34.  FTC v. Inetintl.com, Inc., et al., Civil No. CV 98-2140 CAS (CWx) (C.D. Cal. filed March 25, 1998)

Defendants: Inetintl.com, Inc. aka Inet International, Craig A. Lawson aka Bob Bryan, Erik R. Arnesen, and Stanley R. Goldberg aka Geoff Stevens

Type:  Internet Business Scam

Defendants ran an Internet access business opportunity, in which investors  sold Internet access and other computer-related products and services to the public. Defendants allegedly made false earnings claims and used phony references, in violation of Section 5, and allegedly failed to make disclosures required by the Franchise Rule.

On March 26, 1998, the Court issued a temporary restraining order freezing defendants’ assets and appointing a receiver over the corporation and defendant Lawson.  The FTC moved for summary judgment against the defendants, and on May 11, 1999 announced that the Court had found in favor of the Commission. The Court barred Inet, Goldberg, and Lawson for life from offering for sale any business venture, franchise or investment opportunity.  The Court ordered Arneson to post a performance bond in the amount of $250,000 before advertising, promoting, or selling franchises, business ventures, or investment opportunities in the future. The Court also ordered total consumer redress of $1.76 million, $478,088 of which is to be paid by Goldberg. Goldberg has appealed the Court's decision. Lawson is a fugitive and a warrant has been issued for his arrest.

http://www.ftc.gov/opa/1998/9804/inet.htm (press release - complaint / prelim inj)