ATLANTA-Two members of an Atlanta business accused by the Federal Trade Commission of operating a deceptive “recovery room” telemarketing scheme have withdrawn their offer to settle with the FTC and intend to fight the charges in federal court.
United Consumer Services Inc. and its president, Wendy Heitkamp, and United employee Wayne Axelrod were set to go to trial in Atlanta April 24, but the judge approved an indefinite continuance for the defendents, whose assets have been frozen by the court. A preliminary injunction, still in effect, prohibits United, Heitkamp and Axelrod from conducting recovery services.
In response, the FTC intends to file a motion for summary judgment, asking the judge to make a decision in the case, said Stephen Gurwitz, a senior trial attorney with the trade commission.
The FTC complaint states that United contacted people who lost money in a specialized mobile radio partnership scam allegedly operated in 1993 by two New York companies. Gurwitz said that Heitkamp and Axelrod signed settlement documents with FTC attorneys on Feb. 3, which were approved by the commission and sent to the court for the judge’s signature.
However, Heitkamp and Axelrod contacted the court before the settlement was signed and said they had changed their minds about settling, Gurwitz explained.
