WASHINGTON (AP) — The Federal Trade Commission said Wednesday that it will mail 454 refund checks totaling more than $2.9 million to victims of a scam by five companies and five people who promised they would earn thousands of dollars a year if they bought DVD rental machines.
In its case against American Entertainment Distributors Inc., the FTC said the defendants deceived people into paying $28,000 to $37,500 apiece for the machines.
The victims were told they could earn $60,000 to $80,000 a year, or recoup their initial investment in six to 14 months. In reality, all the investors lost money, the FTC said.
How much each victim receives will vary depending on how much he or she lost. All but four of the checks will top $2,000.
The FTC said it has resolved its claims against nine of the 10 defendants in its case.