After finding a Quad Cities-based telemarketing operation had defrauded small businesses throughout the nation, a Polk County judge has ordered a nearly $2.6 million settlement and permanently banned them from doing business. The ruling granted Iowa Attorney General, Tom Miller, his request for the summary judgement against owner Alphonso “Al” Barnum of Davenport, several of his associates and 10 companies. “We’re pleased that the judge found clear and convincing evidence to penalize Barnum and his partners,” Miller says. “He refused to respond to our requests at every turn, but our Consumer Protection Division persisted in bringing the defendants to justice.” In December of 2018, Miller sued Barnum and others, alleging they had violated the Iowa Consumer Fraud Act by using deception, confusion and high-pressure tactics to sell advertisements for direct-mail pieces and promotional items, such as high school sports posters and city information guides. In many cases, no products were delivered and in others agents of the companies called businesses and told them they had previously agreed to purchase advertising when they had not. They would then threaten collections unless the trumped up invoice was paid that day. When a business submitted a credit card or bank account number, these were then used to make unauthorized charges. Between January 2016 and January 2019, more than $1.94 million was taken from consumers according to the ruling. And even after Miller brought the lawsuit, the defendants continued to engage in these unlawful practices.
