2 Sought in Scheme That Took Victims for $1 Million

Two Los Angeles-area men who prosecutors say promised their victims free motorcycles if they participated in a “market survey” have been indicted on charges of bilking more than 4,000 people out of $1 million in a nationwide telemarketing scam.

The two men, Samuel Filippo, 42, of Santa Monica and Robert James Matthews, 40, of North Hollywood never delivered anything more than $140 mopeds, according to a federal grand jury indictment returned late Thursday.

According to the indictment, the men set up a “boiler room” in Venice known as National Marketing, which mailed solicitations to prospective customers offering them a free motorcycle if they participated in a market survey.

When customers telephoned in response, they were told that they would be shipped a revolutionary new 250-GT motorcycle for road testing, which they would be able to keep at no charge if they paid the $360 shipping costs and completed the survey form.

Most customers never received anything in exchange for the money they sent in, said Assistant U.S. Atty. David Katz, who is prosecuting the case. About a fourth of the 4,000 victims received a $140 moped, and even then they had to pay an additional $20 in shipping costs, he said.

Facing a wave of complaints, Filippo and Matthews closed their offices and left no forwarding address, Katz said.

The indictment charges the two men with 16 counts of mail fraud. If convicted they would face up to 80 years in prison and $4 million in fines and restitution.

However, U.S. Postal Service employees who conducted the investigation have been unable to find either suspect. Filippo is believed to be in Southern California, while Matthews was last seen in Brooklyn, Postal Inspector Tom Dugan said.