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Newswest 9 | Midland, Texas | newswest9.com

Texas shuts down fraudulent nationwide telephone scam

Texas Attorney General Ken Paxton has announced that the state of Texas along with the Federal Trade Commission has stopped a massive telefunding operation.
Attorney General Ken Paxton (Source: Twitter)

TEXAS, USA — Texas Attorney General Ken Paxton has announced that the state of Texas along with the Federal Trade Commission has stopped a massive telefunding operation operated by Associated Community Services (ACS).

This shutdown also included a number of related defendants that bombarded over 67 million Americans with 1.3 billion deceptive calls.

The calls were falsely made to raise money for a charity. 

With the use of deceptive solicitations, the fraudsters were able to raise $110 million. 

The defendants are now not allowed to conduct fundraising activities, consult on behalf of any charity or nonprofit organization, or use robocalls for any form of telemarketing. 

The lawsuit against ACS has charged that the organization and other defendants fraudulently collected money for charitable causes, while knowingly violating the Telemarketing Sales Rule, and making harassing calls, which sometimes reached more than 1.3 million phone numbers more than ten times in a single week and 7.8 million numbers more than twice in one hour.  

ACS was also the major fundraiser for the fraudulent Cancer Fund charities that were shut down by the FTC and states, led by Texas, in 2015.   

Attorney General Ken Paxton expresses how his office will continue to stand up for good-hearted Texans who donate for what they believe is a worthy cause.

“My office will continue to stand up for good-hearted Texans who give donations to what they believe is a worthy cause. I will not stand by while fraudsters attempt to deceive the generous citizens of our state in order to line their own pockets. Today’s settlement is yet another warning to would-be fraudsters – do not mess with Texas.”