2 Men Guilty of Fraud in Telemarketing Scam

Two San Fernando Valley men were convicted on federal fraud charges in connection with a telemarketing scam that bilked elderly victims out of millions of dollars.

George Richard Hallett, also known as Stephen Bishop, and Brian Francis were found guilty Wednesday by U.S. District Court Judge Carlos Moreno, according to Ellen Lindsay, the assistant U.S. attorney who handled the case, .

Hallett was the manager and Francis a telemarketer at American Fortune 900, a company that solicited investments to establish lines and advertise for pay-per-call 900-number phone services that would generate revenue for investors, Lindsay said. The company operated in Woodland Hills, Reseda and Westlake Village.

About 150 people were lured by the scam, losing a total of about $3.5 million in the bogus venture, she said. Rather than paying investors, American Fortune used the bulk of the money to pay commissions to telemarketers who solicited investors.

The two are scheduled to be sentenced April 26. Hallett, 47, whose residence was given only as San Fernando Valley, was convicted of nine felony counts and faces a maximum sentence of 45 years in federal prison. Francis, 33, of North Hollywood, who was found guilty of 10 felony counts, faces up to 50 years in prison. Both defendants could also be ordered to pay up to $70 million in fines.

The court will probably order them to pay restitution, Lindsay said. “Whether they [the victims] will see any of the money, I sincerely doubt,” she said.

The case came to light following complaints to the Federal Trade Commission, which shut the operation down in January 1996, authorities said. The FTC referred the case to the FBI.

Rory Cypers, 27, the owner of American Fortune, and six other people affiliated with the firm, previously pleaded guilty. Cypers is scheduled to be sentenced Feb. 22.