Update: July 22, 1998
Final Refund Checks
Mailed
The contempt citation
against Fortuna and Augustine Delgado cleared the way for the final mailing of refund
checks this week. This mailing brings to 15, 625 the total number of consumers receiving
refunds. The FTC's case against Fortuna returned approximately $5.5 million to investors
in the U.S. and 70 foreign countries (see List of Refunds by Countries). The
contempt citation could provide an additional $2.2 million in consumer redress that will
go to consumers who received partial refunds. There will be no further payments (above the
60% shares) unless we can collect additional monies from defendants. We cannot accept any
new refund claims against Fortuna or Fortuna Allaince II.
On June 5, 1998, Federal Judge Walter T. McGovern found Augustine
Delgado and Fortuna Alliance in civil contempt. They wilfully failed to make sufficient
payments for consumers to receive full refunds. The Court found that the Fortuna's
"challenges" to refund claims had made no significant difference in the end
result except to substantially harm consumers, who had to wait months for their refunds.
The Court also found that defendants had benefitted by their delay because they had use of
the funds properly due consumers.
The contempt order
prohibits defendants from promoting any marketing or investment program until the $2
million deficiency, plus interest, is paid in full. Any person who promotes a Fortuna or
Delgado scheme with knowledge of this prohibition may be subject to contempt proceedings
as well.
Update:
May 19, 1998
FTC Files Second
Contempt Action
On May 8, 1998, the FTC charged Fortuna Alliance, Augustine Delgado, Libby Gustine
Welch, and Donald Grant with failing to pay a $2 million deficiency due for consumer
refunds. The FTC called the refund claims "challenge" process bogus, noting that
out of 4,000 "challenges" by Fortuna, fewer than 100 were even partially
substantiated by Fortuna. The FTC has asked the federal court to find the defendants in
contempt for failing to pay the deficiency. The court has set a hearing date of June 5,
1998.
Please do not call the Federal Trade Commission about your refund claim. We will post
new information here as it becomes available.
For more information, choose from the selections below:
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