Canadian gets 11 years for bad credit credit card scam

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.

Compare Credit Cards for Bad CreditThe 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

More credit card news.

Join the discussion
We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

The editorial content on is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.

Weekly newsletter
Get the latest news, advice, articles and tips delivered to your inbox. It's FREE.

Updated: 12-11-2018