Turns out the bargains at Classic Closeouts weren't so greatafter all.
According to the Federal Trade Commission, Hempstead-basedInternet company ClassicCloseouts.com advertised itself as adiscount store, but months after purchases were made the companystill withdrew anywhere from $29.99 to $79.99 from customers' bankaccounts. Daniel Greenberg is the sole owner of the company and alsodid a similar business with the website ThirdFree.com, according toan FTC complaint.
Greenberg recently settled with the FTC for a total of $2.08million, according to the commission. But, because Greenbergrecently filed for bankruptcy, he will not have to pay the fine,unless it is discovered that his financial information is actuallyuntrue, the FTC said in a release. Greenberg is required tosurrender certain personal and household items to satisfy thejudgment, the release states.
Greenberg is also forbidden to own, control or consult for anInternet-owned business that handles information relating toconsumers' credit or debit cards.
Some of Greenberg's victims were able to get the extra chargesdebited back to their accounts by calling their credit cardcompanies and banks, according to the FTC. Others were unsuccessfulin that attempt, as Greenberg told the credit card companies andbanks that the charges were membership fees for becoming part of a"frequent shopping club."
Greenberg dipped into his customers' accounts from June toSeptember 2008 but had gotten the information on the accounts monthsor even years prior, when the customers first made purchases on hissites.
The FTC first filed a complaint against Greenberg and his companyin July 2009 while it was conducting "Operation Short Change," aninvestigation into scammers taking advantage of the recession.
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