Man Held After Raid on Suspected Boiler-Room Scam

A Huntington Beach home was raided early Tuesday morning and an occupant was arrested on suspicion of grand theft for allegedly operating a precious-metals boiler-room scam and bilking investors out of about $100,000, Newport Beach police said.

Eric Matthew Dickey, 24, is suspected of running a telemarketing scheme called Eastern Financial Services (EFS) from a variety of apartments and condominiums and the house that was raided, Newport Beach Police Lt. Tim Newman said.

The operation started in Newport Beach and ended up in Huntington Beach, Newman said. U.S. Postal Service agents and Newport police participated in the raid on the house at 10202 Beverly Drive.

Dickey, 24, was held on $100,000 bail. The scheme that Dickey is accused of masterminding was in operation from August, 1987, to December, 1988, Newman said.

“EFS salesmen would apparently make unsolicited phone calls to potential investors nationwide, using what investigators are describing as high-pressure sales tactics to induce clients into investing money with EFS,” Newman said.

Clients from New York, Delaware, Texas, Arizona and Ohio sent money to EFS based on their understanding that it would be used to buy leverage contracts on platinum and silver.

“It is alleged that Dickey then converted these funds from the clients to his own personal use and was not investing them as promised,” Newman said.

Newport police and postal agents started investigating Dickey in June, tracing him from condominium to condominium. Postal Inspector Kacy R. McClelland said authorities believe that Dickey had dealings with about 10 would-be investors.

“He used all kinds of aliases,” McClelland said, “and he moved around frequently.”