ICYMI: The Associated Press: “AZ Senate Hopeful Defends Pitch For Troubled Firm”

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The Associated Press: “AZ Senate Hopeful Defends Pitch For Troubled Firm”

“Republican U.S. Senate candidate J.D. Hayworth's campaign on Monday defended his role as a pitchman three years ago for a Florida company that consumer advocates have accused of airing misleading ads. … In the infomercial, Hayworth urges viewers to attend a free seminar by the Boca Raton, Fla.-based company that offers to help people get free government money. …

The Better Business Bureau gives National Grants Conferences an F rating, citing a pattern of complaints about misleading costs. The organization reports 230 complaints against the company in the last three years.

The Vermont attorney general sued the company in 2006 saying it was marketing a federal grants program without evidence that it works, and that it used consumer testimonials without proper disclosure that the results were atypical. … Consumer complaints and newspaper articles have been warning about the company as far back as 2000, long before Hayworth became a pitchman.” – The Associated Press


**Watch Highlights From Hayworth’s “Free Money” Infomercial Here**


AZ Senate Hopeful Defends Pitch For Troubled Firm

By Jonathan J. CooperThe Associated Press
June 21, 2010

PHOENIX — Republican U.S. Senate candidate J.D. Hayworth's campaign on Monday defended his role as a pitchman three years ago for a Florida company that consumer advocates have accused of airing misleading ads.

Hayworth campaign spokeman Mark Sanders said the former Arizona congressman — who is battling Sen. John McCain ahead of the state's Aug. 24 GOP primary — didn't know about the history of National Grants Conferences when he agreed to do the 30-minute informercial in 2007.

In the infomercial, Hayworth urges viewers to attend a free seminar by the Boca Raton, Fla.-based company that offers to help people get free government money.

"I was able to get a grant for $13,000 for my roof, for the electrical work. I don't have to pay any of this money back," one woman says in the infomercial.

The firm, which has filed for bankruptcy, is accused of luring consumers to the free seminar, then using high-pressure sales tactics to persuade them to spend hundreds of dollars for access to information that is readily available online or at a public library.

Hayworth is introduced as a former member of Congress who served on the powerful House Ways and Means Committee.

"You may think what you've heard is too good to be true," he says. "But let me assure you: It is real, it's available, and it's something you should take advantage of.

But it is too good to be true, according to consumer rights advocates. Much of the supposedly free government money is intended for small businesses and nonprofits and is nearly impossible for individuals to get.

The Better Business Bureau gives National Grants Conferences an F rating, citing a pattern of complaints about misleading costs. The organization reports 230 complaints against the company in the last three years.

The Vermont attorney general sued the company in 2006 saying it was marketing a federal grants program without evidence that it works, and that it used consumer testimonials without proper disclosure that the results were atypical.

The company settled nine months later, agreeing to offer more than $325,000 in consumer refunds, pay a $65,000 fine and change its advertising practices.

Consumer complaints and newspaper articles have been warning about the company as far back as 2000, long before Hayworth became a pitchman.

Hayworth shot the infomercial after a colleague, former Rep. J.C. Watts, an Oklahoma Republican, recommended the company, Sanders said. Hayworth didn't know about the allegations and complaints against National Grants Conferences, he said.

Sanders said Hayworth couldn't remember how much he was paid for the endorsement.

Neither Watts nor National Grants Conferences could immediately be reached for comment.