EducationMatch, Softrock and Gigats all part of largest EDU scam ever – fined $90 Million by the FTC as part of settlement. Owner Ayman “Alec” Difrawi previously convicted and spent time in jail for similar scam.
Dozens of affiliate networks are facing major loses now after convicted serial Florida fraudster, Ayman “Alec” Difrawi was caught again scamming potential job applicants after being convicted of almost the same thing 20 years earlier. Despite spending time in prison as someone’s bottom, Mr. Difrawi didn’t seem to learn his lesson and couldn’t help scamming people. (Rule #1: Criminals are Dumb)
According to the FTC, the owners of Gigats.com defrauded potential job applications by claiming they were “pre-screening” job applicants for employers. Thousands of people looking for jobs went to the site, only to find that their leads were actually being sent without permission and fraudulently to other sources including carreer training programs and fake online colleges.
Instead, the FTC alleges, consumers, who had provided Gigats with the kinds of personal information typically requested in a job application, were directed to call the defendants’ “employment specialists,” who then steered the consumers toward enrolling in education programs that had paid the defendants for consumer leads. Many consumers also were transferred to the defendants’ “education advisors.” The FTC alleges that these so-called advisors falsely claimed to be independent education advisors but in fact only recommended schools and programs that had agreed to pay the defendants, typically from $22 to $125, for consumer leads that met their enrollment requirements.
The bad guys here were fined $90.2 million and settled with the FTC, after facing significant financial loses and claiming to be broke. The FTC agreed they can pay only $360,000 of the settlement, but will have to pay the entire amount if they break the rules of the settlement and continue to scam consumers, or were hiding assets from the feds.
Former Convict and Owner of the Companies Alec Difrawi issued the following statement on his Facebook page about his issues:
I’d like to thank my family and friends for their support and encouragement over the last few months, I don’t know if I would have reached the finish line without it.Today the FTC petitioned the court to accept our jointly stipulated agreement, which finally closes months of uncertainty and provides a clear direction for future growth. I’d also like to thank the FTC Commissioners, Mr. Shull and his entire staff who have been fair and helpful throughout this long process.
This is really bad news for all the affiliate and CPA networks that were working with them, as doesn’t look they will be being paid for all these leads. Worse is that they provided evidence against all the EDU companies that knowingly worked with them, and expect those companies to be sued and possible shut down also.
Difrawi, according to sources has been involved in several other scams with noted scammers Lou Pearlman and businessman Ralph Edward Bell.
First years the Difrawi & Bell operation targeted mainly wannabe models, musicians, dancers and writers, combining their deceptive lead generation with consumer- & franchise scams for fees. At that time most leads were raked in with hit & run spamruns by various completely non-existing “companies”.
Ayman Ahmed el Difrawi (Alec Difrawi/Defrawi/Defrawy) & Ralph Edward Bell are long time partners in crime After they finished working with Lou Pearlman on modeling scam Wilhelmina Scouting Network aka Trans Continental Talent aka Fashion Rock aka Talent Rock, they teamed up to start this new line of phishing scams in 2004. Modus Operandi: by purporting to offer career opportunities (that exist only remotely or not at all) they lure job seekers into providing their personal information.
He goes by the names: Alec Defrawy, Michael Defrawy, Ayman El-Difrawi, Ayman A. El-Difrawi, Ayman Ahmed El-Difrawi and Defendant
