumers could actually earn, the ease of signing up doctors as clients, and the availability of their money-back guarantee. Customers paid the companies anywhere from $325 to $369 for their medical billing software.

The settlements with defendants other than Stringer do not call for payment of redress based on their financial information submitted to the FTC, but call for harsh financial penalties if they have misrepresented their financial standing.

The FTC’s lawsuit came as part of a joint venture by the FTC, the Justice Department and law enforcement officials from 29 states to crack down on employment scams.


On the Net: Federal Trade Commission: http://www.ftc.gov

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