CLEARWATER TRIBUNE HOME
JUNE 24, 2010
Beware of "free" government grant money
The Clearwater County Sheriff’s Office would like to remind the public to be wary of grant scams promising “free” government grant money. These scams have reportedly taken hundreds—and in some cases, thousands—of dollars from consumers hoping to win a government grant or small business loan.
The following article was taken from the Consumer Affairs website, consumeraffairs.com.
“All of these offers are
bogus. The loans don't exist and neither do the millions of dollars in ‘free
money’ that is supposedly available from the government,” said Teresa A.
Santiago, Chairwoman and Executive Director of the Consumer Protection Board (
Jan Pisanczyn, Regional
Director of the
“The only ‘free money’ is the cash that’s going into the pockets of the scam artists,” said Pisanczyn.
“In many cases, people are not listening carefully when telemarketers, websites and television advertisers offer people help in obtaining a government grant,” said Santiago. “Consumers who pay these fees only receive pamphlets or books that list government agencies and programs. Even after people apply for these non-existent grants, many people still don't realize that they have been taken in scam.”
“Instead, victims of this
scam are instructed to send thousands of dollars via
This long-running loan scam continues to suck people in partly because it uses the names of actual American companies such as “Mortgage Expo” and “Empire State Financial Services.” The name “Margaret Taylor” is often used in this scam. Consumers may find these names on the Internet and think they are dealing with a legitimate company.
One scam involves a
Often using telemarketers with Indian accents, this company “guarantees” an $8,000 grant from the government if consumers are willing to pay a $257 fee. These grants can be used “to improve your house, buy a new house, double-up your business and overall clean-up your bills,” a telemarketer recently told an investigator for the Consumer Protection Board.
Their misleading sales tactics include posing as government officials and lying about the company and its true purpose. In addition to $8,000 “guaranteed” grants from the government, the company has also claimed to offer scholarship and disaster-relief assistance in other telemarketing calls.
Eventually, consumers learn that they will get nothing more than a booklet listing government grants -- and not an actual grant -- for this “one-time” fee of $257.
“Books, tapes and conferences are typical in these scams.
They sell you information that is easily obtained in any library or directly
from the government. But worse, they lie about the government offering
‘millions’ -- and, in some scams, even ‘billions’ of dollars -- in government