There have been several complaints made with Stenehjem's office, resulting in his consumer protection division initiating an investigation.
The false advertising comes from reports of Fortress Secured, Inc., offering a cash advance up to $1,500 and/or an auto loan, or a guaranteed $10,000 credit line and stored value credit. The company is not a lender, auto lessor or credit card issuer, according to Stenehjem's office.
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"We haven't had any complaints that I'm aware of," said Wahpeton Police Chief Scott Thorsteinson. "We get complaints on all other sorts of fraud cases, but nothing on this."
The Richland County Sheriff's Office has not had any issues with this scam either.
"We get calls like this all the time, but I haven't seen any [regarding this case]," said Sheriff Larry Leshovsky. "Someone just came in [Tuesday] with a bogus check he got in the mail."
Once consumers provide their bank account numbers they are automatically enrolled in memberships including a free government grant program, medical discount program, or a $10,000 line of credit and stored value credit card membership. If the consumers do not properly cancel the memberships within a 7-day trial period, their bank accounts are charged one-time fees of $40 to $50, followed by ongoing monthly fees ranging from $17 to $20 per month.
The business and its owners refused to voluntarily discontinue their illegal business practices in North Dakota. Therefore, Stenehjem has ordered the entity and related individuals to cease all solicitations in North Dakota.
“It is unacceptable to solicit North Dakota consumers to enroll in, among other things, a membership for nonexistent free government grants, and then charge those consumers to learn about bogus government grants,” Stenehjem said. “These solicitations do not indicate a legitimate business entity.”
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