VOIP SERVICE PROVIDER WILL PAY 2.1 MILLION USD

01.10.2020

Globex Telecom, Inc. and an affiliated company will pay a total of 1.9 million USD to settle Federal Trade Commission (“FTC”), and State of Ohio (“Ohio”) charges that they facilitated a scheme that peddled bogus credit card interest rate relief, illegally charging consumers millions of dollars.

FTC and Ohio alleged that Globex provided a company called Educare Centre Services with the means to make calls to U.S. consumers, including illegal robocalls, to market Educare’s phony credit card interest rate reduction services.

The FTC and Ohio charged that both Globex and Educare were controlled by Mohammed Souheil, Globex’s former CEO and president, who was named in the lawsuit along with a number of other corporations and individuals. All the individuals named in this action are Canadian nationals and reside outside of the U.S. Souheil, along with two corporations under his control, will be prohibited from participating in any telemarketing in the U.S. and from violating the Telemarketing Sales Rule (“TSR”). 

These defendants will also be prohibited from marketing debt relief products or services of any kind, and from using misrepresentations in the sale or marketing of any product or service. They, collectively, are subject to a monetary judgment of 7.5 million USD, which is largely suspended due to an inability to pay. They will be required to pay 150,000 USD.

In addition to paying 1.95 million USD, Globex and its U.S.-based subsidiaries will be prohibited from hiring Souheil, any of Souheil’s immediate family members, and defendants Charles Kharouf and Sam Madi, to work for Globex or any U.S.-based subsidiary. These defendants will also be required to abide by client screening and monitoring provisions.

You can reach the full text of the decision here.

Should you have any queries and/or remarks, please do not hesitate to contact us. 

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr