Newspaper article THE JOURNAL RECORD

Firm Ordered to Halt Business in Oklahoma, Two Other States

Newspaper article THE JOURNAL RECORD

Firm Ordered to Halt Business in Oklahoma, Two Other States

Article excerpt

ROCKFORD, Ill. (AP) - A company offering new cars for $100 a month, interest-free and with no money down, has been ordered to stop doing business in Illinois, Oklahoma and Tennessee.

``They're just collecting money,'' contends Phil Lombardi, a spokesman for the Oklahoma Securities Commission. ``They have no cars. They have no computer. They have no contracts with the car manufacturers or authorized dealers. No line of credit.

``They are selling shares - venture capital,'' he said. ``They're hoping if they get all this money they can get all this for a certain price.''

The company, a self-described ``co-op investment group'' known as A.M.A.C. and based in Brentwood, Tenn., has been ordered to ``cease and desist'' from doing business in Tennessee, Oklahoma and Illinois, the Rockford Register-Star reported.

In Illinois, an estimated 2,000 people from the Chicago area and at least 150 from the Rockford area have invested in the company, which also offers ``bonus'' payments to investors, the newspaper said.

A.M.A.C. officials in Tennessee did not return telephone messages placed on an answering machine.

Under terms of the A.M.A.C. program, people become members of the group for a $45 fee, select a new car and make monthly payments of $100 to $275 for the first two years and make an additional 36 months of interest-free payments to pay for the car.

At the same time, the company says, participants are to receive a monthly ``bonus'' of at least $5 that is to increase as more people join the program.

A.M.A.C. contends the ``bonuses'' could total as much as $5,110 a month and enable participants to make their car payments and a profit. …

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