Canadian gets 11 years for bad credit credit card scam
By Jeremy M. Simon | Published: June 20, 2007
A Canadian was sentenced to 11 years in jail for his part in a $10 million telemarketing scam that focused on U.S. consumers with bad credit.
The U.S. Attorney in Manhattan said that Stephen Clark and another Canadian man operated First Choice Tele-Services Corp., tricking around 44,000 people into handing over fees of $249 to $299 in exchange for "guaranteed" credit cards for those with bad credit.
In the scheme, which ran from February 2002 to October 2003, First-Choice telemarketers made unsolicited calls to low income Americans with bad credit histories to offer them "guaranteed" credit cards.
Although some fraud victims received manuals dealing with credit repair, none received credit cards. The prosecutors charged that First Choice and Clark had no intention of ever delivering the credit cards.
Clark pleaded guilty in September to two counts of conspiracy. Previously, he served about a year in prison after pleading guilty in the late 1990s to a separate telemarketing fraud.
To comment on this story, write Editors@CreditCards.com.
More credit card news.
- Bad credit? Avoid credit checks with prepaid cellphone plans – Major carriers offer plans that allow you to bypass a dreaded credit check ...
- Debt settlement: Is it right for you? – Settlement offers one solution to severe debt, but beware false promises and know the downsides ...
- Rejected for credit: When to take no for an answer – Being turned down can be crushing, but it can be a sign you need to take seriously ...