Don't believe 'free grant' promotions

By PHIL MULKINS World Action Line Editor - 10/22/2009


Dear Action Line: Is there really any such thing as "free government grants?" Grant Connect e-mailed me saying I could get free government grant money. I have to give them my bank numbers so they can direct-deposit my check. Right. I wasn't born yesterday, but my friends were and face job losses, foreclosures and shrinking retirement accounts. They want to believe in "free government money." — R.L., Tulsa.

This kind of thing has been around for a long time, and this year's economic stimulus funds have given rise to all sorts of scams involving our government throwing around our money. The promise of free money, for fees or financial information, is always a scam, says the Federal Trade Commission.

The FTC announced in August that the U.S. District Court in Reno, Nev., had halted a "$15 billion free money" deceptive claims campaign centered on Grant Connect. At the FTC's request, the court issued an order shutting down 12 Web sites that scammers were using to falsely claim they can get free government grant money for consumers.

The Web sites were making false promises that their "Easy to Use Program" could help people "instantly find the grant that's right for them."

The sites and related e-mails featured pictures of President Barack Obama, Vice President Joe Biden and the American flag to imply that they were connected to the government.

The commission also charged that these companies used bogus testimonials, failed to disclose the actual cost of their products, bundled multiple products for sale without disclosures, and debited consumers' bank accounts without permission.

Five of the 12 defendants in the case agreed to a preliminary injunction halting these practices until the matter is decided at trial.

The FTC charged Grant Connect defendants with violating federal law by: (1) making deceptive representations about Grant Connect, (2) failing to adequately disclose material terms and conditions of offers and (3) violating the Electronic Funds Transfer Act (see tulsaworld.com/ElecFundsTrans ) by debiting consumers' bank accounts repeatedly without authorization.

The complaint names Grant Connect LLC; Global Gold Inc.; Horizon Holdings LLC; O'Connell Gray LLC; Pink LP; Vantex Group LLC; Vertek Group LLC; Rachel A. Cook, the manager of Vantex and Vertek; James J. Gray, a managing member of Grant Connect, Horizon Holdings and O'Connell Gray; Steven R. Henriksen, the president and owner of Global Gold; Juliette M. Kimoto, the owner of Vertek and general partner of Pink; and Randy D. O'Connell, a managing member of Horizon Holdings and O'Connell Gray.

The five defendants who agreed to the preliminary injunction entered by the court Aug. 18 are Grant Connect LLC; Horizon Holdings LLC; O'Connell Gray LLC; James J. Gray; and Randy D. O'Connell. See the full case report at tulsaworld.com/OPshortchange .





Submit Action Line questions by calling 699-8888 or by e-mailing phil.mulkins@TulsaWorld.com or by mailing it to Tulsa World Action Line, PO Box 1770, Tulsa OK 74102-1770.




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