Special BBB Investigation Confirms: Work-at-Home Deals are "TOO GOOD TO BE TRUE"

Special BBB Investigation Confirms: Work-at-Home Deals are "TOO GOOD TO BE TRUE"

Arlington, VA., October 12, 2000 -- Interested in making money while staying at home? Remember that if it sounds too good to be true, it probably is!

That is what Better Business Bureaus across North America have confirmed in a year-long study of 112 work-at-home companies that advertise in newspapers and magazines, on the Internet, and on signs posted in various communities. Operation Job Fraud, a task force comprised of 15 BBB professionals in cooperation with the United States Postal Inspection Service, coordinated the project.

?Work-at-home schemers often target the most vulnerable, those who can least afford to lose the money,? said Kathryn M. Conklin, president of the BBB headquartered in Chattanooga, Tennessee, and chair of the task force. ?Students, stay-at-home mothers, disabled people, and the elderly are always hopeful that they can earn some money at home. Our investigation shows direct evidence to the contrary. We ?shopped? more than 100 work-at-home advertisements, and found absolutely no evidence of people making the earnings promised. In fact, most people pay more up-front than they ever earn doing the work advertised.?

Operation Job Fraud Task Force
The task force was formed a year ago in response to growing BBB concerns about an industry that regularly tops the list of types of businesses generating the most inquiries to local BBBs. In 1999, the most recent year for which national data is available, work-at-home schemes generated nearly 280,000 inquiries to Better Business Bureaus across the U.S., and more than 5,500 complaints.

According to the BBB, those complaint numbers are probably just the tip of the iceberg. ?This is a bigger problem than anyone realizes,? said Ken Hunter, president and CEO of the Council of Better Business Bureaus. ?The amount of money that one person spends on these schemes is typically a relatively small amount, so too many victims never complain because they feel foolish about being taken.?

Operation Job Fraud?s mission was three-fold: to alert the public to work-at-home schemes, expose these practices and operators that deceive and rob the public, and help law enforcement in criminal prosecutions. Better Business Bureaus in the United States, Canada, and Puerto Rico were invited to participate by shopping and investigating work-at-home companies that consumers in their areas were calling about. As the task force gathered results, information was shared with Postal Inspectors to assist in arrests and prosecution. That effort is ongoing.

Investigation Results
The task force identified a variety of work-at-home companies, including envelope-stuffing, product assembly, medical billing, mystery shopping, and business opportunities, such as vitamin sales, auto-dialing machines, selling advertising on the Internet, and telemarketing of videotapes, books and seminars.

Of the 112 companies investigated, 21 were out of business before the study concluded. Twelve others did not respond after money was sent, and 10 did not respond to preliminary inquiries. Of the remaining 69 companies, 2 stated that ?positions were filled,? and the rest sent instructions for setting up another work-at-home company, products to assemble, books and/or lists of other companies to contact for work opportunities, or offers for software, books, or videos.

While ads claim high earnings and short hours with little or no experience, the task force found no evidence of people actually making the promised money. Rather, after paying advance ?registration? fees or ?good faith deposits,? the consumer receives either nothing, or information that encourages involvement in an illegal scheme or supplies to assemble a product that is virtually impossible to complete.

The two most prevalent types of work-at-home ads are for product assembly and envelope stuffing. In most assembly cases, the company sends specific instructions for the worker to follow, warning the items will be rejected and no money earned if the products did not meet the company?s standards. ?Our experience shows that even the most competent of workers couldn?t meet these so-called standards,? Conklin said. ?The only one getting rich is the person who owns the company.?

Typical envelope stuffing offers, which have been around since the Great Depression, promote earnings of $1 or $2 per envelope and promise that a worker can make thousands of dollars monthly. Some advertised offers also pledge to refund the advance fee once a thousand envelopes are stuffed. ?Workers become discouraged long before they get the thousand envelopes stuffed, particularly when they realize they?re distributing advertisements to lure advance fees from other would-be workers, thereby helping to perpetuate the scam,? Conklin explained.

The Lincoln, Nebraska BBB reported to the task force that a couple appearing to be in their mid-to-late 30?s came to the BBB with a stack of envelopes so big that the woman could barely hold them between her thumb and fingers. They were responses to her requests for information on envelope stuffing. In her other hand she had two pieces of lined notebook paper with 15 addresses of other envelope stuffing ads that she asked Harlene Holz, BBB staffer, to check out for her. After Holz talked to the couple for about 30 minutes, they left with the envelopes and addresses. ?Were they convinced of the futility of such offers? I seriously doubt it. It?s sad,? said Holz.

The task force also warns against medical billing offers that involve high fees in advance. BBB experience found that the software sent is often unusable, and the worker must develop his or her own leads without assistance from the company.

Evaluating Work-at-Home Offers
The BBB offers a publication to help consumers identify the red flags that signify a potential work-at-home scheme. A copy is posted on the BBB central web site at http://www.bbb.org/al... or consumers can request a hard copy by contacting their local BBB.

You still don't get it.
I have never denied this is a real company. It's even a public company, meaning that they have to report their financial to the SEC. Which gives us great insight in their success, or lack thereof.

Let's have a look at the YTB financials:

Net loss grew from $2.1 million in 2004 to $8.1 million in 2005.
One more point of interest is on the balance sheet: the Net Tangible Assets (book value) of YTB was $615,000 at the end of 2003, NEGATIVE $730,000 at the end of 2004 and a whopping NEGATIVE $1.7 million at the end of 2005.

So, YTB really lives by the well-known (and despised) principle: "We are operating at a loss, but we're making it up in volume!".

I can see a bright future ahead for YTB: bankruptcy!
Which will make their "residual income guarantee" completely worthless.

Diving deeper into their SEC filings shows that their average annnual payout to RTAs is far less than the annual contribution. I'm sure that there are some (at the top) who are making money (like the board), but the vast majority is loosing money, just like the company itself.

Adrian

We enjoy the highest rating with the Better Business Bureau.

In reality: AmeriPlan's BBB membership has been suspended since July 2006 and has been revoked on February 12, 2007

On February 12, 2007 this company's membership in the BBB was revoked by the BBB's Board of Directors due to recent government action involving the business's customer relations which indicates a significant failure of the business to meet standards of conduct expected of a BBB member.

More info: Montana settlement

MORRISON ANNOUNCES $200,000 SETTLEMENT WITH AMERIPLAN TO RESOLVE FRAUD ALLEGATIONS


Montana Victims to Benefit from Settlement
Montana State Auditor John Morrison announced today a settlement agreement with Plano-based AmeriPlan to resolve allegations of insurance and securities fraud. In July of this year, Morrison issued a cease and desist order after charging AmeriPlan USA, its founding officers, Dennis and Daniel Bloom, and Shirl Shelley, a Montana resident, with numerous violations of both the Montana Insurance Code and the Montana Securities Act. The action taken against AmeriPlan was the first of its kind in Montana and possibly the first in the nation, relying on a new law governing medical care discount cards. Morrison requested the legislation last session to ensure that medical care discount card providers were legitimate before they were allowed to sell their products in Montana.
"This settlement agreement serves to remind medical discount card companies that protecting Montanans is our number one priority," said Morrison. "If discount card providers refuse to play by our new rules, they will pay the price and won?t be allowed to operate in Montana."
Under the agreement, AmeriPlan must pay an administrative fine of $200,000 and create a restitution fund for Montana customers who were duped by the company. Montana customers of AmeriPlan can expect to receive a letter informing them that they are eligible to submit a claim to the restitution fund. In addition, AmeriPlan is banned from marketing and selling its products in Montana for two years.
"Our investigation put a stop to AmeriPlan's Montana activities," said Morrison, "but perhaps more importantly, we were able to get restitution for the victims. People receiving settlement letters will have 30 days to submit a claim - they need to follow the instructions outlined in their letter. Folks can certainly call my office if they have questions."
AmeriPlan and its agents and officers were accused of failing to contract with the medical care providers (including doctors, nurse practitioners, physician?s assistants and hospitals) they advertise as participants in AmeriPlan's medical care discount program. The Auditor alleges that over 700 Montana AmeriPlan members living all across the state were unable to use the discount cards because there were few, if any, providers in Montana. Additionally, AmeriPlan is charged with conducting an illegal pyramid promotional scheme because it sold "broker packages" for the purpose of recruiting memberships. Because the memberships were for discounts that did not exist, Morrison alleged there was no actual product being sold. AmeriPlan's largest source of income in Montana was from the sales of these "broker packages," which were nothing but a pyramid scheme, according to the Auditor's charging document.
AmeriPlan's website and other advertising, including oral assertions from some of its agents, claimed to have a substantial number of medical care providers, dentists, and chiropractors contracted to provide a significant discount through the purchase of its card. When the Auditor?s office investigated these claims they were unable to find a single medical care provider or chiropractor who honored the discount cards. The only dentist who had contracted with AmeriPlan was located in Forsyth and was on probationary status with the Montana Board of Dentistry for his unlawful activities in Colorado. The new law requires the discount card companies to have contracts for services with providers located within a 60 mile radius of the card holder.
The company was told to stop its activity in November of 2005 but AmeriPlan continued to market its discount cards until the matter was referred to Morrison's legal staff in late April. Additional charges included securities fraud, using deceptive or fraudulent practices in the marketing of their discount cards, selling unregistered securities by unregistered salespersons and failure to stop marketing the cards when they were not properly registered.
"With insurance premiums on the rise consumers are searching for ways to obtain medical care coverage at a manageable cost," said Morrison. "These fake discount card operators are preying on folks who are trying to find alternative solutions to the high cost of heath insurance. Our main goal is protecting Montanans while aggressively pursuing those bad actors in the industry who are exploiting the health care crisis facing consumers."
The settlement agreement can be found at www.mt.gov/sao. Montanans who have questions regarding the settlement can call the State Auditor?s Office at 1-800-332-6148.

I think most people wanted to start a home based business because they want to spend more time
with their family and yet don't have to worry about money.

yet to assume that you don't need to put in effort to roll in money working from home is wrong assumption.

I am sure most entrepreneurs who make it did go through the stage of turning point and breaking point until they saw income pouring in from their second stream of income.


When doing home business, whether it is MLM, internet marketing etc,
we all need to remember law of attraction is working

So continuously apply law of attraction into your life and you will see the results
you are dreaming of.

1 good free resource you can read is law of attraction report from Bob Proctor
After reading and applying his points mentioned, I got results from my vision
board after 3 weeks.

Cheers,
Karen

We enjoy the highest rating with the Better Business Bureau.

In reality: AmeriPlan's BBB membership has been suspended since July 2006 and has been revoked on February 12, 2007

On February 12, 2007 this company's membership in the BBB was revoked by the BBB's Board of Directors due to recent government action involving the business's customer relations which indicates a significant failure of the business to meet standards of conduct expected of a BBB member.

More info: Montana settlement

MORRISON ANNOUNCES $200,000 SETTLEMENT WITH AMERIPLAN TO RESOLVE FRAUD ALLEGATIONS


Montana Victims to Benefit from Settlement
Montana State Auditor John Morrison announced today a settlement agreement with Plano-based AmeriPlan to resolve allegations of insurance and securities fraud. In July of this year, Morrison issued a cease and desist order after charging AmeriPlan USA, its founding officers, Dennis and Daniel Bloom, and Shirl Shelley, a Montana resident, with numerous violations of both the Montana Insurance Code and the Montana Securities Act. The action taken against AmeriPlan was the first of its kind in Montana and possibly the first in the nation, relying on a new law governing medical care discount cards. Morrison requested the legislation last session to ensure that medical care discount card providers were legitimate before they were allowed to sell their products in Montana.
"This settlement agreement serves to remind medical discount card companies that protecting Montanans is our number one priority," said Morrison. "If discount card providers refuse to play by our new rules, they will pay the price and won?t be allowed to operate in Montana."
Under the agreement, AmeriPlan must pay an administrative fine of $200,000 and create a restitution fund for Montana customers who were duped by the company. Montana customers of AmeriPlan can expect to receive a letter informing them that they are eligible to submit a claim to the restitution fund. In addition, AmeriPlan is banned from marketing and selling its products in Montana for two years.
"Our investigation put a stop to AmeriPlan's Montana activities," said Morrison, "but perhaps more importantly, we were able to get restitution for the victims. People receiving settlement letters will have 30 days to submit a claim - they need to follow the instructions outlined in their letter. Folks can certainly call my office if they have questions."
AmeriPlan and its agents and officers were accused of failing to contract with the medical care providers (including doctors, nurse practitioners, physician?s assistants and hospitals) they advertise as participants in AmeriPlan's medical care discount program. The Auditor alleges that over 700 Montana AmeriPlan members living all across the state were unable to use the discount cards because there were few, if any, providers in Montana. Additionally, AmeriPlan is charged with conducting an illegal pyramid promotional scheme because it sold "broker packages" for the purpose of recruiting memberships. Because the memberships were for discounts that did not exist, Morrison alleged there was no actual product being sold. AmeriPlan's largest source of income in Montana was from the sales of these "broker packages," which were nothing but a pyramid scheme, according to the Auditor's charging document.
AmeriPlan's website and other advertising, including oral assertions from some of its agents, claimed to have a substantial number of medical care providers, dentists, and chiropractors contracted to provide a significant discount through the purchase of its card. When the Auditor?s office investigated these claims they were unable to find a single medical care provider or chiropractor who honored the discount cards. The only dentist who had contracted with AmeriPlan was located in Forsyth and was on probationary status with the Montana Board of Dentistry for his unlawful activities in Colorado. The new law requires the discount card companies to have contracts for services with providers located within a 60 mile radius of the card holder.
The company was told to stop its activity in November of 2005 but AmeriPlan continued to market its discount cards until the matter was referred to Morrison's legal staff in late April. Additional charges included securities fraud, using deceptive or fraudulent practices in the marketing of their discount cards, selling unregistered securities by unregistered salespersons and failure to stop marketing the cards when they were not properly registered.
"With insurance premiums on the rise consumers are searching for ways to obtain medical care coverage at a manageable cost," said Morrison. "These fake discount card operators are preying on folks who are trying to find alternative solutions to the high cost of heath insurance. Our main goal is protecting Montanans while aggressively pursuing those bad actors in the industry who are exploiting the health care crisis facing consumers."
The settlement agreement can be found at www.mt.gov/sao. Montanans who have questions regarding the settlement can call the State Auditor?s Office at 1-800-332-6148.

This does not tell the whole story of what happened in Montana. We had a rep recruiting IBOs in Montana even after the company had told all reps that we cannot do business in Montana because we do not have providers. He figured recruiting IBOs would be ok and not sell memberships. Since we can sell in any other state, he figured the IBOs can build their business from the internet. The mistake of one IBO fell on the shoulders of the company. If you are at all familiar with AmeriPlan, you know this is not a "fake discount card". Mr. Morrison was trying to cause as much rukus as he could. In Arizona, our Medical discount plan has been accepted by their Medical Board. Its unfortunate that this did happen but it is not the companies fault but they are taking the hit. Its also unfortunate that you would post this without the full story. More and more discount dental, vision and prescriptions plans are being brought into the benefits world and that is because of AmeriPlan. I sell insurance so I see these new plans from Big Insurance companies coming all the time. And I still have not seen a better package than what AmeriPlan has when it comes to the discount Dental plan. They have changed the health benefits world looks at ancillary benefits. They have been around for 15yrs and still there is not a better discount plan on the market. If you are fortunate enough to have providers in your area, then you can't go wrong with this plan. This company is solid and loosing the BBB won't slow them down. I challenge you to do further research about the company and the opportunity. I don't mean join, I mean look at what they offer for those that join them in business. You can truly make money from day 1. Does your home business offer a 401k? Accidental Death and Dismemberment Insurance for every IBO, FREE? I could go on and on but I think I made my point. Oh by the way, my wife has Anthem Insurance and we save more money with the AmeriPlan Discount Card on her prescription. www.mybenefitsplus.com/rrutlandjr

nay sayers? oh boy. thats a new one.

All your reports are helpful and it is nice to see people are going the extra mile to advise others. However I have a home business and it is wonderful and very successful... Give it a look I could not ask for anything more it is a true blessing!! Todaymyway.com