Yellow Pages, Inc. agrees to halt deceptive trade practices

(Wilmington, DE): Attorney General Carl C. Danberg has joined with twenty-six other states in reaching a settlement agreement with Yellow Pages, Inc, Electronic Directories Company, LLC and John Wurth to stop their deceptive practices in connection with the use of check solicitations and renewal notices. The States investigated complaints that Yellow Pages, doing business as YellowPagesInc.com, sent solicitations to consumers in the form of a check described as an instant cash back offer but did not adequately disclose that by cashing the check, consumers were contracting for services. Yellow Pages then engaged in aggressive collection efforts against consumers that cashed the checks which resulted in many consumers paying for services they never intended to order.

As a result of the settlement, Yellow Pages will permanently cease all collection efforts arising out of the check solicitation program and will refrain from using solicitations in the form of checks obligating consumer to pay for goods or services if the check is deposited or cashed. Contracts for consumers who cashed checks but did not pay for any services are deemed canceled and consumers will not be billed. In Delaware, 311 companies and non-profit organizations will have their contracts cancelled and will not receive additional billings.

In addition, Yellow Pages will refund payments made by consumers who paid for services they did not want after receiving collection notices. , or any third party collect In Delaware, 146 companies and non-profits may be entitled to refunds averaging $179. If you believe that your company or non-profit organization may be entitled to a refund, please call the Attorney Generals Consumer Protection Unit at 800-220-5424 or 302-577-8600 for more information on how to file a complaint. Only complaints received by June 16 can be considered for a refund, so please call as soon as possible.

# # #


INVESTOR ALERT – ATTORNEY GENERAL ANNOUNCES INDICTMENTS IN DELAWARE ADVANCE LOAN FEE SCAM

(Wilmington, DE): On April 17, 2006, the New Castle County Grand Jury returned a 28-count indictment against Daniel L. Ginsburg and former Delaware Finance Secretary Joseph T. Cashman, charging the two with racketeering, conspiracy, theft, securities fraud, and securities registration violations for activities related to a fraudulent advance fee loan scheme operating in Delaware. The New Castle City Police Department, who received the initial complaint from a Texas victim, assisted the Attorney General’s Office in the investigation.

Defendants Ginsburg and Cashman are alleged to have promoted a methodical, ongoing advance fee loan scheme through several business entities situated in Delaware, including Thatch, Inc. and The Two Js. The Defendants are said to have approved non-existent loans totaling millions of dollars for out-of-state businesses in need of financial capital at reasonable rates, but borrowers had to pay a percentage of the gross loan amount in advance as “points” on the loan, or “earnest money.” Once the victims paid the advance fee, they never received the loans they were promised, but were continually assured by Ginsburg and Cashman that the money was forthcoming. When the victims requested refunds on the advance payments they made on the loans, they were never reimbursed.

Investigators are searching for other potential crime victims. If you have any information on loans solicited by Joseph Cashman and/or Daniel Ginsburg regarding the businesses entities of Thatch, Inc., The Two J’s, Associates of Emma, L&T Trust, or SGE Associates, please contact Chief Securities Investigator Stanley J. Yackoski at (302) 577-8935.

###


ATTORNEY GENERAL CONCLUDES REVIEW OF NEW CASTLE COUNTY CONTRACTS

(Wilmington, DE): Attorney General Carl C. Danberg announced today that his office has concluded the legal review of New Castle County’s contracts with Julius Cephas. The Attorney General received a request to investigate after allegations that New Castle County Executive Chris Coons possibly broke state law in contracting with Julius Cephas last year.

The Attorney General’s Office has concluded its investigation, finding that no state law had been broken.

###