Legal News

Infomercial Scammers Ordered to Pay $478 Million to FTC
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

On Thursday, the FTC announced of the largest litigated judgments ever obtained by the agency. In its lawsuit against the marketers of a series of real estate infomercials, U.S. District Judge Jacqueline Nguyen in Los Angeles entered a judgment for $478 million against the defendants along with a lifetime ban from infomercial production and telemarketing. The defendants included Douglas Gravink and Gary Hewitt. Both were jointly and severally held responsible for the monetary part of the judgment.

Jeffrey Klurfeld, director of the western region of the FTC said in a statement, “This huge judgment serves notice to anyone thinking of using phony get-rich-quick schemes to defraud consumers.”

In June 2009, the FTC had filed the lawsuit against the marketers of three “systems” for getting rich quick, including “John Beck’s Free & Clear Real Estate System.” The John Beck system promised consumers they would learn how to buy homes for “pennies on the dollar” from government sales. However, the FTC held that the people behind the scheme made false and unsubstantiated claims and almost all buyers of the $39.95 product lost money.


Lawyers for Beck, who is responsible of paying $113.3 million of the judgment, declined commenting to the media. However, Larry Rus, a lawyer representing the other two defendants Gravink and Hewitt, said it was likely that the order for a lifetime ban would be challenged. He said, “We just believe the evidence doesn’t support that kind of a harsh and broad order.”

While John Beck found the ‘system,’ Gravink and Hewitt had founded Family Products LLC, the company behind the advertising. According to the FTC the ‘system’ had duped almost a million consumers.

The present case, Federal Trade Commission v John Beck Amazing Profits, LLC, was part of a series of cases filed by the FTC to prevent scams targeting financially distressed people.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!



Experienced Paralegal-Criminal Firm

USA-FL-Fort Walton Beach

Fast-paced Ft. Walton Beach criminal defense firm looking for an experienced paralegal. We offer a c...

Apply now

Bankruptcy - Law Firm Seeks Associate


Encino Law Firm specializing in bankruptcy, workouts, and related litigation seeks an associate atto...

Apply now

Senior Paralegal, Appellate


Provide legal research and writing support to attorney staff engaged in proposing new and/or amendin...

Apply now

Associate Litigation Attorney

USA-IL-La Grange

Seeking associate litigation attorney with 2-5 years of experience. Practice areas primarily include...

Apply now




Search Now

Civil Litigation Associate Attorney

USA-MO-Jefferson City

Jefferson City office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with civ...

Apply Now

Corporate / Litigation Attorney

USA-CA-Los Angeles

Los Angeles office of our client seeks corporate/litigation attorney with 1-3 years of experience in...

Apply Now

Litigation Associate Attorney

USA-NY-New York City

New York City office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 3+ y...

Apply Now

Most Popular


To Top