Defrauding Ohioans: 2 Companies Accused Of Telemarketing Scheme

COLUMBUS, OH — Two companies have been accused of defrauding Ohioans and other Americans out of millions of dollars. Ohio Attorney General Dave Yost and the Federal Trade Commission (FTC) have gotten a temporary restraining order against the companies.

Educare Centre Services and Madera Merchant Services are accused of defrauding people struggling with credit card debt using a telemarketing scheme in complaints filed by Yost and the FTC. A federal judge in El Paso, Texas, issued the restraining order against the companies on Monday.

“Telemarketers aren’t just a pain in the neck, they can also be a pain in your bank account,” Yost said in a statement. “We contacted the FTC when we realized this racket extended beyond Ohio’s borders and people nationwide were being hurt.”

Using robocalls, Educare offered customers the chance to consolidate credit cards to get lower interest rates, Yost's office said. However, the company appears to offer no actual services, the Ohio Attorney General said.

Educare is not registered with the Ohio Attorney General's Office as a telephone solicitor. At least 450 Ohio residents were roped into the Educare scheme, Yost's office said, and lost a combined $300,000.

Madera is a third-party payment processor that charges consumer checking accounts on behalf of Educare. According to Yost's office, over the past five years, Madera processed more than $18 million in transactions, including $11.8 million for Educare.

Madera would use remotely created checks, or "RCPOs," to withdraw money from consumers' checking accounts, Yost said, but the federal Telemarketing Sales Rule bars telemarketers from using that method of payment.

Yost noted that fraudulent telemarketers can use remotely created checks to created unsigned checks that are used to access a person's bank account without authorization.

After discovering the telemarketing scheme, Yost said, his office contacted the FTC and worked with the agency to develop cases against Madera and Educare. The complaints against both companies seek declaratory relief, injunctive relief and consumer restitution.