Andrew Bachman

Last updated

Andrew Bachman
AndrewBachman.jpg
Born (1983-06-09) June 9, 1983 (age 41)
Wayland, MA
Nationality American
Alma mater Babson College (BA, 2006)
Occupation(s)Co-founder, Tatto Media
(president, 2005-09)
Co-founder, Scambook
(president, 2011-12)
Founder, Game Plan
(president, CEO, CFO & chairman, 2012-14)
Years active2005-present

Andrew Bachman (born June 9, 1983) is an American entrepreneur and investor. He is the founder of several companies, including Game Plan Holdings; after being charged [1] with mobile cramming by the Federal Trade Commission, he resigned as president, chief executive officer, chief financial officer and chairman of Game Plan Holdings on February 11, 2014. He later agreed to a settlement with the FTC that includes a monetary judgment of more than $97 million. The judgment was partially suspended based on Bachman's inability to pay the full amount, after he turned over nearly all of his assets. [2]

Contents

Early life and education

Bachman was born and raised in Wayland, Massachusetts, to physician parents. [3] He attended Babson College in Wellesley, Massachusetts, [4] graduating in 2006. [5] From 2010 through 2013, Bachman co-funded a scholarship at his alma mater [6] [2] however his sponsorship of the scholarship has been rescinded by the college following the FTC proceedings and seizure of his assets [7]

Career

Tatto Media

In 2005, while at Babson, Bachman partnered with fellow Babson students Lin Miao, Lucas Brown and Lee Brown to create Tatto Media, an Internet advertising and marketing company. [4] [8] [9] [10] The company offered advertisers a different way to pay for online banner advertising, with payment based on performance rather than impressions. [4] Bachman served as president of Tatto, which was based in Boston and also had offices in Seattle and Los Angeles. [4]

In 2008, Tatto was named a Top Global 250 company by AlwaysOn. [8] That year, the company reached annual revenue figures of $40 million. [11] The following year, revenues topped $100 million, and by 2010, according to comScore, the company had become the third-largest ad network in the world, and had 120 employees. [4]

Tatto was sued by the attorney general of Washington state in 2008 and again in 2009 for running MyLuvCrush ads that promised to reveal the identity of a user's secret admirer. Instead, users were sent a text with the name of a fake person and then charged a subscription fee for monthly horoscopes. [9] [12] In November 2009, Facebook banned Tatto from providing offers in games and apps. This was due to "repeated policy violations" of the social network's guidelines for offers, specifically for deceptive in-game ads and other scamming issues enabling the company to collect hidden obligations and fees. [11] [12] [13] [14] Former Zynga CEO Mark Pincus referred to Tatto as the "worst offender" on Facebook. [12]

In 2011, mobile social network game developer Ozura World acquired Tatto Media for $60 million. [8] [11] [15] By 2013, according to Liao, Tatto was defunct and no longer had any ties to Ozura World. [9]

Scambook

On March 1, 2011, following the sale of Tatto, Bachman, Miao and Jay Edelson, managing partner of law firm Edelson PC, founded Scambook.com, a consumer-complaint platform that linked consumers with attorneys to address various types of scams perpetrated by companies. [15] [16] [17] Bachman served as the company's president. [10] In 2011, after being named to the Empact 100 list of top US entrepreneurs under the age of 30, Bachman was invited to the White House and honored for his accomplishments at Scambook. [17] He sold his shares of Scambook in July 2012. [18]

In 2013, Scambook was investigated by the Illinois attorney general's office for fraudulent trading. The FBI received thousands of complaints from both companies and consumers about Scambook's unethical activities and lack of transparency. [16] Investigations alleged that Scambook would post fraudulent complaints about companies and individuals. Companies were then expected to subscribe to Scambook's business resolve service, where they effectively had to pay a monthly fee in order to remove the complaints made against them. [9] [16] The Chicago Better Business Bureau gave Scambook an F rating and issued a red alert against the company due to a pattern of unresolved complaints, and the fact that, in Chicago, there was no office at the address listed for the company. [16] [19]

Game Plan Holdings

In April 2012, Bachman became president and chief financial officer of Game Plan Holdings, a supplement company he co-founded with two of his former Babson College students. He became chairman and chief executive officer in March 2013. [20] [21] Game Plan Holdings is a publicly traded company under the ticker GPLH. [20] Game Plan formerly operated the sports-related social networking sites Hazzsports.com, Totalscout.com and CheckinSave.com, all of which were folded in February 2013. [22] At that time, Game Plan Holdings acquired Sporting Blood, a vitamin and nutritional supplements company, [22] and launched Game Plan Nutrition, which makes protein shakes and other supplements. It has an online network of trainers who earn commissions by recommending the company's products. [23] The nutritional products have been used by NFL, NBA and MLB athletes. [21]

In November 2013, Bachman was featured in the Boston Globe as an example of "fit entrepreneurs" breaking longstanding stereotypes of the tech world. [23] On February 11, 2014, he resigned as president, chief executive officer, chief financial officer and chairman of Game Plan. [24]

In December 2013, charges were filed by the Federal Trade Commission in US District Court against Bachman, Miao and corporate defendants including Tatto, accusing them of a mobile cramming scheme. Miao's attorneys denied that Tatto engaged in deceptive or unfair practices, and argued the suit had no merit because Tatto was no longer in business. [9] On June 15, 2014, the FTC announced that Miao and the corporate defendants agreed to surrender more than $10 million in assets to settle the monetary judgment of over $150 million. [25] [26] [27] Although he was named in the original FTC complaint, Bachman was not named in the settlement. He was, however, said to be involved with some of the corporate defendants in the settlement at the time of the alleged scheme. [27] Bachman stated that he was years removed from any involvement with Tatto. [21] [28]

In Augusts 2014, judgment was entered against Bachman in the amount of approximately $97 million. The judgment was partially suspended based on Bachman's inability to pay the full amount. He agreed to surrender over $1.2 million in assets to settle the FTC charges. He also was permanently banned from placing any charges on consumers' phone bills, misrepresenting products or a consumer's obligation to pay, and was prohibited from charging consumers for a product or service without their consent, which were similar to the conditions Miao and the corporate defendants faced in their settlement. [29] [30]

Among the assets Bachman was required to surrender under the terms of the settlement are: [31]

Related Research Articles

<span class="mw-page-title-main">Federal Trade Commission</span> United States government agency

The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction over federal civil antitrust law enforcement with the Department of Justice Antitrust Division. The agency is headquartered in the Federal Trade Commission Building in Washington, DC.

<span class="mw-page-title-main">Kevin Trudeau</span> American fraudster and pseudoscientist

Kevin Trudeau is an American author, salesman, and television personality known for promotion of his books and resulting legal cases involving the US Federal Trade Commission. His ubiquitous late-night infomercials, which promoted unsubstantiated health, diet, and financial advice, earned him a fortune but resulted in civil and criminal penalties for fraud, larceny, and contempt of court.

HeightMax Concentrate and HeightMax Plus were purported height-enhancing pills for children and young adults marketed by Sunny Health Nutrition Technology & Products, Inc. The Federal Trade Commission filed a complaint against the company and its owner, leading to the product being discontinued and a fine paid.

Publishers Clearing House (PCH) is an American company founded in 1953 by Harold Mertz. It was originally founded as an alternative to door-to-door magazine subscription sales by offering bulk mail direct marketing of merchandise and periodicals. They are most widely known for their sweepstakes and prize-based games which were introduced in 1967. From August 2020 to March 2024, they owned the Wide Open Media publications Wide Open Spaces, Wide Open Country, and FanBuzz.

<span class="mw-page-title-main">BlueHippo Funding</span>

BlueHippo Funding, LLC was an installment credit company operating in the USA founded by Joseph Rensin that claimed to offer personal computers, flat-screen televisions and other high-tech items for sale to customers with poor credit. In an article published November 25, 2009 titled BlueHippo files for bankruptcy: Company blames its bank; was accused of violating settlement with FTC, Eileen Ambrose reported that the company "was forced to file for protection under Chapter 11." On Wednesday December 9, 2009, the company filed for Chapter 7 bankruptcy after having its funds frozen by their payment processor. A petition to a Delaware bankruptcy judge to release the funds was denied. The company's advertised toll-free phone number and website are no longer functioning.

Capital Acquisitions and Management Corporation (CAMCO) was a United States debt collection agency and subsidiary of Risk Management Financial Services, Inc., that was fined and closed down for repeated violations of the Fair Debt Collection Practices Act (FDCPA). Its closure marked the first time a Federal Trade Commission investigation shut down a collection company.

Select Portfolio Servicing, Inc. (SPS) is a loan servicing company founded in 1989 as Fairbanks Capital Corp. with operations in Salt Lake City, Utah and Jacksonville, Florida.

A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message, as if from a robot. Robocalls are often associated with political and telemarketing phone campaigns, but can also be used for public service, emergency announcements, or scammers. Multiple businesses and telemarketing companies use auto-dialing software to deliver prerecorded messages to millions of users. Some robocalls use personalized audio messages to simulate an actual personal phone call. The service is also viewed as prone to association with scams.


Chitika, Inc. was a search-targeted advertising company. It was located in Westborough, Massachusetts, United States. The name Chitika means "in a snap" in Telugu language.

<span class="mw-page-title-main">Tagged (website)</span> Social discovery website

Tagged is a social discovery website based in San Francisco, California, founded in 2004. It allows members to browse the profiles of any other members, and share tags and virtual gifts. Tagged claims it has 300 million members as of 2014. As of September 2011, Quantcast estimates Tagged monthly unique users at 5.9 million in the United States, and 18.6 million globally. Michael Arrington wrote in April 2011 that Tagged is most notable for the ability to grow profitably during the era of Facebook.

Tatto Media is an affiliate marketing advertising network based in Boston.

ILD Teleservices, is a clearing house for LEC billing and alternative payment options, such as e-checks, ACH and micro payments. ILD performs payment processing services for communications companies, digital content providers, and other online vendors in North America. Founded in 1996, the company is headquartered in Ponte Vedra, Florida. In recent years, the company has been the subject of many consumer complaints as well as legal action brought by at least two states and the Federal Trade Commission. In 2003, ILD settled with the Federal Trade Commission.

Support.com, Inc. is a technical support company for businesses and consumers. It was headquartered in Wilmington, Delaware with an administrative office in Sunnyvale, California. The company's services are performed on Windows, macOS, iOS, and Android, supporting connected and smart devices. These services are performed by the company's remote, full-time workforce based mainly in the U.S.

Cramming is a form of fraud in which small charges are added to a bill by a third party without the subscriber's consent, approval, authorization or disclosure. These may be disguised as a tax, some other common fee or a bogus service, and may be several dollars or even just a few cents. The crammer's intent is that the subscriber will overlook and ultimately pay these small charges without challenging their legitimacy or inquiring further.

<span class="mw-page-title-main">Kiip</span> American mobile advertising network

Kiip was a mobile advertising network. It was co-founded by Brian Wong, Courtney Guertin, and Amadeus Demarzi in 2010. Kiip provided users with tangible rewards, such as a bottle of water for every eight miles run by a user in a game. Kiip's rewards platforms was designed for in-app engagement.

VemmaNutrition Company was a privately held multi-level marketing company that sold dietary supplements. The company was shut down in 2015 by the FTC for engaging in deceptive practices and being a pyramid scheme.

<i>United States v. Google Inc.</i>

United States v. Google Inc., No. 3:12-cv-04177, is a case in which the United States District Court for the Northern District of California approved a stipulated order for a permanent injunction and a $22.5 million civil penalty judgment, the largest civil penalty the Federal Trade Commission (FTC) has ever won in history. The FTC and Google Inc. consented to the entry of the stipulated order to resolve the dispute which arose from Google's violation of its privacy policy. In this case, the FTC found Google liable for misrepresenting "privacy assurances to users of Apple's Safari Internet browser". It was reached after the FTC considered that through the placement of advertising tracking cookies in the Safari web browser, and while serving targeted advertisements, Google violated the 2011 FTC's administrative order issued in FTC v. Google Inc.

Jesse Willms is a Canadian entrepreneur and businessman who has founded several companies, including eDirect Software, Car History Group, and Just Think Media.

<span class="mw-page-title-main">Fortune Hi-Tech Marketing</span> American pyramid scheme which was shut down in 2013

Fortune Hi-Tech Marketing (FHTM) was a Lexington, Kentucky based company which used multi-level marketing to sell consumer goods and services. The company was founded in January 2001. In January 2013, the Federal Trade Commission (FTC) and regulators for three states shut down FHTM for being a pyramid scheme.

Google has been involved in multiple lawsuits over issues such as privacy, advertising, intellectual property and various Google services such as Google Books and YouTube. The company's legal department expanded from one to nearly 100 lawyers in the first five years of business, and by 2014 had grown to around 400 lawyers. Google's Chief Legal Officer is Senior Vice President of Corporate Development David Drummond.

References

  1. ↑ "Complaint for Permanent Injunction and Other Equitable Relief" (PDF). ftc.gov. Retrieved June 29, 2023.
  2. 1 2 Scholarships, Babson.edu. Accessed November 12, 2014.
  3. ↑ Andrew Bachman, “Monetization trumps innovation,” Boston.com, June 19, 2013.
  4. 1 2 3 4 5 Joel Holland, “From College Students to Million-Dollar Partners,” Entrepreneur , January 18, 2010.
  5. ↑ Callum Borchers, “The secret to building a business network? Poker,” Boston.com, November 14, 2013.
  6. ↑ “President’s Society: Alumni, Parents, and Friends,” Babson.edu. Accessed November 12, 2014.
  7. ↑ "Mobile Cramming: A society stops paying attention, criminals allegedly make millions" . Retrieved June 29, 2023.
  8. 1 2 3 Gregory Gomer, “Babson Grads Sell Ad Company Tatto Media for $60 Million,” BostInno, April 12, 2011.
  9. 1 2 3 4 5 Natalie Jarvey, “Ex-Phone Exec Placed on Hold,” Los Angeles Business Journal , December 23, 2013.
  10. 1 2 “Best Advice I Ever Got: Andrew Bachman,” Inc. , March 29, 2012.
  11. 1 2 3 Leena Rao, “Ozura World Buys Affiliate Marketing And Ad Network Tatto Media For $60 Million,” TechCrunch, April 11, 2011.
  12. 1 2 3 Eric Eldon, “Can the Advertising Offers Business Find Redemption In Social Networks?” Inside Facebook, November 19, 2009.
  13. ↑ Dean Takahashi, “Facebook bans offer providers Gambit and Tatto Media due to questionable ads,” VentureBeat, November 19, 2009.
  14. ↑ Michael Arrington, “Free Posters! AKA Scamville, It’s Back.” TechCrunch, October 18, 2010.
  15. 1 2 MeiMei Fox, “Six Sizzling Entrepreneurs Under 40,” Huffington Post , June 18, 2012.
  16. 1 2 3 4 “Is Scambook.com a Scam Itself?” NBC Chicago, July 23, 2013.
  17. 1 2 “Young Entrepreneurs From 100 Companies Contribute Over 2,500 Jobs and $374 Million to the U.S. Economy,” PRWeb, November 16, 2011.
  18. ↑ “Andrew Bachman,” Local Success, 2013. Accessed November 12, 2014.
  19. ↑ BBB Business Review: Scambook, Archived 2014-07-22 at the Wayback Machine BBB.org. Accessed November 12, 2014.
  20. 1 2 Game Plan Holdings Inc [ dead link ], Bloomberg Businessweek . Accessed November 12, 2014.
  21. 1 2 3 Caryn Tomer, “Exclusive Interview: Can Andrew Bachman Make A Comeback?” Techli, July 3, 2014.
  22. 1 2 “Game Plan Holdings Looks Like It Could Really RYUN,” aimhighprofits.com, February 15, 2013.
  23. 1 2 Callum Borchers, “More tech workers subvert unfit geek stereotype,” Boston Globe , November 12, 2013.
  24. ↑ "Form 8-K for GAME PLAN HOLDINGS, INC. Change in Directors or Principal Officers". Edgard Online. February 11, 2014. Archived from the original on February 21, 2014. Retrieved August 24, 2016.
  25. ↑ “FTC Moves Against Massive Mobile Cramming Operation That Heaped Millions in Unwanted Charges on Consumers’ Bills,” ftc.gov, December 16, 2013.
  26. ↑ “Operators of Massive Mobile Cramming Scheme Will Surrender More Than $10M in Assets in FTC Settlement,” ftc.gov, June 13, 2014.
  27. 1 2 Chris Caesar, “FTC: Settlement Reached in Multi-Million Dollar Texting Scam Case,” Boston.com, June 15, 2014.
  28. ↑ Eric Randall, “A Boston Entrepreneur’s Lesson in Checking Your Phone Bill,” Boston , June 16, 2014.
  29. ↑ Truman Lewis, “Wireless crammer will surrender his assets,” ConsumerAffairs, August 5, 2014.
  30. ↑ “Operator of Mobile Cramming Scheme Will Pay More Than $1.2 Million in FTC Settlement,” ftc.gov, August 5, 2014.
  31. ↑ "Operator of Mobile Cramming Scheme Will Pay More Than $1.2 Million in FTC Settlement". August 5, 2014.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.