⏱ 2 min read
Michael Brown, the CEO of Credit Bureau Center, has pleaded guilty to operating a nationwide online marketing scheme that scammed over 160,000 victims across the United States, including in New York. The scheme involved posting fake rental property ads on classified websites, which led potential renters to enter their credit card information on Brown’s credit monitoring websites, resulting in millions of dollars in losses. The scam took place over several years, with Brown’s company making money by automatically enrolling customers in paid monthly membership for credit monitoring services. Brown pleaded guilty on March 30 to one count of conspiracy to commit wire fraud and one count of wire fraud.
The scheme was carried out through Brown’s company, Credit Bureau Center, which owned and operated several credit monitoring websites, including eFreeScore.com, FreeCreditNation.com, and CreditUpdates.com. Brown employed affiliate marketers to drive potential customers to these websites, where they would be tricked into paying for services they did not need or want.
According to the US Attorney for the Southern District of New York, Jay Clayton, the scheme was a massive online scam that targeted ordinary Americans looking for housing. Clayton stated that the defendant’s company made millions from the scheme, and that mass online fraudsters like Brown try to hide by hitting each victim for a small amount.
Brown’s guilty plea is a significant victory for law enforcement, who have been cracking down on online scams and wire fraud in recent years. The case highlights the importance of being vigilant when searching for housing or other services online, and the need for consumers to be aware of potential scams and frauds.
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📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: New York
- Location: NY
- Source: DOJ Press Release
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