San Francisco Chronicle

Even the do-not-call list didn’t stop his robocalls

- By Brian Fung Brian Fung is a Washington Post writer.

The “ringleader” of a years-long telemarket­ing scheme must pay at least $65,000 — and possibly up to $2.2 million — after settling with the Federal Trade Commission in a huge lawsuit.

The consumer protection agency said Thursday that Justin Ramsey, who was responsibl­e for placing millions of unsolicite­d telemarket­ing calls to people on the national do-notcall list, will have to pay the full $2.2 million penalty if he and his company are found to have lied about their finances.

Calling someone whose number is on the national do-not-call registry is illegal for telemarket­ers unless the recipient has provided his or her explicit, written permission or they have an existing business relationsh­ip with the caller.

But as far back as 2012, according to the FTC’s lawsuit, Ramsey began collecting phone numbers from websites such as yellowpage­s.com and 411.com and calling them in an attempt to sell home security systems.

The number of calls grew to an enormous scale. In a single week in 2012, Ramsey allegedly placed 1.3 million prerecorde­d calls, 80 percent of which affected people who were already on the do-notcall list. The range of products Ramsey tried to sell gradually expanded to include “auto warranties, solar products, debt relief services, and vacation and travel packages,” according to the complaint.

Even after the states of Indiana and Mississipp­i sued to stop the calls, Ramsey continued. In one case he threw out a document served to him by the Mississipp­i attorney general’s office without reading it, according to the FTC complaint. In an email obtained by the FTC, Ramsey complained about the donot-call list to a business partner.

The complaint names two other people as defendants: Brian Offner and Christophe­r Herghelegi­u, who were executives of two companies also named in the suit. Both men settled separately with the FTC.

More than 2.4 billion robocalls are placed every month, according to the Federal Communicat­ions Commission, which has also taken action to stem the practice. Some are legitimate calls by businesses trying to serve their customers. But many other robocalls — such as the kind Ramsey made — are illegal. Unsolicite­d automated messages account for the largest source of consumer complaints to the FCC.

Phone companies have asked the government for greater leeway to block problemati­c calls before they ever reach consumers. In addition to selling services Americans do not want, robocalls are known to have misled innocent people into scams or fraudulent schemes that impose costs on millions of consumers. Many robocalls originate from overseas, or deliberate­ly mask their location using a technique known as “spoofing.”

The settlement now goes to a judge for final approval.

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