We Proudly Cheer: Maryland U.S. Attorney Wins FTC Award

Laidlaw v Orange This was an 1817 Supreme Court case involving alleged deceptive trade practices affecting small businesses. You might be surprised to find out who defended the case, and why it’s still relevant 201 years later.

The lawyer for one of the companies was a young Maryland lawyer named Francis Scott Key. Yes, That Francis Scott Key.The defense of Fort McHenry inspired him Star Spangled BannerHe later returned to law and later became a U.S. Attorney. Today, the Federal Trade Commission issued a Criminal Liaison Unit to Assistant U.S. Attorneys Sean R. Delaney and Harry M. Gruber of the U.S. Attorney’s Office for the District of Maryland. Prosecutor’s Award. If you can think of another coincidence, AUSA’s Delaney and Gruber won the award for bringing nine individuals accused of fraud against small businesses to justice. In this case, the defendants defrauded offices, nonprofits, churches and schools of more than $50 million by sending unordered supplies and then using coercion to demand payment.

This scam tactic should sound familiar.The FTC has previously taken action against several defendants and their companies Federal Trade Commission v. Midway Industries, Inc.. The case resulted in a permanent injunction, a $44 million judgment against one defendant, and a $58 million judgment against the other defendants. The FTC intends to return the funds it collected to the defendants’ victims. (We also have a brochure with tips on protecting your small business from B2B scams.)

The United States Attorney’s Office for the District of Maryland, with Mr. Delaney and Mr. Gruber as counsel, obtained guilty pleas to multiple fraud-related crimes. The FTC filed civil challenges against nine criminal defendants involved in the scam. The defendants were sentenced to varying degrees of punishment, with Eric A. Epstein being sentenced to more than 11 years in prison.

The FTC presents the Criminal Liaison Unit (CLU) Prosecutor Award every two years to recognize prosecutors who have demonstrated an outstanding commitment to consumer protection in partnership with the FTC. Since its founding in 2003, the CLU has successfully criminally prosecuted hundreds of fraudulent telemarketers, fake debt collectors, mortgage relief scammers and other scammers who targeted American consumers.

A footnote: Despite the efforts of Francis Scott Key, Laidlaw The case ultimately resulted in a remand. But thanks to Mr. Delaney and Mr. Gruber, justice prevailed in the 21st century challenge to deceptive practices against small businesses. To that end, we are proud to honor the 2018 CLU Prosecutor Award winners.