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Best product recall ever – the SnowGlobe of Doom!

December 30, 2008 By Paul (Founder, WorkAtHomeTruth) Leave a Comment
The SnowGlobe of Doom!

The SnowGlobe of Doom!

This is easily one of the strangest product recalls I’ve ever seen. Luckily they seemed to have caught it before any serious damage was done.

This is a VOLUNTARY RECALL on HallMark’s part which is clearly how situations like this should be handled.

Let’s just call it: “The SnowGlobe of Doom!”

Here’s the Recall Notice from the U.S. Consumer Product Safety Commission which was released December 23, 2008:

FOR IMMEDIATE RELEASE
December 23, 2008
Release #09-073		 Firm’s Recall Hotline: (800) 425-5627
CPSC Recall Hotline: (800) 638-2772
CPSC Media Contact: (301) 504-7908

Hallmark Recalls Jumbo Snow Globes Due to Fire Hazard

WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.

Name of Product: Jumbo Snowman Snow Globes

Units: 7,000

Importer: Hallmark Cards Inc., of Kansas City, Mo.

Hazard: When exposed to sunlight, the snow globes can act as a magnifying glass and ignite nearby combustible materials, posing a fire hazard.

Incidents/Injuries: Hallmark has received two reports of the snow globes igniting nearby materials. No injuries have been reported.

Description: This recall involves a Hallmark Jumbo Snow Globe in the shape of a snowman with model number 1XAG5093 and UPC code 795902066666. The snow globe measures 11 by 12 by 17 inches. The model number and the UPC code can be found on the back of the hangtag.

Sold at: Hallmark Gold Crown stores nationwide from October 2008 through November 2008 for about $100.

Manufactured in: China

Remedy: Consumers should immediately remove the snow globe from exposure to sunlight and return it to any Hallmark Gold Crown store for a full refund.

Consumer Contact: For additional information, contact Hallmark at (800) 425-5627 between 8 a.m. and 5 p.m. CT Monday through Friday or visit the firm’s Web site at www.hallmark.com

Note: from WorkAtHomeTruth: (Click here to read the original recall notice)

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FTC Reports to Congress on Credit Report Complaint Referral Program

December 30, 2008 By Paul (Founder, WorkAtHomeTruth) Leave a Comment

December 30, 2008 FTC News Release

The Federal Trade Commission has issued a report to Congress on the credit report complaint referral program under the Fair Credit Reporting Act (FCRA).

The Commission is the federal agency with primary responsibility for compliance with the FCRA and operates a system for receiving complaints from consumers about possible violations of the FCRA. Section 611(e) of the FCRA, which was added by Congress in the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), requires the Commission to establish a program to refer certain consumer complaints to the three nationwide consumer reporting agencies (CRAs) – TransUnion, Equifax, and Experian – and to report to Congress on the information gathered in the program. The complaints covered by the program are those received by the Commission from consumers who have disputed the accuracy of information in their credit report with a CRA and are dissatisfied with the results of the process. This report covers the period from the initiation of the program in 2004 through the end of 2007.

The Commission vote to issue the report was 4-0.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

MEDIA CONTACT:
Office of Public Affairs
202-326-2180

(FCRA Complaint Referral – P044804)

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SEC HALTS $23 MILLION PONZI SCHEME AND AFFINITY FRAUD TARGETING HAITIAN-AMERICAN INVESTORS

December 30, 2008 By Paul (Founder, WorkAtHomeTruth) Leave a Comment

Litigation Release from the S.E.C.

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20840 / December 30, 2008

Securities and Exchange Commission v. Creative Capital Consortium, LLC, et. al., Case No. 08-81565-CIV-Hurley/Hopkins (S.D. Fla., filed December 29, 2008)

SEC HALTS $23 MILLION PONZI SCHEME AND AFFINITY FRAUD TARGETING HAITIAN-AMERICAN INVESTORS

The United States Securities and Exchange Commission announced that on December 29, 2008, it filed an emergency action to halt a Ponzi scheme and affinity fraud conducted by Creative Capital Consortium, LLC and A Creative Capital Concept$, LLC (collectively, Creative Capital), and its principal, George L. Theodule. According to the Commission’s complaint, the defendants raised at least $23.4 million from thousands of investors in the Haitian-American community nationwide through a network of purported investment clubs Theodule directs investors to form. Also on December 29, 2008 Judge Donald M. Middlebrooks, U.S. District Judge for the Southern District of Florida, issued an order placing Creative Capital under the control of a receiver to safeguard assets, as well as other emergency orders, including temporary restraining orders and asset freezes.

The Commission’s complaint alleges that starting in at least November 2007, Theodule, directly and through Creative Capital, raised at least $23.4 million from thousands of investors, mostly Haitian-Americans. As part of the scheme, the defendants direct investors to form investment clubs solely for the purpose of funneling funds to Theodule and Creative Capital. Theodule solicits investors for Creative Capital by guaranteeing a 100% return on their investment within 90 days based on his claimed successful trading of stocks and options. The defendants also solicit investors by claiming that Creative Capital’s trading profits are used to fund new business ventures, some of which benefit the Haitian community in the United States and Haiti, and others in Sierra Leone. In truth, Theodule has lost at least $18 million trading stocks and options just over the last year. In addition, Creative Capital merely repaid earlier investors with monies collected from new investors in typical Ponzi scheme fashion. Finally, the Complaint alleges, Theodule has commingled investor funds with his personal funds and misappropriated at least $3.8 million for himself and his family.

The Commission’s complaint further alleges:

  • Defendants’ statements of the safety and security of investor deposits are patently false. Theodule directs prospective investors to form investment clubs with the assistance of a purported self-regulatory agency called Smart Investment Management Services, LLC (SIMS). Defendants tout SIMS’ independent verification of their deposits as an added measure of safety and security. In reality, SIMS is a private company run by a former Creative Capital employee and not a regulatory entity.
  • Defendants’ claim of success trading stocks and options are also false. Of the more than $18 million deposited in brokerage accounts, Theodule has lost approximately 97% of those funds trading stocks and options. In fact, Theodule has consistently lost money trading in those accounts since November 2007, and has never generated net trading profits.
  • Defendants’ claims that Creative Capital’s trading profits were used to fund new business ventures, some of which would benefit the Haitian community in the United States and Haiti, and others in Sierra Leone are false. In reality, there were no trading profits, and most of the funds the Defendants disbursed went to pay earlier investors their purported profits, not fund business projects. Moreover, the Defendants misappropriated millions of dollars of investor funds.

In addition to the emergency relief obtained today, the Commission’s complaint seeks disgorgement of the defendants’ ill-gotten gains, civil penalties, and permanent injunctions barring future violations of the antifraud provisions of the federal securities laws.

Investors are advised to read the Commission’s “Affinity Fraud” Investor Alert, which provides tips on how to avoid being a victim in an affinity fraud. This and other investor alerts can be found on the SEC’s web site, at www.sec.gov/investor/pubs.shtml. The “Affinity Fraud” Investor Alert has also been translated into Creole and posted on the Commission’s website.

The Commission acknowledges the assistance of the State of Florida’s Office of Financial Regulation in connection with this matter.

The SEC’s investigation is continuing.

SEC Complaint in this matter

http://www.sec.gov/litigation/litreleases/2008/lr20840.htm

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