Settlement Bans O.C. Man From Telemarketing

An Orange County businessman accused of duping consumers into investing in Disney collectibles has agreed to get out of the telemarketing business for good and pay $150,000 in restitution.

The Federal Trade Commission on Thursday announced the settlement with Benjamin Valenty, part-owner of International Art Galleries in Costa Mesa.

The FTC in a civil suit accuses the Orange County company, which did business under the name International Art Publishers, of making fraudulent pitches to consumers over the phone.

The civil action against Valenty, who also was banned for life three years ago from selling investments over the telephone, is part of a crackdown that the FTC launched in April against repeat offenders.

In its suit, the FTC accused the Orange County company, which did business under the name International Art Publishers, of making fraudulent pitches to consumers over the telephone.

The suit alleged that the firm’s telemarketers told potential investors that its Disney collectibles were excellent investments and could be quickly resold for a profit, when it was more likely that investors would lose money on the deal.

In settling with the FTC, Valenty did not admit to violating any law. Valenty will be banned permanently from marketing any product over the telephone or from assisting others in any telemarketing venture.

“Essentially we are saying: ‘Find a new line of work,’ ” said Daniel A. Spiro, an FTC attorney. The judgment will become binding once a federal judge in San Diego approves it.

In April 1994, the FTC banned Valenty from selling investments over the phone after finding that Valenty and La Jolla-based National Art Publishers and Distributors Inc. peddled overpriced movie posters to consumers as investments.