Business

FTC says invention-promotion scam bilked consumers out of $10 million

A judge’s order halted the operations and froze the assets of Miami-based World Patent Marketing, Desa Industries and Scott Cooper, the companies’ CEO.

Judge Darrin P. Gayles of the U.S. District Court for the Southern District of Florida entered and subsequently unsealed a Temporary Restraining Order sought by the Federal Trade Commission. The court’s order also appointed Jonathan E. Perlman, shareholder at Miami-based Genovese Joblove & Battista, P.A., as temporary receiver. Perlman will assume full control of the corporate entities and is tasked with managing and investigating their affairs. The defendants are expected before the court on April 6.

According to the FTC, the defendants defrauded and deceived aspiring inventors and entrepreneurs in an invention-promotion scam that began in early 2014 and bilked thousands of consumers out of more than $10 million. The FTC’s complaint said the defendants’ sales team promised consumer inventors a patent and lucrative licensing, manufacturing and distribution agreements that would allow them to profit from their inventions if they bought the defendants’ invention-promotion services. The FTC alleges that defendants’ promises were false and deceptive and, as a result, none of the consumers made money and many ended up in debt or losing their life savings.

Anyone having knowledge concerning the allegations in this case can call the Receiver’s World Patent Marketing Receivership Hotline (1-844-879-7694) or send an email to WPM@gjb-law.com. Additional information can be found at www.WPMreceivership.com or on the FTC’s website.

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