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Willms takes on the FTC

As if Willims's previous shady dealings weren’t enough, the US Federal Trade Commission (FTC) found reason to examine another business he founded utilizing potentially questionable business practices.

In 2012, Willms settled with the FTC for $359 million. Why such a large settlement? It’s because Willms was alleged to have duped consumers with “free”, “trial”, and “bonus” product offerings, and then subsequently charged those consumers for unwanted products and services at a later time. All told, the FTC claims Willms defrauded investors to the tune of $467 million. This type of misdirection and sleight of hand is something the FTC takes very seriously, which is why he was prosecuted.

As a result, the two parties would eventually settle in a permanent injunction and monetary relief paid by Willms. It should be noted, however, that as part of the settlement Willms maintains his innocence and claims to never have broken the law in any way.

Recent hack unveils new business

This year, hackers found a way to infiltrate a business owned by Willms. While this is bad news in and of itself for the entrepreneur, what it uncovered makes this story even worse.

Security news site KrebsOnSecurity found that hackers uncovered millions of personal records, such as genealogy reports, arrest records, and DMV files, coming from a marketing company owned by Willms.

In their investigation, KrebsOnSecurity spoke with customers who were victim of enticing offers for online services. These consumers had previously ordered criminal background checks for a small $1 fee. The customers were then charged monthly recurring fees of up to $38 per month after the service did not perform as they had been told.

If true, these allegations are in-line with accusations made against Willms’s previous businesses, and display someone who has yet to learn his lesson. However, much is still unknown, and it’s important to note that these claims are still unsubstantiated at this time, and neither Jesse Willms nor any companies he is associated with have come under legal trouble for these allegations.