Some scams return time and again like a bad penny to cheat consumers, and informing the public of such schemes is the best defense. This is especially true of “envelope-stuffing” opportunities that rear their ugly heads on a regular basis. Read and heed the following example of why you should avoid such “make cash” offers.

A Texas-based defendant who promised to pay consumers $5 for every envelope they stuffed as part of a home-based “business opportunity” program has settled Federal Trade Commission charges that he misled consumers regarding how much he would pay, what similar business owners made, and how much consumers could expect to earn. Under terms of the final judgment and order announced by the FTC, Terrence Maurice Howard, doing business as True Techniques and Absolute Mailers, will be banned from any future sale or promotion of work-at-home opportunities, will be prohibited from engaging in deceptive conduct in connection with the advertising or sale of other business ventures, and will pay $12,000 in consumer redress.

According to the FTC’s complaint, Howard, based in San Antonio, violated Section 5 of the FTC act by misrepresenting that consumers would make a substantial amount of money after sending him a registration fee and that he would pay them $5 for every envelope they stuffed.

Howard marketed the envelope-stuffing scheme through print and online ads to consumers throughout the United States, promising consumers $2,000 for mailing 400 brochures, with free postage and supplies. After calling a toll-free number, consumers heard a recorded message that promised them between $2,000 and $4,000 for stuffing the envelopes. The recorded message instructed interested consumers to leave their names and addresses to get more information. They then received letters claiming they would earn $5 for every envelope stuffed, after they paid a $35 registration fee to participate in the program. Contrary to Howard’s claims, consumers who paid the $35 fee either received nothing at all or received instructions for placing ads in newspapers and on bulletin boards offering the same envelope-stuffing opportunity to others.

The final judgment and order bans Howard from any future involvement in the advertising, promotion or sale of work-at-home opportunities and prohibits him from making misrepresentations in connection with the advertising, promotion or sale of other business ventures.

Specifically, the order enjoins Howard from misrepresenting: 1) that consumers will make a substantial amount of money from the venture; 2) that Howard will pay consumers for stuffing envelopes; 3) the income, profit or sales volume consumers are likely to achieve; 4) the income, profit or sales volume that previous business venture purchasers received; and 5) the length of time it will take for consumers to recoup the original purchase price.

The order also prohibits Howard from misrepresenting any fact that might affect a customer’s decision to buy any goods or services from him. In addition, the order requires Howard to pay $12,000 in consumer redress. The order contains a $225,000 suspended judgment, which the court can reinstate if Howard is found to have misrepresented his financial condition.

But Howard is only one player in a national epidemic of such schemes. To learn how you can be part of a statewide network of Maine consumers and merchants fighting fraud and deception, write the Maine Center for the Public Interest, 109 State St., Bangor 04401.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast COMBAT/The Maine Center for the Public Interest, Maine’s membership-funded nonprofit consumer organization. For help or to request individual or business membership information write: Consumer Forum, Bangor Daily News, PO Box 1329, Bangor 04402-1329.