John Ciccone was the owner of Feed America Inc. (“Feed America”), a telemarketing company in Las Vegas, Nevada. From March of 1994 until October of 1995, he ran a scheme to defraud people throughout the country. He paid his solicitors a straight commission to telephone people, who had previously relied upon the promises of other telemarketers, and persuade them to send money to Feed America. They succeeded in doing so by telling victims that they had won money, a fabulous prize, and the opportunity to donate to charitable causes. There was one hitch: the lucky victims first had to pay a sizeable sum to Feed America. When people refused, the solicitors called them over and over again. When they did send their money, Feed America returned ten percent of their donation and a cheap gift. Its donations to charitable causes were minuscule.
John Ciccone designed a “pitch” for Feed America solicitors to use, which convinced people that they had won an extraordinary prize. It started out like this:
This is (Fundraiser’s Name) with FEED AMERICA in Las Vegas, Nevada … the reason for the call is Continue reading “Is Feed America a Legitimate Charity”
Altaf Amlani was the president and owner of Finer Images, a telemarketing company from the Los Angeles area. Finer Images’ employees would tell prospective customers that they were eligible for valuable prizes, such as cars, cash, a home entertainment center, and/or jewelry. To claim their prize (or prizes), the customers were told they needed to buy advertising specialties, such as pens, T-shirts, and key chains, which were imprinted with the customer’s business name, address, and phone number. These purchases ostensibly would eliminate gift taxes by making the prize a promotional award rather than a gift.
Finer Images’ sales pitches misrepresented the customers’ chance of winning the grand prizes, namely the cars and cash. The evidence presented at trial showed that Finer Images awarded only inexpensive watches or jewelry. Although Finer Images claimed these prizes were worth over $1000 apiece, the evidence showed that the wholesale value was $38-49 for each bracelet and $69 for each watches. Customers that ordered once were subjected to additional high-pressure sales pitches, with Continue reading “Telemarketing Fraud Prize Scam”
Continental Distributing Company (“CDC”) was a telemarketing company based in Chattanooga, Tennessee. The company targeted its telemarketing schemes at elderly people because the elderly tend to be most vulnerable to the various telemarketing tricks and ploys used by Continental Distributing Company. Ninety-nine percent of the calls CDC made were to people over the age of 60, and ninety percent of the calls were made to people over the age of 70. The company operated a one-in-four scheme whereby a telemarketer would call a victim and tell the victim that she had won one of four fabulous awards. The awards were usually stated in order of the least expensive to the most expensive. For example, the telemarketer, when speaking to a potential victim, would list the awards in the following order: a 1994 car, a speed boat, the open award, and cash. The telemarketers purposely listed the awards in this manner to disguise the fact that the “open award” (also known as the “gimmie”) was worth substantially less than the other awards. Typically, the open award was a very inexpensive piece of merchandise such as a lithograph, JFK coin set, or cheap sculpture.
The object of the scheme was to Continue reading “Telemarketing Fraud One-In-Four Scheme Fronters and Reloaders”