23 Arrested in 3 Telephone Solicitation Raids, 1 in Garden Grove

Three alleged boiler-room operations--one in Garden Grove and two in Los Angeles County--were raided Thursday and 23 people were arrested on suspicion of illegally operating telephone solicitation businesses.

The raids signaled the start of a crackdown against telephone solicitations that do not deliver free gifts or large returns on investments as promised, authorities said.

Another 23 people were issued misdemeanor citations during raids at the two Los Angeles County sites for allegedly working for illegal telephone solicitation businesses.

Assistant U.S. Atty. Terree A. Bowers in Los Angeles said federal authorities coordinated raids by state and local authorities in response to complaints from customers. The raids were at Cambridge Financial Management in Garden Grove, International Metals and Currency Inc. in Torrance and Bonanza Savings in Redondo Beach.

The 23 people arrested were booked on suspicion of operating telephone solicitation businesses that are not registered with the state Department of Corporations, as required by a state law effective Jan. 1.

Strict Compliance Sought

Bowers said his agency was “after strict compliance with the new law as a means to combat fraud.”

Investigators said Cambridge Financial, 12395 Lewis St. in Garden Grove, used trained sales people to solicit investments in gold or silver bullion and valuable coins.

For an investment of $5,000 to $15,000, Cambridge also offered limited partnerships in oil leases in Warren County, Ky., that reportedly guaranteed a return of 30% to 50%, according to Patrick Geary, a prosecutor with the Orange County district attorney’s office.

Investigators raided Cambridge Financial about 9:40 a.m. after an undercover investigator for the Orange County district attorney was hired by unsuspecting officials of Cambridge.

The investigator “told them he hadn’t done that kind of telephone solicitation before so he asked if he could watch others do it,” Geary said. “But he was wired, and we heard everything from across the street. That’s when we moved in.”

Among those arrested there were Richard Aiello, described by Geary as Cambridge’s owner; Mary Frances Angelo, who authorities said was Cambridge’s president, and Lawrence Floyd Burzynski, who Geary said was a manager in the operation.

Free Trips to Hawaii

Another 13 people were arrested at the scene, Geary said.

In the two Los Angeles County raids, seven people were arrested on suspicion of operating a telephone solicitation company that was not registered with the state, Bowers said.

Authorities said the two Los Angeles County companies offered free trips to Hawaii in addition to investments on metals such as platinum.

Bonanza Savings in Redondo Beach reportedly offered prizes of a free trip to Hawaii, a lifetime supply of Kodak camera film, $3,000 worth of food and $400 in cash in exchange for the purchase of a coupon book for $39.95.

Buyers received none of the promised prizes, Bowers said.