Judge freezes assets of defendants, accused of stealing millions
The Federal Trade Commission (FTC) has moved to close down a multi-million dollar telemarketing fraud that targeted U.S. seniors across the nation, scamming tens of thousands of consumers.
On March 18, U.S. District Judge J. Curtis Joyner, a former Chester County Court jurist, issued a temporary order to halt the scam, an FTC news release said. Then, after a hearing on March 27, three defendants agreed to court-issued preliminary injunctions, and the court imposed a preliminary injunction against the final defendant, Ari Tietolman, and his companies.
In shuttering the scheme pending trial, the court found that the FTC was likely to prevail and that funds should be preserved so they can potentially be returned to the victims of the telemarketing fraud scheme.
“The defendants’ conduct in this case was simply outrageous. They targeted and called senior citizens and lied to them to get their bank account information. Then they used this information to withdraw money from their bank accounts,” said Jessica Rich, director of the Federal Trade Commission’s Bureau of Consumer Protection.
Tietolman, the alleged leader of the telemarketing scheme, and his associates established a network of U.S. and Canadian entities to carry out their scam, according to a complaint filed by the FTCC. The defendants used a telemarketing boiler room in Canada, where Tietolman lives, to cold-call seniors claiming to sell fraud protection, legal protection, and pharmaceutical benefit services. The cost for the defendants’ alleged services ranged from $187 and $397, the release said.
In some instances, the telemarketers impersonated government and bank officials, and enticed consumers to disclose their confidential bank account information to facilitate the fraud. The defendants used that account information to create checks drawn on the consumers’ bank accounts. They then deposited these “remotely created checks” into corporate accounts they established in the U.S. before transferring the money to accounts controlled by the Canadian defendants, the release said.
The FTC alleges that the scheme drew in over $20 million dollars between May 2011 and December 2013. The defendants’ businesses include First Consumers, LLC, Standard American Marketing, Inc., and PowerPlay Industries LLC. First Consumers, LLC is a Pennsylvania company formed in 2010. Consumer complaints and bank records indicate that from at least June 2009 until June 2013, the company scammed consumers using its own name and three other names: Patient Assistance Plus, Legal Eye, and Fraud Watch. The three other individual defendants who assisted in the scheme are U.S. nationals: Marc Ferry, Charles Borie, and Robert Barczai, the release said.
