McCAIN CAMPAIGN RELEASES NEW TELEVISION ADS “BUYER BEWARE”

FOR IMMEDIATE RELEASE:

Contact: Brian Rogers
Monday, July 5, 2010
(602) 604-2010

“BUYER BEWARE”McCAIN CAMPAIGN RELEASES NEW TELEVISION ADS



**Watch The New McCain Television Ad “Buyer Beware” Here**



**Watch The New McCain Television Ad “Buyer Beware – Tucson” Here**

PHOENIX, AZ -- U.S. Senator John McCain’s campaign today announced the release of two new television ads: “Buyer Beware” and “Buyer Beware -- Tucson.”

Exactly two weeks ago, Congressman J.D. Hayworth was confronted for the first time with his appearance in a 2007 infomercial for National Grants Conferences (NGC), a company that promises individuals it can teach them how to tap into “hundreds of billions of dollars” in “free money” from the government. Unfortunately for consumers, NGC’s “free government money” program turned out to be a scam that rips people off. NGC received an “F” from the Better Business Bureau, and was kicked out of that organization. In 2006, NGC had to pay nearly $400,000 in fines and refunds to settle a consumer fraud lawsuit with the Attorney General of Vermont, who described the company’s business practices as “unconscionable and illegal.” A year later, several state Attorneys General condemned the company in a letter to the Federal Trade Commission.

In 2009, an investigative report from KVOA-TV in Tucson exposed how NGC has ripped off its customers, including Oro Valley resident Denis Johnston, who lost more than $4,000 to the company. Despite overwhelming evidence that NGC scams its customers, Hayworth
said just two weeks ago that his appearance in the infomercial is “nothing I’m ashamed of,” and brushed off the scam’s victims, coldly stating: “caveat emptor -- buyer beware.”

The new McCain TV ad, “Buyer Beware” centers around Congressman Hayworth’s tone-deaf, cold-hearted response to the revelation that he helped a shady company engage in consumer fraud. “Buyer Beware -- Tucson” focuses on Tucson NBC affiliate KVOA’s expose of NGC’s shady business practices.



Upon release of the new TV ads, McCain 2010 Communications Director Brian Rogers released the following statement:

“Congressman Hayworth helped a shady company rip people off, and was completely unrepentant when confronted with the facts. The Attorney General of Vermont called NGC’s business practices
‘unconscionable,’ and the same could be said for Congressman Hayworth, who for personal profit used his title to lend the credibility of the United States Congress to a con-job. Congressman Hayworth’s cold-hearted advice to victims of his scam -- ‘buyer beware’ -- tells Arizonans all they need to know: When it comes to J.D. Hayworth, voters beware.”

-- McCain 2010 Communications Director
Brian Rogers

FACT CHECK: McCAIN TV ADS, “BUYER BEWARE” AND “BUYER BEWARE – TUCSON”

In 2007, J.D. Hayworth Recorded An Infomercial Promoting National Grants Conferences, A Company That Claims It Can Help People Secure “Free Money” From The Government: J.D. Hayworth Cut An Infomercial For A Company Called National Grants Conferences (NGC). “In 2007, shortly after Hayworth lost his re-election battle in 2006, Hayworth appeared in a half-hour informercial for the National Grants Conferences, a program set up by a company called Proven Methods Seminars, which advertises itself as running seminars in which people can find out how to get grant money from the federal government -- which the infomercial's on-screen text pitched as being ‘FREE MONEY’ in quotes.” (Eric Kleefeld, “Hayworth Starred In Infomercial Touting 'Free' Gov't Grant Money (VIDEO),” Talking Points Memo, 6/21/10)

• The NGC Infomercial Was Filmed In Washington, DC In November 2007. (Biography of Kylie Jaye, Host of NGC Infomercial, www.talentjug.com, Accessed 6/22/10)

In The Infomercial, Hayworth Claims The Company Can Help Viewers Secure “Free Money” From The Government. “A 2007 television infomercial in which former Rep. J.D. Hayworth promoted seminars for ‘free money grants’ from the federal government has resurfaced to shake up his Republican primary challenge to incumbent Sen. John McCain of Arizona. … Hayworth, who lost his seat in Congress in 2006 and now is running against McCain from the right as an anti-spending, ‘tea-party’-style conservative, appeared in the 30-minute infomercial to help assure viewers that hundreds of billions of dollars could be available to them.” (By Dan Nowicki, “Hayworth '07 TV Ad Returns To Haunt Him,” The Arizona Republic, 6/22/10)

The “Free Government Money” Hayworth Hawked In The Infomercial Is “Nearly Impossible For Private Individuals Or For-Profit Enterprises To Get”: When It Comes To Late-Night Infomercials Promising “Free Government Money,” Grants.gov Warns: “Don’t Believe The Hype!” “A visit to the U.S. government website www.grants.gov also finds this disclaimer: ‘We have all seen them: late night infomercials, websites and reference guides, advertising “millions in free money.' Don't believe the hype! Although there are many grants on Grants.gov, few of them are available to individuals and none of them are available for personal financial assistance.’” (Dan Nowicki, “Hayworth On His 'Free Money' Infomercial: 'Buyer Beware',” The Arizona Republic, June 22, 2010)

The “Free” Government Grants Referred To In The National Grants Conferences (NGC) Infomercial Hayworth Appeared In “Are Nearly Impossible For Private Individuals Or For-Profit Enterprises To Get.” “The Florida-based National Grants Conference, also known as Proven Methods Seminars, boasts its expertise in snagging thousands in grant or loan dollars from the federal government. In advertisements, the company puts pictures of smiling faces beside highlighted headlines reading ‘$110K in equipment in 30 days!’ or ‘$126,000 loan!’ The problem? Most of the time, these dollars are nearly impossible for private individuals or for-profit enterprises to get, [Lisa] Farr and other small business advocates say.” (Sarah Viren, “Officials Skeptical Of Seminar's Value,” Corpus Christi Caller-Times, 3/17/06)

Investigations Into The Company “Failed To Find A Single NGC Customer Who Had Managed To Make Any Money With The Program.” “NGC has a checkered legal past. A handful of investigations failed to find a single NGC customer who had managed to make any money with the program.” (Remy Stern, “But Wait…There’s More!,” HarperCollins, New York, NY, 2009, p. 105)

An Undercover Report By KVOA-TV In Tucson Exposed NGC’s Shady Business Practices: A 2009 Undercover Report From KVOA-TV In Tucson Exposed NGC’s History Of Shady Business Practices. “A Florida company claims they can show you how to write a grant and get that government cash. They came to Tucson to give seminars, so the News 4 Investigators checked them out to see if what they promote is the real deal. … Here are three things you should know about National Grants Conferences. First off, a grant expert tells us the information they're trying to sell to you is available for free on the internet or at the Pima County Public library. Secondly, a simple internet search of inputting just the company's name, reveals hundreds of complaints from people around the country. Thirdly, some Better Business Bureaus nationwide rate the company with an F.” (“Undercover Investigation Of Grant Writing Seminars,” KVOA-TV Tucson, 7/8/09)

KVOA Found That At NGC’s So-Called ‘Free’ Seminars, Attendees Are Asked To Pay Large Sums Of Money Before They Are Given The Information That Will Supposedly Help Them Win Government Grants. “We spent three hours listening to National Grants Conferences pitch seminars and software to people hungry for government grants. We didn't learn how to get those grants at this session. Wilson tells the crowd, ‘You might be one of them that gets a tiny-weeny little fraction of a trillion dollars’ But, at the end of the talk, the audience was asked to pay $999.00 for another seminar that would teach them how to get those grants. $999.00 was the discounted rate for signing up that night. Normally it's $1,200.00. These are just base rates. … Denis Johnston of Oro Valley paid for the seminars, but after giving National Grants Conferences $4,100.00, says he's left with incompatible software and no follow-up help from the company as he was promised, despite his repeated calls and emails.” (“Undercover Investigation Of Grant Writing Seminars,” KVOA-TV Tucson, 7/8/09)

• Watch KVOA-TV Investigative Report On NGC's Shady Business Practices

In 2006, NGC Was Forced To Settle A Consumer Fraud Lawsuit With The Vermont Attorney General, Who Called The Company’s Business Practices “Unconscionable And Illegal”: In March 2006, The Vermont Attorney General Sued NGC Over Its Fraudulent Marketing, Deceptive Business Practices, And Its Refusal To Comply With An Investigative Subpoena. “In March 2006, the Attorney General sued in response to NGC's marketing of a government grants program without prior factual substantiation that it works; NGC's use of consumer testimonials to sell its program without disclosing the atypical nature of the consumers' success in obtaining government assistance; its failure to provide proper notice of consumers' right to cancel any purchase of program materials; and its refusal to comply with an investigative subpoena.” (Vermont Attorney General, “Attorney General Sorrell Settles 'Government Grants' Lawsuit,” Press Release, 12/28/06)

The AG’s Complaint Argued That The “Lack Of Factual Substantiation For NGC's Marketing Claims, And The Inadequate Disclosures, Violated The Vermont Consumer Fraud Act.” “Despite this emphasis on the success that consumers would have with NGC's materials, the Attorney General alleges that NGC did not know how typical or atypical it was for purchasers of its program to apply for, or to receive, a government grant or loan. In addition, the small-print disclaimer accompanying the testimonials did not adequately warn prospective buyers of NGC's materials that the consumer-endorsers' experience was not typical of how consumers generally would fare if they bought NGC's program. This lack of factual substantiation for NGC's marketing claims, and the inadequate disclosures, violated the Vermont Consumer Fraud Act, according to the court complaint.” (Vermont Attorney General, “Attorney General Sorrell Sues 'Government Grants' Companies,” Press Release, 3/2/06)

In December 2006, The Vermont AG And NGC Settled The Lawsuit For Over $390,000 – Over $325,000 In Consumer Restitutions And A $65,000 Fine. “Vermont Attorney General William H. Sorrell announced today that his office has settled a consumer fraud lawsuit filed against two related companies that ran ‘government grants’ seminars in Vermont. The companies are Proven Methods Seminars, LLC, of Boca Raton, Florida, and Proven Methods Customer Service, LLC, of Rochester, New York, doing business together as National Grants Conferences (‘NGC’).

The settlement offers consumers an opportunity to receive refunds totaling over $300,000 and requires payment to the State of $65,000. … Over 360 Vermonters will be offered refunds totaling more than $325,000. Finally, NGC will pay the State $65,000 to cover its costs in the lawsuit and any civil penalties that could be imposed by the court.” (Vermont Attorney General, “Attorney General Sorrell Settles 'Government Grants' Lawsuit,” Press Release, 12/28/06)

Vermont Attorney General William Sorrell: “For A Private Company To Advertise ‘Free Grant Money’ And Sell $1,000 Worth Of Guidebooks, Without Being Able To Demonstrate That Its Program Works, Is Unconscionable And Illegal.” “Commenting on the settlement, Attorney General Sorrell noted that ‘government grants’ offers have proliferated in recent years, and that the likelihood that someone would obtain government assistance through such programs is very small. ‘People who need help from the government would be best advised to contact state agencies or their Congressional delegation for assistance in identifying any grant or loan program that they might be eligible for,’ he said. ‘On the other hand, for a private company to advertise “free grant money” and sell $1,000 worth of guidebooks, without being able to demonstrate that its program works, is unconscionable and illegal,’ he added.” (Vermont Attorney General, “Attorney General Sorrell Settles 'Government Grants' Lawsuit,” Press Release, 12/28/06)

The Census Bureau Accused NGC Of Misusing Government Statistics: NGC Used Census Bureau Statistics To Sell Viewers On The Availability Of Government Grants. “In a late-night television infomercial played frequently in areas where a free introductory NGC session is scheduled, former Rep. J.C. Watts (R-Okla.) urges viewers to attend. Two of the company's principals, Irene Milin and her husband, Mike, sit across a table from Watts and tell viewers that hundreds of billions of federal dollars are available for purposes such as starting a business or investing in real estate. They display a chart from the U.S. Census Bureau's Statistical Abstract listing $384billion in federal ‘grants to individuals.’” (Joe Mullin and Jonathan Kaminsky, “Firm's Claims For Grants Get Legal Scrutiny,” Sacramento Bee, 7/5/06)

But A Census Bureau Official Called NGC’s Use Of The Statistics “Very Misleading,” Noting That Most Of The Funds NGC Claimed Were Available For Individual Grants Were Actually Earmarked For Social Service Programs Such As Medicare. “But Glenn King, chief of the Census Bureau branch that compiled those statistics, said such a claim ‘is very misleading, in that that's not money that is available for private individuals.’ Instead, King said, the money is earmarked for local and state governments, which then distribute most of it through social service programs such as Medicare, food stamps and child nutrition. Hardly any later is awarded to individuals for starting businesses or investing in real estate, he said.” (Joe Mullin and Jonathan Kaminsky, “Firm's Claims For Grants Get Legal Scrutiny,” Sacramento Bee, 7/5/06)

Numerous Government And Nonprofit Agencies Have Issued Warnings About NGC: “[T]he Better Business Bureau, Small Business Development Centers And State Attorneys General Are Among Those Who Say Dissatisfied NGC Customers Have Contacted Them, Stung At Having Paid For NGC Programs Only To Learn The ‘Free Money’ Wasn't As Accessible As They'd Been Led To Believe.” (Wayne Tompkins, “Service or Scam?,” The Courier-Journal, 5/13/02)NGC Has A Rating Of ‘F’ From The Better Business Bureau (BBB). (Better Business Bureau Website, www.seflorida.bbb.org, Accessed 6/22/10)

• The BBB Has Received 231 Complaints About NGC Over The Last 36 Months. (Better Business Bureau Website, www.seflorida.bbb.org, Accessed 6/22/10)In 2006, The Southeast Florida BBB Stripped NGC Of Its Membership, “Saying Its Ads Misled Consumers Into Believing That Getting Government Money Is Easy.” “Two months later, the Southeast Florida Better Business Bureau stripped the company of its membership, saying its ads misled consumers into believing that getting government money is easy.” (Joe Mullin and Jonathan Kaminsky, “Firm's Claims For Grants Get Legal Scrutiny,” Sacramento Bee, 7/5/06)

• NOTE: NGC Is Based In Southeast Florida. (National Grants Conferences Website, www.nationalgrants.com, Accessed 6/22/10)Southern Arizona Better Business Bureau (BBB) President Kim States: “Steer Clear Of Doing Business With This Company Based On The Pattern Of Complaints That We’re Seeing.” (“Undercover Investigation Of Grant Writing Seminars,” KVOA-TV Tucson, 7/8/09)

• Southern Arizona BBB President Kim States Says NGC “Throws Up All Kinds Of Red Flags To Her.” “Kim States with the Southern Arizona BBB says National Grants Conferences throws up all kinds of red flags to her. Items like having a website with minimal, sketchy information on it and sending postcards in the mail to would-be clients. Those cards promise rewards to those who attend the first free seminar, like this voucher several Tucsonans got in the mail. It says to bring the card to the conference and get a $500 merchant redemption voucher to some big-name places like the Home Depot, JC Penny, and Toys-R-Us. This promotion was news to Toys-R-Us. They states, ‘Toys-R-Us is not a partner of this organization and had no prior knowledge of the vouchers you say that have been distributing. This is the first we’ve heard of it.’” (“Undercover Investigation Of Grant Writing Seminars,” KVOA-TV Tucson, 7/8/09)

• Southern Arizona BBB President Kim States: “So To Think You’re Going To Walk Into A Workshop In Tucson, Arizona And Pay 3 Or 4 Or $5,000 To Get A Return On Your Money Is Just Not Realistic.” (“Undercover Investigation Of Grant Writing Seminars,” KVOA-TV Tucson, 7/8/09)

In 2007, The Attorneys General From 24 States “Condemned The Company And Its Business Practices In A Letter To The FTC.” “The attorney generals from no fewer than twenty-four states condemned the company and its business practices in a letter to the FTC in 2007. The year before, Vermont’s attorney general, William H. Sorrell, filed suit against the company for consumer fraud; NGC settled by handing over $300,000 in restitutions and paying a $65,000 fine.” (Remy Stern, “But Wait…There’s More!,” HarperCollins, New York, NY, 2009, p. 105)

National Grants Conference Was Accused Of Deception And Failing To Deliver For Its Customers In The Years Before Hayworth Appeared In The Infomercial: Critics Say That NGC Claims They Can Help Customers Win Federal Grants That “Most Of The Time… Are Nearly Impossible For Private Individuals Or For-Profit Enterprises To Get.” “The Florida-based National Grants Conference, also known as Proven Methods Seminars, boasts its expertise in snagging thousands in grant or loan dollars from the federal government. In advertisements, the company puts pictures of smiling faces beside highlighted headlines reading ‘$110K in equipment in 30 days!’ or ‘$126,000 loan!’ The problem? Most of the time, these dollars are nearly impossible for private individuals or for-profit enterprises to get, [Lisa] Farr and other small business advocates say.” (Sarah Viren, “Officials Skeptical Of Seminar's Value,” Corpus Christi Caller-Times, 3/17/06)

Critics Also Point Out That NGC Asks People To Pay For Information That Is Free From Other Sources. “Sporting fliers with headlines like ‘Why is the U.S. Government Giving Away $284 Billion Dollars?’ and ‘Houses for $1 Dollar,’ the company has been criticized for making it seem easier and less competitive than it actually is to get the money - or the house. Critics also say that National Grants Conferences is simply charging hundreds of dollars for information that's available free from other sources, including [Kathleen] Crowley's own network of nearly 1,000 nationwide SBDCs.” (Wayne Tompkins, “Service or Scam?,” The Courier-Journal, 5/13/02)

Small Business Advocate Jim Carroll Said The National Grants Conferences Seminars “Prey On The Weak, The Unsuspecting And Those Who Can Least Afford It.” “Jim Carroll, director of the Small Business Development Center of Hampton Roads, said he routinely hears from people seeking grants and low-cost small-business loans after attending a National Grants Conferences' presentation. Many, he said, were financially unsophisticated and would need additional help to start or expand a business. National Grants Conferences ‘prey on the weak, the unsuspecting and those who can least afford it,’ said Carroll, vice president of small business at the Hampton Roads Chamber of Commerce. ‘I can't say 'caveat emptor' enough with this.’” (Tom Shean, “Company Comes To Norfolk, Va., To Sell Advice On Government Grants,” Virginian-Pilot, 4/21/05)

• Carroll: “There's No Reason To Pay $800 To $1,000 For Something That Is Free.” (Tom Shean, “Company Comes To Norfolk, Va., To Sell Advice On Government Grants,” Virginian-Pilot, 4/21/05)Another Small Business Advocate, Lloyd DeVries, Said Potential Customers Of NGC Would Be “Better Off Going To Buy A Lottery Ticket” Than Using The Company’s Services. “Small business advocates say most of the information and assistance in filing applications are available for free from other sources including public libraries, online or through local Small Business Administration offices. ‘I think a person would be better off going to buy a lottery ticket,’ said Lloyd DeVries, a volunteer adviser with the local chapter of SCORE, a non-profit organization that offers advice on running a small business. ‘(The seminars) are of dubious value at best. Grants are for nonprofits, cites, counties, governmental units, hospitals.’” (Sarah Viren, “Officials Skeptical Of Seminar's Value,” Corpus Christi Caller-Times, 3/17/06)

When Confronted With His Appearance In The Infomercial, J.D. Hayworth Brushed Off Victims Of The Scam, Coldly Stating, “Buyer Beware”:

On June 21st, When Confronted With His Appearance In The Infomercial, Hayworth Coldly Responded “Caveat Emptor -- Buyer Beware.” “‘I always say about any product or service, one of the staples I learned growing up is “caveat emptor” – “buyer beware,”’ Hayworth said in a Monday night webcast called ‘Round Table Politics’ monitored by opponent Sen. John McCain's campaign. ‘I think that is a given in any commercial endeavor. I would certainly hope in this one. But yeah, I’m a broadcaster, and yeah, I appeared in this, and yes, it was a job. And that’s that.’” (Dan Nowicki, “Hayworth On His 'Free Money' Infomercial: 'Buyer Beware',” The Arizona Republic, 6/22/10)
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