FTC Settles Court Case Against NorVergence Principals PDF Print E-mail
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Monday, 26 June 2006

Thomas and Peter Salzano Prohibited from Making Future Misrepresentations

Reaching an important milestone in the NorVergence telecommunications fraud case, the Federal Trade Commission today announced it has settled charges against the company’s founders and principals, Thomas N. Salzano and Peter J. Salzano. Under separate settlements, the final court orders will bar the Salzanos from engaging in all fraudulent and deceptive conduct alleged in the complaint, require them to make specific disclosures when pitching products in the future, and subject them each to $50 million monetary judgments, which are mostly suspended. As described in an FTC complaint filed in 2004, NorVergence defrauded small businesses, nonprofit organizations, churches, and municipalities through misleading claims of dramatic savings on their monthly telephone, cellular, and Internet bills. NorVergence claimed that substantial savings would be generated by a "Matrix" black box that it would install on consumers’ premises. Among a confusing set of applications and agreements that consumers signed was a long-term rental agreement for the Matrix box costing hundreds, or even thousands, of dollars per month.
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Last Updated ( Thursday, 21 August 2008 )
 
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