A Houston man who allegedly defrauded thousands of consumers nationwide has settled charges brought by the Federal Trade Commission.

The FTC announced Dec. 9 a court order settling the case against Antoine J. Peissel, doing business as The Woodway Group. The agency charged that his company told consumers they were guaranteed to receive a cash loan or line of credit after paying an up-front $79 fee.

According to the FTC's complaint, filed as part of its "Dialing for Deception" law-enforcement sweep, Peissel told consumers they would receive a loan or credit within a week of completing an application. Instead, the agency said, he left them with nothing except a significantly lighter wallet.

"The FTC has exposed an operation that preyed on those most vulnerable and in need of financial help," J. Howard Beales III, director of the Bureau of Consumer Protection, said in a statement. "Consumers, no matter what their financial condition, should be wary of such advance-fee schemes. They are illegal and usually result in people losing their money without ever seeing a dime of the promised loan or credit."

Peissel allegedly placed items in the Thrifty Nickel and other local "want ad" publications, prompting consumers from more than 20 states to call his toll-free number to obtain a cash loan.

According to the FTC, typically when a consumer called the number, Peissel or one of his representatives asked for information about their personal financial situation, as well as how much money they wanted to borrow. The caller was then placed on hold, while the person at the company said he or she was conducting an "instant credit check." The representative then told the consumer he or she had been "approved for the loan," but had to pay a $79 "processing fee" and complete a loan application. The consumer was told that once the fee was paid and the paperwork completed, he or she could expect to receive the loan in a few days.

In many cases, believing they had been "approved" for a loan, consumers allowed Woodway to debit the $79 fee from their checking accounts. After the fee was paid, Woodway either faxed or mailed the consumer a package of materials, including the loan application, requesting they complete it, return it and wait at least a week for a response. This response, according to the FTC, never came, with consumers often waiting weeks for their loans before calling Woodway to complain. The FTC alleges none of the consumers who paid a fee ever got their promised loan.

Under the terms of the court order, Peissel will face "injunctive relief" - a court order that requires him to avoid certain activities - as well as a bond requirement before he can engage in related business activities and a suspended monetary judgment.

Under the order, Peissel is prohibited from making misrepresentations in connection with the advertising, promotion or sale of services related to loans, credit cards or other extensions of credit. Specifically, Peissel is barred from untruthfully representing that consumers who are required to pay an advance fee can reasonably expect to receive a loan, credit card or other extension of credit, or that he has connections with any sources that are likely to result in a consumer getting a loan.

Next, the order requires Peissel to post a $175,000 bond before telemarketing credit-related goods or services. This amount is roughly the amount of damage The Woodway Group and Peissel allegedly caused consumers.

Third, the order provides for a $175,000 penalty, which has been suspended due to Peissel's inability to pay. However, if the court finds Peissel misrepresented his financial condition, this amount will be immediately due.

To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov.