Man Gets 33 Years for Telemarketing Fraud
A Northridge man who pleaded guilty to playing a key role in a Van Nuys-based telemarketing scheme has been sentenced to 33 months in prison, the U.S. attorney’s office said.
Kenneth Gilson, 65, was also ordered in U.S. District Court to forfeit his 1992 Lexus and pay $74,468 in cash for his part in the scheme that defrauded investors of several million dollars. He was convicted on one felony count each of conspiracy, wire fraud and tax evasion.
For the record:
12:00 a.m. Nov. 22, 1996 For the Record
Los Angeles Times Friday November 22, 1996 Valley Edition Metro Part B Page 3 Zones Desk 1 inches; 28 words Type of Material: Correction
Telemarketing--The headline on a Focus page item Thursday was incorrect. The headline should have noted that Kenneth Gilson was sentenced to 33 months in prison for his role in a telemarketing scheme.
Gilson was one of seven people arrested as a result of a joint IRS and FBI investigation of three companies--S&G; Enterprises, Energo Inc. and Astro Petroleum, said Assistant U.S. Atty. Carl Moor.
Moor described the telemarketing scheme, which operated from 1986 to 1992, as “not sophisticated.” The three companies promised substantial profits to people willing to invest in large quantities of car care products, such as fuel additives, Moor said.
Victims told authorities that Gilson and his partner told them the products had essentially been pre-sold. But instead of reaping profits, the victims got stuck with boxes of the products and were refused refunds, Moor said.
Gilson admitted in court that he had evaded corporate and personal income taxes. The IRS calculated that Gilson and one other partner took in about $7.5 million from investors and did not report at least $2.6 million of that to the IRS.
