In addition, the settlements would require the defendants to transfer all stock or ownership interest in the corporate defendants, and they include certain reporting requirements that would assist the FTC in monitoring the defendants' compliance. If distribution of consumer redress proves impractical, the funds will be turned over to the treasury. The Commission vote to accept the proposed settlements for filing in court was 4-0, with Chairman Robert Pitofsky recused. They were filed today in U.S. District Court for the District of Maryland, Northern Division, in Baltimore, and require the court's approval to become binding. These consent judgments are for settlement purposes only and do not constitute admissions by the defendants of law violations.
Consent judgments have the force of law when signed by the judge.
In connection with Project Telesweep, the FTC and the North American Securities Administrators Association, which represents states' securities regulators, issued a consumer bulletin describing some of the typical claims made by fraudulent business opportunity marketers, suggesting a number of steps for consumers to take to protect themselves.