Skip to main content

Posts

Showing posts with the label machines

FTC Recovers More Than $3 Million from Operators of DVD Vending Machine Scam

Judgments Entered Against All But One Defendant The Federal Trade Commission has recovered more than $3 million that will be refunded to investors who were duped in an alleged scam that promoted video rental machines as a business opportunity. The FTC’s law enforcement action against American Entertainment Distributors, Inc., was filed in 2005, naming 10 defendants. The U.S. District Court for the Southern District of Florida has now entered final orders against nine of them, prohibiting further illegal conduct and requiring payments for refunds. The FTC alleged that the defendants tricked investors into paying $28,000 to $37,500 apiece for video rental vending machines, telling them they could expect to earn between $60,000 and $80,000 a year, or recoup their initial investment in six to 14 months. The FTC’s case was halted for three years while the Department of Justice pursued parallel criminal proceedings.