Ex-Boss Settles Giant|iWorks Fraud Case

LAS VEGAS (CN) — Former iWorks general manager Ryan Riddle agreed to a $281 million suspended judgment and other sanctions to settle federal fraud charges in a $26 million online credit scheme.
     The Federal Trade Commission sued Riddle and others in a 2010 lawsuit accusing iWorks and related entities of running an online credit scam that bilked customers of $26 million.
     Riddle’s LinkedIn profile indicates he president and CEO of Las Vegas-based Element Web Design and president of Rockit Media.
     In a July 22 stipulated order and settlement, the FTC and Riddle agreed to the suspended $280,911,870.36 judgment and a permanent injunction to settle charges of violating the FTC Act and Electronic Funds Transfer Act.
     Riddle did not have to admit guilt to amended charges accusing him of “deceptive and unfair acts or practices.”
     U.S. District Judge Miranda Du permanently enjoined Riddle and associates from marketing grant products, continuity programs or investment opportunities in firms in which Riddle owns more than more than 1 percent interest.
     Du also permanently enjoined Riddle and associates from engaging in forced upselling, and holding an ownership or financial interest in an entity offering grant products. Riddle cannot serve as an officer, director or manager of a business, act as its signatory or apply for merchant accounts, unless he directly controls, participates in or has knowledge of its daily operations.
     Riddle et al. also are banned from misrepresenting products, promising investment gains or lying about potential risks, restrictions, payment processing, the status of product endorsers or the potential cost of a product, service or program.
     Du also restricted Riddle’s use of consumer information, ordered eight years of compliance monitoring, and ordered him to cooperate with federal investigators.
     If Riddle does not comply with the order, the court will lift suspension of the $280,911,870.36 judgment against Riddle and demand immediate payment.
     Riddle represented himself in signing the stipulated agreement and no contact information is available for Riddle, Rockit Media or Element Web Design.
     Collot Guerard represented the FTC and was not immediately available by telephone Monday.

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