Steven Bishoff of Green Bay, Wis., received a call from a solicitor in December 2003, offering $200 in gasoline coupons for Bishoff to review marketing materials.
The promised refunds never arrived. Bishoff called to cancel the products offered, but his checking account was still charged.
Now, state Attorney General Peg Lautenschlager is filing a lawsuit against the Nevada telemarketing company that Bishoff claims took his money, Continuity Partners, Inc.
Hundreds of dollars are missing from the checking or credit card accounts of 32 Wisconsin residents following interactions with four main companies under the control of Continuity Partners: Utalk Unlimited, Washballs, American Values and Wellnet.
A 2003-04 investigation was held as a result of complaints registered to the Wisconsin Department of Justice. Investigations involving phone solicitation are lengthy, as the Department is required to review old phone records and attempt to locate who is responsible, according to Lautenschlager.
Goals of the lawsuit include preventing violations of Wisconsin’s telemarketing code, recovering residents’ losses and issuing fines to perpetrators for these violations, the Circuit Court’s release said.
Lautenschlager and Assistant Attorney General John Greene, who is representing the state, filed the lawsuit in Brown County against Continuity Partners President Brian K. MacGregor, who is believed to know of the illegal practices at the company, according to the complaint.
MacGregor was unavailable for comment on the lawsuit.
Continuity Partners is accused of failing to disclose material, contract terms and cancellation and refund policies.
The lawsuit has been filed through the court and will have an appearance date soon. Thereafter, a preliminary hearing will be held, Lautenschlager said.
Residents provided bank account or credit card information after being promised free gasoline coupons or telephone calling cards, which they never received.
The companies claimed the only charge was $1.95 for shipping and handling and then withdrew large amounts without permission, said Lautenschlager.
“The consumer [had] nothing … to identify who the ‘bad guys’ were,” Lautenschlager said in an interview.
“People sometimes throw caution to the wind when these things are dangled in front of them, and it is great that the Justice Department is pursuing this matter,” Jay Heck of Common Cause of Wisconsin said.
“Credit card scams are pretty widespread, and we hear over and over again how we are not supposed to give out that information,” Heck said.
These companies often prey on elderly people, who are more polite over the phone. They are preying on people’s vulnerabilities, Heck said.
“Consumers should not give out their bank account or credit card information unless they are certain that the business is legitimate,” Lautenschlager said in a press release. “When in doubt, you should simply decline the offer, or request written information about the company and its products or services so that you can verify its claims.”
—Ryan Masse and Rachel Patzer contributed to this article