United States of America

 FEDERAL TRADE COMMISSION 

East Central Region

1111 Superior Avenue, Suite 200 Jon Miller Steiger

Cleveland, Ohio 44114 Director

(216) 263Ͳ3455



March 17, 2023 

CEASE AND DESIST DEMAND 

VIA EMAIL TO: 

atlantaregulatory@ticket.claconnect.com 

Peerless Network, Inc. 

John Barnicle, CEO 

433 West Van Buren Street 

Suite 401S 

Chicago, IL 60607 

c/o Joe Solana, Registered Agent 

We have determined that Peerless Network, Inc. is apparently routing and transmitting 

illegal robocall traffic, directly or indirectly, for entities involved in the following campaigns: 

x Amazon-AuthorizeOrder 

x Apple-iCloud-AccountBreached 

x Authorized-Order 

x AutoWarranty-Extend2 

x AutoWarranty-ExtendOrReinst 

x CBP-GovtImpers 

x CCIRR-P1FinancialImpers 

x CCIRR-Various 

x CCIRR-VisaAlert 

x DebtRelief-COVID-19Payment 

x DebtRelief-ZeroTax 

x Discount-Avail50% 

x FedReserv-Impers 

x Financial-Impers-6 

x IRS-ProcessingCenter 

x Legal-Enforcement-Notice 

x Medicare-Advisor 

x Solar-TheSolarProject 

x SSA-CalltheSSA 

x SSA-Suspended 
 

x StudentLoan - New Changes 

x StudentLoan-HardshipProgram 

x StudentLoan-USCenterDebtRelief 

x TaxReduction-IRSSuspendedCollection 

x Utility-30MinDisconnect 

More specifically, our investigation revealed that Peerless Network, Inc. apparently routed and 

transmitted illegal robocalls, as set forth in Attachment A. 

The Federal Trade Commission (FTC) works closely with USTelecom’s Industry 

Traceback Group (ITG), which is the registered industry consortium selected pursuant to the 

TRACED Act to conduct tracebacks.1 Between January 7, 2021, and February 1, 2023, ITG 

investigated 79 prerecorded voice message calls that law enforcement, voice service providers 

using honeypots (i.e., unassigned numbers held by providers to detect illegal robocalls), and 

customers of YouMail had flagged as illegal robocalls made without consent of the called party.2 

ITG conducted tracebacks and determined that Peerless Network, Inc. routed and transmitted the 

calls. ITG previously notified you of these calls and provided you access to supporting data 

identifying each call—including a recording of the illegal robocall—as indicated in Attachment 

A. Further, the numerous traceback notices directed to Peerless Network, Inc. indicate that you 

are apparently routing and transmitting illegal robocall traffic knowingly. IF YOU ARE 

ENGAGED IN THESE ACTIVITIES, THEN YOU MUST IMMEDIATELY CEASE AND 

DESIST FROM ENGAGING IN THEM. 

The FTC, the nation’s consumer protection agency, enforces the Federal Trade 

Commission Act (FTC Act), 15 U.S.C. § 45 et seq., which prohibits unfair or deceptive acts or 

practices in or affecting commerce. The FTC also enforces the Telemarketing Sales Rule (TSR), 

16 C.F.R. Part 310, which prohibits deceptive and abusive telemarketing practices. Section 

310.3(b) of the TSR prohibits “assisting and facilitating” certain specified conduct.3 Under that 

provision, it is unlawful for any person or entity to “provide substantial assistance or support to 

any seller or telemarketer when that person knows or consciously avoids knowing that the seller 

or telemarketer is engaged in any act or practice that violates Sections 310.3(a), (c), or (d), or 

Section 310.4 of this Rule.” These Sections prohibit, among others, the following conduct: 

x Making a false or misleading statement to induce any person to pay for goods or services 

or to induce a charitable contribution (16 C.F.R. § 310.3(a)(4)); 

x Misrepresenting a seller or telemarketer’s affiliation with any government entity 

(16 C.F.R. § 310.3(a)(2)(vii)); 

x Transmitting false or deceptive caller ID numbers (16 C.F.R. § 310.4(a)(8)); 

1 See Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence Act, Pub. 

L. No. 116-105, 133 Stat. 3274, Sec. 13(d) (2019) (TRACED Act).

2 See 16 C.F.R. § 310.4(b)(1)(v).

3 A copy of the TSR is attached as Attachment B. 

2 
 

x

x

Initiating or causing the initiation of calls that deliver prerecorded messages,4 unless the 

person called provided the seller express written permission to call (16 C.F.R. 

§ 310.4(b)(1)(v)); and 

Initiating or causing the initiation of telemarketing calls to numbers listed on the National 

Do Not Call Registry, unless the person called provided express written permission to 

receive calls from the seller or the seller had an existing business relationship with the 

person called (16 C.F.R. § 310.4(b)(1)(iii)(B)). 

The FTC can obtain civil penalties for TSR violations. Each illegal call is subject to a 

maximum civil penalty of $50,120. See 16 C.F.R. § 1.98. In addition, a violation of the TSR is a 

violation of Section 5 of the FTC Act. See 15 U.S.C. §§ 6102(c), 57a(d)(3), 45(a). Accordingly, 

the FTC has authority to seek both preliminary and permanent injunctive relief to address TSR 

violations. See 15 U.S.C. § 53(b). The FTC may also seek the refund of money or payment of 

damages to address TSR violations. See 15 U.S.C. § 57b(b). 

Combatting illegal telemarketing is a top priority for the FTC, with a special emphasis on 

halting illegal robocalls.5

 We want you to be aware that the FTC has, for example, brought 

assisting and facilitating claims against technology companies that knowingly provided software 

and servers used by illegal robocallers, even though these technology companies did not contract 

directly with the illegal robocallers. See FTC v. James B. Christiano, Case No. 8:18-cv-00936 

(C.D. Cal. May 31, 2018). 

We also bring to your attention that the FTC has sued VoIP service providers for 

allegedly violating the TSR. In FTC v. Educare, the FTC alleged that defendant Globex 

Telecom, Inc. assisted and facilitated telemarketers it knew, or consciously avoided knowing, 

were violating the TSR’s prohibitions on calls delivering prerecorded messages. See FTC v. 

Educare Centre Services, Inc., No. 3:19-cv-00196-KC (W.D. Tex. Dec. 3, 2019).6 In September, 

2020, Globex Telecom and its associates agreed to pay $2.1 million to settle the FTC lawsuit, 

and Globex Telecom’s former CEO and President was banned from telemarketing to the U.S. 

and was subject to a permanent court order.7 Similarly, in FTC v. Alcazar Networks, Inc., the 

FTC alleged that Alcazar Networks, Inc. and its founder and sole owner assisted and facilitated 

telemarketers responsible for tens of millions of illegal telemarketing calls, including robocalls 

and spoofed calls that displayed “911” as the caller ID. See FTC v. Alcazar Networks Inc., et al., 

No. 6:20-cv-2200 (M.D. Fla. Dec. 3, 2020).8 As part of their settlement with the FTC in January 

2021, the defendants agreed to a permanent injunction that prohibits similar misconduct in the 

4

 These calls are often referred to as “robocalls.” 

5 In 2022, the FTC received more than 2.7 million complaints about unwanted calls, including 

more than 1.61 million robocall complaints. The FTC maintains an interactive Tableau Public 

web page that publishes details about do not call complaints on a quarterly basis. See 

https://public.tableau.com/profile/federal.trade.commission#!/vizhome/DoNotCallComplaints/M 

aps. 6 A copy of the FTC’s Amended Complaint is attached as Attachment C. 

7 See https://www.ftc.gov/news-events/press-releases/2020/09/globex-telecom-associates-willpay-21-million-settling-ftcs-first. 8

 A copy of the FTC’s Complaint is attached as Attachment D. 

3 
 

 

 

future and requires them to screen and monitor their customers, as well as imposing a monetary 

penalty.9 

The FTC has business educational materials that can assist you in complying with the 

TSR. See https://www.ftc.gov/tips-advice/business-center/guidance/complying-telemarketingsales-rule. 

In addition to FTC regulations and the FTC’s actions against providers of VoIP services, 

you should also be aware that the United States Department of Justice (DOJ), state attorneys 

general, and other agencies have brought civil actions against VoIP companies and their owners. 

In two cases, DOJ alleged that the defendants were committing and conspiring to commit wire 

fraud by knowingly transmitting robocalls that impersonated federal government agencies.10 In 

August 2020, a federal district court entered a permanent court order barring the defendants from 

conveying telephone calls into the U.S. telephone system.11 State cases have had similar 

impacts.12 

Within three business days, please send a message to FTC attorneys Fil Maria de Banate 

and Christian M. Capece, via electronic mail at fdebanate@ftc.gov and ccapece@ftc.gov, 

certifying that Peerless Network, Inc. has ceased engaging in the activities described above that 

may subject it to liability under the TSR or the FTC Act. Please direct any inquiries regarding 

this letter to Mr. de Banate and Mr. Capece by email or by telephone at 216.263.3413 or 

216.263.3419. 

Sincerely, 

JONATHA Digitally signed by

JONATHAN STEIGER 

N STEIGER Date: 2023.03.17

___________________ 14:40:30 -04'00' 

Jon Miller Steiger 

Director 

9 See https://www.ftc.gov/news-events/press-releases/2020/12/ftc-takes-action-against-secondvoip-service-provider. 10 See https://www.justice.gov/opa/pr/department-justice-files-actions-stop-telecom-carrierswho-facilitated-hundreds-millions. 11 See https://www.justice.gov/opa/pr/district-court-enters-permanent-injunction-shutting-downtelecom-carriers-who-facilitated. 12 For example, the Vermont and Michigan Attorneys General have brought successful actions 

against VoIP providers who route scam robocall traffic. See 

https://ago.vermont.gov/blog/2022/08/02/vermont-joins-nationwide-anti-robocall-task-force; 

https://www.michigan.gov/ag/news/press-releases/2020/08/07/ag-nessel-announces-settlementeliminating-telecom-carrier-responsible-for-illegal-robocalls; 

https://www.michigan.gov/documents/ag/Assurance_of_Voluntary_Compliance_-

_All_Access_Telecom_FINAL_9-11-20_702047_7.pdf. 

4 
Enclosures: 

Attachment A (Chart of illegal robocalls) 

Attachment B (TSR) 

Attachment C (Educare Amended Complaint) 

Attachment D (Alcazar Complaint) 

5 
ATTACHMENT A 
Date of ITG 

Notification Date of Call Caller ID Robocall Campaign Identifier Link to Robocall Recording 

2/1/2023 1/18/2023 7652948817 Financial-Impers-6 https://portal2.tracebacks.org/api/p

attachments/1222041 

1/31/2023 1/31/2023 7045313350 Financial-Impers-6 https://portal2.tracebacks.org/api/p

attachments/1222036 

1/5/2023 1/3/2023 2522248455 Medicare-Advisor https://portal2.tracebacks.org/api/p

attachments/1195733 

11/4/2022 11/2/2022 8582074263 Authorized-Order https://portal2.tracebacks.org/api/p

attachments/1116690 

10/26/2022 10/21/2022 9168469902 Authorized-Order https://portal2.tracebacks.org/api/p

attachments/1098320 

10/26/2022 10/20/2022 8187368831 Authorized-Order https://portal2.tracebacks.org/api/p

attachments/1098322 

7/8/2022 7/7/2022 9176282443 AutoWarranty-ExtendOrReinst https://portal2.tracebacks.org/api/p

attachments/949069 

11/23/2021 11/18/2021 7066004470 StudentLoan-HardshipProgram https://portal2.tracebacks.org/api/p

attachments/568938 

11/1/2021 10/28/2021 2768704323 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/544698 

11/1/2021 10/29/2021 3616081038 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/544712 

11/1/2021 10/29/2021 9183440660 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/544714 

11/1/2021 10/29/2021 5703969654 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/544717 

11/1/2021 10/29/2021 7722051139 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/544724 

11/1/2021 10/29/2021 5413102442 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/544726 
10/20/2021 10/19/2021 6017613447 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/527760 

10/20/2021 10/19/2021 2603163544 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/527763 

10/20/2021 10/19/2021 8454920549 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/527765 

10/20/2021 10/19/2021 5189298834 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/527767 

10/20/2021 10/19/2021 2707440791 Amazon-AuthorizeOrder https://portal2.tracebacks.org/api/p

attachments/527865 

10/14/2021 10/13/2021 9092311658 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/516508 

10/14/2021 10/13/2021 6622550990 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/516512 

9/16/2021 9/15/2021 9729525851 CBP-GovtImpers https://portal2.tracebacks.org/api/p

attachments/453395 

9/7/2021 9/3/2021 7865589145 Legal-Enforcement-Notice https://portal2.tracebacks.org/api/p

attachments/431149 

8/27/2021 8/26/2021 9285296342 CCIRR-VisaAlert https://portal2.tracebacks.org/api/p

attachments/397023 

8/24/2021 8/19/2021 8508861036 DebtRelief-ZeroTax https://portal2.tracebacks.org/api/p

attachments/383765 

8/24/2021 8/19/2021 4754719588 DebtRelief-ZeroTax https://portal2.tracebacks.org/api/p

attachments/383768 

8/24/2021 8/18/2021 2709713277 DebtRelief-ZeroTax https://portal2.tracebacks.org/api/p

attachments/383771 

8/24/2021 8/17/2021 3189033299 DebtRelief-ZeroTax https://portal2.tracebacks.org/api/p

attachments/383774 

8/24/2021 8/17/2021 2293588543 DebtRelief-ZeroTax https://portal2.tracebacks.org/api/p

attachments/383777 
8/24/2021 8/17/2021 4632323112 DebtRelief-ZeroTax https://portal2.tracebacks.org/api/p

attachments/383781 

8/16/2021 8/11/2021 2293588540 StudentLoan-USCenterDebtRelief https://portal2.tracebacks.org/api/p

attachments/368913 

8/12/2021 8/10/2021 2293609074 StudentLoan-HardshipProgram https://portal2.tracebacks.org/api/p

attachments/360169 

8/12/2021 8/10/2021 9705988302 StudentLoan-HardshipProgram https://portal2.tracebacks.org/api/p

attachments/360178 

8/12/2021 8/11/2021 2293597733 IRS-ProcessingCenter https://portal2.tracebacks.org/api/p

attachments/360182 

8/12/2021 8/10/2021 6063703133 IRS-ProcessingCenter https://portal2.tracebacks.org/api/p

attachments/360186 

8/12/2021 8/10/2021 2293597891 IRS-ProcessingCenter https://portal2.tracebacks.org/api/p

attachments/360189 

8/12/2021 8/10/2021 9284767934 IRS-ProcessingCenter https://portal2.tracebacks.org/api/p

attachments/360192 

7/29/2021 7/28/2021 5089157809 AutoWarranty-Extend2 https://portal2.tracebacks.org/api/p

attachments/307162 

7/29/2021 7/26/2021 4069577686 StudentLoan-HardshipProgram https://portal2.tracebacks.org/api/p

attachments/307201 

7/22/2021 7/20/2021 7578248259 AutoWarranty-ExtendOrReinst https://portal2.tracebacks.org/api/p

attachments/291120 

7/21/2021 7/20/2021 7179711630 AutoWarranty-ExtendOrReinst https://portal2.tracebacks.org/api/p

attachments/291121 

7/19/2021 7/15/2021 6159122987 StudentLoan-HardshipProgram https://portal2.tracebacks.org/api/p

attachments/286367 

7/19/2021 7/15/2021 9094361864 IRS-ProcessingCenter https://portal2.tracebacks.org/api/p

attachments/286399 

7/19/2021 7/15/2021 9094362916 IRS-ProcessingCenter https://portal2.tracebacks.org/api/p

attachments/286402 
7/19/2021 7/15/2021 9094401396 IRS-ProcessingCenter https://portal2.tracebacks.org/api/p

attachments/286408 

7/14/2021 7/12/2021 7659348382 DebtRelief-COVID-19Payment https://portal2.tracebacks.org/api/p

attachments/274450 

7/14/2021 7/12/2021 6067073784 DebtRelief-COVID-19Payment https://portal2.tracebacks.org/api/p

attachments/274452 

7/14/2021 7/12/2021 5413766743 FedReserv-Impers https://portal2.tracebacks.org/api/p

attachments/280171 

7/13/2021 7/12/2021 5205323435 DebtRelief-COVID-19Payment https://portal2.tracebacks.org/api/p

attachments/274448 

7/13/2021 7/12/2021 8707148614 DebtRelief-COVID-19Payment https://portal2.tracebacks.org/api/p

attachments/274453 

7/13/2021 7/12/2021 6065174231 DebtRelief-COVID-19Payment https://portal2.tracebacks.org/api/p

attachments/274460 

7/13/2021 7/12/2021 7088319138 DebtRelief-COVID-19Payment https://portal2.tracebacks.org/api/p

attachments/274461 

6/16/2021 6/14/2021 5618102566 TaxReduction- IRSSuspendedCollection https://portal2.tracebacks.org/api/p

attachments/211189 

6/15/2021 6/14/2021 9705508029 TaxReduction- IRSSuspendedCollection https://portal2.tracebacks.org/api/p

attachments/211191 

6/15/2021 6/14/2021 7196012040 TaxReduction- IRSSuspendedCollection https://portal2.tracebacks.org/api/p

attachments/211193 

4/8/2021 4/7/2021 7472124080 StudentLoan - New Changes https://portal2.tracebacks.org/api/p

attachments/94040 

4/5/2021 4/2/2021 8708602170 StudentLoan - New Changes https://portal2.tracebacks.org/api/p

attachments/88405 

4/5/2021 4/2/2021 9717997951 StudentLoan - New Changes https://portal2.tracebacks.org/api/p

attachments/88408 

3/22/2021 3/19/2021 4054585775 SSA-Suspended https://portal2.tracebacks.org/api/p

attachments/70649 
3/19/2021 3/18/2021 4172355705 Apple-iCloud-AccountBreached https://portal2.tracebacks.org/api/p

attachments/69469 

3/9/2021 3/3/2021 7576094116 CCIRR-P1FinancialImpers https://portal2.tracebacks.org/api/p

attachments/63709 

3/6/2021 3/4/2021 8038286161 CCIRR-P1FinancialImpers https://portal2.tracebacks.org/api/p

attachments/64039 

3/5/2021 3/4/2021 8882071288 Discount-Avail50% https://portal2.tracebacks.org/api/p

attachments/64111 

3/3/2021 3/2/2021 9147614182 Utility-30MinDisconnect https://portal2.tracebacks.org/api/p

attachments/63417 

3/3/2021 3/2/2021 9143443207 Utility-30MinDisconnect https://portal2.tracebacks.org/api/p

attachments/63418 

2/26/2021 2/25/2021 7323086705 Utility-30MinDisconnect https://portal2.tracebacks.org/api/p

attachments/61836 

2/26/2021 2/25/2021 5042858495 AutoWarranty-ExtendOrReinst https://portal2.tracebacks.org/api/p

attachments/61845 

2/25/2021 2/24/2021 5137692110 Utility-30MinDisconnect https://portal2.tracebacks.org/api/p

attachments/61292 

2/25/2021 2/24/2021 5135866150 Utility-30MinDisconnect https://portal2.tracebacks.org/api/p

attachments/61293 

2/25/2021 2/24/2021 9086845418 Utility-30MinDisconnect https://portal2.tracebacks.org/api/p

attachments/61296 

2/24/2021 2/23/2021 8623476930 Utility-30MinDisconnect https://portal2.tracebacks.org/api/p

attachments/60696 

2/20/2021 2/18/2021 7038631924 Apple-iCloud-AccountBreached https://portal2.tracebacks.org/api/p

attachments/58893 

2/18/2021 2/17/2021 5043395475 Apple-iCloud-AccountBreached https://portal2.tracebacks.org/api/p

attachments/58345 

2/11/2021 2/10/2021 3036193296 SSA-CalltheSSA https://portal2.tracebacks.org/api/p

attachments/55586 
1/30/2021 1/27/2021 5302901397 SSA-CalltheSSA https://portal2.tracebacks.org/api/p

attachments/29350 

1/25/2021 1/25/2021 2033448337 AutoWarranty-ExtendOrReinst https://portal2.tracebacks.org/api/p

attachments/28848 

1/20/2021 1/20/2021 4088848130 CCIRR-Various https://portal2.tracebacks.org/api/p

attachments/28549 

1/13/2021 1/13/2021 6062123053 Solar-TheSolarProject https://portal2.tracebacks.org/api/p

attachments/28073 

1/7/2021 1/6/2021 3015343888 CCIRR-VisaAlert https://portal2.tracebacks.org/api/p

attachments/27570