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  1. #1
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    Default Confiscation of Online Earnings Due to Allegation of Fraud

    My question involves a consumer law issue in the State of: New York and/or Connecticut

    For some time, I belonged to an online earning site (where one can earn money for surveys, etc). Obviously, this sounds scammy, but I can assure you it's reasonably legit; they have sent payments in the past.

    On this site, online earnings are posted to your account with this site, and paid out by cheque on request, similar to Paypal earnings, albeit by paper cheque rather than direct deposit.

    Recently, the administrators of the site informed me that I had been banned based on an allegation of fraud. They didn't offer any proof, or even any specifics. They did claim, however, that all of my earnings (roughly $200) were now forfeited.

    Obviously, they're a private company; I don't have a right to belong to their site. I would assume, however, that I have a right to my past earnings.

    Had I pressed the "send a cheque" button prior to this ban, I would have been paid, so I presume that past earnings are legally money they're holding on my behalf, that they can't unilaterally take for themselves.

    Their terms of use state that specific earnings obtained through actual fraud are subject to forfeiture, but not that all earnings are subject to forfeiture based on unsubstantiated allegations of fraud.

    So basically, am I right in assuming I'm entitled to my past earnings?

    And if they refuse to pay, would I have to sue them in the state where their headquarters is based, or could I sue them in my own state?

  2. #2
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    Default Re: Confiscation of Online Earnings Due to Allegation of Fraud

    You can read your contract with the company to see what you agreed to in relation to whether you must arbitrate your claims, as well as choice of forum and venue clauses pertaining to litigation.

    They only owe you for money you earned - if the earnings came from fraudulent activity by you, they don't have to pay; if they came through fraudulent activity by others, I expect it's right there in your contract that you don't earn a fee for transactions that are determined to be fraudulent even if you played no role in the fraud.

    If they are of the position that your profits from fraudulent activity exceed the amount withheld, they can make a counterclaim for the amount they paid you that is attributable to fraud and thus should not have been paid.

  3. #3
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    Default Re: Confiscation of Online Earnings Due to Allegation of Fraud

    There's no arbitration clause and as far as their terms say, I should be free to sue them here.

    On an unrelated topic, I also had earnings with a similar site which closed down. However, while the site closed (and took the earnings with it), the company appears to be in business and solvent; they just decided to close the site and "disappear" the earnings with it. Unfortunately, I don't have enough earnings with that site to sue individually. (It was about $15.) Since I'm not the only one who lost earnings when the site closed, though, there seems grounds for a class action suit. How would I start that?

  4. #4
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    Default Re: Confiscation of Online Earnings Due to Allegation of Fraud

    Find a lawyer who handles class action cases and convince them to take the case.

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