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Senior Citizen Alerts

American Senior Alliance Shut Down from Sending Deceptive Mailers to Senior Citizens

Texas Attorney General says Prospect Pros agree to halt mailings designed to get seniors’ personal information

March 23, 2000 – There is nothing that has prompted as much email to SeniorJournal.com in the last ten years as the “American Senior Alliance,” which has been busted by the Texas Attorney General, more than once. Well, actually more than one company using that name to scam senior citizens.

The news release on March 16 said, “Texas Attorney General Greg Abbott today resolved the state’s enforcement action against a direct mail marketing firm that operated an unlawful lead card scheme and targeted senior citizens.”

This follows actions the Texas AG took in 2006 against others in Texas that were also using this form of deceptive mailings and also using similar names. American Senior Alliance, Inc. and owner George R. Katosic were sued, along with two other companies and their owners, by Texas Attorney General Greg Abbott in 2006 for "bombarding seniors in Texas and across the country with deceptive, unsolicited mailers.

 

Related Stories

 
 

NOTE: SeniorJournal.com first began alerting seniors to the problems of mailings from the American Senior Alliance in 2004 -

American Senior Alliance Mailer Should Be Viewed With Caution

By Tucker Sutherland, editor

Nov. 30, 2004 - SeniorJournal.com has received many emails concerning a mailing to senior citizens by the American Senior Alliance, but no one has been able to locate this company, which make excessively enticing promises in the mailing. We suggest seniors not respond to the mailing. Read more...

“National Processing Center” Appears to Replace “American Senior Alliance” in Suspicious Mailing to Seniors

By Tucker Sutherland, editor, SeniorJournal.com

Dec. 14, 2004

Mystery Solved: American Senior Alliance Pushing Annuities

By Tucker Sutherland, editor

Jan. 3, 2005

American Senior Alliance Says Their Purpose is “Senior Education”

By Tucker Sutherland, Editor

Jan. 27, 2005

American Federation of Senior Citizens One of Many Seniors Should Avoid

By Tucker Sutherland, editor

Jan. 30, 2005

Court Burns United Seniors Association for Misleading Senior Citizens

Solicitation letters were in envelopes appearing to come from Social Security; Group evolved today to USA Next

Aug. 26, 2005

American Senior Alliance Gets Busted with Two Others

Texas AG cracks down on three companies for taking advantage of seniors

Feb. 26, 2006 - One of the most notorious mass mailers of materials to senior citizens that were thinly designed to look as if they were an official government message has finally been busted. American Senior Alliance, Inc. and owner George R. Katosic were sued, along with two other companies and their owners, by Texas Attorney General Greg Abbott for "bombarding seniors in Texas and across the country with deceptive, unsolicited mailers. Read more...


Read more Senior Citizen Alerts

 

In the most recent charge, the Texas AG said that the company's "card solicitations have used the name American Senior Alliance and other assumed names for seniors to return the lead cards with their personal information."

The defendant in this case was actually, Prospect Pros LLC, which did business as American Seniors Alliance. The company, according to the Texas AG, “used improper tactics to obtain senior citizens’ personal information.”

According to state investigators, the defendants packaged and sold the unlawfully obtained information to insurance companies and sales solicitation firms.

Under the agreed final judgment filed earlier this month, Prospect Pros LLC, Prospect Pros Inc. and owners William D. and Lynn Thompson, of Plano, Texas, are prohibited from sending misleading or untrue direct mail to senior citizens.

In the future, the defendants must clearly disclose when mailers are sent on behalf of a particular insurance agent or other vendor and that these representatives may contact seniors who respond.

The newly required disclosures will ensure that senior citizens are aware of the direct mail solicitations’ true purpose. Prospect Pros has also agreed to pay $30,000 to reimburse the state for its attorneys’ fees.

In early 2006, the Attorney General took legal action against four “lead card” generation schemes, including Prospect Pros. All but one, Lead Concepts Inc. and its owner Christopher Weir, have been resolved.

Prospect Pros produced and mailed misleading direct mail solicitations that were intended to alarm senior citizens. The defendant’s mailers featured urgent messages in boldface type and appeared to come from government agencies and were intended to obtain the recipient’s personal information via postage-paid return cards.

Prospect Pros, for example, mailed a “Medicare Update” that purported to provide information about changes to the Medicare program and appeared to be sponsored by the federal government. By law, the lead card solicitation must state clearly that it is not affiliated with any governmental agency. Other mailers appeared to inform older Texans about estate and probate tax avoidance.

In other cases, mailers were designed to make elderly recipients think their government benefits might be in jeopardy and that returning the cards would preserve those benefits.

Texas Attorney General’s toll-free complaint line at (800) 252-8011

>> http://www.texasattorneygeneral.gov.

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