O.C. Telemarketer Is Charged With Bilking Elderly

SANTA ANA — Federal authorities have charged an Orange County telemarketer with fraud and money-laundering in the operation of a magazine prize scheme that allegedly bilked elderly consumers nationwide of more than $1 million.

Robert Flarida, 28, of Santa Ana is free on a $200,000 personal bond after his federal court appearance this week in Santa Ana. He did not enter a plea on the criminal complaint.

“He denies the allegations and will enter a plea of not guilty if indicted,” said Flarida’s lawyer, Mark J. Werksman of Los Angeles. Flarida is expected to be indicted on mail and wire fraud and money-laundering charges by June 23, the date set for his next hearing.

He was arrested Tuesday, a day after the Federal Trade Commission filed a lawsuit against him and his company, Mag-Topia Inc., as part of a nationwide crackdown on fraudulent magazine telemarketers. The FTC sued two other companies, and four states filed similar actions against other operators.

The civil actions accuse the telemarketers of using a variety of scams, from phony prize promotions to offers of prepaid subscriptions, to fleece consumers. Some telemarketers illegally debited consumers’ checking accounts without the customers’ authorizations, the agency said.

“We should all be skeptical when strangers call telling us we’ve won a prize or qualify for a free gift, and should never give our our bank account or credit card information unless we know who we’re dealing with,” said Jodie Bernstein, director of the FTC’s consumer protection bureau.

The criminal complaint against Flarida accuses him of running a boiler-room operation that preyed on the elderly by falsely promising them valuable prizes if they would pay fees up front.

Assitant U.S. Atty. Robert Raskin said the company usually failed to send any prizes and, when it did, sent prizes that were much less valuable than stated and far below the amount sent in for processing.

The complaint was general in nature. Werksman said he couldn’t respond to specific allegations because the complaint didn’t list any.

Raskin said the investigation into the company’s operations is continuing. Mag-Topia had about six or seven employees, authorities said.

In its civil lawsuit, the FTC won a temporary order from U.S. District Judge Alicemarie H. Stotler freezing the assets of Mag-Topia and Flarida.

The agency said that Mag-Topia offered a big-screen television, a $1,000 diamond watch, an automobile or thousands of dollars in cash to consumers who sent in $250 to $900 in so-called processing fees in overnight mail to claim their prizes.

While most consumers never received a prize, those who did received a watch worth less than $100 and magazine order forms. Consumers who tried to cancel or stop payment on their checks were harassed and threatened by Mag-Topia agents, the FTC asserts.

Federal authorities also raided the company’s offices and carted away all business records, computers and other property. Werksman said the raid and the court order effectively shut down Mag-Topia and Flarida won’t likely operate it again unless he clears himself.