FTC settles medical billing scam
The Federal Trade Commission has settled a year-old case involving deceptive claims about earnings potential made by promoters of home-based, computer-driven medical billing businesses.
The FTC complaint alleged that Electronic Filing Asso ciates, Electronic Filing Academy and Edward Epstein misrepresented the income potential customers could reasonably expect to earn in order to induce them to make an investment in a medical billing business. Epstein and his companies advertised medical and dental billing center business opportunities in newspaper ads across the country.
The agency said Epstein and his companies agreed to notify investors that they may cancel their contracts and promissory notes with the companies. Epstein also is required to cease any collection efforts and to notify credit-reporting agencies that have been given negative credit information about investors that the information should be removed.
The settlement also bars Epstein and his employees from misrepresenting business opportunities in the future, including misrepresenting the income, profits or sales volume projected for prospective purchasers or achieved by previous purchasers.
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