U.S. District Court
Temporarily Halts Envelope-Stuffing Scheme that Made False Promises to
Consumers Wallingford, CT – September 24, 2010 – As a result of help from Connecticut BBB, the Federal Trade Commission (FTC) and United States Postal Service (USPS) have stopped a company that allegedly made false promises to consumers that they could make a substantial amount of money stuffing envelopes at home.
In its complaint, the FTC charges that Louis Salatto and his company, Global U.S. Resources, deceived consumers into paying upfront fees by overstating the potential earnings of its work-at-home scheme.
The FTC alleges that since 2005, Salatto placed classified ads in pennysaver and community newspapers across the country, promising weekly earnings of between $1,200 and $4,400. According to the FTC complaint, consumers who paid the upfront fees never received materials required for envelope stuffing, nor the promised income. In addition, Saletto failed to make good on a pledge to refund the consumers’ money.
A U.S. district court judge’s ruling has effectively put the brakes on the defendant’s allegedly illegal tactics and frozen Salatto’s and his company’s assets, while the FTC seeks a permanent prohibition to end the false and deceptive claims.
The FTC credited Connecticut Better Business Bureau for aiding investigators by supplying information on file about New Haven-based U.S. Global Resources. BBB routinely helps such government agencies’ investigations by providing information that may be collected when Better Business Bureau researches consumers’ complaints.
Global U.S. resources is not a BBB Accredited Business, and has an “F” rating, the lowest grade possible. Reasons for the rating are in the company’s Reliability Report at
www.bbb.org.
The company’s newspaper ads stated no experience was needed, and offered a toll-free number where interested consumers could leave their contact information.
The FTC complaint alleges that people who answered the ad received a form informing them that they would earn $8.00 for every envelope processed, in addition to a 25 percent commission for every sale resulting from their envelope stuffing. The federal agency said consumers who paid the company received nothing, or a booklet called “Secret Home Employment Guide,” which simply provided information on other questionable work-at-home schemes and how to market them.
Applicants were asked for a $40 fee that was supposedly refundable. Court papers, however, state unhappy consumers were unable to obtain a refund from the company unless they filed a complaint with Better Business Bureau or law enforcement agencies.
The FTC also acknowledged the assistance of the U.S Attorney’s Office for the District of Connecticut, and the Office of the state’s Attorney General in the investigation.
Founded in 1928, Connecticut BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. BBB offers objective advice and a wide range of education on topics affecting marketplace trust. BBB also offers complaint and dispute resolution support for consumers and businesses. Today, 128 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than three million local and national businesses and charities. For more advice on finding companies and businesses, start your search with trust at www.bbb.org.Howard Schwartz, Communications Director, 203-269-2700, hschwartz@ct.bbb.org
