FOR IMMEDIATE RELEASE: Tuesday, July 30, 2019 Contact: Lynn Hicks | Communications Director | 515-281-6699 | lynn.hicks@ag.iowa.gov
Judge shuts down Quad Cities firms accused of national advertising scam
Small businesses were defrauded over high school sports posters and other items, lawsuit alleges
DES MOINES — A Polk County judge has shut down several Quad Cities-based advertising companies that are accused of defrauding small businesses across the nation.
District Judge Robert B. Hansen granted a temporary injunction sought by Iowa Attorney General Tom Miller against owner Alphonso Barnum of Davenport, several of his associates, and 10 companies. The injunction bars the defendants from conducting any business activity involving telemarketing and the sale of advertising and promotional items.
Miller's lawsuit alleges the defendants violated the Iowa Consumer Fraud Act by using deception, confusion and high-pressure tactics purportedly to sell advertisements for direct-mail pieces and promotional items, such as high school sports posters and city information guides. In many cases, the companies delivered no products, the lawsuit alleges.
Judge Hansen cited evidence that defendants made unauthorized charges against the victims’ accounts, including creating checks that were run through victims' bank accounts, the judge found. One business owner in Michigan had more than $80,000 in checks remotely created by defendants run through her account, and another in Illinois had more than $47,000 taken.