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  • Report:  #57765

Complaint Review: Home Stuffers - Akron, Alabama And Edmond, Oklahoma Nationwide

Reported By:
- Albany, New York,
Submitted:
Updated:

Home Stuffers
On The Internet - In Your Mail Akron, Alabama And Edmond, Oklahoma, Nationwide, U.S.A.
Web:
N/A
Categories:
Tell us has your experience with this business or person been good? What's this?
New York State Consumer Protection Board

For Immediate Release: May 20, 2003

Contact: Jon Sorensen (518) 473-9472

CPB exposes work-at-home business, "Home Stuffers," to be nationwide pyramid scheme


Former agents reveal secrets of mail-order scam


America's largest home envelope-stuffing business, "Home Stuffers," is actually a pyramid scheme that has defrauded tens of thousands of consumers across the country, according to the results of a two-month investigation by the New York State Consumer Protection Board ("CPB").

The CPB is issuing a nationwide consumer alert against Home Stuffers through the news media, the Better Business Bureau, Ripoffreport.com and other consumer agencies. A Manhattan voicemail service that serves Home Stuffers has agreed to drop Home Stuffers as a result of the CPB's probe.

The CPB also has been aiding federal authorities in their investigation of Home Stuffers. Home Stuffers operates under many different names with more than 200 agents across the country. At a news conference today, a former Home Stuffers agent from the Capital District said Home Stuffers preys on people seeking a stay-at-home job.

"The only thing getting stuffed in Home Stuffers are the pockets of a few crooks," said CPB Chairperson and Executive Director Teresa A. Santiago. "Home Stuffers lures people with the promise of a weekly salary of $1,380. All you have to do is stuff envelopes to 'market (the) products and services' of other companies."

But there are no other companies -- only the Home Stuffers scam, Chairperson Santiago said. Envelopes are only stuffed with "training materials" that are used to recruit more people into Home Stuffers. Once a new recruit sends in a "refundable deposit" of $25 or more, the Home Stuffers agent keeps half of the money and sends the rest to a Home Stuffers hub in Alabama.

The CPB estimates that Home Stuffers has generated millions of dollars during the past two and a half years.

Like all pyramid schemes, the people at the bottom only make money if the pyramid continues to grow with the addition of new people. Most people walk away after they discover that there is no legitimate work available from Home Stuffers," said Chairperson Santiago. Like most other work-at-home offers, Home Stuffers is a scam. Hand-stuffing envelopes is a thing of the past thanks to machines that can entirely process 5,000 mailers in a single hour."

The victims of Home Stuffers are generally low-income people or retirees looking to supplement their small incomes with a so-called work-at-home job. Most victims lose between $25 and $100, but some have spent hundreds of dollars before learning the truth about Home Stuffers. One woman in Kentucky claims she lost nearly $7,000 setting up a 'Home Stuffers' business in her home.

To find more recruits, Home Stuffers instructs its agents to take out newspaper advertisements and establish website and voice-mail systems. A 72-year-old woman retiree on Long Island told the CPB that she made $20,000 last year by running a Home Stuffers ad in national tabloids, such as the Globe.

"The company just wants to keep recruiting more and more people," said the manager of a Home Stuffers businesses in the Bronx, one of the largest in the country. One of her Florida "customers," eventually started his own independent Home Stuffers' venture (he did not split the funds with Home Stuffers higher command). This Florida man had his own Internet website and an e-mail system containing 50 million names.

A Long Island man also struck out on his own and it has produced a sizable income. Operating a website out of his home, the man now drives luxury cars and recently purchased a new house in New Jersey thanks to his profits from Home Stuffers.

At least two main offices in the Home Stuffers empire have been identified by the CPB: Akron, Alabama and Edmond, Oklahoma. Operating as the "Training and After Care Center" of Home Stuffers, these offices help Home Stuffers continue to operate, sending them the envelopes and instruction materials that are later mailed to new Home Stuffers applicants.

In addition to the initial $25 deposit, workers for Home Stuffers also pay between $1 and $5 directly to the Training and After Care Center for every training kit that is mailed to new recruits.

Internet and newspaper advertising is supplemented by a network of voicemail numbers. Messages on these voicemail numbers give new recruits a longer description of this enterprise, including the promise of weekly checks and bonuses.

"Today, the CPB is stuffing Home Stuffers," Chairperson Santiago said. "We are encouraged by the results of our investigation and hope it leads to more Home Stuffers getting out of the business of scamming people."

New york state consumer protection board

Albany, New York
U.S.A.

Click here to read other Rip Off Reports on Home Stuffers

Click here to read other Rip Off Reports on Work at Home Scams

Click here to read other Rip Off Reports on Stuffing for Dollars


1 Updates & Rebuttals

Jacqueline

Hammond,
Indiana,
U.S.A.
I can fax you those photos, if you have a number available.

#2Consumer Suggestion

Wed, May 21, 2003

Dear Jon, We talked this morning by phone, around 9:30a.m. Just wanted to make sure you have access to all necessary information, which might be productive for your case in New York, with the Consumer Protection Board. I do not have a scanner, however I can fax the photos we discussed. If possible, you could have some law enforcement division scan liscence plate records, to verify their identification. I know it was mentioned by phone, but just wanted to mention the names again. The photos are allegedly of: John Craig, Hiring Director, Robert Hancock alias Robert Carter, President and alleged Owner, and Louise Bond, the new Hiring Director. Citizens do not have access to the same records of law enforcement for obvious reasons. I am ESPECIALLY interested in helping the woman in Kentucy, who lost $7000 and the elderly woman, in Rhode Island, who lost $20,000. If they have hired lawyers, or private investigators, who are in the research stage, pass my name on to them. I would also be willing to fax photos to their lawyers. In addition, Jon, at Rip-off.com you can review all material through Keywords: John Craig, Robert Hancock, Robert Carter, Home Stuffers, United Home Workers, or Stuff With Care, and through categories: Home based business, Mail order services or Corrupt companies. We have a wealth of knowledge here. This knowledge thanks to Rip-off.com/badbusinessbureau.com At the online BBB enter the phone number: 212-615-6424, and you will get hit by a landslide. This phone number is a crucial link. This is why law enforcement needs to contact that phone service, for their customer account information. If none of the access info is working for you, please let me know, and I'll work out the gliches, if possible. Thank you for your concern, regarding this matter, and thank you www.ripoffreport.com

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