(Phoenix, Ariz. – October 15, 2008) Attorney General Terry Goddard today announced that three men have received prison terms for their participation in 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. The charges, all felonies, relate to Price’s leadership of the telemarketing scheme. Michael Deiuliis, 38, of 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.
Between November 2005 and September 2007, the defendants posed as businesses “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.
The names of the targeted victims came from lists of individuals believed to be easy targets for these types of schemes. These lists are reportedly available for purchase among underground telemarketing businesses. According to court documents, 44 victims of the scheme lost a total of between one and two million dollars.
This case is the result of an investigation by Phoenix Police Department and the U.S. Postal Inspection Service. Assistant Attorney General Timothy Linnins handled this case. For more information, please contact Anne Hilby at (602) 542-8019.