{"id":6193,"date":"2023-12-11T07:00:00","date_gmt":"2023-12-11T12:00:00","guid":{"rendered":"https:\/\/tvdelmarva.com\/?p=6193"},"modified":"2023-12-11T15:42:36","modified_gmt":"2023-12-11T20:42:36","slug":"ftc-acts-against-operators-of-income-scheme-the-sales-mentor-that-charged-consumers-millions-for-bogus-telemarketing-advice","status":"publish","type":"post","link":"https:\/\/tvdelmarva.com\/wp\/ftc-acts-against-operators-of-income-scheme-the-sales-mentor-that-charged-consumers-millions-for-bogus-telemarketing-advice\/","title":{"rendered":"FTC Acts Against Operators of Income Scheme \u201cThe Sales Mentor\u201d That Charged Consumers Millions for Bogus Telemarketing Advice"},"content":{"rendered":"<p>The Federal Trade Commission has obtained proposed orders against the operators of a wide-ranging scheme known as \u201cThe Sales Mentor\u201d that made millions by falsely promising consumers that they could make big money from telemarketing sales.<\/p>\n<p>The defendants have agreed to proposed court orders that would require them to pay a total of $1 million for consumer refunds.<\/p>\n<p>In a <a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/TrafficandFunnelsComplaintfiled.pdf\">federal court complaint<\/a>,<b>\u00a0<\/b>the FTC charged the Tennessee-based group of companies, their owners, their officers, and a former sales director with deceiving consumers to pay hundreds or even thousands of dollars for supposed telemarketing training programs that rarely, if ever, delivered on what was promised. In addition, the FTC said the companies continued to make deceptive earnings claims even after they received the FTC\u2019s Notices of Penalty Offenses on money-making opportunities and on endorsements and testimonials warning them that such conduct is illegal.<\/p>\n<p>\u201cTraffic and Funnels lured people looking to work and earn an income with false or unfounded earnings claims, even after receiving legal notices from the FTC about the illegality of such conduct,\u201d said Samuel Levine, Director of the FTC\u2019s Bureau of Consumer Protection. \u201cThe FTC will continue to crack down on deceptive earnings claims that cheat consumers.\u201d \u00a0<\/p>\n<p>In its complaint, the FTC charged that the companies, their owners Taylor Welch and Christopher Evans, and employees Payton Welch and Ashton Shanks falsely told consumers that The Sales Mentor program for the \u201chigh demand\u201d field of telemarketing sales could net them incomes of $10,000 to $20,000 per month on average. In their ads, online videos and other sales pitches, the defendants made false claims that they had successfully \u201chelped over 25,000 people find secure, dependable, consistent and life-changing incomes,\u201d according to the complaint.<\/p>\n<p>Another advertisement claimed that \u201c\u2026it\u2019s virtually IMPOSSIBLE NOT to enjoy a job-replacing six-figure income, even part-time.\u201d<\/p>\n<p>The defendants also falsely claimed, according to the complaint, to have access to a \u201cwaiting list\u201d of companies looking to hire consumers who completed their program, when often all they had available was an outdated list of job openings.<\/p>\n<p>The various Sales Mentor \u201cpackages\u201d ranged in price from $97 to more than $9,000, according to the complaint. Consumers complained that the supposed private mentoring at higher levels was never made available, and that in many cases the higher levels received the same online video series that could be purchased at lower costs.<\/p>\n<p>According to the complaint, consumers paid more than $29 million to the defendants when the scheme was active between 2018 and 2022. During that time, one of the corporate defendants in 2021 received the FTC\u2019s Notice of Penalty Offenses relating to earnings claims and endorsements. The complaint charges that the defendants violated the FTC Act and the Telemarketing Sales Rule and engaged in illegal practices described in the Notices they received.<\/p>\n<p>There are two proposed court orders, which were agreed to by the defendants to settle the case: <a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/stipulated_order_for_permanent_injunction_monetary_relief_and_other_relief_as_to_defendant_christopher_a._evans.pdf\">one against Evans<\/a> and the <a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/stipulated_order_for_permanent_injunction_monetary_relief_and_other_relief_as_to_defendants_traffic_and_funnels_llc_et_al.pdf\">other against<\/a>\u00a0the Welches; Shanks; Evans and Welch, Inc.; WE Capital, LLC; Traffic and Funnels, LLC; and Evans and Welch Holdings, LLC. Both orders include:<\/p>\n<ul>\n<li><b>Prohibition on deceptive earnings claims: <\/b>Each of the defendants will be prohibited from making earnings claims that are misleading or unsubstantiated.<\/li>\n<li><b>Prohibition on deceiving consumers:<\/b> The defendants will be prohibited from any misrepresentation in selling of any goods or services.<\/li>\n<li><b>Turn over money: <\/b>The orders will require Taylor Welch to turn over $600,000 and Evans to turn over $400,000 to the FTC to be used to provide refunds to consumers harmed by the scheme.<\/li>\n<\/ul>\n<p>The orders contain a total monetary judgment of $16,363,073.11 against all of the defendants except Shanks, which is largely suspended based on the defendants\u2019 inability to pay the full amount. If the defendants are found to have lied to the FTC about the financial status, the full judgment would be immediately payable.<\/p>\n<p>The Commission vote authorizing the staff to file the complaint and stipulated final orders was 3-0. The FTC filed the complaint and final orders<b> <\/b>in the U.S. District Court for the Middle District of Tennessee.<\/p>\n<p><b>NOTE: <\/b>The Commission files a complaint when it has \u201creason to believe\u201d that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. Stipulated final injunctions\/orders have the force of law when approved and signed by the District Court judge.<\/p>\n<p>The staff attorneys on this matter are Virginia Rosa and Frances Kern of the FTC\u2019s Bureau of Consumer Protection.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Trade Commission has obtained proposed orders against the operators of a wide-ranging scheme known as \u201cThe Sales Mentor\u201d that made millions by falsely promising consumers that they could make big money from telemarketing sales. The defendants have agreed to proposed court orders that would require them to pay a total of $1 million [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[29],"tags":[],"class_list":["post-6193","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pbtNqq-1BT","jetpack-related-posts":[{"id":11828,"url":"https:\/\/tvdelmarva.com\/wp\/ftc-sends-more-than-960000-in-refunds-to-consumers-harmed-by-income-scheme-the-sales-mentor\/","url_meta":{"origin":6193,"position":0},"title":"FTC Sends More Than $960,000 in Refunds to Consumers Harmed by Income Scheme \u2018The Sales Mentor\u2019","author":"jmayfield","date":"January 13, 2025","format":false,"excerpt":"Image The Federal Trade Commission is sending more than $960,000 in refunds to consumers who paid a job scheme known as \u201cThe Sales Mentor\u201d that, according to the FTC, falsely promised consumers that they would make big money from telemarketing sales.\u00a0The FTC sued the defendants who ran the scheme\u00a0in December\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/tvdelmarva.com\/wp\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2023\/10\/Seal_of_the_United_States_Federal_Trade_Commission.svg_.png?fit=640%2C360&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2023\/10\/Seal_of_the_United_States_Federal_Trade_Commission.svg_.png?fit=640%2C360&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2023\/10\/Seal_of_the_United_States_Federal_Trade_Commission.svg_.png?fit=640%2C360&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7543,"url":"https:\/\/tvdelmarva.com\/wp\/tech-support-firms-will-pay-26-million-to-settle-ftc-charges-that-they-deceived-consumers-into-buying-repair-services\/","url_meta":{"origin":6193,"position":1},"title":"Tech Support Firms Will Pay $26 Million to Settle FTC Charges That They Deceived Consumers into Buying Repair Services","author":"jhenderson2","date":"March 14, 2024","format":false,"excerpt":"Two tech support companies will pay $26 million to settle Federal Trade Commission charges that they bilked tens of millions of dollars from consumers, particularly older consumers, by duping them into buying computer repair services in violation of the FTC Act and the Telemarketing Sales Rule.In a complaint filed in\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/tvdelmarva.com\/wp\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2024\/03\/restoro-reimage-kape1.png?fit=500%2C380&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":11313,"url":"https:\/\/tvdelmarva.com\/wp\/ftc-acts-to-stop-scheme-that-bilked-millions-out-of-student-loan-borrowers\/","url_meta":{"origin":6193,"position":2},"title":"FTC Acts to Stop Scheme that Bilked Millions out of Student Loan Borrowers","author":"ndrayton","date":"December 9, 2024","format":false,"excerpt":"The Federal Trade Commission has stopped a scheme that allegedly bilked millions of dollars out of consumers burdened with student loan debt by pretending to be affiliated with\u00a0the U.S. Department of Education in violation of the FTC\u2019s Impersonation Rule, collecting illegal advance fees, and making other deceptive claims.A\u00a0federal court temporarily\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/tvdelmarva.com\/wp\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2023\/10\/Seal_of_the_United_States_Federal_Trade_Commission.svg_.png?fit=640%2C360&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2023\/10\/Seal_of_the_United_States_Federal_Trade_Commission.svg_.png?fit=640%2C360&ssl=1&resize=350%2C200 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According to the FTC\u2019s August 2023 complaint, since at least 2019, Express Enrollment LLC (also doing\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/tvdelmarva.com\/wp\/category\/news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6525,"url":"https:\/\/tvdelmarva.com\/wp\/xcast-labs-will-be-banned-from-supporting-illegal-telemarketing-practices-to-settle-ftc-charges-it-assisted-and-facilitated-in-sending-hundreds-of-millions-of-illegal-robocalls\/","url_meta":{"origin":6193,"position":4},"title":"XCast Labs Will Be Banned from Supporting Illegal Telemarketing Practices to Settle FTC Charges It Assisted and Facilitated in Sending Hundreds of Millions of Illegal Robocalls","author":"vgraham","date":"January 2, 2024","format":false,"excerpt":"Voice over Internet Protocol (VoIP) provider XCast Labs, Inc., agreed to settle Federal Trade Commission charges that it funneled hundreds of millions of illegal robocalls through its network, even after receiving multiple warnings about the unlawful conduct. 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