A Team 4 investigation last May exposed a Pittsburgh-based invention promotion company -- a company making millions from inventors, most of whom will never see a dime in profit.

Now, Team 4 has learned that yet another of these companies -- based in Pittsburgh -- is in trouble with federal regulators.

The following is investigative reporter Jim Parsons' report.

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Team 4 went undercover last May to see whether an invention promotion company would take the most ridiculous of ideas -- Pittsburgh-based Invention Submission Corporation said yes to the phone hat, which was nothing more than a piece of spandex with a pouch on the side to fit a cellular phone into.

"I can't tell you the success factors, I mean, to be honest with you, but I'd say it's got a good shot," said ISC salesman Roger Mesecher. "It's certainly above the average. It isn't something wacky."

Actually, it turns out that the phone hat isn't the wackiest idea ever.

What is?

The hunting cap a reporter in Detroit came up with -- it's so dangerous no one would ever buy it.

And yet another invention-promotion company here in Pittsburgh wanted his money to develop the idea.

Video

Experience The Buck Buddy

Reporter Rob Wolchek took his Buck Buddy hunting cap (pictured, left) to Davison and Associates in Pittsburgh.

Company founder George Davison accepted the Buck Buddy. Just as he accepted another man's invention -- and his money.

A carpenter by trade, Tom Manos worked in the basement of his Pittsburgh home to develop a prototype for a movable bed table for stroke victims. Then he took the idea to Davison and Associates.

Parsons: "They claimed there was one manufacturer who was interested. Did you ever see proof of that?"

Manos: "No."

Parsons: "Did you ever see a letter from that manufacturer saying they were interested?"

Manos: "No, I haven't."

Manos spent $12,000 with Davison to develop and market his idea to a manufacturer . And all he got in return was some research that federal regulators call worthless.

Manos isn't the only one who wrote a check to Davison and Associates and came away empty-handed, Parsons reports. In fact, the Federal Trade Commission office in Cleveland says hundreds of consumers have lost millions of dollars to the Pittsburgh company.

"What I want consumers to know is that, based on Davison's past track record, they have virtually no chance of recovering any money they spend with Davison and Associates," said FTC attorney Steve Balster.

Balster is asking a federal judge in Pittsburgh to freeze Davison's assets and return $7 million to its customers.

"Davison continues to make misrepresentations by selling their services by claiming that a manufacturer is interested in their idea, when in fact the manufacturer does not know what the idea is," Balster said.

Parsons: "George, can we ask you about this FTC investigation? They say you're taking advantage of your customers. George why won't you answer our questions?"

Team 4 called George Davison to ask for an interview -- he refused then and when Team 4 showed up in person.

But here's what he said to that Detroit reporter with the Buck Buddy about inventors who hire his company.

"Hey, they're only out a couple hundred dollars and, you know, we've had some fun. We've researched an idea and we're out there playing the marketplace."

For some it's hundreds, for others thousands. Money a lot of clients can't afford to lose. Bob Amic is a former employee of ISC -- the company that said Parsons' phone hat was a good idea.

"It's all about making sure we get the money and keep the money," Amic said. "There were a lot of people who didn't have a lot of education who got talked into doing these kind of things with the hope that they were going to hit it and they didn't hit it, and they couldn't make the mortgage payments and they were worried about paying money to Universal Finance. That's a problem. It was morally repugnant to me, quite frankly."

"We made many false promises, many false promises," said Kimberly, another former ISC employee who asked Team 4 to conceal her identity. "I mean, it was common practice on a daily basis for us to let these people keep hoping and wishing and dreaming. We were thriving on their wants.

"People would go to a pay phone to call us because they didn't have a phone. We had a lady one time say she didn't have any food. But as soon as she got some money, she was going to make a payment. It was so terrible."

But she did it -- and so did he. They took the money.

"It became obvious what the company was and what the company was doing and it just was -- it works on your conscience," Amic said.

ISC faxed Team 4 a statement Wednesday afternoon that says that its credit company, Universal Finance, is flexible with clients who have trouble paying off their loans.

ISC also says, because of Team 4's first report, that the company fired Mesecher, the man who told Team 4 on a hidden camera that the phone hat had a good shot as an invention.

And as for Davison and Associates, no comment to Team 4; but in court documents, they claim that the FTC's case is without merit.