Two Abington area brothers accused of defrauding more than $6.1 million dollars from thousands of consumers across the country have agreed to pay $7.5 million to settle charges filed by the Federal Trade Commission (FTC).
The Philadelphia Inquirer reports that Blake Rubin of Huntingdon Valley and Chase Rubin of Rydal used telemarketing operations in Jenkintown and Philadelphia to peddle bogus credit cards to more than 60,000 people.
The FTC said that victims of the alleged scheme paid up to $99 plus a $19 monthly fee to obtain what they believed was a "platinum" credit card that could be used for general purchases. What they actually received was a card that physically resembled a credit card, but could only be used at a small group of online stores selling "bizarre" items such as bulk cases of 432 shower caps ($430.56).
A federal judge shut down the operation in February. The Rubin brothers and their alleged partner, Justin Diaczuk of Philadelphia, admitted no wrongdoing under the terms of the settlement with the FTC.