Contact: Sue Rogan 240 777-3722
George Rose 240 777-3678
Eric Friedman 240 777-3719

For Immediate Release: February 14, 2000

Duncan Announces
"Ten Worst Scams" of 1999

County Executive Douglas M. Duncan today kicked off National Consumer Protection Week by announcing the County's picks for the "Ten Worst Scams" plied on local consumers. The "Worst Scams" were selected from more than 4,000 complaints filed with the County's Division of Consumer Affairs (DCA) during 1999.

"These cases demonstrate the need for consumers to do their homework before spending their hard-earned dollars," said Duncan. "There are new schemes being concocted every day, and unknowing consumers are the prime target."

Duncan said that scams using the Internet made this year's list, noting that consumer offices across the country are seeing a rise in Internet-related complaints. "Consumer fraud is big business," said Duncan. "The Internet and other advances in telecommunications now give con artists a world-wide audience of possible victims."

Duncan advised consumers to "do business with local companies that have proven track records for customer service and satisfaction." Consumers can receive pre-purchase advice and check the complaint records of businesses in Montgomery County by calling Consumer Affairs at 240 777-3636.

The County's picks for the "Ten Worst Scams" include:

1. US Training.com
8730 Georgia Avenue, Suite 512
Silver Spring, MD 20910

The Offer: The merchant represented that it was "a premier computer services company" and offered to provide computer training and certification to its students. Consumers paid as much as $3,495 for a variety of different computer training programs.

The Complaint: Consumers complained that the company failed to provide training, cancelled and postponed classes, and failed to provide training materials.

The Outcome: The merchant was never licensed to operate a career school and was shut down after a joint investigation by DCA and the Maryland Higher Education Commission. The parent corporation, Technology Training Consortium, Inc., also operated training sites in 12 other states besides Maryland. Information on the company has been referred to the FBI for review.

2. Luis Pineda and Tam Chi Man
Internet e-commerce merchants

The Offer: Luis Pineda, listing an address of 146 Orland Street, Bridgeport, Connecticut, advertised on the Internet in the hotmail classifieds. Pineda offered to sell a Silver Spring consumer a Cartier watch for $400. Pineda claimed that the watch was a real Cartier and not a fake, had been a birthday gift, and offered a money-back guarantee. Tam Chi Man, listing an address in Hong Kong, China, advertised on the Internet in e-bay. Man offered to sell a Compaq laptop computer to another Silver Spring consumer for $2,100. Man stated that the computer was brand new, and came with a valid warranty and manuals.

The Complaint: Neither consumer received the merchandise after making full payment.

The Outcome: DCA has filed complaints with the Postal Service, Connecticut authorities, eBay, and the Hong Kong Commercial Crimes Bureau. The prospective computer purchaser is eligible for an insurance payment of up to $175 from eBay. Other than this, neither consumer will likely receive any restitution.

3. Classified USA
P. O. Box 237
Boonsville, NY 13309

The Offer: For only "$20 and ten first class stamps," this merchant offered to send consumers a "Special Mailing List" that would generate over "One Million Dollars in Cash within six months." The merchant assured consumers that "The U. S. Postal Service has determined that this Program is entirely legal."

The Complaint: A Bethesda consumer who received this solicitation in the mail thought that this appeared to be a fraudulent scheme and filed a complaint with DCA.

The Outcome: DCA investigated and found this to be a classic example of an illegal "chain letter" or "pyramid" scheme. DCA obtained the name and address of the individual behind the scheme and referred the complaint to the U. S. Postal Inspection Service, which closed down "Classified USA." The postal authorities report that by the time it was shut down, "Classified USA" had already bilked 20,000 consumers out of more than $500,000, and was receiving new letters at the rate of 500 per day.

4. Politics Restaurant
4936 Fairmount Avenue
Bethesda, Maryland 20814

The Offer: This restaurant sold four $100 gift certificates to a retired Bethesda couple in December 1998. The couple used the gift certificates as holiday presents for their grown children.

The Complaint: When the couple and their children tried to use the gift certificates in January 1999, they found the restaurant was closed and out of business.

The Outcome: The Division of Consumer Affairs investigated and found that the restaurant was operated by a corporation that is now defunct and has no assets. As a result, the consumers are left with worthless gift certificates.

5. Advanced Window Services Rachid Dhamna
2109 Walsh View Terrace, Suite 101
Silver Spring, MD 20902

The Offer: The merchant offered to deliver and install new windows in the consumer's home for $1,800.00. The consumer gave the merchant an $860.00 deposit in March 1999, and the work was to be completed in two weeks.

The Complaint: The merchant never delivered or installed the windows.

The Outcome: DCA investigated and found out that the merchant cashed the consumer's check at a Washington, DC liquor store the same day he received it. The merchant does not have a Maryland home improvement contractor's license.

Criminal and civil charges are pending against Mr. Dhamna.

6. A & L Unique Auto Service
8100 Beechcraft Avenue, Building F
Gaithersburg, Maryland 20879

The Offer: The merchant offered to replace the ailing engine in the consumer's 1993 Ford Festiva with a used engine for $1,200. The replacement engine came with a 90-day or 4,000-mile warranty.

The Complaint: The consumer continued to have problems with poor engine performance. He took his car to another repair shop that told him the vehicle was not safe to drive. DCA investigated and discovered that the original engine had never been replaced.

The Outcome: The merchant pled guilty in court to violations of county consumer protection and motor vehicle repair laws, and agreed to pay restitution to the consumer. Further violations could result in revocation of the merchant's motor vehicle repair license.

7. Amirgholi Amini
200 Bradley Avenue
Rockville, Maryland

The Offer: Mr. Amini offered to sell a 1990 Plymouth Voyager to a Potomac consumer for $3,000. Mr. Amini stated that the van had belonged to his father, and that the engine was overhauled in February 1999. He assured the consumer that the van was in great shape, and that it had passed Maryland inspection.

The Complaint: Nine days after purchase, the consumer experienced mechanical problems. When she took the van to her mechanic, she was informed that it needed a new engine and a transmission, costing over $5,000.

The Outcome: DCA investigated and obtained a $3,000 refund for the consumer. Civil charges are pending against Mr. Amini for committing a deceptive trade practice in violation of the Montgomery County Consumer Protection Act. DCA alleges that Mr. Amini is a "curbstoner." A curbstoner is someone who is in the business of selling used cars but does not have a motor vehicle dealer's license.

8. Ryan Metcalf
304 Cacaton Road
Berkeley Springs, WV 25411

The Offer: This merchant distributed fliers door to door in the Gaithersburg area, offering to clean gutters and downspouts, tighten all gutter nails, tighten and secure ridgevents, and inspect the roof to provide a written analysis of its condition. "The cost for all of these services is only $35," proclaimed the merchant's flier. The merchant also stated that "ALL WORK IS GUARANTEED" and that he was a licensed and bonded contractor in Maryland and Virginia and listed his license numbers. To take advantage of this offer, the consumer merely had to tape the flier to his or her front door, along with a check for $35.

The Complaint: Metcalf cashed the consumer's check but never returned to do the work. The consumer tried calling the telephone number on the flier but was never able to reach the merchant.

The Outcome: Civil charges are pending against Metcalf, who lives in West Virginia, but cannot be pursued unless he returns to Maryland. DCA has recently received a complaint about a similar scam being operated in Germantown by a "Scott Metcalf" which it is currently investigating. DCA receives complaints about some type of "Clean Your Gutter" scam every year.

9. Guaranteed Products Corp.
P. O. Box 216
Milford, PA 18337

The Offer: The merchant sent invoices to a Potomac resident requesting payment of $59.92 for a shipment of "7 Year Lightbulbs."

The Complaint: The consumer never ordered the lightbulbs. When the consumer refused to pay, the company sent dunning notices for the "past due" payment so that the merchant could "clear your account."

The Outcome DCA contacted the merchant, who agreed to clear the account, place the consumer's name in a "do not call" file, and reprimand the salesperson who entered the order for the lightbulb shipment. Under state and federal law, consumers are under no obligation to pay for or return any unordered merchandise they receive.

10. J. R. Sanders Plus
11266 W. Hillsborough Ave.
Tampa, Florida 33635

The Offer: This merchant offered a "forced matrix cash gifting" program that was "operated by honest, competent people who can guarantee results." His mailing to a Gaithersburg consumer promised a complete refund of all expenses if the program didn't produce a $2,000 monthly income after one year. The fee to join was $30 in cash.

The Complaint: The Gaithersburg consumer who received this solicitation in the mail thought that this appeared to be a fraudulent scheme and filed a complaint with DCA.

The Outcome: DCA investigated and found this to be an illegal "chain letter" or "pyramid" scheme with a unique twist. Rather than using a post office box to receive mail, this merchant's scheme used a "fax on demand" service in northern Virginia in an attempt to shield the merchant's name and address. DCA subpoenaed records from the telephone company and located the fax service, which supplied the name and address of the merchant in Florida. DCA has contacted the consumer and postal authorities in Florida and an investigation is continuing. The fax service closed the "fax on demand" account at the request of DCA.

For more information, contact the County's Division of Consumer Affairs at 240-777-3636.

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