District Attorney Nola Foulston announced today that the Consumer Fraud and Economic Crime Division of the District Attorney's Office is in the process of returning more than $75,000.00 to consumers throughout the United States that responded to a "Work at Home" program promoted by Harold L. Pautz, Jr. of Gillett, Pennsylvania. Pautz, doing business as L.T.G. Enterprises, used a Wichita address convinced each of these consumers to send his company $39.00 for a packet of supplies that he claimed would result in them earning up to $2,000.00 per week stuffing envelopes at home.
Foulston said her office first became aware of Pautz and his business when the District Attorney's office was contacted by the Better Business Bureau (BBB) in Wichita. The BBB reported that in a three day period, they had received numerous inquiries concerning L.T.G. Enterprises. The Consumer Fraud and Economic Crime Division of the District Attorney's Office immediately undertook an investigation that resulted in investigators confiscating more than 1,900 orders sent by consumers totaling more than $75,000.00.
The investigation revealed that L.T.G. Enterprises used Mailboxes, Etc., or similar mail drop facilities, in Phoenix, Arizona; San Antonio, Texas; Jacksonville, Florida; New Orleans, Louisiana; Tulsa, Oklahoma; and in this case the Mailboxes, Etc. located in Wichita. The consumer order were mailed to L.T.G. Enterprises in care of the Wichita address and were to be forwarded to another Mailboxes, Etc. in Elmira, New York, where they were to be picked up by Mr. Pautz.
The solicitation by Pautz implied that consumers responding with a $39.00 payment would receive information on working for L.T.G. Enterprises by "stuffing" envelopes at home and then returning them to L.T.G. for payment at $2.00 per envelope. The materials actually provided to consumers in exchange for their $39.00 detail a typical envelope stuffing scheme. The materials include instructions about how to obtain self-addressed envelopes from other consumers by making a similar pitch to the one the consumer responded to for $39.00 in this case.
Based upon the information obtained in this investigation, the District Attorney filed a petition in District Court claiming that Pautz's scheme was deceptive and unconscionable under the provision of the Kansas Consumer Protection Act. Mr. Pautz failed to formally file any answer to the petition and judgment was entered by the Court in this case against Mr. Pautz. That judgment found Pautz violated the Kansas Consumer Protection Act, ordered that Pautz pay civil penalties, investigative fees and court costs totaling $40,066.50; ordered that Pautz provide refunds to any consumers requesting a refund; and provided that the District Attorney return to consumers all payments confiscated by investigators in this case.
Foulston thanked the Untied States Postal Inspector's Office for their assistance in the investigation of this matter and noted that the United States Postal Service will be cooperating in the return of the more than $75,000.00 to victims in this case.
Finally, Foulston reminded area consumers to avoid such "Work at Home" scams. While there are many different versions of this scam, all of them request money in exchange for the "opportunity" to earn money at home. These schemes are almost never what they appear to be and deceive consumers into wasting their time, energy and money. While they have been "promoted" for many years, especially in classified advertising and direct mail, these schemes have found a new home "on line" on the internet. Consumers who have questions or who are tempted by such an offer should contact the Consumer Fraud and Economic Crime Division of the District Attorney's Office at 383-7921.
