By: Linda L. Goodman
On September 16th, Federal Trade Commission (“FTC”) filed a complaint against Diversified Educational Resources, LLC (“DER”), Motivational Management & Development Service, Ltd (“MMDS”) and IDM Services LLC (“IDM”). Also named as defendants are Maria T. Garcia, principal owner, and manager of DER and MMDS; Alexander Wolfram, principal owner of DER, MMDS, and IDM Services. Steinbock Holdings LLC, Zwillinge, LLC, Sylvia Gads, co-owner of Zwillinge, and Tiffany Chambers are named as relief defendants.
According to the FTC’s complaint, DER and MMDS have sold online high school diplomas since 2006 using multiple names, including “Jefferson High School Online” and “Enterprise High School Online.” Their websites claimed that by enrolling in the defendants’ programs, consumers could obtain “official” and accredited high school diplomas and use them to enroll in college, join the military, and apply for jobs. The defendants charged students between $200 and $300 for a diploma, and a preliminary review of bank records suggests that defendants have taken in more than $11,117,800 since January 2009.
“A high school diploma is necessary for entry into college, the military, and many jobs,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “These defendants took students’ money but only provided a worthless credential that won’t help their future plans.”
The complaint alleges that the defendants violated the FTC Act by misrepresenting that the diplomas were valid high school equivalency credentials and that the online schools were accredited. The FTC says the defendants actually fabricated an accrediting body to give legitimacy to the diploma mill operation.
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This article is a publication of The Goodman Law Firm and is intended to provide information on recent legal developments. This article does not create an attorney-client relationship, nor should it be construed as legal advice or an opinion on specific situations. This may constitute “Attorney Advertising” under the Rules of Professional Conduct and under the law of other jurisdictions.
Linda L. Goodman is the founder of The Goodman Law Firm, concentrating its practice in internet business and law. Her firm’s clients include Advertisers, Affiliates, Affiliate Networks, and ISP’s.
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