Proven Methods Seminars, the company behind the infomercial that J.D. Hayworth appeared in in 2007, touting “free money” in federal grants, was the target of a consumer fraud complaint in Vermont in 2006 — before Hayworth signed on as a pitchman.
According to a consumer fraud complaint filed by the state of Vermont in January 2006, advertisements for the company’s “National Grants Conferences” seminars claimed that people could get “free money” from the government, in the form of grants and loans that they would not have to repay. Once there, consumers were then sold a packet of information materials — for $999.
The company reached a settlement with Vermont in December 2006, which required the payment of $65,000 to the state, and giving consumers the opportunity to recover funds adding up to more than $300,000. Again, note that this was in 2006 — before Hayworth taped the infomercial in 2007.
In a press release Vermont Attorney General William H. Sorrell (D) said: “People who need help from the government would be best advised to contact state agencies or their Congressional delegation for assistance in identifying any grant or loan program that they might be eligible for. On the other hand, for a private company to advertise ‘free grant money’ and sell $1,000 worth of guidebooks, without being able to demonstrate that its program works, is unconscionable and illegal.” (Via Nexis.)
In addition, as we noted yesterday, the company received an F rating from the Better Business Bureau, and in 2007 it was the target of a letter to the Federal Trade Commission, signed by 32 state attorneys general.
The company later filed for Chapter 11 bankruptcy in Florida, in December of 2008.
Calls to Proven Methods Seminars were not returned.
Additional reporting by Justin Elliott.
