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International Law

: Misleading Advertising Law

Three Sentenced in Telemarketing Scam

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Hmm, must be Arizona's week for telemarketing scams. As reported in Ktar,

"Three men have been sentenced to prison for a telemarketing scheme that sold worthless vacation packages and fraudulent online sales businesses to senior citizens.

Jamie Storm Price, 37, of Phoenix, was sentenced to 12 years in prison after pleading guilty to one count of directing a criminal syndicate, one count of fraudulent schemes and artifices and one count of theft. Michael Deiuliis, 38, Goodyear, was sentenced to six years in prison after pleading guilty to one count of participating in a criminal syndicate and one count of theft. Joseph Deiuliis, 36, of Goodyear, was sentenced to three and a half years in prison after pleading guilty to one count of theft.

The Arizona Attorney General's Office said between November 2005 and September 2007, the defendants posed as business "consultants" for a fictitious company, Allstar Web Marketing.

They offered seniors the opportunity to purchase a Web site that would generate revenue to the owner whenever it was visited by a user.

Once a victim agreed to participate in the online "business opportunity," the defendants convinced the individual to provide credit card account and other personal financial information they claimed was needed to complete the sale and start-up the site.

Upon receiving the personal financial information, the defendants added themselves as card holders, increased the credit limits and maxed out the cards. Price admitted using proceeds from the scam to pay his mortgage and bills as well as purchase jewelry, electronics and stays in high-end resorts."

Pity thatArizona doesn't have any specific biz op fraud laws to prevent this type of crime.

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Full post as published by Misleading Advertising Law on October 17, 2008 (boomark / email).

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