Kentucky AG Settles with Yellow Pages and Collection Agency in Check Scam

Kentucky Attorney General Greg Stumbo announced last week the mailing of restitution checks totaling $70,000 to over 800 Kentucky consumers and small business owners in settlement of a civil lawsuit involving illegal check solicitations by five California companies and individuals.

The lawsuit alleged that the defendants mailed checks from “Yellow Pages, Inc.” to small businesses in Kentucky, usually for $3.47, and that when the check was cashed, the defendants claimed the consumer became obligated to pay $177 for Internet directory services. When a consumer did not pay the bill, it was turned over to a collection agency, Continental Recovery and Filing Solutions.

“Scams like this are targeted by my office”, said Attorney General Greg Stumbo. “Small business owners were harassed and defrauded by these bad actors. I am pleased to provide this recovery to affected citizens.” The Defendants are: Yellow Pages, Inc., a Nevada Corporation operating from Anaheim, CA and Electronic Directories Company LLC of Anaheim, and their President, John Wurth; and Continental Recovery and Filing Solutions, of Simi Valley CA and Marwan Kashou, its President.

Under Kentucky’s statute, KRS 372.160, checks being mailed as a solicitation must contain certain mandatory disclosures. The lawsuit charged that the defendants failed to abide by the statute and also violated the Consumer Protection Act.

“Kentucky is a pioneer in providing this type of consumer protection,” Attorney General Stumbo observed. “We have now become a model for the nation in stamping out this abusive practice. I urge anyone who is a victim of fraudulent, unfair or deceptive business practices to contact my office."