Thouands complain about firm offering work-at-home training

Linda Cooper of Gatesville, Texas, remembers the day she answered a newspaper ad by JMW Financial Services offering training for a parttime, work-at-home job to supplement her monthly Social Security check.

"I called them and talked to this lady, and I said honey, I want to make sure that this is on the up and up," she said. "I said I’m 62 years old, I’m drawing Social Security and I need a little bit of money to supplement my income as I’m not able to work. She said oh yes, we’re on the up and up."

JMW Financial Services, a firm with a Mesa address, has run ads in newspapers and other publications across the country promising, for an upfront payment of $98, training for people for a work-at-home job.

The company offers information on how to become third-party tracers processing U.S. Department of Housing and Urban Development (HUD) and Federal Housing Authority (FHA) mortgage insurance refunds.

Cooper said she was directed to JMW’s Web site, which shows that the company is a member of "something similar to the Better Business Bureau" called the Fair Business Association of America.

That was enough to convince her that the company was legitimate, so she borrowed her sister’s credit card for the $98 payment and looked forward to receiving her training material in the mail.

"I kept waiting for the material and everything, and it didn’t come, then I started looking around and found out that they weren’t on the up and up," she said. "So I called them and said don’t send me the material, if you haven’t sent it yet cancel my order, this is not what y’all told me it was going to be, and she told me we can’t do that."

Cooper said she received the training material two weeks later, and sent it back unopened.

"I e-mailed them and I wrote the Better Business Bureau, and (JMW) just completely ignored me," she said. "I’m out $98. I’m in ailing health . . . and I need every penny I can get."

Phoenix-based Rip-off Report.com, a Web site that posts consumer complaints, has received thousands of emails from people like Cooper across the country about their dealings with JMW.

"I have received 2,041 email complaints regarding JMW," said Ed Magedson, founder of Rip-off Report.com. "They started around February 2003 and they continue right through the present. It’s just been a continual thing."

JMW has an unsatisfactory record with the Central/ Northern Arizona Better Business Bureau. The Fair Business Association of America also has an unsatisfactory record with the BBB.

In the BBB’s report, James Wright is listed as the owner of JMW. Wright could not be reached by telephone or in person for comment.

"There are quite a lot of these work-at-home things," said Phyllis Rowe of the Arizona Consumers Council. "It’s one of the top 10 complaints that we have, where people think they can make money, but they first require up-front money and then it just doesn’t work out. People just need to be extra careful whenever they sign up for something like that because there’s nothing for nothing."

FROM OHIO TO LOUISIANA

Christina Black is a stay-at-home mom in Chillicothe, Ohio, and her husband is a department manager at the local Wal-Mart. She saw JMW’s ad in the newspaper and at first was skeptical, to the point of having her husband talk to the company’s representative.

"My husband thought it sounded OK, and the woman was really nice and everything," she said. "We had just moved . . . and we were really counting on every penny. And I thought wouldn’t it be great to actually stay home with my son so I didn’t have to pay that $100-plus for day-care every week and I could make money at home."

Black said she paid the $98 and was told she would receive the training packet shortly. She said it was more than a month before she received her training material, and by that time she had obtained another job and didn’t have time to do both.

JMW first promised a refund if the training packet was returned along with a letter stating why it was being sent back, she said.

"So I did and I didn’t hear anything back from them, and I kept calling and calling, and after probably about a week and a half, it was to where I couldn’t even talk to anyone anymore," Black said. "They won’t return my e-mails, so I’m out of my money. I told the woman one day when I called that I returned it and she said yeah, I see where you returned it and we’ll put in for your refund, and I never heard anything else since then."

In Kenner, La., Brad Mayeux remembers seeing JMW’s ad in a New Orleans magazine that said he could earn $250 to $500 a week for a few hours of work as a third-party tracer.

"It sounded a little too good to be true, but I figured since I’m pretty savvy with the Internet and I’m kind of a researcher . . . I’d fit in perfectly with this job," he said. "I had a wreck awhile back and I have a back problem, and I can’t really work too well. I’m very good with computers so I was thinking I could find something to make a little bit of money part time and be able to work when I want to work."

Mayeux said he was assured up front that he would have a money back guarantee if he wasn’t satisfied, so he paid the $98 via credit card and waited for his training material. In the meantime, he researched the Internet and found out that anyone can find out if they are owed a HUD refund and can receive that refund without the help of a third-party tracer. He also became concerned about the legality of becoming a third-party tracer.

Mayeux said he tried using the information from JMW. Third-party tracing involves tracking down the addresses of people via the Internet and sending them letters informing them that they are due a refund, he said. Those receiving the letters are supposed to return them to the tracer and work with the tracer in obtaining their refund, and the tracer is supposed to receive a portion of the refund as a fee, he said.

Mayeux said questions concerning the legality of thirdparty tracers prompted him to change his mind about becoming one and he wanted his money back. When he contacted JMW about a refund, he was told he would have to send in numerous returned letters showing that he had tried the program. The problem is no one is under any obligation to return the letters, he said.

"On the software — I read it thoroughly — there was absolutely nothing that says you need to save your information for proof that you tried it to get your money back," he said. "These letters didn’t come back to me, so I had no proof that I sent out the letters. First they said I’ll have to wait 90 days and we’ll go through the process of seeing why you’re unhappy. I waited the 90 days and of course they said no, we’ve declined you to get your money back."

BARRED FROM S.D.

An investigation by the Securities Division of the South Dakota Department of Revenue and Regulation resulted in the issuance last year of a cease and desist order prohibiting JMW from selling its third-party tracer product or any other "business opportunity" in that state.

The investigation began when a division investigator saw ads in the Farmer & Rancher Exchange newspaper that stated: "$250-$500 POTENTIAL A WEEK! Will Train to help the U.S. Government file HUD/FHA mortgage refunds. No experience necessary. Call JMW Financial Services . . ."

"Basically it was just material omissions in the offer and sale of it that was the major problem," said Gail Sheppick, the division’s director. "In other words, it was misleading."

JMW also said it would refund all or part of the price if purchasers were dissatisfied with the business, according to the division.

The division’s investigation dates back to Oct. 9, 2003, when it sent a letter to the company explaining that it may need to register with the division before offering services in South Dakota, and requesting information to determine compliance, Sheppick said.

On Nov. 3, 2003, JMW provided the requested information, and then on Nov. 21, 2003, the division requested a copy of the training manual the company sends to purchasers.

"After receiving it, the division learned of the steps one had to follow to request a refund if dissatisfied with the JMW business opportunity," Sheppick said. "JMW failed to inform its investors prior to investing that there was a $20 processing fee to receive the refund, and failed to inform them that investors had to provide written proof from 30 potential customers declining the investors’ services to quality for the refund. That’s pretty misleading."

Those omissions, as well as the unsubstantiated potential earnings claim, were in violation of South Dakota statute, he said. On Dec. 2, 2003, the division sent a letter to JMW telling the company that it was in violation of state statute, and requesting the names and addresses of all South Dakota residents who had invested and were entitled to a refund, he said.

"In a letter dated Dec. 10, JMW states that no sales had been made and that a new handbook would be available for review in January," Sheppick said. "JMW assured the division that it would discontinue advertising in South Dakota until the new handbook had been completed and sent to the division."

On Feb. 20, 2004, an Iowa resident contacted the division and said he/she saw the JMW ad in an Iowa newspaper and had received the JMW handbook, Sheppick said. Since it appeared the new handbook was completed, the division then requested a copy of it, he said.

"On March 3, 2004, JMW sent a letter to the division stating the new handbook was not completed and that JMW had not placed or renewed any advertisements in South Dakota," he said. "Then on March 23, an investigator within the division saw JMW’s ad in the Farmer & Rancher Exchange and it was identical to the earlier ad. The events provided sufficient grounds for issuance of a cease and desist order. They are not allowed to sell in South Dakota."

On its Web site, JMW says it is licensed with the states of Arizona and Utah. The Arizona Attorney General’s Office hasn’t taken any action against JMW, said spokeswoman Andrea Esquer. The office accepts consumer complaints by telephone at (602) 542-5763 or online at www.azag.gov.

The Utah Attorney General’s Office also hasn’t taken any action against JMW, said spokesman Paul Murphy. The Utah Department of Commerce hasn’t issued a citation against the company, he said.

WHERE’S JMW?

The Better Business Bureau has JMW’s address listed as 2655 W. Guadalupe Road #30, at Carriage Lane Plaza in Mesa. However, #30 now houses another business, Tips Radio, that has no affiliation with JMW, said manager Troy Warren.

Warren said JMW and James Wright moved to #24. However, the sign in front of #24 says Eagle Tower Communications, and personnel inside said it is not affiliated with JMW and would not say where JMW is located.

The front desk at Eagle Tower Communications does take messages for Wright.

The telephone number for JMW listed in the BBB report accesses the following recorded message: "Due to a change in HUD third-party tracer procedures, we are no longer offering the auto-tracer program. To obtain a refund, send a request in writing, return the software, the original invoice and 30 proofs of attempts. All four items must be included." It lists #30 as the address and said refunds "will be processed within 10 days of receiving your request." It does not allow callers to leave a message.

The telephone number on JMW’s Web site accesses the following recorded message: "If you are inquiring about the ad in the paper, all positions have been filled. We appreciate your call. Have a great day." It does allow callers to leave a message.

Another telephone number listed in the BBB report is out of service.

Larry Bush, public affairs director for HUD’s regional office in San Francisco, said it’s not illegal for a business to repackage government information and sell it "if you think that you’ve in some way added value."

"Now if they’re promising something that they don’t offer, I don’t know," he said.

Bush suggested those with complaints call the National Consumers League’s Fraud Hotline, at 1-800-876-7060, or file online at www.fraud.org.

In the meantime, many of those who have complained about JMW at Rip-off Report.com say they’ve given up in terms of trying to get their money back.

"My medicine runs me over $300 a month and my Social Security is not but about $658. I’ve had back surgery twice and am about to go back (to the hospital)," said Cooper, of Gatesville, Texas. "I thought well, I can sit at the computer for two hours a day and do this. That’s what I was thinking when I did it, and stupid me I should have known better."