Business ProfileforE R S Holdings Ltd

As of December 18, 2000: The Federal Trade Commission has advised the Better Business Bureau that: "Law enforcement authorities on both sides of the border have moved to halt a Vancouver-based telemarketing scheme targeting senior citizens in the United States. At the request of the Federal Trade
Commission, the U.S. District Court in Seattle has ordered a temporary halt to the deceptive telemarketing practices, pending further proceedings. The Court also ordered a temporary asset freeze and appointed a receiver over any assets obtained. The Attorney General of British Columbia has initiated a parallel enforcement action and asset freeze in the Province of British Columbia, Canada.

The FTC charged that the telemarketers, who operated under a variety of names including Overseas Registry Services, Guaranteed Capital Holdings, International Bond Headquarters, and NAGG Holdings Ltd., called consumers guaranteeing substantial monthly payments between $5,000 and $12,000 in return for a one-time payment of up to $5,000. Alternately, the telemarketers called claiming to be marketing bonds - in some cases British Premium Savings Bonds - purchase of which would qualify consumers for cash prizes, monthly cash payments, or bond investments with the chance to participate in monthly drawings for cash prizes. Consumers then received mailings that included a purported British National Savings Premium Savings Bond certificate and other documents indicating that the consumer's name or bond numbers would be entered into the Premium Savings Bond
program's monthly drawings for cash winnings. In fact, the consumers who paid the defendants received nothing of value. According to the FTC, National Savings, the second largest savings institution in the U.K., is the only organization authorized to sell Premium Savings Bonds. Because the bonds have a lottery feature, they cannot legally be sold in the U.S. The FTC also charged that some of the defendants placed unauthorized charges on consumers' credit cards and in some instances simply charged consumers' credit card accounts
without ever having contacted the consumers.

The FTC alleged that the defendants' activities violated the FTC Act and the Telemarketing Sales Rule. It charged that the defendants misrepresented that consumers would receive payments by purchasing bonds; misrepresented that
consumers agreed to buy bonds and so owed the defendants money; unfairly charged some consumers whom they never contacted; and failed to disclose to consumers that the sale of the bonds is a crime. Alleged violations of the Telemarketing
Sales Rule included making false or misleading statements about the "cash awards"; falsely claiming that consumers' credit cards would not be charged without authorization; and failing to disclose that sale of the bonds is a federal crime. In addition, the agency charged a number of the defendants with
assisting deceptive telemarketers to violate the law by providing them with access to their merchant accounts for processing credit card charges.

The 14 corporate and individual defendants named in the FTC's civil complaint are Canada Prepaid Legal Services, Inc., d.b.a. BSI Premium Bonds; David John Edwin Hyde; Joseph Shawn Proulx; E.R.S. Holdings Ltd.; Neil John Schuler; ITH
Enterprises Ltd.; Kailey Lewis Babuin; NAGG Holdings Ltd.; Wayne Weis; Timothy Ryan Babuin; 557631 B.C. Ltd.; d.b.a. Guaranteed Capital Holdings; Fernando Villagran; Calgary Concrete and Home Improvement Corp.; d.b.a. Union Global
Trading; and Martin Roy Lamb.

The Commission vote to file the complaint was 5-0. It was filed in U.S. District Court for the Western District of Washington at Seattle on December 11, 2000, under seal. The seal was lifted on December 15, 2000."

As of May 5, 1999: The BBB received a call from an American consumer that this company contacted them and advised them that they had won money. The consumer was asked for credit card information to ensure that they were bondable. BEWARE! If you have won anything you do not have to pay for it.