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U.S. judge freezes assets of Alberta internet salesman

CBC News
Posted: Sep 13, 2011 5:28 PM ET
Last Updated: Sep 13, 2011 10:38 PM ET
Source - CBC News

A U.S. judge froze the assets of Jesse Willms, shown here in an undated photograph. Willms is accused of duping customers out of $450 million. ABC News

A United States judge froze the American assets of Sherwood Park, Alta. internet millionaire and accused fraudster Jesse Willms and ordered him to change the way he does business.

The Seattle judge issued a preliminary injunction Tuesday morning banning Willms from using negative option selling, said Robert Schroeder, with the U.S. Federal Trade Commission.

According to the commission, Willms cheated customers out of $450 million in an internet scam where products or services advertised as free trial offers or risk-free — such as health and beauty products — were actually being billed to customers' credit cards monthly.

More products would be sent automatically unless the customers navigated a complicated cancellation process to stop the charges.

The commission claims customers in Canada, the U.S., Australia, the U.K. and New Zealand were defrauded.

"If he's going to comply with the order, and we would expect that he would, he has to stop using the means with which he's been selling," said Schroeder.

The judge also froze the assets of Willms and his companies, he said.

"If we get to a final order in this case, we might have an opportunity to get some money back to consumers," he said.

As most of Willms' assets are in Canada, the commission will soon be speaking to Canadian authorities, said Schroeder.

Willms has blamed unscrupulous business associates who he claims defrauded him by stealing credit card numbers in order to generate commissions with bogus sales.

Willms is scheduled for trial in the U.S. in July 2012.

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Alberta businessman fights $450M internet fraud case

U.S. Federal Trade Commission alleges Edmonton millionaire deceived customers

CBC News
Posted: Jul 22, 2011 7:28 AM MT
Last Updated: Jul 22, 2011 1:36 PM MT
Source - CBC News

Jesse Willms, shown here in an undated photograph, is being sued by the U.S. Federal Trade Commission, which alleges he duped customers out of more than $450 million. (ABC News)

An internet millionaire from Sherwood Park, Alta., is fighting fraud allegations from the U.S. Federal Trade Commission that he cheated customers out of nearly half a billion dollars.

Jesse Willms, 24, said in a statement of defence this week that charges from the U.S. consumer protection agency that his business gained over $450 million through fraudulent means are baseless. If the commission had its way, Willms said, the FTC would make sure he wouldn't even be able to subscribe to a newspaper.

According to the FTC, the alleged fraud involves a scheme in which products or services advertised as free or risk-free — such as health and beauty products — were actually being billed to customers' credit cards monthly. More products would be sent automatically unless the customers navigated a complicated cancellation process to stop the charges from coming.
FM
Alta. man accused of $450M internet fraud

CBC News
Posted: May 19, 2011 8:16 PM MT
Last Updated: May 19, 2011 9:42 PM MT
Source - CNC News

Jesse Willms, shown here in an undated photograph, has offices in Edmonton. (ABC News)

The U.S. Federal Trade Commission is suing an internet entrepreneur from Sherwood Park, Alta., over allegations he used deceptive business practices to take more than $450 million from customers since 2007.

In a complaint filed in Seattle on May 16, the FTC alleges Jesse Willms, 24, used "risk-free" trial offers to get customers' credit card numbers and then billed them each month for products like tooth whiteners and weight-loss products.

"People who thought they were going to pay $4.95 for shipping and handling, ended up with monthly charges of about $80 a month until they figured it out and got the charges stopped," said Bob Schroeder, regional director of the FTC in Seattle.

"Consumers were charged for things that they were not expecting, that they did not agree to. And then when they tried to cancel and get their money back, the defendants made it very difficult, if not impossible, for them to do that."

The FTC complaint contains nine different charges including misrepresentation, failure to disclose charges to customers, using false endorsements by celebrities like Oprah Winfrey and Rachael Ray, and misleading credit card companies so he could keep billing customers.

The FTC is asking the court to place a permanent injunction on the companies to stop their alleged violations as well as order refunds for consumers.

Several business partners as well as companies controlled by Willms are also named in the complaint.

Some of the products Willms sells include DazzleWhite teeth whitener and AcaiBurn weight-loss products. He is also behind the penny auction site Swipebids.com.

The allegations in the lawsuit have not been proven in court.

Willms did not make himself available for an interview Thursday but he sent a statement to CBC News.

"We believe our business practices are compliant with the law and are working to resolve this disagreement with the appropriate government agencies," the statement said.

Both the RCMP and the Competition Bureau of Canada confirm Willms is under investigation in Canada.
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