Iowa files fraud suit against couple
By Charlotte Eby Journal Des Moines Bureau | Posted: Tuesday, July 01, 2008
DES MOINES -- The Iowa Attorney General's Office has filed a lawsuit against a Muscatine couple, alleging consumer fraud by the nationwide business they operated out of eastern Iowa.
The lawsuit, filed June 23 in Muscatine County District Court, makes the allegations of fraud against Johnathan C. Ahlf, Kristen N. Lain, and the company they operate, Profit Alliance.
Profit Alliance also made false claims that TV network CNN, TV personality Bill O'Reilly and radio talk-show host Rush Limbaugh endorsed them, Iowa Attorney General Tom Miller said.
"It's, in our view, uncommon to see this kind of operation in our state, and that's why we wanted to act quickly," Miller said at a news conference Monday.
The defendants could not be reached for comment.
The lawsuit alleges the company, which had a home office in Davenport and now Bettendorf, advertised on the Internet a business opportunity where those who bought in would help small businesses recover taxes and other expenses.
Profit Alliance encouraged people to pay for training and support offered by them, which typically amounted to around $10,000.
"They say people can earn six-figure incomes, that somebody makes $875,000 a year doing this. We allege that that has just has not happened," Miller said.
Profit Alliance also claimed to have several accountants, attorneys and auditors on staff to help those who invested, statements the lawsuit alleges were false.
"The staff that would be crucial to a large-scale operation like this doesn't exist," Miller said.
Instead, Profit Alliance would sometimes contract out for the services, and in most cases, services were slow and people dropped out of the program after spending the money to join it, Miller said.
Lain, also known as Kristen Ahlf, serves as CEO of the company. Johnathan Ahlf had a previous company, United Business Solutions that went out of business in 2004, that operated in a similar way, Miller said. Johnathan Ahlf also saw his Iowa insurance license revoked in 2004, according to Miller.
District Judge Patrick Madden has issued a temporary injunction ordering the company to comply with the Iowa Consumer Fraud Act and to make disclosures required by the Iowa Business Opportunity Promotions Law.
Charlotte Eby can be reached at 515-243-0138 or chareby@aol.com.
The lawsuit, filed June 23 in Muscatine County District Court, makes the allegations of fraud against Johnathan C. Ahlf, Kristen N. Lain, and the company they operate, Profit Alliance.
Profit Alliance also made false claims that TV network CNN, TV personality Bill O'Reilly and radio talk-show host Rush Limbaugh endorsed them, Iowa Attorney General Tom Miller said.
"It's, in our view, uncommon to see this kind of operation in our state, and that's why we wanted to act quickly," Miller said at a news conference Monday.
The defendants could not be reached for comment.
The lawsuit alleges the company, which had a home office in Davenport and now Bettendorf, advertised on the Internet a business opportunity where those who bought in would help small businesses recover taxes and other expenses.
Profit Alliance encouraged people to pay for training and support offered by them, which typically amounted to around $10,000.
"They say people can earn six-figure incomes, that somebody makes $875,000 a year doing this. We allege that that has just has not happened," Miller said.
Profit Alliance also claimed to have several accountants, attorneys and auditors on staff to help those who invested, statements the lawsuit alleges were false.
"The staff that would be crucial to a large-scale operation like this doesn't exist," Miller said.
Instead, Profit Alliance would sometimes contract out for the services, and in most cases, services were slow and people dropped out of the program after spending the money to join it, Miller said.
Lain, also known as Kristen Ahlf, serves as CEO of the company. Johnathan Ahlf had a previous company, United Business Solutions that went out of business in 2004, that operated in a similar way, Miller said. Johnathan Ahlf also saw his Iowa insurance license revoked in 2004, according to Miller.
District Judge Patrick Madden has issued a temporary injunction ordering the company to comply with the Iowa Consumer Fraud Act and to make disclosures required by the Iowa Business Opportunity Promotions Law.
Charlotte Eby can be reached at 515-243-0138 or chareby@aol.com.
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