Government Grant Scams
Although government grant scams have been around almost as long as the government itself, the majority of the sites being advertised today didn't exist before the November 2008 election.
The "free money" scam has been around almost as long as the human species.
It has more variations than a bulldog has wrinkles but you can count on one thing: the government (any government) does not simply give money away to individuals. Anyone who tells you differently has larceny in his heart.
If you give him your bank account number, he will soon have your funds in his pocket.
It does no good to list all of the names used by these bunko artists because a.) they change all the time and b.) every single free-money government-grant offer is a scam. Period.
In one e-book, The Truth Behind Government Grants Exposed, the author (whoever he or it might be) admits that grants are not easy to get. The e-book goes so far as to say, "Now, I know what you must be thinking, but don't be discouraged because understanding that you do not qualify for the majority of Federal and Private Grants is the first step to actually getting a grant."
FEDERAL TRADE COMMISSION WEBSITE
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt134.shtm
‘Free Government Grants’: Don’t Take Them For Grant-ed
“Because you pay your income taxes on time, you have been awarded a free $12,500 government grant! To get your grant, simply give us your checking account information, and we will direct-deposit the grant into your bank account!”
Sometimes, it’s an ad that claims you will qualify to receive a “free grant” to pay for education costs, home repairs, home business expenses, or unpaid bills. Other times, it’s a phone call supposedly from a “government” agency or some other organization with an official sounding name. In either case, the claim is the same: your application for a grant is guaranteed to be accepted, and you’ll never have to pay the money back.
But the Federal Trade Commission (FTC), the nation’s consumer protection agency, says that “money for nothing” grant offers usually are scams, whether you see them in your local paper or a national magazine, or hear about them on the phone.
Some scam artists advertise “free grants” in the classifieds, inviting readers to call a toll-free number for more information. Others are more bold: they call you out of the blue. They lie about where they’re calling from, or they claim legitimacy using an official-sounding name like the “Federal Grants Administration.” They may ask you some basic questions to determine if you “qualify” to receive a grant. FTC attorneys say calls and come-ons for free money invariably are rip offs.
Grant scammers generally follow a script: they congratulate you on your eligibility, then ask for your checking account information so they can “deposit your grant directly into your account,” or cover a one-time “processing fee.” The caller may even reassure you that you can get a refund if you’re not satisfied. In fact, you’ll never see the grant they promise; they will disappear with your money.
The FTC says following a few basic rules can keep consumers from losing money to these “government grant” scams:
Don’t give out your bank account information to anyone you don’t know. Scammers pressure people to divulge their bank account information so that they can steal the money in the account. Always keep your bank account information confidential. Don’t share it unless you are familiar with the company and know why the information is necessary.
Don’t pay any money for a “free” government grant. If you have to pay money to claim a “free” government grant, it isn’t really free. A real government agency won’t ask you to pay a processing fee for a grant that you have already been awarded — or to pay for a list of grant-making institutions. The names of agencies and foundations that award grants are available for free at any public library or on the Internet. The only official access point for all federal grant-making agencies is www.grants.gov.
Look-alikes aren’t the real thing. Just because the caller says he’s from the “Federal Grants Administration” doesn’t mean that he is. There is no such government agency. Take a moment to check the blue pages in your telephone directory to bear out your hunch — or not.
Phone numbers can deceive. Some con artists use Internet technology to disguise their area code in caller ID systems. Although it may look like they’re calling from Washington, DC, they could be calling from anywhere in the world.
Take control of the calls you receive. If you want to reduce the number of telemarketing calls you receive, place your telephone number on the National Do Not Call Registry. To register online, visit www.donotcall.gov. To register by phone, call 1-888-382-1222 (TTY: 1-866-290-4236) from the phone number you wish to register.
File a complaint with the FTC. If you think you may have been a victim of a government grant scam, file a complaint with the FTC online at www.ftc.gov, or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
September 2006
Feds: Scammers Falsely "Guaranteed" Government Grants
Court halts operators' deceptive pitches for grant writing book and services
By James Limbach
ConsumerAffairs.com
July 24, 2009
A federal judge has stopped an operation from falsely claiming that it could help consumers secure a "$25,000 Grant" -- guaranteed -- from the U.S. government.
The case is part of a Federal Trade Commission crackdown on scammers trying to capitalize on the economic downturn by targeting people facing financial hardship.
In the complaint the FTC, jointly with the attorneys general of Kansas, Minnesota, and North Carolina, charged that Grant Writers Institute, LLC and its related entities (together, GWI) falsely told consumers that they were eligible for grants as part of the recently announced economic stimulus package .
According to the complaint, the false and deceptive claims by GWI violate federal law, state consumer protection laws, and the FTC's Telemarketing Sales Rule. The complaint seeks a court order permanently stopping the defendants' illegal conduct and forcing them to return money to consumers injured by the scheme.
"Stamping out grant fraud and other types of schemes that take advantage of consumers in dire financial shape continues to be one of the Federal Trade Commission's highest priorities," said David Vladeck, Director of the Bureau of Consumer Protection. "There is no such thing as a guaranteed grant. But to consumers in financial trouble, the chance for extra income -- guaranteed or otherwise -- can unfortunately be a huge draw."
The FTC says since at least 2007, GWI has mass mailed postcards to consumers across the country falsely claiming that the consumers "are Guaranteed a $25,000 Grant from the U.S. Government." Consumers who call the number are pitched a $59 book titled "Professional Grant Writer 'The Definitive Guide to Grant Writing Success.'"
The company's telemarketers falsely claim that the book will explain how to get government grants -- including the "guaranteed" $25,000 grant. GWI and its North Carolina-based telemarketers, also named as defendants in the complaint, then call consumers who have bought the book, trying to get them to pay hundreds of dollars or more for grant research, writing, or coaching services, falsely claiming a 70 percent success rate in securing grant funding.
In reality, few, if any consumers ever receive any grant money.
The Commission contends that in addition to falsely claiming consumers were "guaranteed" to receive grants, GWI used the current government stimulus package to make its pitch. For example, when consumers called the number on the mass-mailed postcard, they heard a recording that said, "If you've been reading the papers you know that recently our government released $700 billion into the private sector. What you probably don't know is that there is another $300 billion that must be given away this year to people just like you."
The recording continues, "And if you're one of the lucky few who knows how to find and apply for these grants, you will receive a check for $25,000 or more, and we guarantee it . . . If you don't get a check for $25,000 or more, you pay nothing."
The following were named as defendants:
• Affiliate Strategies, Inc.;
• Landmark Publishing Group, LLC (d/b/a G.F. Institute and Grant Funding Institute);
• Grant Writers Institute, LLC;
• Answer Customers, LLC;
• Apex Holdings International, LLC;
• Brett Blackman, individually and as an officer, manager, and/or member of Affiliate Strategies, Inc., Landmark Publishing Group, LLC, Grant Writers Institute, LLC, Answer Customers, LLC, and Apex Holdings International, LLC;
• Jordan Sevy, individually and as a manager of Landmark Publishing Group, LLC;
• James Rulison, individually and as president of Answer Customers, LLC, all located in Kansas.
The complaint also names the following North Carolina entities as defendants:
• Real Estate Buyers Financial Network LLC (d/b/a Grant Writers Research Network);
• Martin Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC; and
• Alicia Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC.
Government Grant Scam Hits Ohio
Tried and true scheme is making the rounds again
By Mark Huffman
ConsumerAffairs.Com
July 26, 2010
The "government grant scam" is one of the oldest tricks in the
schemer's book. But that doesn't mean it isn't still very effective.
The scam, in which victims are promised "free" money from the government, has shown up recently in Ohio.
"Since early June, my office has received more than a dozen reports of Ohioans who were targeted by scammers posing as grant officers," Ohio Attorney General Richard Cordray said. "Many of the calls appear to originate in the 202 area code. This creates an illusion of legitimacy because 202 is a Washington D.C. area code."
The reported scams are reaching consumers through phone calls, e-mails and letters sent through the U.S. Postal Service. All use the term "grant" and most require the recipient to pay a percentage upfront before acquiring the "free" money.
"Scammers are targeting Ohioans who are in a weakened position. It's an approach that preys upon the desperation and hope of struggling individuals, and it is reprehensible," Cordray said.
Cordray offers the following tips to avoid the "grant" scams:
• Be wary of mailings that appear to be from federal, state or other governmental agencies. Don't assume that a letter or postcard is actually from the government just because it uses words such as "federal," "stimulus package" or "grant." Even if the sender's name sounds official or legitimate, the originator might be phony.
• To determine if a letter, e-mail message or service is really from the government, contact the government agency in question from a number you know to be correct. For example, log onto the agency's actual Web site, such as www.irs.gov, and use a phone number or e-mail address suggested on the site.
• NEVER send money to a stranger through a wire transfer service. Don't trust requests for advance fees or upfront payment.
Because of the recent bank bailout activity by the Federal Reserve, many scammers claim that new laws also provide little-publicized funds for individuals. No such laws exist.
Some scam ads feature a picture of President Obama, or say that Obama is providing federal money to individuals for certain uses. That's not true. Much paperwork is required to receive any government grant.
My husband and I had this number traced and it traced right to the U.S Treasury in Washington,DC. With what kind of clearance required and everything. So it is legitimate.
Don't do it LadyAshes,
I Got a Call from Ellen Smith (but sounded like from India), said I would get a government grant of $7000 but wanted bank info in order to deposit safely directly. Ha! Didn't sound safe, so I said just mail it to my address as a certified gov. check. Then I had to call 202-559-7915 and speak to John Adams (corretion, mistakenly wrote Frank Adams before, and again sounded like from India) with a confirmation number to be verified. He again tried to get a bank number, but I repeated to just mail the check. He said OK but I first had to go to a Western Union and donate $99 to the Indo-American Charity Foundation (too suspicious again for India) and get a Tracking number before they would send out the check. That sure doesn't sound like the way the Gov. operates. I said I don't even know where a Western Union store is, and would have to look it up on the web first. That's where instead I searched this questionable Charity and found a similar scam on a similar number.
Don't do it. They just want the charity money.
Caller: Government Grant department