newAlberta businessman fights $450M internet fraud case
U.S. Federal Trade Commission alleges Edmonton millionaire deceived customers
CBC News
Posted: Jul 22, 2011 7:28 AM MT
Last Updated: Jul 22, 2011 1:36 PM MT
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Jesse Willms, shown here in an undated photograph, is being sued by the U.S. Federal Trade Commission, which alleges he duped customers out of more than $450 million. (ABC News) An internet millionaire from Sherwood Park, Alta., is fighting fraud allegations from the U.S. Federal Trade Commission that he cheated customers out of nearly half a billion dollars.
Jesse Willms, 24, said in a statement of defence this week that charges from the U.S. consumer protection agency that his business gained over $450 million through fraudulent means are baseless. If the commission had its way, Willms said, the FTC would make sure he wouldn't even be able to subscribe to a newspaper.
According to the FTC, the alleged fraud involves a scheme in which products or services advertised as free or risk-free — such as health and beauty products — were actually being billed to customers' credit cards monthly. More products would be sent automatically unless the customers navigated a complicated cancellation process to stop the charges from coming.
Blamed business associates
While Willms conceded he has used similar business practices in the past, he said in his defence that his latest business was legal.
The FTC claims that customers were fooled in Canada, the U.S., Australia, the U.K. and New Zealand.
Bob Schroeder, a regional director with the FTC, said the commission is out to protect customers.
"If we are successful and the court bans this particular marketing conduct, then the kinds of offers he has presented in the past, he will not be able to continue to present," Schroeder said.
Willms has blamed unscrupulous business associates who he claims defrauded him by stealing credit card numbers in order to generate commissions with bogus sales.
A court hearing on the application to freeze Willms' assets will be heard early next month.
With files from the CBC's Terry ReithShare Tools
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