Nasty Multi-Faceted Scam

Here's a pretty nasty scam that several readers forwarded to me.

It involves an organization pretending to help treat alcoholism, while in fact being a set up to milk people from their money.Check it out, and as always, if you see or hear about a shocking or big name scam, please email me at jessicasmom23@gmail.com.
Thanks!!

SHOCKING FRAUD AND PRIVACY ALLEGATIONS: FTC, Florida Say Alcoholism Cure Corp. Used .Org Domains, Threatened To Disclose Members’ Drinking Problems If They Canceled Program

By PatrickPretty.com


The FTC and Florida Attorney General Bill McCollum have charged a Florida company that “touted a phony cure for alcoholism” with false advertising claims, false efficacy claims, false privacy claims, false claims about professional qualifications, unauthorized billing and deceptive trade practices.

Among the allegations in a civil lawsuit against Alcoholism Cure Corp. were that it offered tiered programs depending on the severity of a member’s involvement with alcohol — and if a member wanted to pull out of the program, the company threatened to expose the member’s alcohol dependence publicly.

Alcoholism Cure Corp. also did business as Alcoholism Cure Foundation and used at least two .org websites to sell its program, according to court filings.

Among the other allegations in the case were that the company disclosed health information about its customers to bill collectors, credit-card companies and the Better Business Bureau in a bid by the firm to win cases when customers disputed charges.

The company, which is operated by Robert Douglas Krotzer, also placed restrictions on how clients could cancel.

“Defendants require consumers to submit ‘Proof of Continued Drinking’ to prove that they are not cured,” the FTC and McCollum said in court filings. “Defendants state the submission should include, among other items, notarized notes from the consumer’s doctor and five friends stating that the consumer continues to drink, liquor receipts from the previous two months, and several kinds of laboratory testing.

“Unless consumers meet all the requirements set forth in this paragraph, Defendants deem them ‘cured’ and claim the consumers owe the full cost of the Program, which differs by consumer but generally ranges from $9,000 to more than $20,000,” the complaint alleged.

Litigation threats against customers occurred routinely, according to the complaint.

“Defendants warn consumers that failure to pay the demanded amount could result in litigation and the attendant ‘unwanted publicity,’” the complaint alleged. “In fact, Defendants have filed at least eleven cases in Jacksonville, Florida small claims court against consumers who registered for the ‘Permanent Cure’ Program seeking several thousand dollars each. In the cases, Defendants reveal the consumers’ personal and health information, including the fact they are alcoholics, by not filing the court pleadings in a nonpublic manner.”

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