Direct Connection

Background

The U.S. Federal Trade Commission halted this telemarketing operation on May 13, 2008. On the recommendation of the FTC, United States District Judge Timothy Batten appointed Pat Huddleston and Huddleston Law Firm as Receiver for Direct Connection Consulting, Inc., and Digicom, LLC. On motion of the Receiver, Judge Batten expanded the Receivership to include Ebor Management as a Receivership entity and ordered that over $80,000 be transferred from Defendant Joann Winter's bank accounts to the Receivership.

The FTC alleges that Direct Connection, Digicom, and the principals of those businesses, Joann Winter and Elliot Borenstein, violated the Federal Trade Commission Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act by charging consumer credit cards without authorization and misleading consumers. Among the things Judge Batten ordered the Receiver to do was determine whether the businesses could be operated profitably under the law. After a thorough investigation, the Receiver determined that the businesses could not be so operated.

Although the consumer losses far exceed the money remaining in the businesses, the Receiver has been able to recover additional amounts that will be available for consumer redress at the discretion of the FTC, should the Court find in favor of the FTC. Pending a final resolution of the case, the Receiver continues to gather assets and limit the expenses of the businesses.