Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

$5,000 Fine For Envelope Stuffing Scam

Issued 12 June 2002

Auckland Trader Fined $5,000 For Envelope Stuffing Scam

Auckland trader Gregson Cretchein Mathews was fined $5,000 in the Auckland District Court yesterday for breaching the Fair Trading Act in relation to a “work from home” scam. In addition, Mathews was fined $500 solicitor’s fees and $130 court costs.

A Commerce Commission investigation revealed that Mathews made representations in a letterbox flyer - distributed in various Auckland suburbs between November 1999 and June 2001 - that people could earn money from home by stuffing and addressing envelopes.

People were asked to send $24.95 to Mathews for the complete Homemailers Program. In the program document, it was revealed to participants that the scheme was not an opportunity to stuff or address envelopes at home, but a “plan” that involved placing advertising for positions stuffing envelopes from home and charging any enquirers $24.95 for their registration into the scheme. The investigation revealed more than 800 people registered for the scheme.

Judge Hobbs said that given the high level of dissemination of the flyers and the previous warning given to Mathews by the Commission, it was difficult to find conduct more flagrantly dishonest than his.

Director of Fair Trading Deborah Battell said the advertising content was a serious concern not only because it blatantly misled the public but because it targeted very vulnerable people.

“Mathews was deliberately and callously profiting from people who had limited employment options and who could ill afford the registration cost.

“The program material was also of concern because it warned readers not to be fooled by the “many fraudulent envelope addressing and chain letter schemes being sold today’, when he himself was perpetuating that very activity,” Ms Battell added.

“The Commission will continue to take action in this area, and would like people to report any further instances of such schemes to the Commission on 0800 943 600.”

The 0800 number for the Commission’s contact centre is available between 8.30am - 5pm, Monday to Friday.

Background

Section 22(1) of the Fair Trading Act 1986 states:

22 Misleading representations about certain business activities „o

(1) No person shall make a representation that is false or misleading in a material particular concerning the profitability or risk or any other material aspect of any business activity that that person represents as one that can be, or can be to a substantial extent, carried on at or from a person’s place of residence.

Commission media releases can be viewed on its web site www.comcom.govt.nz


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO: