Tuesday, Oct. 6, 2015 | 12:20 a.m.
A federal appeals court Monday upheld a $130.3 million judgment against a Las Vegas man and his companies accused of using telemarketing and other avenues to scam investors who wanted to start their own Internet businesses.
The 9th U.S. Circuit Court of Appeals ruled federal Judge John Mahan was correct in granting an order sought by the Federal Trade Commission against Benjamin Hoskins, his Ivy Capital Co. and Dream Financial.
The appeals court said Hoskins had the authority to control 22 companies, all conducting similar businesses.
The court said there was no issue “as to Mr. Hoskins' reckless indifference to the truth or falsity of the misrepresentations that were perpetrated by the Ivy Capital enterprise.”
The FTC alleged that Ivy Capital’s telemarketers promised “business coaching” to consumers who paid $2,000 to $10,000 for the service. It said Ivy Capital didn’t have the expertise to advise these consumers on getting into the website- building business, the programs did not work properly and there was no promised help when these systems failed.
The scheme was carried forward from 2007 and the FTC filed suit and received an order from Judge Mahan to stop the business.
The appeals court reversed the order that Leanne Hoskins was liable for $1.1 million. But she is held liable with Oxford Financial L.L.C for $1.5 million.
The companies were enjoined by Judge Mahan from access and use of consumer credit cards, bank accounts and other financial information. The assets were frozen as of March 2011. The firm of Robb Evans & Associates was appointed receiver of the companies. It was to find assets of the charged companies and make refunds to the bilked customers.
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