You are here: Home  FTC Actions FTC Action Summaries Mehmet Akca

Defendants: Mehmet Akca, All About USA, Inc., Michael Cilone, and Rachel Cilone, Cliff Cross (note 1), Kevin Drake, David E. Dunn, Edward Lane, Ross Sanford Leiss, Michael Lyons, Ralph Lewis Mitchell, Jr., Frank Muniz, Philip D. Miller, Patrick R. Kelly, Steve Neizianya, and A. James Black.

Type:  Online Promises of a New Credit Identity

Defendants offered a variety of credit kits, ranging in price from $19.95 kit to $59.95. Their Web site or e-mail solicitations made claims including promises of "a TOTALLY NEW-CLEAN credit file," "a brand new credit file in less than 30 days," "A COMPLETELY NEW CREDIT FILE -- LEGALLY, and totally separate from your present credit file."

The Commission (and in one case, the Department of Justice) filed complaints in federal court during late January or early February 1999, alleging violations of Section 5 of the FTC Act and Section 404(a)(2) of the Credit Repair Organizations Act "CROA." The government has sought injunctive relief and redress for consumers.

In October 1999, The FTC announced that defendants in the Mehmet Akca, All About Communications USA, Inc., David E. Dunn, Edward Lane, Ross Sanford Leiss, Michael Lyons, Frank Muniz, Philip D. Miller, and Steve Neizianya matters agreed to settle federal charges that the "file segregation" advice and products violated federal law. (note 2).

The settlements will provide consumer redress for victims of the scam; bar future violations of the Credit Repair Organizations Act; bar deceptive claims about file segregation -- including claims that it is legal -- and require that the defendants notify their victims that using a false identification number to apply for credit is a felony. Thirteen of the sixteen settlements announced as part of the sweep provided for full consumer redress. Financial declarations filed by three defendants indicate an inability to provide redress. (Not all of the cases in the sweep were Internet related. Also, some of the cases included in the settlement are from the second round of the sweep, which was announced in May 1999). Their settlements contain provisions to allow reopening of the issue if defendants are found to have misrepresented their inability to pay. All the settlements contain record keeping provisions to allow the FTC to monitor compliance.

The Commission votes to accept the proposed stipulated final judgments were 4-0.

A similar settlement was announced with Clifton W. Cross, individually and dba as Build-It-Fast on June 21, 2001. Settlement of the FTC charges bars the defendant from representing that other government identification numbers can be lawfully used to conceal actual credit histories or that using alternate numbers is legal. In addition, the settlement bars him from misrepresenting material facts concerning credit-related products or any other product or service. The settlement also bars violations of the Credit Repair Organizations Act, which prohibits charging or accepting payment for credit repair services before the services are provided and advising consumers to hide their true credit history. The settlement also bars the defendant from using or selling his customer lists.

Finally, the settlement contains provisions concerning defendant’s inability to pay and reopening the matter in the event that defendant misrepresented this.

Note 1:  In addition to the civil case brought by the FTC against Clifton W. Cross, on May 9, 2001, Cross was sentenced to forty nine months in federal incarceration and ordered to pay nearly $171,000 in restitution as part of a guilty plea resolving criminal charges stemming from the scam. The criminal case was prosecuted by the United States Attorney for the Western District of Texas.

Note 2:  On May 4, 1999, the Commission voted 4-0 to dismiss its federal court case against Ralph Lewis Mitchell, Jr., doing business as Mitchell Enterprises, brought as part of "Operation New ID --Bad Idea," a law enforcement sweep focusing on companies that illegally encouraged consumers to create false credit identities. (FTC Matter No.: x990031).

This page was last modified on July 22, 2007.

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