“Telemarketing” A terrorist's communit yy by wulinqing

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									“Telemarketing”

A terrorist’s community
Written by

Mark P. Sugarman



                                    Forward

This is my second book in a three-book series called Telemarketing: A Terrorist’s
Community. The first book is a sales and marketing educational book called The
Backdoor, a controversial approach to sales and marketing. My third book will be released
sometime in the year 2004 and will feature evidence of big-time corporate espionage and
how to succeed and maneuver within it. Until that book is released, I hope you enjoy these
two books. Many of the events and personality profiles in this book, Telemarketing: A
Terrorist’s Community, have been embellished to make a point about telemarketing, but
are loosely based on actual incidents and people. This book is food for thought and leaves
you to ponder what is really possible in the crazy world of telemarketing. You must read
between the lines to grasp the truth.



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In 1990, I personally was featured on the nationally syndicated television show “Inside
Edition,” in a segment about fraud. My customers were on many talk shows, including
“Gerardo,” “Steals and Deals,” and quite a few radio talk shows and editorials. My name
has been in the newspapers many times for different reasons because of my involvement in
different telemarketing deals. Most of my telemarketing deals were legitimate in some
sense of the word, but we also crossed the line everyday just to make a sale. I am not
bragging, but I thought I would enter into fact for you that I have first-hand knowledge of
most of what I have written about. Although I do a little bit of embellishment in this book, I
have worked my way to the top of very large telemarketing organizations. Not only do I
have first- hand knowledge of the industry, but also I have personally trained thousands of
telemarketers in many different industries. I feel I am the most qualified individual in the
industry to talk about what is going on in the world of telemarketing. Enjoy and hang on to
your seat, you are about to go for the ride of your life.

This book tells the stories of telemarketers who invade the privacy of many people's homes.
 Many of these telemarketers are drug addicts, criminals, some with outstanding criminal
warrants, on the run from the law. We will also look at telemarketing operations to
uncover the scams involved. Ultimately, we will try to provide proof of why telemarketing
to residents should be banned and deemed illegal.

We will take a close look at the people at the top of the organizations and how they abuse
and take advantage of millions of people nationwide. Many take advantage of the sick and
elderly or people who are new to the country or to business. The stories you will hear are
commonplace within the community of approximately 200,000 renegade telemarketers who
terrorize the nation every day. A simple statistical formula will prove that 40 to 80 billion
dollars are being stolen from 20 to 30 million people every year. We will also prove that the
problem is worse than the government thinks because the focus of scams is on select
markets. This creates the “ being” of actual terrorism, criminal behavior taking place 10
million times a day without fail.




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We look at the telemarketers in a broad overview, as well as on an individual basis. We'll
see their lifestyles, habits, motivations, and reasons for existence, which in many cases is the
minute-to-minute goal of getting high on drugs. You'll be completely astonished,
frightened, appalled, invaded, and paranoid once you read about the stories in this book.
You'll never want to answer your telephone again, and you'll take additional action to
protect your friends and family, especially your parents. This book will be considered a
tell-all book designed to reveal the unknown possibilities about the world of telemarketers.
 Some real, some not. This book will shock you to the point where you will join a movement
in this country to a eliminate telemarketing to private homes.

I will take you through my own career, from time to time, and show you how I made it into
the top of these seemingly legitimate, but criminal organizations. I'll also introduce you to
current scams and, hopefully, you can use this book to protect yourself and your loved ones
from the terrorist telemarketers who live amongst us. The objective of this book is to open
your eyes to the terror of telemarketing at its worst and to promote the idea that
telemarketing to private homes should be abolished forever. Although the story may seem
extreme, I am sure that I am only scratching the surface. Enjoy the book.




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                            THE HORROR BEGINS


      More than 200,000 ruthless telemarketers are ripping the souls of our society out.
These telemarketers are taking advantage of just about everybody in our society. Everyone
is a victim, but their main targets are widows, senior citizens, unsuspecting business
owners, and uneducated street-sense people. We are talking about 200,000 people who
criminally and verbally assault around 10 to 20 million people daily and repeatedly.

We're dealing with the criminal element of society that duplicates identities as
commonplace and ruins the lives of thousands of people on a daily basis. Most newspaper
articles you read in the newspaper generally deal with homicides, physical assaults, and
robberies in your neighborhood. However, every day somebody goes to the store or bank to
apply for a credit and finds out that their credit has been ruined by some renegade
telemarketer. The point being, you're just not going to read about it in your local paper.

How big is this problem? Very big. So big that telemarketing to residences should be
deemed illegal and terminated at once. Telemarketers are ruining the true essence of
American society. “Trust”, “Morality, and “Integrity” are words that are just not in the
telemarketers vocabulary.

The fact is that, almost all of these telemarketers, and especially their employers, are also
involved in other criminal activities. These illegal activities are either some larger scam
funded by the telemarketing proceeds, or they are related to drug dealing and usage. It's
commonplace for telemarketing business owners to be involved in "bookmaking for
gamblers", “porno”, or some other felony activity.

I was surprised to find this out because they seemed to make so much money stealing over
the phone, I didn’t know why they were involved in other things as well. But I guess that it
is just in their blood to break more laws without remorse. Very few of them are involved in
physical crimes like murder, but extortion and forgery are common. When telemarketers
are on drug runs, especially crack or crystal meth, and they are out of cash, petty theft is
commonplace. However, these people are mainly low-level criminals not prone to acts of
direct violence who instead hide behind the phone as a way to steal.

How do I know all this is true? Well, for one, I was one of these renegade telemarketers. I
was on the run with a long criminal history. America, as big as it is, gives people like me a
fresh start in every new state we move to. We are trusted and believed in by the new society
that doesn’t know of our past. Half of these telemarketers have a pretty good appearance
in public. I can put on a suit and look very acceptable in society. Looks can be deceiving
though, because underneath it all, there's no sense of remorse except in very rare occasions.
 If God made telemarketers pay for all their sins, they would have to live 25 lifetimes to fill
their obligations.



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Most telemarketers are very belligerent, rude, and verbally assaulting. Normally it has a
lot to do with the frustration of telemarketing. It’s not an easy job because you have to
make 20 to 50 calls to make one sale. Telemarketers experience repetitive rejection while
nursing a hangover from drugs or are in need of another fix of some kind. Telemarketers
seem to take the stand of "how dare you not buy from me." They take offense at someone
actually saying no to them. This is sheer battery on our society. Some people end up
having strokes or heart attacks because of verbally abusive telemarketers.

About 95% of all these terrorists get bored and turn a call into an out and out "phooey
phone call." These calls are just rude or malicious and they are made out of boredom or
self-entertainment. They range from sexual comments to making up stories of phony
inheritances, a relative’s death, IRS scares, job firings, job hirings, or responding to lost
pets in the classifieds. They will say just about anything for a rush. The telemarketers use
factual information they found to make these malicious calls sound legit. These people get
off on lying successfully, as if it were a high. They need a successful lie to get their self-
confidence back so they can continue their real job. Kind of on-the-job sales training, as
some rationalized.

This equates to roughly 5 million phony phone calls a day, mostly to residences. Sometimes
they call just to waste a business owner's time. They pretend they want to buy something,
try and get credit, talk about phony problems regarding their interest, or set the business
owner up for a crime of some kind.

Telemarketers are famous for creating sales that don't even exist to get bonuses. They get
people mangled up in legal or credit problems and hassles. They manipulate their superiors
into thinking they made sales by using information they managed to extract during a phone
presentation that would make it seem like a real sale.

The fact is that telemarketers, for the most part, hate their jobs and are always looking for
a shortcut. Whenever they make a score, usually through some kind of theft, they try and
roll it into something bigger, or go on a drug run till they're broke. Then they crawl back
resentfully to work on the phone.

This is not the scary part, however. The scary part is the type of people who are actually
calling you, and the people who run and own these organizations. The criminal behavior
that takes place on the part of these telemarketers goes way beyond a simple telephone call.
If you happen to make a purchase or agree to a sale, you could become a victim with ruined
credit, bank accounts emptied, and forced into bankruptcy. In some cases, you could be
arrested for something you knew nothing about. Even if you didn't buy anything over the
phone, the fact that you answered the phone could lead to the same horror happening to
you.

The point is, by answering your own telephone; you are doing business with a drug addict
or child molester. Would you invite criminals unattended into your widowed mother's
home? Will they honor your sake of privacy and integrity and moral fortitude? No,
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absolutely not! They will rip your heart out, throw it on the ground, and stomp on it till
there's nothing left. You could only wish for the opportunity to grab one of these
telemarketers by the throat and choke them to death.

Attorney generals receive tens of thousands of complaints a day nationally, but they are
only able to begin a probe when there are several hundred problems in existence for a
particular company. This means that thousands of crimes have already been committed by
numerous organizations that haven’t had enough complaints to be investigated yet. Also,
there is a tremendous time element involved in filing a complaint. A victim must request
the paperwork, file it, give the other party a chance to respond, and then wait. Court
orders on tapping phones must be approved after a substantial amount of evidence is
presented to a judge, but by then months and sometimes years have gone by and the
telemarketing company has either fled the state or changed its name and location.

Unfortunately, the laws are designed for fairness. Meaning, that they are designed to
protect the telemarketers with due process of the law. Telemarketers consider the law
nonexistent. By the time the government catches up to a fraudulent company, they are
long gone and off to their next scam. Sometimes an organization will switch to pitching
something legally, but because of the twisted personalities involved, they manage to turn
that into a scam too.

Once a judgment is entered, it is very rare for any fines to be collected. One of the main
reasons is because governments lack the resources to criminally prosecute all of these
numerous telemarketing frauds, so they settle for civil judgments. Unfortunately, the
phone room owners have no attachable assets, so it is usually a fruitless effort to collect a
judgment.

I called the attorney general's office one day just to see for myself how hard it was to file a
complaint and the time that it took to do so. After waiting on hold for approximately ten
minutes, I hung up, aggravated, and I wasn't even really filing a complaint. Then I called
the San Diego court information line, which turned out to be a (900) number. I was
shocked. I couldn't believe that it would cost me money to make a general inquiry to the
court. This gave me a sense of justification regarding my own borderline, barely legit,
telemarketing practices because it seemed like the government was running a
telemarketing scam, too.

There's only one way to stop a telemarketer-- you either have to shoot them, put them in
prison for life, or remove their ability to telemarket. Everyone reading this book will relate
to some phone call or scam they've been exposed to. We must realize the magnitude of the
problem before we begin to solve it.


Let’s take a closer look at some telemarketers, their scams, the law, and what we could do
to stop telemarketing. You'll be shocked and horrified once you learn about these people
individually. You may think you understand telemarketing scams, but wait until you read
about the terror firsthand. Finally, a close look at some of the government attempts to
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control this industry will leave you either laughing or crying.

Most of what I share with you will be told within stories about some wacky, but very
interesting, telemarketers and their scams. You will enjoy the book because you will be
able to relate to the insanity we’ve all been exposed to on some level or another. I showed
this book to my last girlfriend and she changed her number and locks on her doors. I tried
to tell her that I was a reformed telemarketer, but apparently the impact of this book made
her still very paranoid. I hope my goal of eliminating telemarketing to residences becomes
reality, hopefully some congressman will read this expose’ and invite me to testify in front
of congress. Enjoy the book!




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Who are we?

INTRODUCTION

Nowadays, a typical evening at home in America will include numerous dealings with
various telemarketers. Most people consider this anywhere from a mild aggravation to an
outrageous invasion of privacy. I am on the side of it being an outrageous invasion of
privacy. But I will go one step further to prove that it is dangerous and should be
outlawed. What you are about to read is the truth about a shady business from one who
has been there.

Many businesses today use some form of telemarketing, or combined telephone and
Internet backup, as sales techniques, as part of their business strategy. It's fair to say that
the majority of these businesses are legitimate. What this book will focus on is the
approximately 200,000 renegade telemarketers operating within legitimate and non-
legitimate businesses. These people are thieves, frauds, and criminals of all types. They
are usually drug addicts, gamblers, or have some weird antisocial behavior that precludes
them from career opportunities in any other field other than telemarketing.

It is important to know whom these people are who are calling you at your home or
business. They are the lowlifes in society. In fact, if there weren’t something wrong with
them, seriously wrong with them, their chances of being a successful telemarketer would be
nil.

These 200,000 telemarketers are people you wouldn't want to make eye contact with on the
street, yet you allow them into your personal living quarters and entrust them with your
credit card number. Would you invite a prison parolee or an escaped convict wanted for
child molestation, burglary or drugs into your home? Would you trust them alone with
your widowed mother? I think not.

For the protection of the citizens of this country, it is time to take a look at the
demographics of these 200,000 terrorists calling you, your parents, and your children.


I'D LIKE TO INTRODUCE MYSELF


My name is Mark Sugarman. Here is what I know and why I know it.

I hate to admit it, but I was one of these 200,000 terrorists. I contributed to the success of a
number of terrorists out there by personally training over 4,300 of them while working for
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one organization. How many others I may have trained along the way, I can't even guess.
I have spoken to a few thousand phone rooms and know

the leaders of at least 30 different major fundraising organizations. I want this to be clear--
they are called “fundraising organizations”, but the difference is that the individuals are
pocketing 95% of the funds, not the charities they are representing. I have been involved
in at least twenty different types of telemarketing schemes, some of which even had proper
licensing. Generally speaking, the products represented were real, but there was either a
greatly inflated purchase price for a below-average product, or there was some other
criminal setup attached to the scheme. It was also commonplace for renegade
telemarketers working for legitimate companies to underhandedly rip off their employers
and customers.

One of the telemarketing schemes that I created was selling medical alert systems to the
elderly. One of my sales managers thought it would be a good idea to say that we were
volunteers from a hospital. Another fraudulent pitch that was used was telling the
customer that somebody sent in an inquiry card on behalf of them because they were
worried about them. At the time, a legitimate company selling medical alert systems was
running TV commercials in our territory, and so we referred to their commercials as if
they were our own. We got away with it because we made our own TV commercial and
ran it a couple of times. But really, our medical alert systems were a cheap, yet overpriced,
knockoff of the one advertised on TV by the legitimate company. Our marketing concept
was very successful: because we contacted every senior citizen in a specific geographical
area where TV advertising was taking place, we were able to obtain 95% of the sales within
that media or vicinity.

We were making the customers pay us for 36 months of monitoring up front, but we only
paid the monitoring service sub-contractor on a month-to-month basis. We mismanaged
the money and ended up not paying the sub-contractor. Our customers soon found out
that either the service that they had already paid for was prematurely terminated or they
were charged twice for the same service.

We also managed to scam quite a few third party financial institutions by obtaining
financing for our clients. A financial institution wouldn't finance something intangible like
a monitoring service. So, for the customers in need of financing, we overcharged the
equipment and gave the monitoring away for free. This is a type of scam that is currently
being used on a large scale with alarm system sales nationwide. We also scammed
hundreds of wholesale vendors of medical alert equipment by purchasing all of their
products on credit that went bad.

There was a probe done on the business due to many complaints to the Attorney General's
office. I think it originally stemmed from a disgruntled employee I stiffed out of his
paycheck the week before Christmas. The Attorney General's office sent in a plant to
apply for a telemarketing position and we fell for it. After a week, they were well aware of
our obviously fraudulent pitches. The Attorney General eventually closed down the
company. The collapse of the business took a year after the probe.
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Even as the company was going downhill, we created new schemes. We sold thousands of
distributorships for our company in the USA Today. We used big executive titles and
capitalized on the TV commercials of the other medical alert company. Many people
bought into the idea because they figured we would be supplying them with hundreds of
leads to start their businesses. So in essence, we became an inbound telemarketing room.
Inbound telemarketing is when we have a scam that generates people calling in to us.
Outbound telemarketing is where we are making the calls to people. We were making
money off salespeople who thought there was still a goldmine out there in customer sales
and legitimate leads.

We were eventually featured on “Inside Edition,” “Good Morning America,” “Gerardo,”
“Steals and Deals,” and many other newspaper publications. The Attorney General of
Maryland appeared on a call-in talk show and talked specifically about our company for
fifteen minutes while receiving numerous calls from outraged customers. However, there
were no criminal indictments for any of the individuals involved or for the company. We
just ended up with huge civil judgments, some of which were dismissible by bankruptcy.

After the dust settled, one of my vice presidents started a new company with our same
leads, same administration, everything really, even the money that we cashed out from
existing customers. The Attorney General didn't want to take on the same civil fraud action
that was already pending against us for this new company so there was just a general
judgment which was later dismissed in bankruptcy. You would think we learned from our
mistakes to make the second company successful--what a joke.

You may not believe this, but I have changed. I am now on a spiritual path and in a
recovery program--Alcoholics Anonymous. However, even today, it is impossible for me to
work on the phone without lying, so I refrain from doing this type of work. I did have an
appointment setting service a few years ago that was legit, but due to the element of
telemarketers in general, it was hard to sustain the company. So I gave up. I issued
refunds wherever possible and moved on. I did make an honest attempt at giving quality
service, and even brought in all the top-notch corporate financial officers available, but it
still failed. Many people used my service successfully, but in the end we lost control of our
drug-addicted telemarketers and the company sunk like a rock. So much for an honest
attempt. It's just impossible when you hire telemarketers to do an honest job.



                           GROWING UP INTO CRIME


I, and the rest of the 200,000 terrorists, were the so-called juvenile delinquents of our
neighborhoods. You know who we are. We are the ones that egged your houses and cars
on Halloween and then ran for cover with our hearts thumping from the excitement. We
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attempted a little bit of home break-ins, but generally stuck to shoplifting and malicious
destruction. Remember the garden gnomes and lawn flamingoes? We either stole them or
destroyed them. Stealing library books was a lot less of a hassle than checking them out.
We enjoyed malicious practical jokes like flooding bathrooms, littering, and graffiti. We
made teachers' lives miserable by creating havoc in the classroom, stealing art supplies,
and wrecking other peoples' art, science, and chemistry projects. I remember thinking that
I was simply lowering the grade curve to give myself an opportunity to pass the course.

To get psychological about it, maybe it had something to do with our families having less
money than the other kids in our neighborhood. I was always jealous of the kids in our
immediate neighborhood and schools. The other kids seemed to have normal households--
both original parents and plenty of candy and goodies in the kitchen. Or maybe our
youthful problems occurred though lack of sugar in our diet. Perhaps our parents tried to
control that so we ended up stealing cupcakes in school and candy in stores. We started
stealing to fill either a spiritual void or a simple sugar craving, or both. Or maybe it's that
we were the forgotten black sheep. If we had a single parent, they would have been
involved in some addictive nightlife behavior, or some other self-centered behavior, and
paid very little attention to us. It seemed like they we’re trying to recreate their own
destiny, rationalizing they we’re doing it for us, but really for themselves. Our parents
were generally single and looking, or remarried, and attempting to cover up our behavior
problems till the new breadwinner was locked in somehow.

If we had half-brothers/sisters or stepsiblings, they were treated with a higher degree of
attention, education, and promise. If a normal home life was established by a stepfather, he
would attempt to reform us, but soon gave up, wrote us off, and sent us back to our father.
That is, if our father would take us. We would manipulate any situation and get around
any disciplinary action our ineffective parents would attempt. There was very little or no
interest paid to our homework or whom we hung out with. We were adopted by our
friends' parents or to normal households, but eventually this family kinship ended. I, and a
lot of the telemarketers I've met, actually have pretty high IQs, which is handy when it
comes to ripping people off.

We were usually the class clowns and also the ones who were repeatedly punished and
humiliated by our teachers. Very seldom were we involved in after-school activities,
especially ones that cost money. Occasionally, an attempt was made at football, religious
school, or some other kind of dead-end club, organized for us, but to no avail. For instance,
the 4-HCclub had a book and a TV show; all the kids looked so normal and happy on the
show. It made me miserable. Our favorite after- school activity was roaming the
neighborhood or local shopping centers, looking for a cheap juvenile delinquent rush.

During my career as a juvenile delinquent, I committed hundreds of misdemeanors, and
even some felonies, that I got away with. At ten years old, I got caught stealing pine bark.
I was attempting to cut the cost of expenses for my first business venture, a landscaping
business, when I was embarrassingly arrested on my bicycle, pulling a wagon of stolen
pine. Cute, really. Almost Tom Sawyer-like. Except that it was the beginning of a life of
crime. I gambled at Monopoly and pitched for coins. At thirteen, I went to help my
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grandfather on an electrical job and ended up stealing a couple thousand dollars from the
back office of a record store. My grandfather called me two weeks later and informed me
that the manager was fired and the police were asking everyone to take a lie detector test.
My heart fell to my stomach in fear and I said “of course” but never heard another word
about it. I then started selling pot to the kids in high school. I was looking for shortcuts at
a very young age. The twelve arrests that followed never netted me more than a weekend
in jail, usually because of the idiocy of the crime or my ability to make false promises of
rehabilitation.

By high school, most of my friends smoked cigarettes or pot. I took hostages of normal
kids in the neighborhood psychologically. I attempted to ruin their lives to make me feel
better about myself. I was a “bad influence,” the other parents would say. And they were
right. I hoped to get them on pot so they could supply me, fueling my addiction. At a very
young age, I developed the ability to communicate so that I could con people to get what I
wanted. I got cigarettes, pot--whatever there was to be gotten--from someone else's family
in the neighborhood. Most of us became kleptomaniacs and started shoplifting, even when
we didn't need anything, generally revolving around cigarettes, pot pipes, candy, lighters,
or sunglasses.

After high school or even before it ended, we were left to figure out our fate. Very rarely
did we take up a trade in a technical school as part of a high school program, and barely
graduated high school. Some of us actually attempted a trade school but soon dropped out
or got kicked out. We didn't walk into successful family businesses. Either there wasn't a
family business or it went to the other side of the family, fueling our resentful, addictive
behavior.

Then we may have tried a crack at a military career, only to be booted out because of drug
use or inappropriate behavior. In my case, I was a medic in the Air Force for one year, six
months, and 28 days. I was stationed in a retirement hospital in Florida. I was released
with an honorable discharge because they didn't want to pay disability for a personality
disorder. They had received over 137 complaint letters from patients and supervisors
about my inappropriate behavior towards female patients and spouses of enlisted men. I
also got caught shoplifting ten dollars worth of speaker wire after spending four hundred
dollars on a stereo. I guess it was always in my blood to have some type of habitual larceny,
even when it wasn't necessary to steal. Most of the medics we’re drug addicts and almost
everyone’s daily objective was to steal drugs from the hospital. Sometimes we were
allowed to give post-op surgical shots for pain to our patients, only to pump the shot into a
test-tube for later IV drug use, and give the patient a blank shot. I’m still trying to figure
out how to make amends for that.


Attempts at alcohol and drug recovery were made throughout our teenage lives and early
careers. We failed or slipped through the cracks without a cure. Most of the guys I knew
just lasted long enough to learn a little Alcoholics Anonymous lingo. Even on probation
under the court system, we manipulated the system by using toilet water for urinalysis
samples or timed the usages so it wouldn't show up. I was tossed out of a rehab center
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because I was taking kickbacks for donations I was in charge of. I managed to stay sober
for six months, but I was not interested in recovery. I was readmitted because of pleas from
my uncle, a prominent Rabbi in the area, but once again I disgraced my family and took off
for Vegas as soon as a check from an insurance case came through.

Most of us left school in twelfth grade got menial low-paying jobs, with the intent of living a
normal life in our very own apartment. Eventually, we ended up in the telemarketing
world, intending to be honest people, but soon realized that we would never make a dime or
a decent living unless we started lying. We soon became drug addicts, alcoholics, or
gamblers, if we weren't already. It's hard to live with oneself, ripping people off all day,
and not escaping to some kind of addiction that night.



                     WHAT IS SIMILAR ABOUT ALL OF US


Most telemarketers have criminal records, tax liens, owe child support, and/or are wanted
by the police. They have developed emotional and psychological ticks, have mild to
moderate personality disorders, often breaking promises to bosses, family members, or
court and probation authorities, and usually have gotten caught for some kind of theft. We
are egomaniacs with inferiority complexes and enjoy having a sense of power over people,
usually behind the phone. Telemarketers pass themselves off as trying, caring, diligent, and
devoted people, but we are really habitual or pathological liars, often to the point where we
believe our own lies and fantasies about our own over-embellished accomplishments.

We have no real moral values and think we are smarter than the average person. We
certainly have our opinions and enjoy a drug-induced discussion with our cronies about
things that have no meaning in our personal lives. When we end up in a normal social
setting, we are always pitching and trying to get people to invest in our telemarketing or
business interests using a phony set of stats. Our views are very opinionated, anti-
government, anti-religion, and seem to have an attitude of indifference and belligerence.
We feel the world owes us something because somewhere along the line, growing up, society
failed us and we developed a sense of entitlement.

We never go for psychiatric therapy because looking at our past is too painful. We have in
the past been forced somehow into some kind of treatment, but we were deemed incurable
or conned our way through the system. We would rather live in
denial and suppress the feelings with euphoria or numbness through addictive behaviors.
That's not to say that we are not in serious need of some long-term recovery program.

You wouldn't find a telemarketer returning a wallet with money in it, and you better hope
you reported your credit cards stolen before the discovery. We tend to be sloppy and leave
trails of evidence that could implicate us very easily if our crimes were seriously
investigated. Most of us are a little scared to do blue collar crime, and we usually get a
lower companion to do our dirty work once we open the door.
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We have very basic antisocial behaviors, ranging from littering, spitting, and to pissing in
alleys or behind buildings. If we have an emergency and can't find a bathroom, we find a
semi-private spot, take a dump, and won't mind sacrificing our underwear for toilet paper.
 In fact, we may even hope somebody sees it, because we have a weird sense of humor. For
the most part, we are loners and spoof on other people for a laugh. We might say obnoxious
things to women, hoping we never see them again (setting the premise of phony phone calls
later in life), or creating an embarrassing scene for the people we are with in a checkout
line for the hell of it.

Our sexual behaviors have never been normal, however, we may have had some six- to
nine-month relationships that somehow we managed to screw up. As we look back in time,
we can always recount the few relationships we should have nourished and made work.
Generally speaking, we ended up using girls for whatever we could get. Some of us had two
or three girls at the same time, leading them to believe that they we're the only one.
Anonymous gay sex with the use of “gory holes” in bathroom stalls at libraries from time to
time was normal. There were some who had even more lewd sexual behaviors, but not
limited to, double-teaming on girls with their friends, statutory rape, underage child
abuses, date raping, or getting girls drunk and abusing them sexually. Eventually, we have
all at one time or another sold our soul or bodies in some way, shape or form, for more
drugs, food, or shelter.

If we get married or have a girlfriend, a prerequisite would be an $8 to $10 an-hour job, a
car, and an apartment. We look for girls who have either had recent losses or misfortunes
of some kind, or are desperate because of supporting children and hoping to find a father
figure for them. It won't be long before the girl is stuck with another kid, bad credit, and
angry parents. We are good initially with mother-in-laws because we talk a good game with
an unfortunate past and paint a picture of hope. Usually, they will help out with a small
loan or starter house. Their children’s life will soon be ruined because they were subjected
to one of us telemarketers. If they had a checking account or credit card, they certainly
don't anymore. If they happen to have children with us we are certainly not in touch with
them today and, if they could be, probably wouldn't be allowed to contact them anyway.
Child support or alimony is way out of the question, not because we don't earn, but they're
just too disgusted with us to have anything to do with us even if they need the money.

About five percent of us are female and are about a “4”, on a scale of 1-to-10, in the area of
attractiveness. Our upbringing is very similar to the guys. However, we have experienced
some sexual abuse as youngsters. We had a lot of unsafe sex growing up and probably
have a few venereal diseases, like venereal warts and herpes and hepatitis C. Most of the
guys we dated took advantage of us, had sex with us, and then left us with a broken heart.
So we became very bitter and resentful and turned to a life of drug abuse and alcoholism.
We become so pissed at our boyfriends, instead of putting them on the “shit list”; we put
them on the “hit list” and make attempts at ruining their cars, property, or lives, if we can.
 What angry female telemarketer hasn't used the “sugar in the gas tank” trick. These girls
just smash heads and windshields in plain view, usually in a drunken stupor?

14
Telemarketers are very rarely from the town they are working in. They are usually
escaping their own humiliation and failure, or running from the law. Everyone says that
they are from somewhere else. We have spent some time in enough places to know enough
to con our new friends and bosses. I think most of us lie to each other regardless of how
good of friends we may have become or how long we've known each other. When in
trouble, we are the first to snitch or turn on our friends to save our own butts. Many of us
have done hundreds of crimes against society for which we were never even caught, and we
are always looking over our shoulders. We are afraid to return home for fear of something
that might catch up to us. There are no family reunions and no way to earn family trust
because they have long past written us off. Perhaps the opportunity arises to visit an aging
parent or grandparent on their deathbed, but we only go with the hope of an inheritance.
We walk the world with guilt-ridden complexes and justify almost any devious action to
ourselves.

Ironically, many of us had opportunities that could have provided a very successful future,
and may have even netted a few dollars here and there, but we always managed to blow
them. I myself missed four or five opportunities that could have made me a multi-
millionaire by now, but somehow, because of my personality disorder and addictive
behavior, managed to screw every one of them up. I still manage to exaggerate even that,
because it to my true nature to stretch the truth.

We are the group of people who fall in between strong-armed thieves and big-time white-
collar criminals. There are approximately 200,000 of us, but we go practically unnoticed.
Violent crimes are so much easier for newspapers to report than the insidious crimes
against society that telemarketers perpetuate.

                                          THE LIFE

They don't call telemarketing operations “boiler rooms” for no reason. Generally
speaking, a boiler room is a substandard office setting with poor air ventilation, no
windows, or in a basement. Occasionally, we end up in a normal office setting, but we
harass our neighbors until we get evicted from the location. The big complaint we get from


normal environments and office neighbors is--we always have a lot of traffic coming and
going--there are always new employees. We pollute the environment with cigarette butts,
trash, loud noise and laughter, pot smoke, and rude remarks to normal office secretaries in
the building.

Most telemarketing operations are located in the low end of the big city where their
questionable activities will go unnoticed or ignored because blue-collar crime is more of an
issue in that area. Very seldom are telemarketing operations located in the suburbs off the
bus route. Sometimes telemarketing operations are in a hotel for a month or two and have
local phone lines installed. You can be sure that most telemarketing companies are not
able to live out their leases. Our daily environment makes us feel normal. We kind of lose a
sense of what is normal as far a society is concerned. Living and working around crack
15
whores becomes common place soon enough.

The standard resume for the average telemarketer includes open warrants, a criminal past,
and a current drug or gambling habit. Phone pros have their own lingo. Professional
telemarketers can communicate with each other in professional settings and never be
detected. When interviewing for a phone scam, this becomes the resume. This makes it very
hard for authorities to infiltrate these operations. Sometimes, we must use drugs in front of
the managers to show them that we are cool. The sign of a good telemarketer is that they
ask for an immediate draw so they can go out and get high and then not make it make it
back to work for a day or two. That is how an employer knows they have just hired a real
pro. A real pro knows that he will get re-hired no matter what his behavior is. This is
common knowledge and an accepted risk for owners of telemarketing rooms. The first sign
of an actual resume could mean trouble for the employer. It could, in fact, actually be a
police plant, or some type of investigator. Most telemarketers who appear nicely dressed
and have references usually don't get hired, or they end up in legitimate telemarketing jobs
that just pay by the hour.

Most telemarketing operations pay straight commission and depend on raw talent,
addicted drug and gambling degenerates needing a fix, to make the money. Telemarketing
companies that pay a small salary will never get a real Phone Pro unless the telemarketer is
planning on stealing the leads while he is working there to sell for a bigger commission to
the company's competitors. In all fairness, I have met some extremely talented salesman
working the phones. Usually, they were good outside salespeople who lost their cars or
driving privileges.

Since neither the companies nor the telemarketers are barely legitimate, the telemarketers
are subjected to lower employment standards than what is considered the minimum
requirements in society. There's really no breaks, the working hours can be long,
commissions and advancement promises rarely met in a timely manner or not at all. If the
company holds your first week's pay, kiss it goodbye if you leave the company. It's
considered a donation and something telemarketers laugh about.

There are no vacations, sick pay, or minimum wage. If your boss holds taxes out of your
check, you can be sure that he won't pay into the system, disqualifying you for
unemployment. Commissions are delayed by one to three weeks and if you leave the
company; you have nothing to fall back on except immediate crime, usually theft, to get off
the street.

Any smart telemarketer knows to run to the bank immediately when receiving a paycheck
because they bounce from time to time. Of course, they can only go to the bank if they
happen to have legitimate ID. Most telemarketers are forced to go to a check-cashing
store, losing 5% of our paycheck because of no ID. The telemarketing bosses have
arrangements with the owner of the check cashing company; otherwise the telemarketers
could not cash their checks. Many telemarketing companies just pay cash daily. You can
be fired without cause and there's no authority protecting you. Job firings usually occur
because of personality conflicts or lack of production, and almost always without warning.
16
There's never a two-week notice on either side. In fact, many telemarketing companies
depend on firing telemarketers just so they can keep their leads and the future commissions
from their sales efforts.

There's no job security, 401(k), retirement account, severance pay, sign-up bonus, and
really nothing to look forward to in the future. Although these perks are sometimes
advertised and offered, it’s rarely honored. No double-time or overtime pay. The one
benefit is free, extra strong coffee made in dirty pots and delivered in dirty cups. About
15% of us manage to sock away a few grand for an emergency, but never save towards
retirement. The owners of telemarketing companies usually give 1099s, independent
contractor agreements, so they can exempt their own tax liability. Ninety-nine percent of
the time, the owners are breaking the law with these arrangements because they are not
supplying supervision and not renting desk space that they include in their contracts. Also,
telemarketers in this case are supposed to carry their own workers' comp policies and be
registered with attorney general offices, or bonded, personally or corporately. This is just a
common joke that's almost never done.

Our only real opportunity for advancement is to become the assistant manager. However,
that entire job represents the fact that you are in charge of taking out the trash or making
the coffee. Usually, it's the worst salesman who takes this job because he hopes to receive a
bone of some type to live on. We tend to keep even lower companions around at times to
wait on us. Sometimes it’s someone to do drugs, bank runs, or office filing, and even they
get a little paycheck while they are being conned into thinking they may have a future.

You can be sure that if we have a cell phone or pager, it's because we have an illegal
business on the side. Its generally involving drugs, or we are receiving updates from our
stolen leads that we gave to other organizations. While most normal businesses have drug
testing, telemarketing operations encourage drug use. Once, our manager tried to get
everyone sober because he either cared about us or thought sales would increase.

However, within two months sales had dropped over 75% and soon he started supplying
crystal meth to us for free.

Our dress code is never a suit and tie unless we are infiltrating a legitimate company to
steal their leads, then and only then will we wear such a costume. At this point in our lives,
we would rather scam than commit an out-and-out theft. We're smart enough to know
that our bail probably wouldn't be posted because we don't have anyone that would go to
court to sign for us. Sometimes if our bail is under a thousand dollars, our bosses will bail
us out, but only if we're a good producer.

The telemarketers are subjected to constant face-offs and verbal abuse with the boss,
superiors, and other telemarketers. There are two types of people you must be careful of in
this world--rich people and people with nothing left to lose, because they place a low value
on life. We are subjected to the intoxication of other telemarketers and abuses. You can be
sure that there are concealed weapons in the phone room at all the times, but who possesses
them is always the mystery. The weapons are usually legal, not guns, but mace, knives, and
17
brass knuckles.

There's a constant worry that the telemarketer's leads will be stolen by another
telemarketer working in the same office or underhandedly sold to another company.
Personally, I've usually been the one benefiting from such actions, but even I have had to
fight for sales that I made that someone else assumed credit for. I try to look for upscale
operations where that's not a problem so that I can be the only one to worry about.
Telemarketers are the first to point fingers at each other to get ahead. To get framed by
another telemarketer stealing leads or money is commonplace. Although we like to think
we have a reputation for not telling on each other, like gangsters or mafia, we would be the
first to cooperate with the police and be a wired plant if it would mean having charges
dropped against us. Although we talk a good game, we really can't be trusted or trust any
of our peers, no matter how long we have known them.

We are subjected to the bad habits of other telemarketers including, but not limited to,
cigarette smoke, body odor, cold viruses, and other unhealthy environmental surroundings.
 And we are not the types to wash our hands after leaving the bathroom. A shower can be
a quick splash of water on the face. Discrimination and sexual abuse are commonplace.

Occasionally, we will try to break off on our own with stolen leads and some of our co-
workers to start our own company, but it rarely becomes successful. We often return to our
bosses, knowing that we ripped them off in the past. It's a sick world of co-dependence,
and soon both parties are back in business together.

As we went through our telemarketing careers, we developed a superficial taste for high-
class behavior. However, most of the time, we can pack up all of our belongings in three
suitcases that we can carry in a hurry. Our dress code varies from one telemarketer to the
next.

Most of us acquire our clothes in bulk somehow instead of piecemeal. You will see most of
us wearing layers of clothing so that we are always prepared if we have to change our
clothes for some reason. We don't have normal homes with normal hours that we can
count on and sometimes we need to abandon our shelters in a hurry, so we want to make
sure we have enough clothing with us to start over in a new place. Our complete wardrobes
are attained through theft or death. We do manage to take pride in our clothes, jewelry,
cars, or high-end type of food or living condition. But we never usually have all of these at
once. Our life is an illusion of false hope and wishful thinking. When times are good, we
live like millionaires. When times are bad, we're happy to have food and shelter. It's
generally either feast or famine, mostly famine because a good hit doesn't last long. When
we do make a score, we are very irresponsible with the money or manage to get ripped off
ourselves.

The telemarketers usually live in hotels or company shelters of some kind and are taken
advantage of with high prices for room and board. Some of us rent rooms in middle class
homes because we present well, but almost always create a mess or steal something and get
thrown out. If we manage to get an apartment and are smart enough to get some phony
18
references to cover for us, we rarely live out the lease and generally there is court action
taken against us. When sales are slow, telemarketers can make as little as $15 or $20 a day
and depend on an advance for a place to sleep that night.

We usually go on an empty stomach until we get our advance around lunchtime. A
common practice is to fill our basket at a grocery store and eat while we walk around,
pretending to shop. When we have eaten our fill, we leave a basket full of half-eaten food
for a manager or employee to clean up. On these grocery store excursions, we enjoy a
quick two-minute high by sucking the gas, which is a nitrite, out of whipped cream cans.
Of course, we put the now dead can back on the shelf without paying and stroll happily
away.

You might find us keeping the same telemarketing job for months and sometimes years as
an attempt to live a normal life but, eventually, with nothing saved, we run into financial
problems or situations, which prompt us to look for a shortcut. We may even want to live a
normal life and clean up our act, but if we see an opportunity to steal a box of someone's
leads or discover a way to steal without too much chance of getting caught, we will always
go that route.

From time to time, we take advantage of government programs for general relief, welfare
or food stamps. We capitalize on car accidents and insurance cases, whether real or not.
We always seem to have some financial opportunity in the works that we think will get us
out of our misery and off the dreadful phones. There is always something we think will
buy us a possibility into the big-time. We dream of an early retirement on an island and
living a life of pleasure. There is always some miniature scam in the works or planning
stage that we hope will be the launching pad for that dream. We're always looking for a
quick fix or a shortcut because making thousands of phone calls can be very boring,
frustrating and financially unproductive at times.

When an unethical or rip-off sale took place, we would get a pat on the back and exchange
laughter. It is nothing more than any easy way to make money. In fact, it was criminal
behavior with very little risk, very little potential of being implicated. Even if we were
caught and the outcome was successfully prosecuted, there was just a slap on the wrist or a
small fine. We go through life committing about thirty to forty misdemeanors per day on
the phone, plus an occasional felony. We lie almost every time we pick up the phone, even
if we're selling something legitimate, and even if it's a legit company. We are incapable of
being honest with ourselves and certainly not with others.




19
     Some Of My Friends & Little About Fundraising

Alan Cohen, aka Terry Thornton, deserves to have a book written solely about him. His
nickname was “Daddy” because everybody who didn't buy from him received a severe
spanking. This included criminal verbal abuse he used on children and the elderly, and
anyone else who happened to answer the phone.

I originally met Alan aka Terry in a telemarketing room in San Diego, California. They
were selling advertising for police and fire magazines. We were selling a full-page ad in a
police magazine that was national and barely circulated. We had to convince our prospects
that it was for the local police or fire departments and our yearbook was distributed to
everyone in the local community. We were selling a full-page ad for $1,200 and we were
able to drop the price all the way down to a $25 for a business card listing. We'll come
back to the rest of this particular story about how we would rip off thousands of business
owners nationally, but first more about Terry.

Terry had devilish blue eyes and rotten teeth. He managed to keep some decent clothes
and he fooled himself into thinking he was normal and stylish. He thought that no one
would notice his character defects. This was the background story that Terry had told
everybody upon meeting. He had been married to a nice Jewish girl in Florida and had
three kids. He had owned a successful telemarketing light bulb business that went a little
haywire. As we later found out, the only thing Terry did in Florida was time. Time in
federal prison for double-invoicing government agencies for light bulbs for a company
originally located in Long Island, New York. In fact, Terry had walked off a Florida work
camp and became an escaped prisoner. I always wondered why he knew a little Hebrew,
because he hated Jews, only to find out that he himself was Jewish. There was never a wife,
kids, or millionaire in-laws, and certainly never a beautiful home on the inner-coastal
canal.

Terry was a full-blown alcoholic and drug addict. Terry needed at least a pint of alcohol
every day just to keep from getting sick. He was also the funniest telemarketer I ever met
in my life. He was funny to me and to everyone else standing in the room listening to him
pitch, but he wasn't so funny to the person on the other end of the phone. The person on
the other end was experiencing something more like complete terror.

Terry started all his pitches very nicely, professional and quite appropriate. However,
upon receiving the first objection the real Terry started to come out. First off, he didn't
understand the word "no." In fact, he would generally pretend he did not hear the first
objection. As any good salesman knows, they would try the assumptive “close” at this
point. An assumptive close is when a telemarketer presumes that a customer said yes,
whether they did or not, and continues forward in the discussion with closing details of the
sale. Upon reaching the second objection, a little humor would set in. If the objection were
a simple no, he would ask questionably, "No? What do you mean no? Nobody says no to
20
the police” and then chuckle while attempting to re-close. We are now getting ready for
the third objection and the beginning of the official spanking. But first, let’s take a ride into
the daily background.

When I was working with Terry, I was picked up early in the morning and taken in to our
telemarketing office on El Cajon Boulevard in San Diego, California. We referred to this
street as the “Boulevard of False Promises and Broken Dreams.” It was sort of like kids
who come to Hollywood with their life savings, trying to become stars, only to be rudely
awakened. After selling about $500 to $1,000 in business in three or four hours, it was time
for lunch. We were always paid cash daily and spent our money daily. Usually by 2:00
p.m. or 3:00 p.m., the party was on. This included $10 worth of pot and a pint of cheap
whiskey. Occasionally, if we started smoking crack, we would never return for the
afternoon shift because, the drug is so mentally destructive, it's impossible to function on
the phone. Occasionally, if we weren't smoking crack that day, we were able to come back
to work on the night shift, calling residences about our phony neighborhood watch police
programs, or our federal matching fund programs for more police protection. At around
9:00 p.m., we would then resume our drug use. We would be taken back to our apartments
or the company house for a long night of continued crack smoking. We would make five or
ten trips to the dealer every night. Sometimes we would even send a Mexican dealer over
to pick up a cash donation that we had sold and deliver crack back to us while at work.
The real irony came in our pitch because we were pitching the war on drugs while pot or
crack was coming out of our mouth. Imagine, just in our company, which was just one, tens
of thousands of telemarketers doing this same thing every minute of every day.

Terry had me on the floor in stomach pains he was so funny. Of course, to enjoy the
humor, you had to be on our side of the phone. I learned a lot from Terry, especially about
comedy in sales. Beyond the first couple of objections, the humor was set aside and the
spanking began. First, he would guilt them into a smaller sponsorship. He would begin
dropping the price and the size of the advertising. The lies got bigger because, in our
business, the biggest liar made the most money.

We did a semi-bogus veteran's news publication that was barely circulated. Of course,
95% of the money ended up within the telemarketing operation. When pitching the veteran
deals, Terry would use lines like "If I had wheels on my wheelchair, I'd come over and pick
up the donation myself." At the time, I thought this was quite funny. During Desert
Storm, he would tell restaurant owners that the soldiers would be handed menus as they
got off the ship. Quite ridiculous, but the merchants felt like they owed something to the
soldiers who risked their lives.
A publication worth mentioning was the Union Gazette. We called the ads in the classifieds
of major union towns' newspapers under “Childcare” and promised them we would fill
their pre-schools or childcare nurseries with kids because we told them we had an internal
referral line with the paper. They all got screwed. Those poor single mothers, stuck home
with their kids, trying to pay their way through life by babysitting a few extra kids, we're
getting whacked out of $75. Terry seemed to have a knack with mothers and children, so he
aced this deal.

21
Once in a while, during the police fundraiser, Terry would introduce “The barking dog”
pitch. He would pretend he was a canine police officer. Suddenly, he would take his mouth
away from the phone and start barking and yelling at the dogs at the same time, telling the
dogs to simmer down. Terry would make a few comments about how hard his job was and
how these dogs were out of control. Then he would attempt another close. If the prospects
said no to the price drop, Terry would repeat the word “ey, ey” several times, as if the
person had said something inappropriate or were out of line for turning down even the
business card listing.

These pitches got extremely creative sometimes. It was commonplace to say that we were
receiving federal matching funds, as if the federal government was participating in our
local police fundraising effort. Sometimes we would say that the money was being used for
“The Missing Children's program.” We even said that we were using the money for sting
operations on local drug dealers. This made the business owner we were talking to really
feel like they were a part of something good. Almost as if they were being called on to do
God's work.

Some of our last resort efforts were that we insisted that all businesses had to participate
this year and that they really had no choice. Finally, Terry would resort to using the tactic
of extortion. Since they thought we were pitching for the police and fire department, Terry
would offer the company’s official decals for their businesses to avoid huge fines for their
fire inspection. We even led them to believe that they had to buy our stickers or they would
get huge fines even if they weren't in violation of any ordinances or laws. I remember once
on a call, I mentioned something about some “dumping” out back and I got very lucky. It
seems that there was some illegal trash out back and the storeowner thought that we knew
about it. He ended buying a full-page ad.

Customers are always a little paranoid about the police. Sometimes we would try to extort
companies by hinting that something illegal was going on, especially when calling bars,
video and porn shops, or escort services. If it didn't work, we would laugh it off as a joke.
But then we would guilt them into supporting the police. Strictly because they make so
much more money than the Police. We would tell them about the dangers of the job or
complain about low pay. This way we were extorting them in a way that let them feel good
about their donation, as well as avoiding any admission of guilt about their part. So
everyone was happy in the end. We even pitched “The Memorial Fund for the Fallen
Officers”, especially if there was something in the news; it was easy picking for donations at
the expense of murdered cops.

Sometimes we promised that the police or fireman would take their business to them if they
took out an ad. We promised laundries that they would get all of the departments dry
cleaning. We told service shops that they would have an exclusive contract to maintain
police vehicles. An endless list of false promises.

Terry is a menace to society. Not just because of all the people he ripped off but because of
the abuses that he was able to deliver over the phone. If a young child happened to answer
the phone, serious criminal child abuse would begin. If it was a little girl around 12 years
22
old, Terry would say he was a doctor and asked the little girl if she had begun
menstruating or masturbating yet. He would mention "quivering butt cheeks", or some
other lewd expression, to make the kids laugh and get them to open up and give out
information.

I even heard him on one occasion giving instructions to a young child to begin touching
himself in a very seductive way. Sometimes Terry would even say he was their real daddy
and threaten to come over and give the child a spanking. It was hard for me to say
anything at the time because of my position in the company. But I probably wouldn't have
said anything anyway because I was always on drugs and really cared very little about
society. Personally, I used to wonder why adults would even let their children answer the
phone with people like Terry calling.

Let's not forget about all the thousands of secretaries that have been verbally- sexually
assaulted by the thousands of telemarketers in this country, daily. I have heard Terry
commit these crimes on an hourly basis, every day, for years. The comments ranged from
requesting oral sex to threatening them with rape and molestation. I think if you took a
poll of all the secretaries in this country, you would find that telemarketers have verbally-
sexually abused almost every single one of them.

Terry was finally extradited back to Florida in a prison bus. The last week of his freedom,
he was living in the Ocean Beach Motel in Ocean Beach, California, injecting crystal meth
every hour. In the end, Terry was pitching local merchants from his hotel room in Ocean
Beach on a 100-point deal. A 100-point deals means 100% for himself. He was using stolen
calling cards and bogus UPS accounts to collect money and cashing the checks at local
check cashing stores.

Yes, Terry was quite a character. I wonder where he is today. He's probably working
some phone room under an alias and continuing his drug habit. Oh, I'm sure he did a few
years in prison, but that's not enough to stop Terry. He's criminally insane forever. Be
careful the next time your children answer the phone, it could be Daddy, aka Terry
Thornton, A. K. A. Allen Cohen, or any one of the other 200,000 deranged telemarketers in
this country.

God help the business owners and the citizens. Keep in mind that caller ID, call blocking,
and call forwarding will not stop the average telemarketers, because they generally prey on
senior citizens and businesses not prepared to stop these predators of human kindness. The
telephone company, UPS, and thousands of people are losing millions of dollars daily from
people like Terry.

The stories and sale's tactics in the following chapters will shock you and you'll want all
telemarketers to be fingerprinted, photographed, bonded or, more likely, imprisoned for
life. Either that, or you too will want to take action and blow up the closest phone room
you can find.


23
Izzy
In 1990, my company went down the tubes, was featured on the nationally syndicated show
"Inside Edition", and I was labeled a fraud. I was broke and had lost all my assets. The
only thing I had left was a round-trip ticket to anywhere in the United States that I
received from being bumped off a previous flight. I looked in the USA Today classified ads
and found an ad for a telemarketer. The ad was looking for phone pros to relocate to
California. It promised “Room and board and a 200-dollar sign up bonus.” I was really
just looking for a crash pad and a job out of town and so this seemed perfect. I gave them
the perfect pitch that I was on the run and just had millions of dollars frozen by the IRS.

I was picked up from the airport by “Pops.” Pops was the retired alcoholic father of the
owner of the telemarketing operation. The manager, as I was soon to find out, was Israel
Morrie, aka Antonio Gotti, commonly know as “Izzy”. Izzy was my first manager in a so-
called fundraising business. Pops drove me to the company house. The company house
was a nice middle-class home in a nice middle-class neighborhood with eight drug and
gambling-addicted telemarketers living there. It is very rare for telemarketers like us to be
able to come up with a security deposit and first month's rent, so a flophouse of this type
was common. After unloading my luggage, Pops drove me to the office, which was located
between a heroine methadone clinic and a Baptist Church, and this is where I met Izzy.

Within minutes of my arrival at the office, twenty college kids working the night shift
bombarded Izzy's office, complaining that their paychecks had bounced. Izzy deftly
handled the situation, fighting them off one by one by screaming like a raging maniac. I
had flown all this way and I thought that I would never see a dime from this company.
After the college kids left, Izzy assured me that the night shift was always treated second
rate, but I would definitely get paid because I was a real phone pro. They couldn't afford
to lose me. Thank the devil himself for them; I ended up being responsible for an extra 10
million in revenue for the organization.


After the college kids left, I was handed a telemarketing script that seemed pretty
legitimate. I sat down at my desk and read it over, trying to figure out the angle. In the
background, I heard another telemarketer mention the word "fire marshal" and wondered
why I didn't see that word on the script. I walked into Izzy's office to get some clarification
about the pitch. This was when Izzy informed me of his greatest telemarketing advice. The
biggest liar makes the most money. I learned a lot from Izzy and, in fact, became the best
salesman in the company. I guess I was the biggest liar there. Hey, “Inside Edition” had
labeled me a fraud, so why not expand on my reputation?

I came to find out that Izzy had just completed a seven-year sentence for second-degree
murder. He was involved in a drug deal that went bad and somehow a husband and wife
drug team had been shot. Izzy had no choice but to finish them off. The truth of the
matter is that Izzy has no real identity and, to this day, I am not completely sure who or
what he really was. What I do know is that he was a full-blown alcoholic and crack addict,
24
as well as being a master manipulator and fraud. Sexually, Izzy was a strange character.
He would often spend his money supporting prostitutes, thinking that he was having a
relationship with them. Sometimes Izzy would come across a lonely lady while making his
calls and so he would earn her trust by saying he was a volunteer calling on behalf of the
police or fire department. The next thing you knew he would end up crashing on her couch
for a few days. Another thing I noticed about Izzy was that he was always borrowing other
people's cars. Days and weeks would pass before they got their cars back and, by then, the
car would be totally trashed out including cigarette burns and dents from fender benders.

 Izzy is able to go to a new city with a dollar in his pocket and beer and by the end of the
day have an office with two working telephones. He would furnish the office with tons of
office supplies that he was able to get for free, on credit, from office supply companies and
after a week in the new office it would look like he had been there for years.

Izzy never had to live in the company house because he would trade advertising in our
publications for free hotel stays. In fact, he set up this fraudulent trade system to get
anything he wanted. One time the engine of his car had blown out and so he traded a full-
page ad in our cop's yearbook to get his engine completely rebuilt. Izzy was known as the
"trade-out king" and, therefore, obtained everything in his life for free. This enabled him
to spend all his money on crack and beer.

Izzy enjoyed pointing out interesting fraudulent facts about our business. For instance,
over a period of a year, our organization would sell 5,000 to 10,000 ads per week for the
police fundraising yearbook. If we actually printed it, the yearbook would have been as
huge as the Chicago telephone directory. Can you imagine a yearbook with a half million
ads weighing 10 pounds? Not only that, but Izzy promised everybody the front inside
cover or the back page.

Izzy promised every merchant a hand-delivered copy of the publication. Of course, that
never happened. We did have a couple fake yearbooks containing a handful of ads to show
to merchants who insisted on seeing a copy before they placed the ad. Another trick of
Izzy's was using photocopies of people's signatures on checks from past deals and
recopying them onto new authorization forms for renewal ads. This locked the merchant
into a renewal bill with a copy of their signature. Try defending that one!

Izzy was a cancer to society and cost the public thousands of dollars every month in
damages. Izzy did not have a legitimate Social Security number because, when he did use
his number, it would come back with warrants issued on it. Izzy would obtain the identity
of some poor innocent soul, usually from job applications he would obtain, and ruin their
life with bad credit and create court dates that would lead to arrest warrants. There were
a couple of occasions when one of those poor souls would track Izzy down and he would
have to abandon his current shelter in a big hurry only to continue a trail of ruining
peoples lives in another place. In the last ten years, Izzy had forty or fifty different
residences, mostly hotels, and every one of them got burned for something.

In the end, Izzy was supplying all the local telemarketing operations with crystal meth and
25
doing rather well in that business. Eventually, he was caught masturbating in a peep show
while possessing enough crystal meth to start a five-store franchise. Today, Izzy is serving
six years. He narrowly avoided a third strike life sentence.

After reading about Terry and Izzy, you would think you had heard enough but,
unfortunately, that's just the tip, and I mean the very tip of the iceberg. The general
makeup of these very scary people are worth mentioning because it’s important to be able
to recognize what these people may look like in this Army of 200,000 criminals nationwide.



Scotty
One of my favorite telemarketers was someone I kind of felt sorry for. His name was
Scotty. He came from a normal upbringing and even played varsity football in high school.
 He spent all his after-school time involved in sports and avoided taking trade school
because the bus did not return to the high school in time for football workouts and games.
He narrowly missed getting a football scholarship due to poor grades and, since he came
from a poor family, he couldn't pay for college. Scotty made an honest attempt working as
a bartender in a local pub but soon succumbed to alcoholism. Scotty then started a ten-
year run with drugs and alcohol.


After losing job after job and wrecking car after car, Scotty tried the old geographic cure.
He moved from a blue-collar community in Lowell, Massachusetts to the land of shady
people in sunny places like San Diego, California.

Scotty was an alcoholic with a criminal record and so he looked under "Telemarketing" in
the classified section of the newspaper. Where else can a person find a job without a
resume, decent background, clean record, or anything that really checks out?
Telemarketing is the last stop before direct criminal careers and, coincidentally, the first
place prison parolees look for employment.

Scotty had no sales experience and was given a clean honest pitch. We had to keep this
honest pitch in front of us in case we got raided. Of course, no one makes any sales with a
legitimate pitch. I took a liking to Scotty and so I informed him that he better listen to my
pitch or Izzy's if he wanted to make any money. Normally, drug addicts and alcoholics are
egomaniacs with inferiority complexes and resist any type of sensible advice. But Scotty
needed the cash, so he put his attitude of indifference aside and became a player.

In my pitch, I used to say that we were with the police association, to keep it a little bit
legitimate. Scotty, on the other hand, had a deep voice, and so he just came right out and
said he was the police. He added one of my little jokes, saying, "You can put your hands
down now. There's no warrants for your arrest," and then he would chuckle. The pitch
actually worked for him, thanks to his bravery for going so far over the line.
26
Living in Southern California, Scotty discovered crystal meth and crack cocaine and
became a complete menace to society. He soon earned the nickname "tear-up-the- carpet
Scotty" because he would tear up the carpet in every hotel he stayed at, thinking that he
dropped crack cocaine under it. He was even known to pull hotel sinks out of the floor
because he thought that he had dropped cocaine down the drain. This was actually the
mellow Scotty. Scotty developed a much darker side. While on drug runs in between
telemarketing shifts, Scotty would trick gay men into thinking that he would have sex with
them and then rob them for drug money. We always knew when Scotty was on a run
because the local police would visit our telemarketing operation, looking for him. We
always had several locations in one city so that Scotty could avoid the police and keep
working. After all, we could not afford to lose a good Phone Pro.

Scotty injured many people, mainly homosexuals, who were unable to report the crimes
because of their illegal involvement. Scotty was so crazy that he would go to a group of five
or ten Mexican drug dealers and sample their crack without a dime in his pocket.
Normally, one would be beaten up or killed for this type of behavior, but not Scotty. He
scared everybody. People on crack need a second hit so badly after taking a first hit that
they will do anything, including robbing people and other things that telemarketers
wouldn't normally resort to. Scotty was accumulating so many misdemeanor warrants
under his five different aliases that our main telemarketing office started receiving bills for
bail warrants for him. It seemed that if he didn't show up to court on a certain
misdemeanor, he would just get a bill. Scotty thought it was hilarious when one of his
stolen aliases got arrested for one of his hideous crimes.

He was just another crazy telemarketing drug addict. One of 200,000 terrorizing this
country every day nationwide. An interesting point here is that the prospects that Scotty
pitched love him because he made them laugh. Little did they know that he was criminally
insane.


Larry
Another interesting telemarketer was Larry. Aside from been a degenerate gambler who
claimed he once owned a Lear jet, he was also a sex addict. Every time Larry smoked
crack, he would get undressed and start masturbating in public regardless of whether there
were any children around. I always wondered why I never read about him in the
newspaper, it happened so frequently, and this seemed so newsworthy. His favorite
locations were crowded restaurants and he would narrowly escape before the police
arrived. I personally witnessed this outrageous scene many times over.

Upon receiving his daily commission, Larry would head to the track. It didn't matter what
kind of track or casino, as long as gambling was involved. He lost every time because he
could not walk away a winner. However, he would save $10 or $20 for drugs or alcohol.
This always impressed me. It seemed that he didn't need much in the way of drugs or
alcohol because he had crossed that invisible line people talk about in which a very minimal
27
amount of drugs are needed to enter into another state of being. His altered state of being
usually included complete and total paranoia and uncontrollable sex-craved needs.

Larry actually almost graduated law school and was very intelligent. I don't remember
why he didn't finish school, but I certainly knew that his present state of addiction was why
he wasn't enrolled in night classes. Larry was our jailhouse lawyer and advised us on our
legal problems. He seemed to know more from personal experience than from law school.

He worked with unscrupulous film production companies that had a history of scamming
millions of dollars from pre-qualified investors by creating interest from movie stars that
he was able to contact because of his sophisticated talents and pitches. He would receive
huge commissions from the investments, but the productions were rarely ever made. His
lies were so believable and exciting that he would get movie stars to endorse fundraising
benefits that were less than beneficial to their supposed charities and much more beneficial
to his income.


Simon
Simon was a standup comic for 27 successful years in the Catskill Mountains.
Unfortunately, during his career, Simon smoked up every dime he ever made in cocaine.
Simon was not much of a salesman, but he was a very good motivator, so he became our
room manager. Simon was just a washed-up comic who was never able to accumulate any
assets in life, which led him to becoming a telemarketer. Had it not been for the fact that
he was a child molester, one would think that he was a very decent guy.

Simon would spend his afternoons off work cruising Mission Beach in San Diego for
runaway children and offering them money for sex. Simon just wanted to be loved. He had
no teeth and really looked washed out but, when you're a runaway, homeless, broke and
hungry, you'll let anyone fondle you for a couple of dollars. I hate to admit it but even I
ended up homeless one night and was forced to let Simon blow me in exchange for a place
to sleep. I forgave him, I guess.

Simon was also a churchgoer, every Sunday. Simon would be invited over to people's
homes regularly. He stole drugs from their medicine cabinets for the purpose of
propositioning sex with telemarketers. Simon subjected all the telemarketers to lewd
homosexual insults all day. We certainly had no recourse with any governmental agency. I
was subjected to verbal sexual abuse and being hit on every day, sometimes every hour, by
somebody very gross.

Living and working around Simon was extremely disgusting. He had no manners when he
was eating and used to pick his nose in front of you all the time. He wore the same clothes
and underwear almost every day without washing, and so you were subjected to his body
odor while attending sales meetings.

In spite all of that, I had a lot of respect for Simon because he no longer used drugs. Since
28
Simon didn't do drugs, he was trusted with the draw money. That, and not being a good
salesman, was apparently the only credentials needed to be the manager, except for maybe
a few motivating leadership skills. Simon was very nice to us telemarketers and, in a way,
was a role model for us. He would provide spiritual counseling and was well read in the
arts. Simon was very giving and he would buy us breakfast because we were all broke
from the preceding night's partying. Also, he knew that it was hard to rob people over the
phone on an empty stomach. He would think of almost anything to get people to like him.
He always had an ample supply of cigarettes in his office, so you would have to go into his
office and pretend you needed some guidance so you could bum a cigarette from him. He
knew the game, but needed the attention.

Sometimes we would need to talk after making a sale so that we could brag about how big
the lie was. Simon would always compliment us on our talent. Strange, isn't it?
Telemarketing has to be the only business in the world where your boss would call you a
liar and it would be a compliment. It was very twisted, but everybody needs a pat on the
back, no matter how unspiritual.

Most telemarketers and managers have other aspirations to try to escape the telemarketing
world. Simon was a writer and he was attempting to write an award-winning screenplay.
The chances of that were slim to none. However, I'm happy to report that Simon is no
longer in the telemarketing business. Now he is a night watchman at a drug rehabilitation
center in San Diego.

Cary
Cary was a drug, alcohol, and overeating and gambling addict. What made Cary stand
apart from the other drug addicts was that he had a genius IQ. He probably would have
made a fine accountant, dentist, doctor, or lawyer, but he suffered from severe attention-
deficit disorder and extreme laziness.

Cary used his intelligence to look for shortcuts within an organization. He would come to
work armed with his own agenda and rob people way beyond the intended scope of the
most fraudulent telemarketing operations. He carried out his missions by being a double
agent with other telemarketing operations or cultivating associations with non-
telemarketing criminals to support him in his endeavors.

For example, Cary would find a way to divert money directly from the telemarketing
organization he worked for into his own checking account. This would end up disabling his
current telemarketing company and he would then steal and sell off leads to the other
companies that he was working for as a double agent. Sometimes he would cause wars
between telemarketing companies by selling the consumer the same deal and creating two
separate check drafts. Telemarketing companies are the first to call the police on each
other. However, most telemarketing companies are too busy fending off the police, Better
Business Bureau, and disgruntled customers to keep an eye on their own personnel.

Cary is an example of the kind of renegade telemarketer who would work for a legitimate
29
company but find a way to trick their bosses and customers out of thousands of dollars.
The point is that, even when a legitimate telemarketing company is calling you, there is a
possibility that a renegade telemarketer like Cary has infiltrated them. You never know
whom to believe on the other end of the telephone regardless of whom they say they
represent.

Cary created ingenious telemarketing pitches that always included the standard techniques
of professional salesmanship. He was well read and very up to date on the latest
technologies in salesmanship and Internet uses. He would create common ground with his
prospects so that they would become friends. This would enable him to gain their trust so
that he could close deals for much higher dollar amounts than the average telemarketer.
He also had an amazing ability to change his voice, personality, and job titles within the
same call, leading his prospects into believing an entire team was making them special
offers. The customers were carried down a hopeful road full of false promises.

Some people actually didn't complain after finding out that they were burned because they
never wanted to think that this guy was really a fraud. They were happier to accept defeat
with admiration or stay in denial. He gave people such hope that people's hearts were hurt
by the fraud more than their pocketbooks.

Robbie
Robbie was a demented, psychotic, emotionally unstable, out-of-control telemarketer.
Robbie should have had medication to control his ballistic behavior because he was
definitely a case for lithium. In fact, Robbie was kicked out of drug rehab and declared
incurable. Despite this, Robbie was an excellent closer. He made a great first impression
and was very likable in the beginning of most of his conversations. However, because of his
personality disorder, if a prospect did not make a purchase, Robbie would become
extremely rude and use numerous obscenities on them. Sometimes, the nicest, most upbeat
telemarketer is really just someone in the “mania” part of their psychoses.

All the 200,000 renegade telemarketers that I have been referring to get rude on occasion,
but Robbie was so rude that all the customers would become extremely upset. Robbie had
a way of pissing people off to the point where their blood pressure would rise to the boiling
point. Perhaps it was the death threats and frightening violent behavior he displayed on
the phone.

People like Robbie were usually assigned to handle customer complaints. In most
businesses, it is the most diplomatic person who would be in charge of customer
complaints. In the renegade telemarketing business, we are not concerned with keeping
customers happy or handling their complaints. We just want these people to stop
harassing us and tying up our phone lines. So we would put a maniac like Robbie on the
phones. After a call with Robbie, most people would give up their complaints immediately.



30
Margo
The most decent telemarketer I ever met was a girl named Margo. She just had a problem
getting her life together. Margo went from job to job, living off the paid training or
advances they gave her until she was found out and fired. She was kept around some rooms
for menial jobs or simple customer service type calls. Margo was not a drug addict or
gambler, but she did do a little prostitution from time to time for rent money.

Margo is just one of the unfortunates in our society who has nowhere to go and no place to
work, so they end up in telemarketing operations. She was completely harmless except for
the fact that she had HIV and never used condoms for her tricks. I suspect that most
telemarketers are infected with Hepatitis C, definitely herpes, and some with other sexually
transmitted diseases.

On several occasions, Margo would befriend lonely old men that she met on the phone. She
would go to their house and then rob them of all their cash and medication. She kept the
cash for herself and sold the medication to the rest of us at the telemarketing office.

Dee
And last, but not least, was my adopted mother, Dee. Dee was a 66-year-old bag lady. Dee
was missing a few teeth, always wore the same shawl, and wore a big red wig. She actually
had an apartment but could barely pay the rent with the meager Social Security check she
received each month. Before I met her, she roamed the city looking for cans and bottles to
cash in and food lines to wait in. We actually helped each other out quite a bit. I got her
hot water turned back on, caught her up with her landlord, filled her fridge with real food
and kind of gave her a purpose in life.

Dee created a nitch for herself in one of my operations. I used her to pitch senior citizens
because she sounded so kind. I was able to work her sixty hours a week for around $100,
and she was grateful for it. Much to my surprise, Dee turned out to be a pretty good
telemarketer. No one really had ever given her much of a chance before me. I guess I
broke even on her in the end because sometimes she could close deals when everyone else
was slow.

Dee was good for a laugh, too. When angry customers showed up at the office, they
couldn't believe that they had been sold by such an outlandish-looking bagwoman. There
was one time when I hired a girl to be a secretary but told her that she was going to be the
Controller. When she introduced herself to Dee as such, Dee turned around and said that
she was the Vice President. I think what that girl's first tip-off was that she was about to
have the biggest bullshit job of her life. I gave all my employees a big corporate title. Some
actually took their titles seriously, especially people not familiar with the telemarketing
world. Anyway, the new girl didn't last too long. I ended up firing her because she was too
efficient. I later found out that she was a crystal meth addict, which was the reason she
manically made a file on every single individual cash receipt. We really attracted the same
31
types of people even if they weren't telemarketers.




32
                         The Leaders Of The Pack

It would not be fair to talk about all these crazy telemarketers without talking about our
leaders. Let's take a look at some fund-raising promoters that were at the top of the
telemarketing companies.

The head of one particular organization was named Dave Sneed. That's not his real name,
but for fear of retribution, I'll keep that silent. When I first met Mr. Sneed, I was very
impressed. His office and home was in an immaculate double condo overlooking Lake
Michigan in Chicago. He had a fleet of black Cadillac’s and houseboys running around the
condo, waiting on him hand and foot. He had a very impressive security system, also.
Entering the apartment was like entering a top secret CIA office or something from a
James Bond movie. You would walk through the front door and it would shut behind you,
momentarily trapping you between the front door and another set of doors, so that you
could be videotaped and scanned before you entered. I felt like a wholesale diamond
dealer. I also felt like I had arrived. It was my opportunity to play with the big boys. I had
become the No. 1 telemarketer in the country and now it was my turn to be on top. Dave
offered me a job as the National Telemarketing Director in charge of 330 offices and 4,432
telemarketers nationwide. I was very excited at the possibility of becoming wealthy and
having respect and power.

Dave Sneed, to sum up in one satanic sentence, was a child-molesting cocaine addict. I
guess the sickest part about Mr. Sneed was the fact that he raped underage runaways
under the influence of drugs. Dave Sneed sent "barkers" to bus and train stations across
the country. A barker was someone who would meet a runaway child and send them up to
the “ palace”, which was Dave Sneed's condo overlooking the lake in Chicago. The barker
would receive $50 for every child that was sent to the palace. Of course, he was a very good
recruiter for our organization as well.

Dave Sneed's right-hand man was Scott Wise. He had just gotten out of federal prison after
a four-year stretch for infiltrating his way onto an Air Force Base posing as an officer for
the sole purpose of soliciting sex from the new enlistees that needed money. His job was to
line up all drugs and sex for Dave. This was the organization and the administration that I
was to report to.

Dave Sneed knew where to recruit. His efforts were concentrated on prison parolees, drug
addicts on the run, and people without roots or ties to indecent people. Dave gave us a lot
of hope, mainly false hope, promising us our own telemarketing operations that he would
finance. A popular arrangement was that he would pay the rent and the phones and we
would handle the personnel for 50% of every deal. Many offices were set up in this fashion.
 For a time, I really thought I had a future with this organization, but the more I found out
about the inner workings, the more I realized that it was a dead end.

33
Dave's offices screwed millions from phone companies and newspapers every month. Dave
would change long distance phone services in his offices every couple months, so really, all
he had to pay was rent and 5% of what was collected for the charity. Dave would teach us
to change locations, hire some idiot, and convince him he was the owner, or just use an
application of someone legit that didn't get hired and start the long distance phone rip off
all over again.

Dave also taught us to advertise in “Help Wanted” sections of newspapers on credit in
search for more telemarketing pros. Apparently, the newspapers check your credit simply
by checking to see if your company is listed in the directory information. He paid some of
them late and some not at all.

We were calling nationwide and had to convince businesses and residences that we were
local fundraisers calling on behalf of their local concerns. The customers were either
mailed invoices with return addresses for local post office boxes, or we would send a
courier to pick up the check and say that he was a volunteer. UPS or Federal Express
picked up most of the checks at the businesses. We explained to them that the check was
going back to a retired officer that was doing the printing for the yearbook. I am still
amazed that UPS and Federal Express did not require huge deposits for this type of
service. All they require is a business name that can be checked out with the telephone
company. How hard is that? I would estimate that 95% of all the “past due” or “bad
debt” to courier services comes from deadbeat telemarketing operations.

Dave's right-hand man, Mike Ryan, was in charge of heat calls from authorities nationwide
that complained on the lies our telemarketers were telling. Very rarely was anything done
about it because nothing could be proven. There was no evidence where a call originated
from or who made the call. The invoices were numbered so that we knew which office sold
a deal or where a lie originated, but the authorities didn't know this. Upon in-house
investigation, Mike Ryan would uncover the culprit, but all he did was change the
telemarketer's name.

One of the reasons that I had become so successful is because I knew how to use comedy in
my sales. I invented some closing jokes that made customers laugh. I would promise them
that if they helped us out just this once I wouldn't bother them for "5 whole years." Of
course they knew this wasn't true and they would laugh. And while they were laughing, I
would laughingly say “okay?” and they would say, “okay”, too. I also invented several
other ridiculous jokes that I used in the beginning of every pitch that broke down the
salesman's barrier. This enabled me to close up to 70% of everybody I pitched.

Unfortunately, nine-months into my reign, a new pitch came along created by one of my
students. It was called “the backdoor.” It is a terrible and ruthless way of ripping people
off. How it works is you call private residences and businesses that have already taken out
an ad in a previous publication or donated money. We would say that, at the time they
signed up for their last ad, they had also agreed to help out the police union. In other
words, we were mixing them up. No more salesmanship. We became bill collectors and
34
scared our prospects into paying us by throwing around a lot of federal and District
Attorney words. I personally remember female merchants and senior citizens breaking
into tears and apologizing for not paying their bill. Meanwhile, they would be paying the
bill over and over again. I was listening to a call once and swore I heard a lady have a
heart attack and die. I've also heard many people swear that they were going to kill us
after they had discovered that they had been burned.

The operation was very ingenious though. Dave used photocopies of checks from the
previous week's sales to distribute to ten different offices the following week. These were
commonly known as "reloads” or “taps.” Most telemarketing operations depend on the
same principle of “reloads” and “taps” for their success. Once a buyer has made a
purchase, he becomes a "tap". There is a 70% greater chance that this person can be sold
something again the next week or the next day compared to somebody who has never
bought before. It was always a race to see who could call the taps first. Sometimes we had
to rip off other telemarketers and re-route the checks back to our office instead of theirs.

The practical jokes even got worse, too, like announcing the deaths of relatives or warrants
for people's arrest. We had information on our leads that led our prospects into believing
that we were telling the truth. And in their moment of horror they would never think
someone would lie about something so serious.

The standing joke in the industry was that there was more money going out the back door
than through the right door. All cash donations were pocketed and this amounted to
millions of dollars a year. Numbered receipts meant nothing.

The poisonous pitch even spread to all 501c3 federal charitable tax relief exemption
organizations that were supposed to be helping veterans, battered women, missing
children, handicapped youth, and blind children. Dave had contracts with 20 or 30 of these
charitable tax relief exemption organizations and many of the same businesses were duped
over and over by the same telemarketers under the guise of different organizations. Dave's
contracts with local veterans organizations were on a quota system where he was required
to pay the local organization only $2,500 per month. They didn't know that he was
depositing hundreds of thousands of dollars into that local account that he was collecting
nationally. He used a local organization as a cover to collect nationally.

Mr. Sneed owned contracts with big labor unions that police and firemen were members of,
and received 95% of the proceeds from all the sales minus commissions. In other words,
the money made from the so-called donations went mainly to fund a child-molesting drug
ring. No wonder he was a millionaire--99.9% of the money that was collected never went to
its intended solicited use, and still doesn't. It's ridiculous to think about the fact that over
50% of all the money collected for fundraising ends in smoke, literally. I estimate
telemarketing is responsible for 90% of the drug trade in this country.

Anyway, I explained to Mr. Sneed that this new pitch would destroy the organization. He
didn't care because sales were doubled. He was so high on coke all the time that I realized
talking to him was just wasting my time. Of course, I was right. The FBI on bogus charges
35
detained me. They coerce me to wear a wire into the condo. The FBI wanted proof that
Dave knew about the false pitches, and the fact that all of the telemarketers were
impersonating police. That would have kicked in the Federal Rico Act, authorizing the FBI
to proceed against them as an organized criminal institution. Of course, I never did it. I did
enjoy the free hotdogs they bought me while trying to talk me into it though. Six months
later, the FBI and Attorney Generals of 26 states had so many investigations doing a probe
on the company, that it was time for Dave to exit stage left. To this day, I don't believe he
was ever prosecuted due to the fact that all 330 offices had independent contractor
agreements.

Dave finally went out of business, only to be replaced by hundreds of people just like him.
Dave himself was arrested in a bathroom stall in a Chicago bus station, trying to solicit a
minor. Fortunately, he was connected with the police union, so he escaped criminal
charges. Too bad none of the boys he raped were able to seek justice. Dave would be doing
triple life for his crimes, if not more.

This activity is still going on everywhere in this very fundraising industry, to the tune of
$100 million a month. Dave Sneed was not, and is not, the only promoter in the country.
There are currently about 30 operations the size of Dave's that are operating exactly the
same way nationwide.

Jim
Here's an example of the ingenuity of one of Dave’s protégés--Jim Lions of Orange County,
California. Jim hides behind religious-exempt statuses, and even avoids the lenient
charitable exempt statuses by referring to the First Amendment of the Constitution by
saying he is “a church”. His company in Orange County, California has five or ten
contracts with churches, somehow picking up donations titled "The Police and Sheriffs
Support Fund" or "Handicapped Children", just to name a few. I'm sure he wouldn't
mind me mentioning his name in this book because he feels, and apparently the FBI feel,
that he is perfectly legitimate. Meanwhile, he has 250 or more telemarketing operations
nationwide, pretending to be the local police and scaring people into giving him donations,
using all of the above-mentioned pitches. There is not even a publication, just a web site.
Also, merchants who are listed on the web site are used by other telemarketers as "taps" to
reload other "deals".
Wait, footnote, I just dialed his number, its disconnected, maybe the FBI changed their
mind.


Ron

A very nice gentleman named Ron Resnick took over the California and West Coast
operations. He was able to obtain the “California Organization of Police and Sheriffs”
contract, which was known as “Cops”. Although it is, did Dianne Weinstein support a very
legitimate organization, a politician in California at the time these armies of renegade
telemarketers, selling advertising in the “Cops” Yearbook, were running it.
36
Ron had 400 to 500 independent telemarketing operations nationwide, sending over a
million dollars worth of checks to him every week. Many of these sales were to new
businesses that were not hip to the scam. Every new business owner was made to think
that they ought to support their local police and fire departments when their businesses
were first opening. It was suggested that it was a way to show their support and get to
know the local officers. It is especially successful with new businesses started by
immigrants who have experienced corruption in another country. In many countries,
authorities regularly take kickbacks or payoffs. They figure that it was the norm in their
old country, and it must be the norm here, too. A lot of the times, these new business
owners would be “reloaded” until they were bankrupt before they had even made their
first sale.

Because new business owners were so valuable, many rooms were competing for the new
business listings that PacBell, the Department of Equalization, and mailing list companies
provide. New business listings are free to the public simply by going down to the County
Registrar's Office and looking up people who had recently filed for DBA'S (doing business
as). It was a race to see who would reach these people first. These new business owners
were the greenhorns who would fall for the pitch almost every time.

Ron also had another scam going with "Accept a Check." This is software that gives you
the ability to deposit checks created from your software. We would make new checks using
our customer's account numbers from their previous checks and deposit them into our
account. Ron and his sidekick, and former crack addict buddy, deposited hundreds of
thousands of dollars worth of unauthorized checks into their accounts every week. If a
company did not keep a complete and accurate record of their checking account
transactions, it was very easy for a check to go unnoticed. Many telemarketers have since
figured out how to do this on their own. So even if it is a legitimate company with a
corporate honesty policy, there is always some deranged telemarketer utilizing this direct
check deposit system. I know some telemarketers who monitor companies’ checking
accounts and make calculated decisions on when to deposit a self-created draft when they
think they can get away with it.

Another game that Ron played was the creation of his own publication called        Fire and
Paramedics News. It had nothing to do with any union contracts. In the telemarketing
pitch, the telemarketers insinuated or blatantly said that they were police and fireman. A
lot of the money actually went to a magazine that was unaffiliated with any organization or
501c3 and, in fact, the magazine was never printed or circulated. Most of these types of
police and fire charities have some sort of scam like this going on.

In the end, Ron only got charged with one misdemeanor for one false check from one
person. I guess the irony of the situation is that Ron committed thousands of felonies and
stole hundreds of millions of dollars worth of money from innocent residences and
businesses and yet the FBI was only able to charge him with one misdemeanor. What a
disgrace. His punishment was 45 days in a work release center.

37
When I first met Ron, he had a beautiful home in Woodland Hills, a lovely wife, and a
stepdaughter. After smoking up $10 million worth of crack cocaine and throwing away
money on a lavish lifestyle and expensive whores, he lost everything, including his home.
Today, Ron lives in his parent's house, trying to avoid the Internal Revenue and the FBI.

Whoops! Update! I was just informed that he died from an overdose in the parking lot of
a drug rehab center. I guess he put too much on the pipe for his last hit before getting
sober.

Abe
Another fine gentleman in the business was a Persian guy named Abe. He had one
legitimate contract with a local retired police union. But, of course, it was being pitched on
a national level, and he collected millions of dollars from businesses throughout the country
for this one little local deal.

Abe had terribly inhumane tactics for fundraising. If there were a wildfire out of control
somewhere in the country, we would be instructed to call the local businesses in that area
and say we needed money for water trucks as direct assistance for the local disaster. If
there were a rash of burglaries in a particular neighborhood or a series of murders, his
telemarketers would call and say that they were setting up sting operations and needed
donations for a federal matching funds program for neighborhood watch operations. They
said the money collected would be used for two-way radios and citizen control units. These
were ridiculous, but believable, lies. There were newspaper articles written about us in
several states, advising citizens of our lies.

Around holidays, we would sell tickets to a Christmas show for unfortunate children. We
would sell ten thousand tickets every time we did the show. We told the customers that, if
they could not attend, the tickets would be donated to unfortunate children. First off, the
hall in which the party was to be held could only hold a couple hundred children and,
secondly, none of the tickets were ever distributed to the unfortunate children. When the
party took place, it was mainly a pot-smoking and drinking event for the few telemarketers
who managed to attend. I always wondered why Abe never cared about the unfortunate or
disabled children. I guess that, deep down, he only cared about himself, and that was
evident when he pocketed all the money that was supposedly for unfortunate disabled
children.

All of these different types of organizations are in existence today. They re-bill all their
leads every year without even the telemarketers calling back to get authorization. A certain
percentage of customers pay automatically, particularly the big companies who have it in
their database, as part of their huge charity budgets. They will never know it was a scam
and will continue to pay for years. Of course, once they pay for one organization, they will
immediately be reloaded on another deal. Some companies will pay a renewal invoice
immediately so that they can avoid the barrage of phone calls for donations that they
received the previous year, only to receive twice as many calls this year because they paid
the renewal invoice.
38
Abe was finally closed down, but not because of the telemarketing scam he was running
mafia-style. He was creating his own money orders and depositing them into legitimate
charity accounts and receiving back 95% of the money. When the FBI raided his house,
they found hundreds of thousands of dollars in cash and a kilo of cocaine. In Michigan, if
you are caught with a kilo of cocaine you get life in prison without the possibility of parole.
 However, Abe just served a couple of years in federal prison and is now back in the
telemarketing business, robbing people.




39
                Glimpse Of A Day As President

The only thing that would get Bob out of bed in the morning was the thought of money.
There was money to be made. He would force his exhausted body, wracked by years of
drug abuse, unhealthy living, and sleep-deprivation into a sitting position and immediately
grab the already-filled pipe waiting for him by the alarm clock, and take a hit of pot. This
was the most unpleasant time of day, the moments between waking and smoking, because it
was in those few sober moments that he could feel the damage he had done to his body, and
sometimes his mind would even start to think about who he was, what his life was. He shut
that up immediately with another hit. Give it a couple seconds to soften up the edges and
he would be ready to stumble to the bathroom, leaving his girlfriend still passed out and
sleeping on the bed. Even the screams and curses that erupted from him, when the shower
suddenly became an arctic waterfall and then immediately to scalding lava flow, didn't
manage to wake her up; she was to sleep till noon because of the valium habit she had.

He hit the road and headed out to the “office” which, of course, was in the crappiest part of
town. He stopped for his usual oily, sugary doughnut and tar-like coffee at a Winchell's
rip-off named Wendell’s that was at the corner of our block. Every once in awhile, when
he was feeling generous, he would bring in a dozen for the gang. He wasn't feeling
generous today.

He was President of Leads of America a general leads service. They sold leads for anything
they thought they could successfully get leads for. They advertised in “Help Wanted”
sections of newspapers all over the country to entice salespeople to sign up for the service.
When people called in, they would refer them to the company’s very exciting and
impressive three-dimensional website. The telemarketers explained that they were really a
lead service and that they could benefit from their prospecting abilities. Most outside
salespeople are quite lazy. The reason they were looking for a job in the first place was
because they weren't producing enough sales for their company and so they were dying
economically. So they were pretty desperate when they got to this company.

Most of the calls came in on Mondays and Tuesdays because the ads appeared in the
Sunday editions of newspapers nationwide. The top inbound telemarketers were assigned
to sell the salespeople the company’s services. The telemarketers would receive up to 50%
of the amount collected from each salesperson. The telemarketers who were given the job
of booking the appointments were generally the less-talented telemarketers and were paid
small salaries, usually with talking with an Ebonics slant. The object was to get as much up
front money from the salespeople as possible by utilizing the very impressive web site, a few
third-party success stories, and the high-pressure sales techniques of the inbound closers.

Thursdays and Fridays were generally very slow, so consequently those were usually days
when agitation, bickering, and name-calling would start. The telemarketers would put
each other down and fight for the next call. They were like a pack of starving wolves
fighting over a squirrel carcass. If you could have filmed one of these days, it would have
40
made the movie “Glen Gary Glen Ross” looks like a home video.

This one-day in particular was one of those slow, aggravated Fridays. They had only
received about five calls so far, and everybody was on edge because they had already run
out of their drug money, but were facing the weekend. Since the closers were participating
only in the inbound operation where customers called the company, they were spoiled and
didn't want to have to make outbound calls to solicit customers for the services. They were
also given the opportunity to work on setting the leads by the hour, but the inbound money
was easy and made them too lazy to make outbound calls.

Ronny, the top inbound telemarketer, was eating a sandwich like a pig. He was shoving it
in his mouth with the palms of his hands, attempting to eat the whole thing at once. At the
same time, he was on the phone trying to arrange more credit with his bookie in an attempt
to get out of his most recent life-threatening jam. You could hear him begging, as if he were
trying to get a bus ticket to go to his mother's funeral. Ronny was always in a jam, and was
the most ruthless to his friends and foes. He was always closing, bragging about how good
he was. Everything that came out of his mouth was a pitch; every word had a hidden
agenda with a backstabbing motive.

Jack, another one of the star telemarketers, was also on the phone. He was a company
man, you might say, and he was attempting to get credit for more office supplies. Tony, a
highly-disorientated telemarketer, stumbled out of the storage room in a cloud of pot
smoke, and resumed his seat at his desk, drumming on the phone receiver and the rest of
the paraphernalia on his desk with the eraser ends of two pencils.

There were four or five other telemarketers either on personal phone calls or arranging
dope deals. The telemarketers, who were paid hourly for setting the appointments, were
the only ones really working. None of the inbound closers seemed to be working, except for
Marla. Marla had a pretty face, but she weighed 400 pounds and was on government
assistance for her obese medical problems. Her job with the company was that of a
"fronter." She would call companies and leave messages, as if she were a prospect, so that
they would call back, and then we would have one the inbound closers pitch them on the
services our company offered. It helped to supplement the inbound calls, and she was
happy with the twenty dollars a day and the free lunch. The really ugly, drugged-induced
telemarketers received regular blowjobs from her for free; I guess she had to settle for one-
sided sex abuse.

Unfortunately, even she was wasting time between calls that day because she was busy
nursing a tooth problem. She had a cavity long overdue for filling, soon to be pulled. There
was always a problem with that girl, always something. The main reason she landed the
job with us was because she had a car and was able to supply rides to the casino or dope
houses. Plus, they had to keep her around just for the sake of having a body there to make
it look like we had a big company. Everyone thought it was hilarious to peek through the
grill of the bathroom door when she was in there and watch her attempt to wipe herself.
Once in a while, Bob would follow her into a bathroom and masturbate in front of her face.
 A cheap thrill, but she didn't seem to mind the attention.
41
On the way back from an early lunch that day, Bob had befriended a cute girl on the street,
a usual practice of his, and asked if she needed a job. The company was located in a
telemarketing district, and people who were in that part of town were always looking for
something better, higher paying, or advancement. Anyway, she came up to the office and
was busy filling out an application while Bob interrogated her in a very professional
manner about her emotional and sexual availability. Bob usually tried hiring them for free
or free sex, whichever came first. Bob enjoyed wasting people’s time and sometimes would
make them wait an hour before the interview just so he could stare at them or show off by
announcing phony inflated numbers. He still liked taking hostages to any degree.

The girl was startled by the angry arguments that erupted from the other room as the
telemarketers began accusing each other of stealing deals. Someone yelled into Bob’s office
that he was wasting his money having the other telemarketers there. The crew was not
exactly aligning themselves with each other. It was everyone for themselves. Every
telemarketer meant lost revenue for another telemarketer. When a telemarketer went to
lunch or the bathroom, it was an opportunity for someone else to steal a deal. The constant
verbal animosity was especially present when the phones were not ringing. Bob had to
explain to her that this was very unusual behavior.

As a good leader, as well as trying to look presidential for the new applicant, Bob decided
to talk his telemarketers into making some cold calls or to follow up on some old leads. The
thought occurred to him that he should clean out everyone's desk in an effort to find leads
that the telemarketers had hoarded. Some telemarketers are so lazy that, if they can't close
the prospect the first time, they toss it. They also have sensitive egos and would rather have
the company lose revenue by throwing away a lead than having someone else close a deal
that they couldn't. Occasionally, they would work together and split deals because they
knew that it would be easier to close a deal with more than one voice talking to the
customer, but that was rare. It was a disgusting job cleaning out the desks, because it was
like emptying a trashcan. The desks were filled with half-eaten food, cigarette butts,
chewed pens, used Kleenex, and other unpleasant articles, but amongst it all were leads just
waiting to be closed. Not only did those leads end up producing a few thousand dollars in
extra revenue for that week, but it shut up the telemarketers for awhile so that Bob could
go back to his interview.

Bob really had no intention of hiring her. Occasionally, just for a lark, he would run an ad
or pick up a girl on the street for a job interview. He would tell them that they would start
as secretaries and that he would attempt to turn them into telemarketers working on
straight commission. He would use a real “pie-in-the-sky” pitch. It was a great diversion
on a boring day to interview women and advise them of their great futures and potential
while masturbating underneath the desk. Bob had a lot of fun wasting people's time,
especially when the phone wasn't ringing.

Suddenly, there were two knocks at the door. This was not one of our signals. Peering
through the peephole, Bob saw two very big black guys, who were obviously not cops,
glaring back at him through the peephole. His first thought was that these were either
42
pissed-off customers or late-paid creditors. Most of the time, personal visits were from
irate clients because, once they finished an advertising campaign, their phone number
would be forwarded to voicemail, so they thought their complaints we not being honored,
when actually the company did call everyone back and attempt to smooth things over. It
wasn't easy keeping everyone happy with qualified leads. Usually a personal visit meant
major aggravation for the entire office.

For some reason, casting that prior knowledge aside, Bob’s second thought was that it
could be some "walk-in clients who wanted to sign up for our business.” What is that
saying? Listen to your first instinct? Bob figured that he could always say that they were
just the phone room and the administrative staff was across town. Bob opened the door
and asked the purpose of the visit. It turned out that they were pissed-off creditors.
Apparently, the company had ordered twenty boxes of toner on credit from an apparently
very small company located not far from them. Of course, the company had every
intention of paying the bill. They paid all of their bills eventually.

These guys made it clear that they were not leaving unless they received full payment for
their supplies. Bob had made one partial payment, but they needed the whole thing, which
Bob didn't have on hand. He explained to them that he was going to call the police and
have them removed. They informed him that they had already called the police from one
of their cell phones and they were on their way. At this point, it became a waiting game.
Bob knew that this was a civil matter and that everything would soon be rectified and back
to normal if he just held firm to “my stand.” However, as soon as they heard that the
police were on their way, telemarketers who had warrants for their arrest began sneaking
out the back door, down the back steps, and out of the building, including the very cute
applicant. The staff of ten people vanished, leaving only three people to fight off the police
and these creditors.


As fate would have it, when it rains, it pours. A middle-aged, ugly, stocky lady with curly
hair and glasses came storming into the office, asking for the National Sales Manager by
name. Of course, that name did not exist anymore because he was conveniently fired.
Apparently, this lady had taken the time to fly down from San Francisco to San Diego just
to get a personal refund. She said the leads she received from the company were not worth
the fax paper they were sent on. Her first two prospects had been dead for over five years.
However, one of the leads turned out to be a sale that canceled on her. So, really, it looked
to Bob like they really had done a good job for her and she was just a terrible salesperson.
The company was not able to verify all of the telemarketer’s appointments and, admittedly,
some bogus leads got by them but, all in all, they were a legitimate service. Now Bob was
in double trouble--a pissed-off creditor and an irate customer, and neither of them was
leaving without refunds or police involvement.

One of the telemarketers came back from lunch at this moment. He had a clean record but
a lot of emotional problems and, after briefly assessing the matter, he decided to take
matters into his own hands. He confronted the two black creditors and informed them that
they weren't getting anything back, and he suggested that they were better off leaving
43
before the police get there. This might have worked if he hadn't chosen to add a few racial
slurs to his suggestion. Things got very tense. Bob felt as if he was in a time bomb and
everything was about the blow. Here he was, with the most undiplomatic telemarketer
handling the irate creditors, and a sales manager still high from his visit to the backroom,
handling the angry customer. Tempers flared. The racial slurs turned into threats of
violence. They seemed to be losing battles on two fronts that day.

Now, you would think with this much uncontrolled anger in the office and volatility Bob
would simply issue the refunds and get these guys their supplies before the police came.
Well, the truth is, that thought never crossed his mind. All he knew was that these three
people were well inside the office and soon books and office supplies were being thrown
around. Bob was sure that weapons were going to be pulled out at any moment and it was
going to turn into a bloodbath. Riding on top of all this fear and uncertainty, Bob felt
terrible because, somewhere in his soul, he thought he was in the wrong. Amidst the
turmoil, he began to wonder whether he would be better off making a grand a week
fundraising someplace else instead of heading up a company that had so many problems.
He thought that the business was failing because they didn't charge enough. Personally, he
thought it was the CEO's fault because he was hoarding all the commissions from the sales
instead of reinvesting them back into the operation. Either way, the company seemed
doomed. It was sort of like the end of his life flashed before his eyes.

The police finally showed up and began pulling everybody off into their own corners. They
started the process of recording different stories about the alleged events. The police
reviewed Bob’s license and, as Bob predicted, escorted Bob’s enemies out of the building
and advised them to go to civil court to sue him. As they were leaving, the two thugs
promised to return and kill him. The local police must be used to this sort of behavior
because they never even bothered recording the death threats in their reports.

A few minutes after the police departed, the telephone started ringing. Telemarketers, who
were hiding out and waiting for the coast to clear, were calling to check in. Within
minutes, everything was back to normal. There was a brief meeting to review the security
procedures to avoid this problem in the future and then everyone was back to business.
Later that day, Bob went to the local courthouse and paid off an outstanding warrant for
one of his telemarketers for drinking and public, just to be on the safe side.

Upon arriving home that night, his fiancé asked how everything went at work. Of course,
he boasted about how he had uncovered some hoarded leads found in some desks and
turned them into cash, but neglected to mention the near bloodbath experience. Hell, he
was living with a normal girl with a decent upbringing. She had no idea what he was
involved in. He thought that if she only shared her inheritance with him, he wouldn't be in
a telemarketing business to begin with. That was the second time that day that he thought
of getting out of the business. So he reached over and got his pipe and began a night of
partying. Unfortunately, he was going to have to party alone. His girlfriend was off to her
Al Anon meeting, high on some Valium--what a sick relationship this turned out to be.

Later that night, a call came in from Margo from the office; she sometimes worked nights
44
to catch the late calls. Big problems, she announced, in a deep, sullen voice. Bob could not
imagine what on earth could be wrong now--hadn’t the day been bad enough? The owner
of the building had let himself in the office with his key, demanding cash for the rent;
apparently the rent check had bounced. The owner, an old Jewish guy from the Middle
East, ran his own affairs in a backcountry way, for a modern building. He had long been
trying to get rid of us. Many folks before today would check the board hosting the business
names downstairs and had checked in with the building office to see if the info was current.
 We had already become building enemy number 1, and we we’re always under constant
complaint from the other tenants. Bob could not imagine what was wrong, so he called his
bank from home. Unfortunately, because he did not show up to Small Claims Court, a
judgment was entered, and the creditor had levied his account. Bob calculated that about a
dozen checks were to bounce, especially the ones to his telemarketers. Most had gone to a
check-cashing store anyway, so that was no big deal, but the Phone Company and rent
we’re a problem. A bigger problem was the phone company because he paid every bill on
the last day of the last day of the extension.

Bob spoke to the landlord and promised the cash the next day, without a dollar in his
pocket, His only choice was to sell his jewelry, or draft someone’s checking account with his
own software. Bob never resorted to such measures, but he was desperate. At least now in
his mind he had a solution, so now he could finally get to sleep.




45
                          A Taste Of Other Scams

In this chapter, I will continue to introduce you to some telemarketing operations that I
know for sure are contaminated with renegade terrorist telemarketers.


OFFICE SUPPLIES
I first started my telemarketing career selling light bulbs. Terry turned the scam into much
more of a scam than it was originally intended to be. The original concept was that we
would pitch to service managers at businesses and entice them by offering premiums, such
as personal gifts, to be sent to their homes by UPS. In return, they would allow us to rip off
the companies they worked for. The tactic was to play on their greed and turn innocent
employees into thieves.

For example, if we were selling industrial cleaners, a product line similar to that of light
bulbs sales, and the company was already fully stocked, Terry would tell the manager to
dump cleaner down the drain by saying, "You want that color TV, don't you?" If the
employee backed out of the deal, Terry would move right into the extortion pitch,
threatening to tell the owner of the company about the past premiums and gifts the
employee had received.

Every pitch has a reload pitch. This is where I introduce the subliminal messaging
technique. The reloader starts out talking to the buyer about something other than light
bulbs. For instance, questioning the buyer about a recent fishing trip the buyer just took.
In the middle of the sentence the reloader would interject, “I'll just put the other half box
of the light bulbs on the truck.” Then the reloader, without a moment's pause, would say,
“How big was that fish you caught?” In continuing the conversation, the order was agreed
to without the buyer even realizing it. (See “Sample Telemarketing Scripts ”) Even if
the buyer might have regretted the order, once the gift arrived at his home, he would agree
to accept the UPS package of bulbs at work.

Of course, everything was overpriced from the very beginning. We dealt in blind items.
This means that the price of our merchandise was generally unknown to the average
person. No one really knows the price of purchasing forty-eight, 8-foot fluorescent light
bulbs. The secretaries who paid the bills sure didn't. Often a shipping and handling fee,
insurance, or other hidden costs are added to an invoice, which exceeds the price or the
value of the item you ordered. Not to mention, the products are totally inferior, and you
pay a much higher price than similar merchandise available from local vendors. The
invoices were coded with preauthorization or purchase order numbers that were within the
manager's budget and so lower level employees easily passed them on to be paid. Many
times, the manager didn’t even know the company was paying $748.00 for $50.00 worth of
46
bulbs he would never see a bill.

One tactic was to make a confirmation call to a company for an order that was already
placed. We would tell the business owner that there was a mistake on their order. The
business owner would be led to believe that he would be receiving more than he ordered
but that it would be free if he accepted it at the door. Sometimes we would say that a very
expensive diamond ring was accidentally dropped in the box. We would beg the business
owner to return it for a handsome reward. Based on that information, the business owner
was sure to accept the order by UPS or Federal Express. Once the business accepts the
order through the door and signs their name on the dotted line, they're hooked and
obligated to pay the overpriced bill.

Our collection office was ruthless. If they didn't pay the overpriced supplies, we would
threaten them with collection and then proceed to ruin their credit. We had post-it notes
with the words “Dun and Bradstreet” and we would paste them on the invoices as a
warning. If this didn't work, our in-house collection department, which was just as big as
the outbound telemarketing operation, would then proceed with illegal collection practices.
 We would threaten to inform all of the vendors for the company which would threaten
their much-needed lines of credit. We would also threaten to alert their customers that they
were a deadbeat company. We had backdoor ways of obtaining this information. We
usually fooled secretaries or salesmen into giving us names of customers or vendors.

Another office supplies pitch revolved around calling as if we were a CPA in charge of a
dead man's estate. We would say that we were settling the estate by selling off the
remaining office supplies from the business. The pitch worked great, but it was very
disheartening and believable because we would have to say that it was our brother that had
died. In my case, my brother really had died, so I couldn't handle this job for long. (See
“Sample Telemarketing Scripts ”)

COPIER TONER

Today, thousands of telemarketing scams are calling businesses nationwide, selling them
old, used toner cartridges for their copiers, and reloading them until they catch on. At
least ten thousand companies are still falling for this pitch every day. Toner is the biggest
scam of them all because the standard manufacturers charge a lot for toner. In fact, most
printers these days are sold very cheaply because companies make their money on the
toner and other supplies. These discounted supply houses selling toner will ultimately ruin
your machine and cost a lot more in the end. Most of these companies will bill you from
time to time, even if you haven't ordered. This must amount to at least $50 million in bogus
sales a year. They may even send toner out at specific periods once they understand your
usage schedule. Government agencies get double invoiced as a matter of commonplace.

Here is a perfect example of how telemarketing works. The pitches are all different, from
company to company, but most play on the greed of the buyers somehow. The
telemarketers are very talented liars and salespeople, and even the most diligent buyers of
big companies fall prey to the pitches. After all, everyone wants to believe a good story,
47
and everyone is susceptible to an impulse decision. Every pitch, from gift premiums to
inventory problems, family business deaths, fire sales, price scams, extortion, double
invoicing, shipping without authorization, backdoor sales and illegally retraced signatures
takes place everyday, regarding copier toner.

HOME IMPROVEMENT

I have worked for several different home improvement companies, telemarketing
residences for free estimates. There are two types of phone directories that telemarketers
use. We would use the reverse directory, which is a directory that lists telephone numbers
sequentially and then the addresses, as opposed to the standard crisscross directory that
lists street names alphabetically. A standard crisscross directory would not show unlisted
numbers but, with a reverse directory that lists the numbers sequentially, we can figure out
which numbers are unlisted by calling numbers in between the listed numbers. For
example, if we see that the number 555-1234 is followed by the number 555-1236, we know
that 555-1235 is unlisted. We would systematically call the telephone numbers that were
not listed in the regular white pages to eliminate much competition. Once the resident
agreed to the estimate, we would read their phone number back to them and then ask them
to confirm their address and name, which was not listed. Of course they assumed that we
already had their address because we had their phone number.

This wasn't the scam in itself. The people called would be re-solicited by a sister company
owned by the same person that did the initial round of calling, but the company would have
a different name and would be armed with all the information and objections discovered by
the first salesman. This would enable the sister company to close the deal. Of course, the
commissions would be split with the first guy who got the information. The same
subcontractors did almost all the work for the various companies anyway.

Another pitch that was pretty common was the “callback” pitch for any type of home
improvements. The idea in any good pitch is to eliminate the cold call approach. We
would say that the customer told us to call back in the fall and pretend we didn't quite
remember what the next project was. We would start to name a few home improvement
projects to jog their memory. (See “Sample Telemarketing Scripts ”) This really wasn't
the worst type of backdoor approach, but it still is dishonest.

And finally, we used to do what is known as “clover leafing.” This is a process utilizing the
crisscross directory of the phone book, which lists streets alphabetically. We would call one
prospect on the street and mention the name of one of their neighbors on the street and say
that we were giving them a free estimate. Since we were already going to be on the block,
we wouldn't even be going out of our way if we stopped by to see them. Once we landed an
estimate with them, we would call the neighbor whose name we had just used and refer
back to the people with whom we had just made an appointment. Legitimate salespeople
use this term "clover leafing" meaning that they did one job on the street and then they
would call the surrounding area and refer back to the original person using them as a
reference. However, telemarketers used this system as a twisted backdoor approach, even
taking a legitimate sales technique and making a mockery out of it.
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Here again, many telemarketers travel from one home improvement company to another.
Telemarketing represents about 90% of most home improvement company's business and
they always steal and take the leads from one company to the next. You really never know
who originally pitched you and you will never know who is going to do the work. Even if
you check references out, you really don't know which group of subcontractors they hired.

Big product companies give permission to telemarketing operations to use their name to
sell aluminum siding and other home improvements. The telemarketing companies sell the
leads to home improvement contractors for the lowest price, so you never know who is
doing the work. The manufacturers only guarantee the material. Your work orders for
the labor and a subcontractor, originating from a sleazy telemarketing company, does the
actual construction. Little did she know her roof was fine, the water was due to some
sealant we forgot to use on the first job.

The original telemarketers reload the homeowners again with information supplied back to
them by the outside salespeople. I've seen some old ladies have constant work done on their
homes for years, totally unnecessarily, because of the closing abilities of telemarketers and
salespeople. One senior citizen I spoke to was having a new roof put on only two years
after a roof had been installed. I asked her why she was doing that so soon and she told me
that the first company used inferior materials, causing water damage when it rained. She
said the company had gone out of business.

For a lark, I looked up the file on this roofing job and it turned out to be our sister
company which, ironically, was still in business, just with a new number. I proceeded to
sell her on building a deck to increase the value of her house before she put it up for sale. I
think I made about five hundred on that two-minute pitch, which means the deck must
have cost around fifteen thousand dollars. The house was only worth about fifty thousand
and the neighborhood had gone to hell. No one was buying anything there. This house
wouldn’t sell even if all the faucets were made of solid gold and the house had a built-in
heated pool. Which, by the way, was my next planned pitch to her because her doctor had
recommended water therapy.

We also targeted less-educated lower income people, and convinced them to sign
overpriced contracts for which they had to guarantee payment with their homes. Many
times our contracts would include a cash rebate to be tacked onto their loan. This further
enticed them into high interest contracts. Really, it became more about making money off
the financing than the actual home improvements. We used confessed judgment notes or
promissory notes, which left the consumer no legal recourse. Basically, they had signed
their houses over to us.

CHARITIES

I have been referring to fundraising in this book quite often, partially because I reached the
top of one of these organizations, and also because I enjoyed the pitch more than most
other telemarketing scams. The pitch always had a joke in the beginning and a joke at the
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end. So the pitch was filled with laughter and that was a very upbeat type of sale.

Even legitimate charities are 95% scam-oriented, unfortunately. To investigate what I'm
saying, request a copy of their financials and you'll see exactly how much money ends up
with the people it is supposed to benefit. There are high salaries for administrative help
and many perks, like travel, lunches galore, medical insurance, clothing, makeup and, if
there's a celebrity involved, they are getting a huge tax credit.

Don't be fooled by some charities requesting by telephone that you make donations in the
form of motor vehicles. They claim that you can write this donation off your taxes.
However, in certain circumstances, this may backfire when a car is not properly
reregistered, disqualifying you from tax relief, or you unexpectedly become burdened with
DMV fees that are not yours. Sometimes the new owner gets into an accident before the
car is registered and you can be held liable for all the damages. You could end up with
thousands of dollars in parking tickets that you will have to take many hours off work to
try and resolve. Some people who donate their cars end up having their homes robbed or
they may even be raped or murdered. The neighbors recognize the car in front of the
house so it doesn't arouse any suspicions during the burglary.

Telemarketing fundraising during the holidays reminded me of how Hitler used to execute
more Jews on their most religious holidays, the high holy days, than at any other time. We,
the telemarketers, were even more ruthless during holiday time and took advantage of
people's hearts being in the giving mood at holiday time. The sad part was that we
incorporated extra lies into our pitch, gearing it towards ”the less fortunate people who
would not have a holiday unless you help us out with a donation.”

When we were calling as “veterans”, we would promise that the money they paid to
advertise in our newspaper would go to buying food baskets for homeless war veterans, the
guys who risked their lives for our country and came back disabled. We raised millions of
dollars every year during this holiday season for the homeless vets, and they never saw a
dime of the donations. The few dollars that were allocated to the actual charity went to
printing newspapers that were rarely circulated, if they were even printed at all. In fact, a
couple hundred newspapers were printed with ads just to be used as "taps", "leads" for
salespeople to reload. Once I was given the chore of dumping stacks of newspapers into a
dumpster because we didn't have the postage or the manpower to actually distribute the
publications.

Many organizations request clothing and articles you want to get rid of. They say your
house is on a scheduled route and they will send a truck around to pick up your stuff. They
make you feel like they're not really going out of their way to see you, so it doesn't matter
how little or how much you have to give. By the time you start going though your clothes
and unwanted items, you may get excited by the experience of purging so that you end up
giving away more than you anticipated, sometimes with regret.

I was in charge of donations at a thrift shop. The first thing we did was look for clothing
that had fine labels to keep for ourselves. Second, we would look for clothing that was
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actually worth some decent money. We immediately acquired these items for private sale.
Even after the sale of an item, the cash generally went in our back pocket.

If you ever noticed a receipt from a thrift shop, they are usually on un-numbered receipts
and the 501c3 federal exemption income tax number is not even listed, thus disqualifying it
from being a real tax-exempt item for you. If the IRS audited you, it may be disallowed.

Fundraising is a $10 billion per-year industry and I would estimate that at least 25% is
nothing more than a complete scam hiding behind a legitimate federal tax-exempt number.
 Some of these fund-raising operations were actually tax-exempt because they operate as a
church or as a membership drive.

CREDIT CARD OFFERS

Credit card sales’ companies are always willing to give you a new line of credit if you have
a good credit history. The overall lure of some of these credit card companies is to improve
your credit, or help you establish credit. Some credit card companies use direct-mail pieces
as response cards awaiting your call. Some just call you and say you sent in a response card
or some other backdoor approach. Generally speaking, you are in touch with a major call
center with hundreds of predictable dialers, and telemarketers are just reading a pitch on a
screen. They may not even be a part of the scam because credit card companies hire these
major call centers to do all their fronting. Here is five different ways you get screwed on
this deal by a telemarketer, who may be representing himself or herself as a bank official.

One -- they may interest you in a low-interest rate, but later you find out that you have to
pay an administrative fee that will appear on your credit card bill. Plus, there is a
membership fee that you were not informed about that will also appear on your bill. Two -
- if you are late or fail to make the minimum payment, you may be charged the maximum
legal interest rate, which could be 15% to 20% higher than the interest rate you originally
agreed to. You can't do anything about it because you accepted the contract of the credit
card. This is not illegal, but the fact that they don't clearly explain this to the customer
justifies it as a scam to me.

Three -- you may be offered extended warranties or other premiums for signing up for the
credit card, which usually amount to nothing more than an entree into a premium in which
you will have to put out more money. For example, free airline tickets to a popular city in
which you end up having to pay for an overpriced resort attached to the offer. Some turn
out to be a timeshare that you’ll hate because they will harass you into buying one the
whole time you are there, using ruthless tactics of coercing.

To reach the bank to inquire about your charges, you may have to call a (900) number or a
long distance number. It could take hours to even speak to somebody, and by then you are
so frustrated that you end up paying the questionable charges anyway. Even if you reach a
person, one or two things will happen . . . you will cancel the card but still have to pay the
bill to avoid your credit being ruined, or you now have a high phone bill as well as an
unresolved credit card complaint.
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Four, some of these telemarketing operations that offer credit cards have their own
catalogs where you can only make purchases from them. Just like a Sear’s card is used for
Sear’s purchases only, these cards are from unknown third party retailers selling
undervalued overpriced items. Sometimes they are overpriced seconds and, by the time
you realize this, you have already paid the membership or annual fees. There is no return
policy. Here again, if you don't make good on those payments, your credit will be ruined.
Plus, when you order something that the catalog offers, it generally takes 6 to 10 weeks,
which can exceed the law that merchandise must be shipped within eight weeks, and you
end up ordering more merchandise before you realize that you've been ripped off by poor
quality or the price of the first purchase that you haven't received yet.

CREDIT CARD INSURANCE

Once I worked for a credit card company that was selling credit card protection. We were
acting as if we were calling from the customer's bank. We promised them that we would be
guaranteeing all their losses from theft or fraudulent charges and even give them free life
insurance. We sounded very official and even had a verification supervisor who would
come on the line, reassuring the customer that they had made a wise decision. We would
get their credit card numbers and charge their account endlessly for months until they
caught on and put a freeze on their credit card.

In some cases, when sales were lacking, we told people that they had to get the insurance or
their credit card would be canceled. We would say they had to pay the full amount
immediately. You would be surprised by how many elderly people fell for this scam.


CREDIT REPAIR

A very popular inbound telemarketing scam was derived from television commercials that
I wrote for one such company, advertising credit repair. Fifty-five percent of all
Americans have at least one debt that's beyond 90 days past due. Many more people have
credit repair problems that even a bankruptcy wouldn't help. I am one of them because
tax liens and civil fraud are not exempt under bankruptcy laws.

We would promise these people that we would eliminate judgments, collection agencies,
and any other delinquency on the credit report within 90 days for anywhere from $250 to
$1000. Most people are quite desperate to fix their credit because they want to move
forward with their lives. Perhaps they are re-married and want to qualify for a mortgage
or a new car. The scam was simple and legal and, in some cases, slightly effective. About
five percent of the people actually got what was promised. For a telemarketing company,
that is pretty good.

We would write a letter disputing everything on the credit report to all three credit-
reporting institutions -- TRW, Equifax and Trans Union. There is some federal loophole
that says if a credit reporting institution cannot verify a disputed item within thirty days,
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they must eliminate it from your credit report. Many items were dropped from people's
credit reports, especially credit inquires and collection agencies. In reality, you could send
the same three dispute request forms out yourself and accomplish the same thing for 20
bucks in fees and the price of three stamps. Fraudulent credit repair companies make the
process appear to be more complicated than it a really is, inducing you to pay their fee and
have them do the work. Because of desperation and lack of knowledge, we are able to rob
you of your money.

RIP-OFF RECOVERY

Rip-off Recovery Rooms are a major scam in this country. For instance, some ”Elder Anti-
Fraud Leagues,” -- I won't mention names -- charge a fee for their service. They can be
found on the Internet and send out millions of direct mail pieces targeting senior citizens
about their cheap ineffective, non-productive     rip-off recovery service. How kind of
them. Many big recovery rooms get their leads regarding people who have suffered a fraud
from their sister company, which was the telemarketing scam that committed the fraud.
They promise to recover the losses if "taxes" or “fees” are paid up front. A common tactic
is for these recovery rooms to represent themselves as law enforcement or other
government employees. They use the inside knowledge of their victims and the fraud that
was supplied by their sister company to establish their credibility. They get you to send
money to try to recover the money you lost. Even legitimate companies I found charge a
small fee for the service, making them a scam, too.

According to the FBI, Rip-Off Recovery Rooms are one of the top ten rip-offs nationwide.
I find that estimate incorrect because I believe that the majority of scams go unnoticed or
unreported so that the FBI has no real knowledge of what the top ten scams in this country
are. Scams take place in almost every industry where telephone contact is made.

MORTGAGE LOANS

There are hundreds of mortgage lending companies that prey on people in need of cash and
charge enormous interest rates, which are legally allowed by law. This is unfortunate for
blue collar, uneducated people who resort to this and end up in an ever-deepening hole of
debt. I worked for such a company in Baltimore, Maryland. It was more or less a
brokerage firm that represented different lending institutions. They had very catchy
names that seemed to be familiar, or household names.

This company I worked for, CDL Financial, used to buy lists of homeowners that had at
least one judgment against them on their credit report. The company that supplied the list
of homeowners charged about 26 cents per name. This is about twenty cents more per
name than an average set of demographics would normally cost.

There was nothing complicated about this operation. The opening line to our blue-collar
homeowners was, "Do you need cash?” The prospect laughed, which is always good for
beginning a presentation and, naturally, everybody says yes. The telemarketer would soon
get the appointment for the mortgage broker and go out and take the application. The
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telemarketers were paid a commission per appointment scheduled and received a bonus for
each sale. So the telemarketer really had to be hard-core in getting these appointments
because they were not receiving an hourly salary. My opinion is that people who have a
judgment against them, or have slightly bad credit, are on their way down the tubes
anyway, so the cash just speeds up the spiral of self-destruction. Very rarely is the money
they receive from the second mortgage used to pay off their current debt.

HIGH-TICKET ITEMS

High-ticket investments to affluent investors are commonplace. Oil and gas rights for
empty wells, marshy land deals, over-valued gold or rare coins, and limited partnerships
are favorites in the high-ticket investment market. Many of the taps (leads) are used from
one industry to another. Telemarketers here tend to guard their leads with their life
because the commissions are so high.

Many of the telemarketers involved in these high-ticket scams are washed out alcoholics in
their 50's who may have had normal lives and high finance business backgrounds, but lost
that life due to drinking or gambling. They may have been straight at one point in their life
but, because of a bad marriage or a drinking problem, they entered the telemarketing
shortcut to success.

Rare coins and phony stock deals happen every day to the tunes of millions of dollars. If
you ever get a call from somebody selling commodities, futures, coins, or any deal that
sounds like it is paying more than 4.5% annual interest and is not a Dun & Bradstreet
accredited institution, it's probably a scam. Equity-funded insurance scams are also big in
the news lately and are generally orchestrated by high-level ingenious crooks.

The owners of these businesses have plenty of resources at their disposal, so the
telemarketing scripts are usually written with the help of a psychiatrist. They invest
thousands of dollars in eight-color, ten-page portfolios, or expensive videos, that they send
out to prospective clients via overnight delivery. Once the prospect receives such expensive
materials, they feel obligated to listen to the pitch when they are contacted a day or two
later. Consequently, they fall prey to these highly skilled telemarketers and end up getting
ripped off in amounts anywhere from five thousand up to fifty thousand in one closing.

The telemarketing companies have elaborate schemes involving extensive background
checks on their victims, creating cover stories and backgrounds for the investments that
seem credible. The operations have high-end telephone computer predictable dialing
operations.

A book can be written on high-end rip-offs alone because the details are endless and the
stories about the victims vary dramatically. One thing they all have in common is that the
customer rarely makes any money. Theae schemes are designed so that the person
occasionally makes some initial money so that they can be “stepped up” for the big sting.

The pitch is generally given by three different people in the office, each with more
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authority seemingly to make a better deal for the prospect. Eventually, they act like the
prospect won the war and got an incredible deal, thinking we broke even just to move some
product.


Fake Prices
Scams we hear a lot about are the free prizes from “awards” that people win. (See Sample
Telemarketing Scripts). Many times you must call a 900 number to find out if you are a
winner or how to pick up your prize. They ask your permission to use your name on their
website or in letters or for media syndications to tell the rest of their customers who got the
big promotion. They say this is just to mke you feel special. Then you are ask to pay the
shipping or taxes on the prize. The customer pays the taxes only to discover when they
receive the prize that it is of extremely poor quality or they never receive a prize at all. I
myself almost got hustled into thinking I was receiving a boat for $139.00, only to find out
by applying for a job with the company that it was a blow-up boat used in the bathtub. Oh
it did have a few metal parts all right and it did have a mask that was nothing more then a
balloon, it measured 20 feet in length, so there was some honesty, except this was the boat I
thought I was going to use in the Chesapeake Bay.

The prizes range from trips to cash awards, TVs, cars and boats. Prizes and testimonials in
glossy print lure the victims in. Generally they prey upon the elderly that have a history of
falling for this previous scam. Everybody is a winner in this scam and everybody loves to
win.

The telemarketer has the element of surprise because people have a vulnerable side to their
personalities and everybody wants to win. It all starts when we were kids at a carnival
surrounding winning, along with a love of astrology, luck, and odds make people very
gullible. Everyone knows how difficult it is to really win something, so when an
opportunity presents itself they go for it because everyone wants to feel like they can have a
lucky day too.

Many of us have gotten calls about free vacations. They coerced you into participating in
some other sales promotion, which captivates you, and consequently you make bad
decisions. One of five things happen on free vacation calls. One, the plane tickets are free
but you have to pay for the hotel. Two, the hotel is free put you have o pay the plane fare.
Three, you pay for either the plane or hotel but you never receive anything. Four, you
actually get to the resort and it turns out to be a timeshare and your entire vacation is spent
with someone trying to pitch you into making a timeshare purchase while you are probably
drunk or out of your normal thinking mode. While in the United States and territories
there is a federal law prohibiting selling to intoxicated customers but it is impossible to
enforce. Five, you actually buy a timeshare and it proves to be a rip-off from the very
beginning. One of the ways that the timeshare becomes a rip-off is that the hotels go out of
business after a month or two. Even the telemarketers get stuck for a few weeks pay.


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One company used people’s credit card numbers to obtain the plant tickets for hotels that
were legitimate. The president proved to be a fraud and had a duplicating credit card
scheme that created thousands of dollars in unauthorized charges.and the company is
nowhere to be found.

I have never yet to this day run into a legitimate free vacation phone pitch from anywhere.
I highly doubt they exist. Don’t ever give out your credit card number to a travel deal
unless it’s a known travel agency that you have called in the past or directly to an airline. I
hate to say it plainly, but if you gave your credit card information out to any person or
company your not 100% confident in your asking for trouble.


Advertising
“Ad specs” is the telemarketers code name for “giveaways” which are a big telemarketing
scam. Everybody wants to advertise their business with giveaways such as pens with their
company’s name on it. Sometimes a telemarketer calls first jut to do a survey and get all
the information on the company so that the “closer “ knows what angle to hit. The pitch is
generally regarding an inventory problem where the telemarketer are scamming you into
thinking you are receiving a huge discount or steal because of an over-abundance of
product in stock. Once again they are playing on the customer’s greed. Telephone sales of
“ad specs” are often coupled with the promise of a free gift or prize such as a personal
computer, VCR, or a vacation as an incentive to order. The products are actually
overpriced or you end up being double invoiced and rebilled without authorization
endlessly for months.



Medical Services
A few years ago I was going to attempt to open another medical alert company. So to begin
operations, I put my 800 numbers in the 800 directories under medical alert. I had every
intention of being legitimate this time, but I started receiving calls from people mistaking
me for the real Medic Alert Foundation, The Medic Alert Foundation is the company that
supplies bracelets for emergency medical problems, Well, it is not in my nature to turn
down money. So I found a company in Texas that had the bracelets and wallet cards that
listed the medical information. Of course, I overcharged tremendously for these products
by saying that the bracelets were made from precious metals. They actually were cheap tin
bracelets that cost nine cents in a store. Because I had a little medical experience from my
Air Force career, I said that I was a doctor, to make the customers feel secure.

The real Medic Alert sued me and offered to settle the case civilly, but I was too involved
with drugs and alcohol and never bothered to follow up. Apparently, I pissed off a senator
and charges were brought against me. I always seem to make a media splash of sorts
because, once again, I was featured in newspapers and TV shows nationwide. I ended up
56
getting 130 days of community service. I also paid everyone back that complained about
the products. I am happy to report that, since that time, I have had my record expunged
because I met all the terms of my probation.

Even if a business is listed in the Yellow Pages or Directory Assistance, it could still be a
scam or a knock-off operation. These publications don't do research to find out if the
companies listed are legitimate or not. You need to do your own research on a company
before doing business with them including, but not limited to, a personal visit, calling the
local Chamber of Commerce, or Better Business Bureau, and verifying the business
address. You can also call neighboring businesses of the company and do an onsite visual,
or call Dun and Bradstreet for information on the company. Another option is to call other
extensions within their phone number series to see if they really are a big company with
different departments. It is also good to ask the company for their bank, vendor, and
customer references.


HELP WANTED
Be especially wary of “Help Wanted” ads that refer to “Making Money at Home” jobs.
These companies are nothing more than inbound telemarketing operations designed to rob
you of the few dollars you set aside, from your disability check or hard-earned money.
Generally, the people responding to these ads are welfare moms, people on disability, or
people in need of tax-free income. The telemarketers know the psychology of these types of
people who respond to these ads. They are experts at painting a picture of independence,
financial freedom, or whatever you are seeking.

rally, you have to spend money to purchase a kit. Then you have to meet impossible
standards, which end up disqualifying you for payment. It could even end up costing more
out-of-pocket money than you had anticipated. You are basically wasting your money on
99.9% of these types of work at home opportunities. Some envelope stuffing scams require
you to do a mailing to your friends, family or customers. You receive a percentage of all
the items they purchase. For example, if you mail out 100 envelopes and you paid your 35
cents per envelope, you would need to have four people buy just to break even. The
products you are promoting require that you pay up front for the mailing costs. Other
times, you have to pay a fee to join a program and then your application is denied, and so
you end up having paid for nothing. Here again, I have never come across a legitimate
work-at-home company.


EXTENDED WARRANTIES

One of my favorite telemarketing scams is “Extended Warranties”. I used to sell retail,
and I was always the top salesman in a chain of 26 stores, even though I was in a store that
had the lowest income customer base. I mention this because we had the worst service
department in the world. It was called POM, which stood for Peace of Mind Service, but I

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nicknamed it Piece of Meat Service because it was oversold, inferior performance, and it
took forever to get your TV or appliance back. They ended up telemarketing this service to
all the folks who didn't buy at the time of purchase.

There is a huge commission on “Extended Warranties” because most manufacturers
already cover one year for parts and ninety days for labor, but most appliances are made
to last two or three years. So, selling an extra two-year warranty doesn't really cost the
store anything because, in most cases, you won’t need service until the warranty has
expired.

The telemarketing scam involving extended warranties are rip-offs because the
manufacturer does not offer them. They are offered by the retail store that sold you the
product. The pitch is one of urgency, creating a one-time offer at the time of purchase.
They depend on your impulse decision-making. The problem is threefold… One -- the
warranty they sell you is pro-rated and goes down in value every month like a car battery.
Two -- the service department sucks and the people handling the products toss your
appliances around without a care because they are basically paid by the hour. They are
non-union truck drivers who have no benefits or job security, so they really don't care
about people with warranties. And last, but not least, it's going to take two to eight weeks
to get your appliance back, and 60% or 70% of the time the appliance has developed other
problems during the maintenance process, or the initial problem did not get fixed.

Extended warranties are offered on cars, and just about any major purchase. The fine
print on the car extended warranty is basically that the cost of the warranty is generally
one-third of the value of the warranty. In other words, you pay $1,200 for a warranty that
has a cap of only $3,000. It's hard to get an actual copy of the warranty if you paid by
credit card, or it’s in small print and you are conned by the telemarketer before receiving
the warranty. The credit card company will not refund you because you authorized the
purchase.

I called the (800) numbers on a warranty certificate in a phone room once and there was a
machine that was so full I couldn't even leave a message. One extended warranty service
for a car required that the person actually bring their engine in to be serviced without the
car. In other words, they covered the engine but not the cost of taking the engine out of the
car.

MAGAZINE SALES

Magazine sales are a favorite for telemarketers. A telemarketer says that the sales are for
a charity, or to raise college tuition for themselves. This makes the purchase of the
magazine secondary, as if they, the customer, were doing them a personal favor. You must
remember, telemarketers make themselves very likable and create sympathy, while
stimulating the greedy side of your personality at the same time.

Here are four potential problems: One -- when you pay for the magazines with your credit
card on the telephone, you don't get to see the actual subscription contract to see what
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you've actually purchased. Some subscriptions run indefinitely and require you, in small
print or no print at all, to notify them thirty days in advance of the next subscription
period if you want to cancel. The subscription could be as long as sixty months. Two --
many of the magazines have similar names to popular magazines that you've seen on
newsstands. So what you are getting is really a cheap knock-off of the magazine you
thought you were ordering. Three -- if you don't pay for the subscription for any number
of reasons, you end up with TRW ruining your credit. Four – sometimes, if you agree to a
free trial they are actually committing you to paying for the subscription because you gave
them enough information for them to claim that it was a verbal contract. In other words, it
is hard to dispute a charge with a credit-reporting agency if you willingly gave out your
information.

These sales are famous for telemarketers who use enthusiasm in their pitch. They depend
on people liking them to help close the deal. If you really want a magazine, call the
magazine directly or just buy it off a newsstand instead of going through a telemarketer.

SMALL TOWN SCAMS
Small towns get hit with big city telemarketing scams. They are usually operated by local
degenerates but, of course, are orchestrated by a big city player. These locals are promised
the world and a future because they're desperate and want to believe in a shortcut to a
better lifestyle.

One type of scam is approaching the second largest dry cleaner and asking to represent
them by selling coupons to the community for a discount. The scam operation moves into a
hotel or cheap office somewhere and installs local phone lines. They hire local residents
and have them call the community and offer them coupon books for discount dry-cleaning.

On the surface, it's quite legitimate. The scam is that the big city scammer tells the
storeowner that he is going to sell, for example, fifty coupon books, but he actually sells two
hundred and fifty coupon books, and keeps all the extra money. Local drivers deliver the
coupon books to the homes and pick up the money. It is a cash business, bringing in $500
to $2,000 per day. It is another six months to a year before the second largest dry cleaner
realizes he's losing all his profits from an overload of coupons that he wasn't compensated
for, and now he's facing Chapter 11 because of the scam.

This scam also works with other types of local businesses such as air-conditioning services,
discounted tune-ups, or air checks, or anything that requires emergency service or annual
checkups.

Bottom line, if you're in a small town and a big city hustler comes in, don't trust them.

MULTI-LEVEL MARKETING

Multi-level marketing scams are usually job opportunities utilizing “Help Wanted” ads.
Generally, it's another inbound telemarketing operation, promising opportunities, which
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may be real, but require a lot of self-motivation. The biggest problem that I've seen with
even legitimate multi-level marketing organizations is that, once you build up your
accounts and you think you have a lifetime of residual income coming to you, the company
can sell off all of their accounts to another company, leaving you with nothing.

With multi-level marketing plans, one of two things will happen to you. Either you will
buy the initial sales kit and never do anything with it, or you will make somebody else rich
and not benefit from your efforts. 95% of them are telemarketing operations designed to
steal your money without giving you any opportunity to make money at all. They usually
promise the world, playing on your greed and the American dream of being financially
independent. They promise support services or lead programs that don't actually exist.
They also utilize phony stories of other people's success.

The other problem is the quality of the merchandise that you are receiving. For instance,
multi-vitamins may have different standards of ingredients and sometimes have even been
known to be harmful. There is usually a doctor or Ph.D. supposedly overseeing or
endorsing the operation but, really, he's on the take and receiving huge profits.


DIET PRODUCTS

Overweight people tend to try three or four different diets every year, and 95% of them are
inbound telemarketing scams taking advantage of people’s inferiority complexes. Very
seldom do one of these diets work, either because of the low quality of the products, or
because they require extreme discipline of the dieter, like exercising, or weighing out your
portions to lose weight. They are not the quick fix that they promise.

Americans are very health conscious, partially because we are unhealthy, unfit, and
overweight. One hundred years ago, the average person consumed one pound of sugar per
year. Today the average consumer enjoys 30 pounds of sugar per year thus creating
obesity. Diet and vitamin scams utilizing catalogs are perhaps one of the biggest billion
dollar scams today. The scams are so involved that they go way beyond the standard
complaints of no delivery or unauthorized credit card debits. The scams generally have to
do with undervalued products.

Some of these vitamin companies will debit your bank account without authorization, and
you'll probably receive some product in the mail whether you ordered it or not. You keep
the merchandise, thinking that the company made a mistake, and you got it for free. Then
later, you realize that there was a debit to your account. Because you signed for the
merchandise when it was delivered, you are unable to get your money back. Sound
familiar?

I estimate that 95% of the products you ordered are bogus, bland filler, herbs that have no
proven scientific effect, no governmental-controlled studies proving the effectiveness and,
because most of them are herbs or vitamins, there's no pharmacological proof that they
work.
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Most Americans are poor consumers. These companies know that people who generally use
diets have addictive problems. Like the alcoholic that has cirrhosis and told not to drink
will continue to drink, and the overweight food attic will constantly try solutions to fix
themselves, but then go back to their self-abusive behavior. These folks will try many
different diets instead of seeking to address their feelings and whatever it is that is making
them uncomfortable in their own skin.

Unfortunately, there are many high-end vitamin and food supplement remedies out there
that are rip-off operations that look like and resemble legitimate companies that you really
never know whom you are doing business with. The fraudulent companies may have
names similar to some legitimate company, the artwork on the catalog will also be similar,
and a doctor with a big smile on his face will be on the cover. However, their products will
be ineffectual. The rip-off operations tend to look more legitimate than the top rated
companies offering quality products.


DATING SERVICES

Dating services are rarely seen as telemarketing companies, but they are. Once you call and
submit some interest, you will be called over and over again until you sign up for their
membership. Most dating services are a franchise of a larger corporation, which means
that, if they go out of business, which they often do, you will not be able to sue the larger
corporation with the national name and instead can only sue the local office, which is
usually to no avail.

900 #'s

(900) Numbers have been a scam for a long time because they get you coming and going.
They work in a number of ways, ranging from selling you a piece of a 900 number business
opportunity, like a sex or psychic hot line, or pay for an information type service that
promises you huge commissions. Also, consumers are enticed to call in order to receive a
range of information, from how to save money on groceries, to how to receive a free credit
card. I have seen hundreds of (900) number ads in papers advertising their numbers. Some
other types of (900) number offers are guaranteed real estate deals, job listings, gold credit
cards, or bank credit cards, regardless of credit history and bank loans.


SELLING POLICE ADS TO DOCTORS

This girl named Joan ran one scam that I remember the most, and that is still going on.
She is currently calling in deals from her home for a telemarketing company in Los
Angeles. Joan sold ads in the California Organization of Police and Sheriffs Yearbook to
over 500 chiropractors. It seemed like she sold an ad to every chiropractor in the tri-
county area. She promised, and even guaranteed, that the ad would bring in one new
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patient a week. The ad usually cost over $500. She seemed like such a nice girl to tell such
huge lies, but she did this for over a five-year period. She still gets away with it, but now
she is calling all the dentists in the same area. She was very creative in her pitch, using
catchy phrases such as “union referral services” or “guaranteed private placement
listings.”

I know I talk about fundraising a lot, but this girl deserves a special mention. I was always
jealous of her success. I recruited her, but I never got my residual bonus because I had
made a deal to cash it out one day for $200 to satisfy a quick high. I hope mentioning her
individually in this book ruins her business forever.

PSYCHICS

I used to work in a building in Pikesville, Maryland where psychic hotlines were
headquartered. This is a major phone scam. All the psychic services nationwide went to
this one building. The telemarketers were trained to keep the caller on the phone as long as
possible using psychological strategies written in their scripts. These telemarketers were
not psychics at all, just people with green hair and drug addictions. In fact, that same
company had a few other incoming 900 services that had nothing to do with psychics but
was handled by the same telemarketers posing as psychics.

A hired psychiatrist wrote the telemarketing scripts. The scripts teach a telemarketer how
to play on the desperation of the type of people that call psychic hotlines. They know that
people who call are heartbroken or hurt somehow and need a little reassurance. The
common pitch is to give you a little bad news and then a glimpse of hope. They want you to
continue the conversation by doing a Tarot card reading to see if there is any hope that
things could work out.


SCHOLARSHIPS

Be leery of the telemarketer WHO says they can provide a college scholarship fund for you
to buy. The telemarketer WHO is calling you is probably a felon waiting or avoiding
criminal charges. Scholarship scams run into $100 million dollars annually. Every year,
several hundred thousand students and parents are defrauded by ingenious scholarship
scams. Telemarketing companies have your children's dates of birth and know to call at the
time when college is being considered. The scam operations often imitate legitimate
government agencies or grant-giving foundations. Lenders pose as a scholarship matching
service using official-sounding names that contain the words “national”, “federal”,
“foundation”, or “administration”. They are offering a loan, grant, or scholarship for the
cost of an application fee. Here again, you are talking to a telemarketing boiler room
operation, a crack smoker talking you out of an application fee. You will never see this
application fee again, even if they had promised that the application fees were completely
refundable in the event you were turned down for a scholarship. Telemarketers will
promise or guarantee anything over the phone just to get you to send your money. You

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won’t receive anything other than charges on your credit card or your bank account being
unexpectedly emptied by a criminal telemarketer.


DOING BUSINESS AS:

Companies simply attach their name in front of the reputable name as a” DBA” and cash
the checks. Thousands of businesses advertise a legit name and are able to cash a check, as
long as their name is on the check as a dba, “ Doing Business As”. It is very easy to get
stung by any type of business involving a phone order. Be careful, when you think you are
dealing with a legit company on a (800) number, more than likely, it's a phone scam.




                   Standard Telemarketing Tactics

In the movies "Broiler Room", "Tin Men" or "Glengarry Glen Ross", we see telemarketers
and salespeople playing on the greed of humanity. Buying is exciting and puts people in the
“ether”. Some people are so addicted to the “ether” that they will buy again and again and
again. This human condition, known as the "ether", plays on the addictive side of the
human mind. It doesn't matter if the purchase is a sensible one. Buying releases
endorphins and creates a high. It also creates an adrenaline rush. Telemarketers take
advantage of people under the influence of this buying-induced high. Telemarketers are
also taking advantage of senior citizens who are actually on prescription drugs most of the
time, which may make their decision-making abilities weaker.

Telemarketers use lingo, buzzwords, or phrases connected to business that can be very
motivating like, "the market is moving" or “act now, there's a wholesale opportunity
here.” In fact, all of these high-end, high-ticket industries have their own motivating lingo
designed to close the prospect into an immediate, later remorseful decision. Telemarketers
will promise anything over the telephone. They create an urgency, which causes customers
to buy in the moment. Often these promises are nothing but hot air. Of course, some
products are legitimate, but they turn out to be extremely overpriced and of poor quality.

Most telemarketers do not have a lot of “warm leads”. Warm leads come in the form of
response cards or inquiries from interested parties. Since telemarketers don't often have a
lot of warm leads, they must rely on “cold calling”. Cold calling means approaching
prospects with no prior interest and hoping to generate some interest. The objective of a
good Phone Pro is to eliminate the cold call and turn every call into a warm lead. The
question is " how?"

To do this, you must lie to the prospect and say that they either mailed in a card or
someone else did so on their behalf. This is a standard practice for even the most legitimate
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telemarketing companies. Another tactic is to use stolen leads or some other backdoor
approach. The goal is to achieve a high closing-per-call ratio.

Voice control plays an important part in the success of a telemarketer. Telemarketers with
deep, resonating voices come across as being honest, competent, and sincere. Telemarketers
know that sentences or words that end in high notes create question, insincerity and
incompetence. Professional telemarketers know to mimic the voice of the customer, which
creates trust and friendship. Then as they approach the close, they speak with a louder
tone to overwhelm the customer’s personality. This is an aspect of Neuro Linguistic
Programming, or “brain language.” It is a technique called “leading.” If the first attempt
at closing a customer does not work, the telemarketer knows to go back to mimicking the
customer's voice, tone, and speed, and begin to add information such as fairytale stories,
gross misrepresentations, unbelievable bargains, or an array of other types of closes. All
the various closes end with the same overpowering voice control, which disables a
customer's normal thought patterns.

Most telemarketers, referring to the Army of 200,000 renegades, steal their leads from
company to company to generate a bigger commission for themselves. In fact, most pro
telemarketing operations advertise that telemarketers who come with their own databases
will enjoy extra privileges. So, as you can see, thievery is promoted within the industry.
Many customers who got ripped off before from one organization are about to be ripped
off again by a different company with a new pitch.

Telemarketers will call you and act as if you are very old friends. They will address you by
your first name. Once you realize that the person is not a friend but a salesperson, one of
two things can happen. You don't want to look like an idiot by suddenly being mean to the
telemarketer who you have already been nice to, or you will fall for the trick of familiarity
and get pitched into thinking that the person was just following up on a request that you
made. So calling the person by their last name really doesn't work for a telemarketer
because it alerts the prospect that this is a cold unfamiliar call.

Names can be purchased for five cents per name and includes dozens of different "select
demographics". These can include your income, sex, age, whether you are a homeowner,
what your buying habits are, who is the head of the household, the number of people in
your family, what kind of vehicles you own, what your credit limits are, and so on. Your
bank, grocery store, or credit card company supplies much of this information. This gives
telemarketers an edge because free information is readily available about you. The
telemarketers use this information to eliminate the cold call approach in the form of
different angles.

Many times, there is a legitimate telemarketing operation but, unfortunately, there is a
break-off organization that forms a scam. It's hard to know which one is legitimate
because the break-off company had the same training as the legitimate company, plus an
improved pitch they created for this scam.

Telemarketers use a backdoor approach when setting an appointment for an outside
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salesperson, regardless of what they are selling. We are taught five different ways of saying
the same thing to achieve our objectives. After all, even if we are salaried employees, the
production is all that counts.

Telemarketers use the “assumptive close”. (See Sample Telemarketing Scripts ). The
assumptive close is getting the customer to say yes to something within the closing sentence.
 The assumptive close usually refers to something that has nothing to do with the
appointment. It subliminally confuses the customer into thinking that they agreed to the
appointment. The customer knows that they just said yes to something but, since it was
sandwiched in the middle of the pitch, they are not sure what they said yes to. Many senior
citizens fall for this because they are easier to confuse. Last time I checked, subliminal
messaging in theaters for Coca-Cola or popcorn was illegal. The government is so far
behind the times in regards to telemarketing tactics that they would not know where to
begin to address such an issue. Have you ever seen a law for telemarketing saying, “no
subliminal messaging”? Of course not. However, it is a practice used every minute of
every day. For example, a telemarketer looking to schedule an appointment will name a
time in the morning and ask if the customer is finished with breakfast by then. If the
customer says “yes”, referring to the time they finish breakfast, the telemarketer has
created a subliminal yes to the appointment. The telemarketer then moves forward with
details of the appointment and force the appointment down the customer’s throat. Most of
us are too courteous to say no at this point because we feel that we may have already
agreed somehow. Besides, we were a little bit interested in the product because it is in our
natural to be curious. Unfortunately, that curiosity and mistaken yes will take the
customer into a sales pitch that will be a living nightmare.

Some of the biggest suckers in our society are salespeople themselves. Telemarketers, for
years, have capitalized on this fact, and have created inbound telemarketing scams
promising leads to outside salespeople if they bought their demo kits. Many times, the
outside salesperson will send in the money for the demo kit, thinking that they have found a
new career opportunity with interested prospects waiting to buy.

Some of the more common tactics used are through the use of "Help Wanted" ads. The
telemarketers use big company names, sounding like a real company that has TV
commercials or AAA Dun & Bradstreet ratings. The salesman will eventually find out that
they bought a kit for some DBA operated out of somebody's apartment across the country
that has been cashing their checks at local check cashing places. They have a Mailbox Etc.
as their business location on a familiar city street, giving you the impression that they are
legitimate.

A common closing technique is to have two or three different people all claiming to be
higher up on the corporate later, like Executive Vice President and National Sales
Manager, talk to the customer and seem to be impressed with them. This is a form of the
"take-away close", which makes you beg to participate in the national lead program. You
really get a sense that you are talented because all these important corporate people are
taking the time to talk to you. Little do you know that it's actually a stoned, long-haired
junkie, high on weed, in a dirty, disgusting office in the middle of nowhere, taking you for
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your last few dollars.

Salespeople are very greedy, and telemarketers know this. Telemarketers create third-
party stories, demonstrating the huge successes of other salespeople who participated in the
program. They even set up phony references so, if you call to check out the story, the same
telemarketers answer the phone and continue to pitch you. Third-party stories are used in
most telemarketing ploys for just about everything they sell. It is just another way of
overcoming an objection, but it works especially well with salespeople.

When reaching a secretary who is supposed to be screening the calls, the telemarketer will
say he was supposed to get back to the person who makes the decisions. Sometimes the
telemarketers call and get the information first, or from a list, and so they have all the
pertinent information they need to bypass these secretaries. A psychological ploy to bypass
secretaries is to ask for someone by their first name, sound like an old client or friend, and
then apologize to the secretary for no reason. The secretary appreciates being apologized
to, it makes them feel important, and they put your call through.

Here again, lists are available giving information on companies. The type of information
available on a company is “the number of employees”, “the decision-makers”, “officer's
names”, “square footage of the business”, “credit limits”, “type of industry”,
“competition”, and whether or not the business has lawsuits pending against it. All this
information can be used to bypass any secretary or receptionist and create an opening for
telemarketers to use the information against you.

Re-hashing or re-selling an item on the phone after the person says no is commonplace.
Here are a few examples of what I used to do. When I was selling alarm systems on the
phone and the customer already had an alarm system or weren't interested, I would then
create a seemingly innocent friendly conversation. I would say to them, "Well, if there was
a next project around the house, what would it be?” And I would even suggest things like--
new windows, doors, etc. Whatever they said, I would say that my parents just had that
done and they had eleven estimates. I would tell them that I would call my parents and
have them send the cards of all the people who gave them estimates, or my parents might
even give them a call. I would say that if they ever needed an alarm system, to give me a
call. This would lead them to believe that I wasn't benefiting from the referral.

Of course, I was hooked up with home improvement companies and received 5-8% gross
commission for a referral lead, which is the same amount of commission as if I were
pitching home improvements directly. This system was so effective that it resulted in an
additional 25% annual income for me. It's hard to really classify this as a scam, but it
certainly is a good selling tactic.

If the prospect said that they were selling their house, I had an answer to that, too. I said
that my parents just sold their house and I would mention a girl from a real estate
company and say that she had more people over to see our house than my parents had
company in the last ten years. Then I would say that if they ever needed an alarm system
for the new house, to give me a call. Again, I would lead them to believe that I wasn't
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benefiting from referring them to this real estate girl. This makes people more apt to
accept the referral than if they think you are benefiting from it. It is almost as if I was
doing them a favor. The girl I referred them to became the number one real estate agent in
the state. She had over 1,000 listing commissions in five years.

I think it would be a good idea for any real estate agent or home improvement contractor
to solicit all the telemarketing operations, to add a tag on the end of their pitch for extra
income. I call it “tagging”, but it is still a scam because there's a lie involved.

Now these are innocent reload items, but most companies that are scams will reload you a
second scam item or service to further burn you. So, not only are you going to be reloaded
on another call, but also, most telemarketers will try to reload you on a second item on the
same call. Besides, as long as you are on the phone with a telemarketer, he has a chance to
sell you something. Eventually, most people give in to something, especially if they have a
pre-disposition for buying.

Almost all telemarketers have a tickler file of past customers or future hopefuls.
Telemarketers keep very accurate notes about every telephone call they have ever made
with a customer, including tidbits, like the time they called, details of the conversation,
what they sold or hoped to sell, previous sales, tidbits about the buyer’s personality,
strategies for the next telephone call, the callback date agreed to, or the callback date they
think they should be able to call back, and many other seemingly insignificant details that
are really a tool box of necessities to prepare the telemarketer for the next call. Personally,
I surprise hundreds of people with tidbits of information they thought I remembered when
really I was just referring to some helpful notes taken in previous conversations. It puts
the prospect at ease. It also reminds them that they had made friends with you and that
makes them feel like an idiot if they don't buy something.

Many telemarketing schemes are coupled with “cyber fraud”. It is commonplace to have a
website detailing third-party stories of high earning that directs the prospects to a phone
number to call. The sites are totally believable because it is on the Internet, which is still a
place where fraud is not yet expected. Also, the sites are very professional looking, utilizing
3-D color, and moving objects that make them look very legitimate.

Telemarketing companies now sell the tactics and information they discovered about a
customer's personal idiosyncrasies to other vertical telemarketing operations to help them
close the deal. They can tell the sex of the telemarketer you are likely to buy from, the age
and personality of the telemarketer who you most respond to, whether or not sex appeal
was used, and even intricate scientific technologies such as ”neuron-linguistic
programming”.

Let's take a look at neuron-linguistic programming, for example. All of us fall into one of
three categories: midbrain, right brain, and left-brain. They represent whether or not you
are a person who responds to emotions, analytical information, or visualizations. A
telemarketer asks questions to figure out what part of your brain you listen from, and then
uses words in their sales presentations to correspond to that. If you are a right-brain
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person, you are emotionally based, and you respond to words that describe feelings. If you
are a left-brain person, you are analytical, and statistical information will be fed to you. If
you are a mid-brain person, you are a visionary, and the telemarketer will draw a picture
with words that you can see.

There's something called a "body tone" chart. If a customer is bored when they answer the
phone and the telemarketer is enthusiastic, it brings the customer's body tone chart up one
level to excitement. Telemarketers know that in order to put somebody in a buying mode,
they must be excited about the purchase. That is why it is so easy to resell people, because
they remember the feeling of euphoria they got when making the purchase.

Another clear understanding telemarketers have is that they know a customer's mindset
when it comes to "impulse-buying". Ninety-five percent of all items bought in America
today are done on impulse. Have you ever gone into a store to buy one item and end up
with a shopping cart full of groceries, or bought in item at the counter of the store on
impulse? Telemarketers use the same concept in a different way. The telemarketers offer
the first "close" usually within the first minute of the conversation. In the sales world, this
may be referred to as a "trial close". Ninety-five percent of all sales take place after they
offer the first close. The balance of the conversation, or telephone presentation, is really
overcoming objections. If the call goes beyond two minutes, people fall into the "common
sense arena" of the conversation and realize that they are not interested in buying, and
hang up. So telemarketers know they must catch you off guard and try to get you to agree
right away. The closes get more sophisticated and sneakier as the pitch goes on.

Almost all telemarketers are trained with these tactics today. It's no wonder that
telemarketing is a $120 billion year business. My estimation is that -- about 30 or 40 billion
of that total is scammed from the public. These ruthless telemarketing practices give
telemarketers weapons of mass destruction.




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                    Sample Telemarketing Scripts

OLD FRIENDS

I was supposed to get back in touch with the service manager. I forgot his name. What's
his name again? Oh, thank you. Put him on the phone, please.

Hi, Bob. Hi, this is Mark, the old light bulb man, remember me? Guess what? I got lucky.
 I started my own business finally, me and the bank, mostly the bank. (Chuckle) Anyway,
my wife--she's a sentimental type--she wanted me to show you how much I appreciate your
past support by sending a little ‘thank you’ to your home by UPS. What was your home
address again? Anyway, it's quite fragile, so if there is anything wrong with it, be sure you
give me a callback. I have insurance on it, OK?

Oh, by the way, let me get my records up to date so I can send you our new catalog. You
are still using the fluorescent light bulbs? Good. The 4-foot or 8-footers? Great, that's
what I thought. And the floodlights outside are they still 150 watts? Good, well everything
looks about the same.

You know, Bob, my grandmother told me that when I started this business I would have to
crawl before I walked, but she never told me about these gad-darned holes in my knees.
(Chuckle) Anyway, I put a regular small box of the floodlights out to you, but if you ever
need anything really big, like the fluorescent bulbs, make sure you give me a callback.
OK? Oh, and keep a lookout for the little ‘thank you’ coming out to the house. Should be
there in a day or two. Okay. By the way, what's your next purchase order number, or is it
okay if I just put it to your attention? Great, Bob, thanks for helping me get my business
started. I'm forever indebted to you, bud, and have a good one.

THE POLICE
This is Jack Carden with the California Organization of Police and Sheriffs. How are you
today? Great. By the way, there're no warrants for your arrest, it's just a courtesy call.
You can put your hands down now. You don't have to run out the back door. (Chuckle)
As you know, the police and sheriffs are asking everybody for a little help again this year
and, apparently, one of our volunteers spoke to you about six months ago. I don't know if
you remember. You probably get millions of these phone calls. Anyway, I guess you
agreed to help out with a little $95 business card listing and apparently we forgot to send
you out the bill. Or I'm not sure, I think we didn't have any stamps, but anyway, we did
receive the federal matching funds for your pledge. So I thought if we called back and
asked politely, we could send down the volunteer to pick up the check. We must get it in
before the end of the week so we can qualify for the federal matching fund program. We
spent the money that we got from the program already on two-way radios for your Local
Citizens On Patrol unit. We don't have it to send back. Besides, it's against federal law to
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send this out beyond thirty days without your permission.

You may not remember making the pledge, but apparently the Internal Revenue has a
special audit that was done. Everybody that made a pledge, his or her name was
forwarded to the donation office for a ‘thank you’ in the yearbook to be sent out.
Everybody who didn't honor the pledge, of course, the Internal Revenue Service and the
local District Attorney's office gets a copy of the names. So we want to make sure you
stayed on good terms with the local authorities by honoring your commitment. Hopefully,
you'll continue to make donations next year but, if you want, just because of the confusion,
we will take you off the list for five whole years just so you will honor your commitment
just this once. Okay?

It was only $95, that's all. In fact, you will be on the inside cover of the yearbook. Over
200,000 copies are distributed and every single business, teacher, and county employee in
your district will personally get a copy. These are hardbound copies so everybody in a
community will know you helped out. Besides, you will probably get a lot of business out of
it. The local police help the Neighborhood Watch program and, of course, the two-way
radios that we bought for the Citizens Patrol Unit will also help out the local drug problem.
 At least honor your commitment just this once. If $95 is too much, at least cut it in half to
$50. That way we can still qualify for the federal matching funds. Okay?

Well, at least do the business listing. That's only $35 and we promise that we will bring all
of our laundry over to your shop for cleaning for 6 weeks. If you do a good job, we will
keep you on our vendor list permanently, okay?

YOU’VE WON!

Hi, Mary Jones? This is Howard Webster with The Great Heritage Awards. How are you?
Guess what? You are the big winner this year. That is right. Your name was picked and
you are the lucky recipient of one of our top five prizes that I'll mention to you. This is no
joke. This is real. This is unlike all other awards because this one is the only legitimate
award endorsed and authorized by the federal government and, of course, celebrities,
judges and Ed Mann. You may have seen this on the cover of our Great American Heritage
Awards magazine and on T.V. By the way, since you are one of our five top award
winners, we would like to ask for your permission to advertise your name in our
international Great American Heritage Awards magazine going out to the 30 million
subscribers of our publication to let them all know that we did give our top great semi-
grand prize away. Is that okay?

Since you are one of our five top semi-grand prizewinners, you'll also be eligible to win
$100,000.00. You have been selected in our pool of semi-grand prize finalists. You are
already a winner of at least one of our top five prizes. Let me name them and you tell me
what you think you would want. Of course, I cannot guarantee which one of these five top
prizes you'll be eligible for, but you are guaranteed to win at least one. Are you ready?
Okay! The first prize is a brand-new car. The second prize is $10,000 in cash. The third
prize is a color TV. The fourth prize is a CD stereo, and the fifth prize is a brand new
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cordless telephone.

Now, hopefully, you won a brand new car. Okay? We are now, right now, able to advise
you which one of these five grand prizes is yours. Are you ready? Are you sitting down?
Have you ever won anything before? You are the recipient of our number two grand prize
of $10,000 in cash! How does that make you feel? You are the winner! You'll receive a
check in the amount of $10,000 and you'll also be eligible to qualify as a semi-finalist to win
our grand prize of $100,000!

Now the only thing we need to do to get you to qualify to receive the $10,000 in cash. Of
course, you have to pay the taxes. Now we have, fortunately, as part of your prize, been
able to discount the taxes so that we are absorbing 95% of that tax cost. Your charge for
the final tax tally is only $895. I will send Federal Express over to your place to pick up the
check. Now, take a check, put it in the envelope with this account number on the outside of
it. Do you have a pen handy? Your $10,000 check will be overnighted. Our CEO will
personally sign it on Tuesday of next week and then you'll qualify to be a grand prize
finalist to win $100.000! Are you excited? This should take care of the college educations
and pay off the mortgage finally. Now you can leave it for your children. One of our
supervisors will call you back within a few minutes to verify the fact you are a semi-prize
finalist and verify that you are the $10,000 semi-finalist prizewinner. Okay?

LAND DEAL

Hello, Mr. Stern? This is Howard Carden calling from the Florida Land Commission for
Discount Realtors. How are you today? Great. Apparently, around three months ago, you
responded to one of our brokers’ exciting land offers here in southern Florida. Do you
remember? Great. Because we sent you out the video and a complete package for your
review. Fortunately for you, this highly- desirable property is in its early stages of
development and has only been offered to a limited number of recipients.

We have a competitive real estate organization bidding directly with the Real Estate
Commission here in southern Florida to overtake the project. However, right now, we do
have six lots available for immediate purchase and, since you are pre-qualified to receive
one of these lots, if you make an immediate decision, we have a guarantee in escrow with
another real estate company for the sale of that lot for double the amount of your original
purchase. You have made money with the Real Estate Discount Broker before, right? Oh,
you haven't? Well, since this is your first federal discount land offer, you will be on the list
for all future purposes of these types of offers.

Now since this is a limited offer, only available to you right now, at this time you will
receive a guarantee of purchase from our real estate discount brokerage service
guaranteeing you immediate re-purchase if you decide that you want to liquidate the
arrangement right away. This contract will be overnighted and you will receive the
notarized seal of the state of Florida, giving you the authorization to accept the offer and
guaranteeing you repayment, doubling your original investment. By the way, are your
assets currently right now in stocks, bonds, mutual funds, CDs, annuities, or cash? Great.
71
We arrange immediate cash transfers once you accept this arrangement. We must make
the arrangements to do this in advance because of the bid for the Real Estate Brokers
Commission Federal Investment Commission.

HOME IMPROVEMENT

Hi, Mrs. Jones? This is Mike from GE Home Improvements. How are you today? The
reason that I am calling is that we spoke to you back in the fall and you told us to call you
back in the spring about possibly doing something around the house. I forgot what that
was. Were you thinking about putting new windows in? A new roof? Storm doors? I
forgot what it was again. What was it? Oh great, that's right, I remember now. Because
we have one of our free estimators in the neighborhood tonight visiting one your neighbors,
I figured, while he was there, let's stop and give you a free quote. Do you normally finish
dinner by 5:30? Are you going to be home? Great. I will stop by and give you a free
estimate. Now, will your husband be home as well? Oh, what's the best time to catch you
both there together, in the morning or evening?

INSURANCE

Hi, Marge. This is Michael from Traveling Handcock Insurance. How are you today?
The reason I was calling -- apparently you sent in a card about 3 months or six months ago.
 I can't read the postmark. But apparently you must have requested some literature or
information on home-care or long-term care insurance. Is that right? Well, you were
probably just on our mailing list. Anyway, are you in good health? Are you a senior
citizen? You sound like you're 36. (Chuckle) You might be eligible. Most people who
don't buy this type of insurance end up losing all of their assets to a nursing home. You're
better off leaving it to your children, as you originally intended. We will have one of the
girls or myself drop off the literature in the morning on the way to the office, around 9
o'clock. Are you finished with breakfast that soon? Great. I promise she won't ruin your
day. She will give you a free information pack. Okay? By the way, if you have any
questions, like how much it costs, she will be there to answer the questions for you. Okay?

MEDICAL ALERT

Mrs. Jackson? This is Michael from the Medical Alert Center. How are you today? The
reason I was calling -- apparently, somebody responded when our television commercials
aired. That person who cares about you called our 800 numbers indicating that you may
live alone and that you have no protection if you have an emergency. Have you seen our TV
commercials concerning the medical alert systems? Great. If you fall and don't get help
for fifteen minutes, you could get paralysis. This will leave you stricken to a wheelchair
forever and force you into a nursing home, losing your independence for the rest of your
life. This program is designed to allow you to maintain the independence that you so desire
in the event that you have an unforeseen accident.

The people who don't buy this type of medical alert protection end up having their children
72
make all of their decisions for them, usually against their will. At least, let us give you a
free demonstration so you are not trapped in a nursing home and stricken to a wheelchair
for the rest of your life. Let's create the possibility for you to maintain the same quality of
life you enjoy today. Okay? Oh, by the way, you sign your own checks, so you are
independent right now, right? Great! We'll give you a free demonstration tomorrow
morning at 11:00. We promise it will take no more than 10 minutes. I promise. Okay?

MY BROTHER’S ESTATE

Hi, Mr. Jackson? Hi. I wouldn't normally call a Fortune 500 company out of the blue, but
I only wanted to deal with a company that was listed with Dun & Bradstreet. Oh, I'm
sorry. Let me introduce myself. This is Mike. I am the CPA in charge of my brother's
estate. Unfortunately, he was recently killed in a head-on car accident. Anyway, your
name was on his mailing list from his office supply store. Anyway, apparently your name
was on the list for a free brochure. But now I have the unfortunate task of liquidating his
estate. So I thought that since your name was first on the list, I thought I would at least
give you the chance to buy some items for only 10% of what he actually paid for the office
supplies wholesale. Let me give you a list of what he has here to see if you are interested.
Okay? I have here 5,000 pens, mostly Bic, 200 boxes of magic markers, and a different
array of toner. All are brand new, in the box, never been opened. By the way, what type of
toner does you copier use? Oh, good. That's exactly what he has here. I'll send you out
the toner; you send me a check back for what you think you should pay me. It normally
goes for $7,200 a crate. Wholesale, he paid about $3,000. Of course, I will throw in the
magic markers and pens for free. Your price for everything will only be $300 dollars. The
savings will make you look good with the CEO or the president of your company.

TAKE A VACATION

Hi, this is Mike Webster from Vacations Travel, Inc. How are you today? Great. The
reason I was calling -- this year we are selecting over 250 people to participate in our “free
vacation giveaway”. You have been selected to participate in any one of our five luxurious
resorts located either in the Caribbean, Puerto Rico, or South Florida. This special offer is
limited because only 250 people are selected as a special advertising promotion. To attend
our resort, you just pay the plane fare to get there. The hotel is free for six nights and
seven days. You will enjoy the wonderful, warm weather, the coconut’s and many other
amenities, privileges, and perks. Okay. Leaving December 2nd round-trip for seven days
and six nights is only $295 for both of you. You will be staying at your very own timeshare
resort for free. Remember, this is just an advertising promotion, and you are one of a very
few limited recipients of this extended offer. We need to reserve your plane reservation
with your credit card. You will have thirty days, under federal state law, to cancel if you're
not happy with the reservation information. Okay? From left to right, please read me the
numbers on your credit card.




73
                   Injustice Invasion Of Privacy
Imagine coming home from work one day and finding a used-car salesman sitting at your
kitchen table. You are tired from a long day's work, eager to sit down to dinner with your
family but, instead, you are forced to listen to a used-car pitch. This would be bad enough,
but this salesman is also going all out to close you on the deal. If you don't happen to buy,
he will verbally assault you with sexual profanities or he will threaten your life. Your
relaxed mood has now turned into a murderous rage and you will want to kill this salesman
in a slow, but painful way. This is exactly what is happening in today's kitchens every
evening, all around the country. Telemarketers are after you, and you can't do anything
about it, except take out your anger on your family. Does a used-car salesman have a right
to enter your home, unannounced, and begin a sales pitch?
 Of course not!


DISRUPTION TO OUR LIVES
Let's talk about pure harassment due to the abundance of telemarketing calls we receive.
Most company buyers who end up on future lead lists are guaranteed to get at least 20, 40
or 50 calls within the month of being put on the list and over 100 calls over the next year. I
hooked up a brand new phone line the other day and, within five minutes of the phone
being turned on, I received a telemarketing call offering me a subscription to a major
newspaper. It was a big publication, so you would assume that they would have a straight
pitch. The telemarketer stated that he knew that I was not receiving the newspaper and
that he already had my personal information, such as address, which I knew that he didn't.
Within five days, I received 27 phone calls, mainly from telephone companies using the
same backdoor approach.

Nowadays, many people have their telephone calls forwarded to voicemail and answering
machines, to avoid telemarketing calls. Telemarketers use predictable F equipment, which
continues dialing constantly so that, as soon as a telemarketer hangs up the phone from a
previous call, there is the voice of their next victim on the line. The equipment is set up in
such a way that it creates a lot of hang-ups for potential customers if a telemarketer is not
available for the next call. If you spend one day at home and have a listed phone number,
you will receive at least 5 or 10 telemarketing calls that day. Many will be hang-ups
because the telemarketer is not available to pitch you. Every time a telemarketer is
finished with a call, they press a button, and somebody is already there on the line saying
hello. There is no time wasted for dialing numbers.

Some people work at night and are home during the day. Why should a person be forced
to go out and buy an answering machine or pay for call forwarding just to keep his sleep
from being interrupted?

Why such an injustice? Why should we have to pay for a service to avoid being solicited?
74
We are not allowed to have the use of our telephone service without protecting ourselves
from the assault. We should be able to enjoy our constitutional freedom of privacy. We
don't have public pay phones in our homes. Why must we pay for call blocking or caller
ID from the telephone company, and even pay extra money not to be listed in the telephone
directory to avoid such harassment? If anything, the phone company should pay us for
publishing our number in their directories, and they should receive their money from the
advertisers. Of course, the biggest problem is that the main victims are senior citizens who
usually don't have the latest telephone call screening technology.

Back to the used-car salesman at your kitchen table, the uninvited guest, hacking you until
you give in. At least you can see the used car salesman at your kitchen table, or the home
improvement salesman who you invited. The telemarketer just came in the back door or
open window, completely, and totally, uninvited.

When I was the National Training Director for a fundraising group, I tried to teach all the
telemarketers comedy instead of lies. All I really achieved was creating lying comedians.
It's like a cold war between the United States and Russia--every time a new weapon is
developed, a counter-weapon is developed that makes the first weapon obsolete. No matter
what is taught at the top, you cannot change a liar into an honest person. It's literally
impossible, because it is so deeply ingrained in telemarketers to lie to make the sale.

Understanding the psychology of greed vs. excitement will further your understanding of
how so many people fall prey to these fraudulent deals? Purchasing something makes
people happy because buying is gratifying a need. It is feeding the “yes” side of a person’s
brain and is a ‘high’, similar to cocaine. It's proven that a monkey will choose cocaine over
food until they die. This is an accurate analogy. Another accurate analogy is "shop 'til you
drop.”

Telemarketers have nothing to lose. This may account for a higher than normal degree of
self-confidence and sales ability. They feel like their life spans are short because of their
heavy drug use and unhealthy lifestyle, so why should they care about anything. They
don't even care about burning leads. I am always surprised by how many telemarketers
are carefree and unusually happy. I think it is because they have accepted their fate as
losers. Acceptance is the key to serenity. When you are on drugs and know you can get the
cash to get more, a happiness sets in that leaves the consequences of your addiction far
behind. So why would these drug- induced telemarketers care about the repercussions of
their actions when there hasn't been a warrant for their arrest yet, or they've gotten out of
court actions easily?
More and more people are starting to work from home and many use the telephone to
conduct their business. Because of this fact, the army of renegade telemarketers is getting
mixed up with the general population and becoming harder to detect. Many telemarketers
are also calling from home because we receive higher commissions. There are some
standards and protocols even in telemarketing, because the managers are monitoring us,
but there are certainly no measures protecting the consumers from telemarketers who call
from their homes. This just gives us license to create even bigger lies and be even more
belligerent to everyone who doesn't buy.
75
Many telemarketers take offense to people trying to protect themselves from a salesman’s
harassment. We must remember that most telemarketers who call are high on drugs and
alcohol and really only care about themselves.

The situation, as it stands today, is like when President Bush invaded Kuwait and left
Saddam Hussein in power. Saddam was just left there to develop new weapons of mass
destruction and continue to enslave his people. Well, the same thing can be said of
telemarketers. Laws must be established to completely remove telemarketers from power,
especially in regards to residential telemarketing. It is a war in which the enemy must be
completely annihilated.

Why are we being threatened and verbally abused in our very own homes? If a used-car
salesman or home improvement contractor started cussing you out in your own home, you
would kick them out, punch them, or call the police. If he was making disgusting sexual
comments to your children, I think you would kill him on the spot. The telemarketer,
however, can simply hang up the phone after criminally verbally assaulting you or your
children in your home. They can even call back and endlessly harass you until you are
forced to change your phone number or buy evasive phone technologies to protect your
sanity. Most of the time, these sorts of verbally-assault crimes are committed against your
children, spouses, or employees repeatedly before a person is forced to take such actions.

Do not be confused; there are legitimate telemarketers who represent legitimate companies
nationwide. For example, AARP is a legitimate company and it even warns against
illegitimate telemarketers. However, since seniors are ripped off in a disproportionate
amount compared to the rest of society, it is irresponsible for AARP to even contact them
by phone.

SENIOR CITIZENS
Years ago, when our mothers and fathers were growing up, there were not as many scam
artists as there are today. Sure, there were street hustlers, burglars, purse-snatchers, and
other crimes being committed. The difference is that today there are 200,000 telemarketers
who are drug addicts, degenerate gamblers, and criminals of all types, getting into your
home via the telephone. These telemarketers are criminals who are too scared to commit a
face-to-face crime, so they hide behind the telephone. They are ripping off millions of
dollars from consumers every day.

Seniors citizens are the most in danger of being victimized by fraudulent telemarketers, for
several reasons. The first reason being that -- many senior citizens don't possess the
cynical, sharp communication skills that younger generations have developed to handle
such pressure. A senior citizen often feels a moral obligation not to be nasty to a
telemarketer, and so they allow the telemarketer to do their pitch and find him or herself
trapped. The average senior citizen would need extensive training to handle this highly
trained, motivated army of ruthless telemarketers. I certainly haven't seen a reliable,
organized effort to create such an educational program. Lawmakers don't take into
76
consideration the vulnerability of senior citizens due to the moralistic upbringing and
standard of education that our older generations had.

Another reason why the problem is getting worse for senior citizens is the fact that, while
the younger generations have embraced such technological measures as “Caller I.D.” to
screen their calls, most seniors have not. Due to these protective devices, Telemarketers
now must target seniors to meet their sales objective.

Some states have laws making it illegal for telemarketers to call people after 9:00 p.m. or
on Sundays, but this does little to protect the average senior citizen who is home all day
every day, alone. Telemarketers know that senior citizens are perky in the mornings and
tired in the afternoons, so they take advantage of this. Telemarketing companies know
when to reach certain people to make their call-per- call closing ratios more effective. Very
seldom do telemarketing companies call yuppies in the afternoon because they are at work.
 This is obvious.

Furthermore, a senior citizen who has been ripped off may be too embarrassed to ask for
help, thinking that their children may take away their independence or their financial
freedom. These folks are No. 1 on the list for being reloaded by telemarketers.

I have personally seen telemarketers call senior citizens with a long-term care pitch,
uncovered all their financial information, and then called them back ten minutes later with
a charity pitch. They were then able to use the financial information they had on them as a
tool. If they said they didn't have the money, the telemarketer would mention the
investments they had. In essence, calling them a liar.

INFORMATION
Privacy laws have become too lenient in regards to easy access to personal information. It is
far too easy for corrupt telemarketers to gather information about people from their
banks, credit card companies, and numerous other places like the phone book. The
Freedom of Information Act violates its ultimate purpose.
As banks and other institutions sell your personal information, so do telemarketing
companies. However, the main difference is that telemarketing companies refer to it as a
sucker list or "taps”. They include a lot of other personal information that would shock
you. I once saw a profile of a tap that was a rich old lady and it was seven pages long, and
broken down into fifty different categories.

"Reloading" is the most important element in telemarketing sales. It represents repeat
sales and creates a residual income for the telemarketers. Once the telemarketer finds a
buyer, they will keep reselling that person over and over and over until the person is
spiritually or financially bankrupt. The telemarketer has no qualms about destroying
someone. They only care about their next fix.

Telemarketing is not just an outbound system of calling. There are many ads in
newspapers, TV, radio, and other types of circulations listing phone numbers to call. In the
77
Classified section under “Telemarketing”, this is known as "inbound telemarketing".
These people may sound like order takers or operators and, in some cases they are,
however, many are apart of the 200,000 terrorists. Most of these underground operations
record your call and phone number illegally with Caller ID, sell you the product, then run
your name over to their sister outbound operation to be reloaded.

Most businesses have an Accounts Payable Department that handles all the bills for the
company; however, the people who are making the purchases are from different
departments in the company. Very large corporations may have buyers who do all the
purchasing for the company, but the average company has no such position and relies on
employees in different departments to make their own purchase decisions. Very seldom
are these individual employees qualified to make company purchases and can be easily
swayed or sold by fraudulent telemarketers. It is very common for telemarketers to pitch
someone on a product within the hour of selling them on another product. This issue has
never been addressed in the law before. I believe that this behavior should be outlawed
completely.

HOW MUCH CRIME EXISTS

Let's consider how many telemarketing companies are operating legally in the United
States. The number is huge. Take that number and imagine the amount of illegal
telemarketing calls that are made daily. The FBI says that there are over 14,000
telemarketing companies that are not legitimate. The problem with that number is that
many companies that are legitimate have illegitimate telemarketers working for them who
are involved in their own shady gray area type of marketing operations.

Two percent of the population (two out of 100 people) are criminally abused daily. A
telemarketer reaches between 80 to 150 people daily. 200,000 terrorists are praying on 20
to 30 million people. Senior citizens, the weak, previous buyers (suckers), are guaranteed
to get a call twice a day from a drug addict, child molester, gambler, or some other type of
criminal. Most of these targeted customers receive 5 to 10 calls per day and manage to fend
off 90% of them but, as the day progresses, the lies become more believable and you will
eventually fall prey to the sharks.

I recently looked up “Telemarketing Fraud” on the Internet and found over 15,000 sites. I
personally was able to locate over 500,000 articles on telemarketing fraud in newspapers
over the last 15 years. I doubt that even one-tenth of 1% of these uncovered frauds have
been brought to justice.

LAWS THAT EXIST

If you ask me, I think it's completely ridiculous that there are people like telemarketers
taking advantage of society. Some states have tried to take measures to limit the
susceptibility of the average person. For example, states have instituted laws that require
telemarketers to introduce themselves as sales call and mention their company name at the
beginning of the conversation. This might work, except for the fact that most
78
telemarketers are scammers. They are criminals. It's like telling a shoplifter to report for
duty at the customer service desk before he starts stealing.

Some states require the telemarketer to offer a “do not call number” so that the customer
can call this number to be put on a special list so that they will never be called again.
Telemarketers laugh off these measures. Many times, Telemarketers have made a mockery
of this system. I remember a guy who supplied the customer a fake "do not call number”
that was some forty or fifty digits long. The customer kept writing down the numbers
until they realized that they were being lied to. He had the customer on speakerphone and
we were all just laughing our heads off in the background.

There is a law telemarketers are not allowed to call on Sundays. The telemarketers avoid
this particular law by pretending that they are calling from a previous request as opposed
to the call being a "cold call". In fact, most organizations know that the best night to call
people is Sunday. Everyone is home on Sunday. It is common knowledge among
telemarketers that if you apologize first for calling on Sunday, most people will say that it's
okay. People like being apologized to. My experience is that my phone personality is so
good that I could call people on Christmas Day and pitch them, just as long as I remember
to make them laugh first. The government and lawmakers are just fooling themselves if
they think that they are creating measures that will eliminate this privacy invasion.


SUGGESTIONS

One suggestion I would offer is that a law be created where telemarketers must notify
buyers by mail before any sales calls are made, enclosing a self-addressed, stamped
permission form that the customer must fill out and return in order to for the telemarketer
to call. This may be a little hard to regulate, but if the government spends adequate money
informing people of this new practice, it might catch on in a few years.

It would be hard to create a law protecting businesses from this invasion of ruthless
telemarketing practices. However, business owners should be made aware of scams or
current probes in progress by government agencies or the Better Business Bureaus in their
communities. They should be listed on a commonly known website, or a mailer. After all,
these Better Business Bureaus charge $250 a year for membership, so you should at least
get something for your membership fees.

Another thing that is completely overlooked by the government are "taxes". In my twenty-
five year career in telemarketing, I have rarely met anyone that actually paid income taxes.
 The companies that hire these individuals rarely pay sales tax or income tax. This creates
at least $1 billion a month in shortfalls for the Internal Revenue collections. Telemarketing
companies use check cashing services, fake aliases, fake Social Security numbers, and many
other tax-evading measures. The IRS doesn't even investigate a business within the first or
second tax year of reporting. I think there is obviously a big hole in the system.

It is a requirement for the state to manually audit some company's books to verify that
79
Workers Comp payments are in line with their actual payroll, but most telemarketing
companies keep two sets of books to avoid paying most Workers Comp fees. One set of
books contains what is really being paid to the telemarketers and the other set of books
shows a much lower amount of wages paid to employees.

In some states, the Attorney General requires a bond, or some other type of limited
licensing. Organized telemarketing organizations hire the best lawyers available to find
every possible loophole. It takes a long time to pass legislative law and institute new,
effective measures.

If the Attorney General does a probe or court order to subpoena records to investigate the
telemarketing company, a team of lawyers is either buying time or finding the loophole so
that the business can continue. Do bonding telemarketing companies and telemarketers
really work? No, of course not. A law eliminating telemarketing in private homes,
especially cold calling, must be created immediately or billions of dollars more will be
stolen from society.

This nonsense must stop. The rights of citizens, to not be harassed and exploited over the
phone, must be defended. The right of telemarketers to carry on this “invasion of privacy”
has been allowed to override the rights of citizens, especially our senior citizens. Why has
this been allowed to continue for so long when attorney general's offices are flooded with
complaints about telemarketing practices every day? That's the forty-billion-dollar
question.




80
               The Law And What Can Be Done
Nothing, sorry to say. One out of ten companies that sell over the phone are not legitimate.
Even within legitimate telemarketing companies, you have illegitimate telemarketers
ripping off the company and the customers they are calling.

Most telemarketing frauds are discovered by accident rather than detected by an audit
system. There is no methodology or technique used or designed to truly detect
telemarketing fraud. Telemarketing fraud detection is more of a science, requiring
innovative and creative detective work. Every fraud is unique and all thieves are not alike.
Telemarketers are con artists and opportunists. They see an opportunity and grab it. They
take the easiest route. They don't take the time to design elaborate schemes and so they
usually leave a trail of mistakes.

Telemarketing is a $300 billion-a-year business, if not more, and the FBI and the
Department of Justice say that about $40 billion of that amount is completely illegitimate.
Here is the scary part; most of this $40 billion is being taken from     20 million targeted
people every year (not the total United States population of 280 million). It represents
that these people are losing approximately 15-20% of their net worth every year, and some
lose everything. Since I personally believe the amount of lost money is really $80 billion,
we must conclude that the other      $40 billion is simply not reported and may be affecting
the rest of the population.

In election years, the government broadcasts a lot about their successes on busting
telemarketing operations so that the public officials can be reelected. This is just a hoax.
The government is so far behind. It's like the balloon theory--if you squeeze a balloon at
one end, the bubble will pop out somewhere else.

When the FBI raids telemarketing operations, they can only arrest or detain the owner and
managers of the operation, or any telemarketers they can identify on tape. Almost all the
telemarketers, once they show identification, are let go and, of course, they just go down
the street to the next operation.

Let's take a look at what is involved in closing down an illegitimate telemarketing
operation. First off, it is important to realize that the telemarketing operation might be
completely legal in all aspects of what they are doing, except for the pitch. This is generally
the case with most fraudulent telemarketing companies. Additionally, there are usually
other crimes associated with the collection of funds derived from the sales for the
operation.


Let's use the example of a disabled person responding to an ad out of the newspaper for a
“home job opportunity”. Usually, they are calling an office filled with telemarketers who
are trained to remove the cash from their wallets. I mention this because sometimes, when
81
you call or respond to a telemarketing operation, they really appear to be sincere about
helping you out. This is part of the con.

First, you respond, send money, and receive nothing. What do you do? You call the
company and get a series of broken promises of refunds, or the fulfillment of the obligation.
 Most companies have a person hired for the purpose of making false promises to you for
as long as they can get away with it. These people have a high degree of intelligence and
believability and are generally more trained than the original telemarketer who sold the
pitch.

But you've had enough. Now it is time for action. So you call the local Better Business
Bureau. Better yet, you notify the Better Business Bureau where the telemarketing
company is located. The Better Business Bureau sends forms to you by mail that take
between a week and a month to arrive. To get information on the company, you must give
them your credit card number and spend five dollars. This is actually a good investment to
make prior to doing business with a company. I was always amazed when people would
complain to us and mention the many complaints they found out that we had on file with
the Better Business Bureau. They should have looked into it in the first place.

You would fill out the forms and send them back. The Better Business Bureau would then
send the telemarketing company a standard business form, giving the telemarketing
company a chance to explain the problem. Most of the time, during the first six months of
the operation, a telemarketing company will be members of the Better Business Bureau,
and they will make efforts to actually resolve the first round of complaints so as to buy as
much time as possible. It is useful for a telemarketing company to become a member of the
Better Business Bureau because many people interpret this listing as meaning that the
company is legitimate. So it is really very helpful in closing new prospects for the
telemarketing company. The company responds as if the one complaint is just one
customer who was a bad apple. Everyone can always relate to a few irate customers. The
fact that we had responded or gave a refund is very impressive to the new prospects that
took the time to check the company out. The profile regarding how long the company had
been in business was always over-inflated with the Better Business Bureau because they
never took the time to investigate the truth. So the complaints seem few and far between.

Very little ever gets resolved successfully by the Better Business Bureau unless a company
is trying to buy time. When you checked the company out, you would see that there were
complaints, but they were resolved, thus motivating the customer to do business with us.
But after the first six months, the company just threw away all the letters from the Better
Business Bureau because the company knew the Better Business Bureau had figured out
that they were a fraud, and because it had become overwhelming to try to handle the
complaints anyway. The telemarketing company would then cancel their membership
with the Better Business Bureau. It’s funny, because the Better Business Bureau would
usually send back the $300 for membership fees that we had paid.

Most companies would change their name, phone number, or locations so that they can
start the whole process over again with the Better Business Bureau. Eventually, they never
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respond to anything, and laugh off the Bureau's attempts to rectify or mutually resolve the
disagreements.

Next step, the State Attorney General's office, Consumer Protection Division. These
Attorney General’s offices receive thousands of complaints every week. In fact, in
California alone, they receive over 100,000 complaints per month. Each complaint is
handled just like the Better Business Bureau. Bureaucracy and no action.

Within the Attorney General's office, different staff members get assigned to the case.
These complaints usually have more than five or ten different agents handling the same
company. So the complaints made against this company are spread out between too many
staff members for them to notice the abundance. Somehow, they eventually discover they
are all collecting numerous complaints on the same company, but by then it's too late.

The Attorney General's office sends out a very nice letter acknowledging that there are two
sides to every story, and that they really want to resolve the issue without taking any action
whatsoever. After hundreds of complaints, the Attorney General's office eventually moves
towards a probe of some kind, utilizing a human plant to get into an organization as an
employee, or they get a court order for a phone tap. The ultimate goal is to accumulate
enough evidence for the District Attorney, the FBI, or a Grand Jury to get involved and
begin indictment proceedings. The goal is to close the business down and file criminal
charges against the owners.

Somewhere in the middle of this process, the Attorney General's office will subpoena the
company's records, telemarketing scripts, and any other possible evidence. When I was
subpoenaed in the state of Maryland for my medical alert company, the administrative law
said that anything I gave them during this process could not be used against me criminally.
 So I gave them everything, to avoid criminal prosecution. They proceeded to send all my
customers’ letters, letting them know what they had uncovered, and giving them a chance
for a refund. This was a fruitless effort because I had spent all the money. Also, I was able
to continue business operations, thus creating a bigger problem for the Attorney General's
office.

Most companies transfer assets to another company under somebody else's name and
simply continue robbing the elderly. The Attorney General's office eventually catches on to
these schemes and then it just begins another set of lengthy proceedings.

For my company, we were operating in another state at the time, and we had some very
high-priced lawyers who bought us time. The Attorney General's office had to settle for
less than a civil fraud judgment on the out-of-state company, which meant that it was
bankruptcy dismissible.

This whole process takes anywhere from six months to two years. Really, it is two years
too long. There needs to be a federal law to avoid the long, painstaking, due process of law,
in order for telemarketing operations to be shut down immediately upon smelling a fraud.

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What can be done so as to not interfere with a company that really is operating a legal
business and using legitimate telemarketing scripts? There must be some background
checks initiated to see if there are past felonies, tax liens, outstanding arrests, or bad debt
to help keep some of the riffraff out of the industry.

Recently, I was doing research on the Internet regarding telemarketing fraud. I found a
website, which requested some information about me personally. I later found out that this
company's intention was to install a virus on your computer that would extract all the
information off your hard drive so that you couldn't continue to search. I was extremely
surprised because the website came across as being very official, as if they were a
government agency.

I also found some organizations that gave tips to people about how to avoid fraud.
However, their real intention was to sell telephone protection devices, or information
brochures. There must be a law established to protect people from these businesses that
make money on victims or potential victims.

I recently ran across a law that requires people creating checking account drafts to provide
some kind of authorization. Unfortunately, the law didn't give a definition of what
substantiates authorization. For instance, there are telemarketing operations that use
”check by phone.” A supervisor comes on the phone with a beeping signal to demonstrate
that the call is being taped for verbal authorization. This is to scare the person into
thinking that they cannot complain. So the victims are giving their authorization. The law
is designed to hurt the consumer. This is used mainly if a bank comes back to the business
to inquire about proper authorization. The telemarketing company can produce the taped
conversation as authorization.

Most telemarketers know who their customers are and how well they regulate their own
bank accounts. They take advantage of this information by periodically putting debits
through on their account without authorization. They know the customer will never
dispute it because it will never be found out. This practice cannot be stopped unless it is
reported to a federal agency and they take action with only one complaint. Unfortunately,
there is a $25,000 minimum complaint before a federal agency begins an investigation.

I read that President Bill Clinton had introduced legislation to enable local governments to
cut off telephone lines if a fraud is uncovered. The problem here is obvious. Because of red
tape, due process of law, and a telemarketing operation’s ability to appear legitimate, it
takes at least six months to determine a fraud.

The Public Utilities Commission maintains a “do not call list,” but the source of it is so
unknown to the public that really nobody knows how to access it or even utilize it.

We have a lot consumer protection laws on the books, ranging from illegal business
practices and false representation in advertising, warranties, or guarantees. The
guarantees, promises, and representations made over the telephone can never be proven
unless there is a tape-recorded conversation that was discovered in the course of a case, or
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a huge stack of evidence from crimes previously committed. Therefore, a court action
rarely can occur. Even if a case is prosecuted successfully, there is very seldom any
reparation or restitution. Besides, if this is a multi-state court case, who is going to pay for
all the transportation, and room and board of the witnesses? Only the federal government
can afford such arrangements, and there has to be a lot of money stolen first.

Many companies are operating outside of international borders and are, therefore, not
subjected to local prosecution. For instance, some Canadian companies use local mail
drops in the United States, leading customers to think that they're dealing with a local
company. They may even have a local telephone number where calls are forwarded to a
Canadian number. So the customers think they are calling a local company. If a fraud is
uncovered, they just lose a few checks and open another mailbox. It takes good government
lawyers and cooperation to shut down international frauds. Besides, if the scam involves
less than 1,000 people who are taken for $95.00 each, not many will complain and the scam
will have reaped 2.5 million dollars.

With so many new area codes, people may not recognize a foreign call. Many territories
and countries outside of our continental boundaries have three digit area codes such as the
Caribbean, Canada, Puerto Rico, Indonesia, and the French Virgin islands.

There are several anti-telemarketing organizations and pro-consumer groups that exist to
assist the public. One such group is called the "Alliance Against Fraud in
Telemarketing." They publish pamphlets and brochures containing extensive
information about scams and frauds, and offers tips on how to avoid becoming a victim. A
spokesman for the organization admits that telemarketers know more about you than you
know about yourself. It is unfortunate that most people only learn about these
informational organizations after they've been victimized.

The Telephone Preference Service in New York maintains a list of national
persons who don't want to receive calls. I have never worked for a company that knew
about such a list. Even if they did, they would ignore it because most telemarketing
companies use a backdoor approach anyway.

The National Legal Resource Initiative for Financially Distressed
Older Americans was invented to improve access to quality consumer representation
for older Americans. Founded in 1969, the organization provides legal advocates with
technical and expert assistance, training publications to cover all major topics in consumer
law. Once again, you don't find out about these organizations until you've already been
taken. It took me hours on the Internet to locate these organizations. I highly doubt a
senior citizen could find these organizations on their own. Most senior citizens don't ever
look into these matters, even if they have been ripped off many times over. How many
seniors have Internet access to surf for these organizations anyway?

The Federal Consumer Protection Act requires every telemarketer to keep a list of
consumers who state that they do not want to be called again. The law has some real teeth
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if a company actually has money to settle its complaints. The law states that, if you tell a
telemarketer not to call you and you get a call within 12 months, you can sue them for $500.
If the court finds that the telemarketer willfully or knowingly violated the law, the court
can award you $1,500. Small Claims Courts allow claims to be filed that are at least $1,000
dollars. So, you can sue on your own without hiring a lawyer. How many cases like this
have been tried and paid? Five?

Under the Federal Telephone Consumer Protection Act of 1991 and
Telemarketing Consumer Fraud and Abuse Prevention Act of 1994,
telemarketers are required to provide consumers with basic identifying information. For
example, if the call is regarding a prize promotion, telemarketers must state that there is no
purchase necessary to enter. The law also requires that the telemarketer mention what
they are selling before they begin their pitch. It is illegal for telemarketers to misrepresent
any information or facts about their goods or services such as a purchase being necessary
in a prize promotion. This is a joke to all telemarketers.

Telemarketers must inform the consumer of the total cost of all goods and any restrictions
on getting the product and whether the sale is final or non-refundable. In prize
promotions, telemarketers must tell you the odds of winning, that there is no purchase
necessary to win, and the restrictions or conditions of receiving a prize. Yeah, right!

Personally, I have been a telemarketer for 25 years and I have never been exposed to or
suffered the consequences of breaking any of these laws or regulations. Many states have
their own protections against telemarketing fraud. The statutes, often requiring
telemarketers to register or post a bond, are not enforced unless a problem occurs. Some
state laws even give consumers the right to cancel a sale made by phone within a set period
of time. Some states are so far behind the times that they use the codes for door-to-door
sales laws, which are not applicable to telemarketing.




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There are holes in the law having to do with bonding or licensing for fundraising. If the
organization is engaged in the business of making appeals on behalf of public safety, such
as the California Organization of Police and Sheriffs, and they are raising funds
through selling advertising in their yearbook, they are exempt from telemarketing
solicitation laws in regards to collecting money for charities. These appeals represent
monies received for the benefit of membership. Traditionally, public safety groups are tax-
exempt as unions or associations, but not as charities. In other words, a license to steal and
misrepresent everything.

The Federal Trade Commission's Mail or Telephone Merchandise
Rule requires that all merchandise ordered by telephone or by mail be delivered within
30 days of the sale. Credit card purchases have their own set of rules. If you are
dissatisfied, you must send a dissatisfaction letter to both the credit card company and the
business within 30 days of the purchase. The company then has 90 days either to correct
the error or explain why they are not issuing a refund. What a worthless law. These
companies have insurmountable evidence to prove that they satisfied their responsibilities
to the customers.

The Internet Fraud Watch reports that, in the year 2000, 16% of all frauds are
“work-at-home” frauds. A “work-at-home” fraud is one promising a job where you can
make money working from home. Personally, I don't believe these statistics because 99%
of all telemarketing fraud, that takes place in hundreds of industries nationwide, goes
unreported. I believe that telemarketing fraud is way over the stated 40 billion per year. I
think it’s closer to 80 billion, or more.


                   Criminalizing Telemarketing
There really is no solution. No law would ever protect the human kindness of the moral
majority in this country. Due process of law works on the side of the terrorist
telemarketers, not purposely, but legally. The average telemarketing scam has an age of
three to six months, reaping approximately $200,000 to $2 million. The average criminal
investigation takes way too long, so that boiler room task forces, even if successful, hardly
make a dent in the proceeds reaped from criminal telemarketing.

From somebody that has made over 25,000 telemarketing calls, I see only one solution …
abolish telemarketing to residences completely. Personally, I always used to
consider it boring to do anything less than illegitimate. It takes the fun and profit out of it.
 I know that I am not alone and that, no matter what laws are established, there will always
be people breaking them. What is the good of a law if these 200,000 terrorist telemarketers
disobey it? It is too easy to lie without recourse, and this is the opinion of 200,000 people
just like me. After all, I have had the opportunity to train and get to know 3,000 of them
personally, and have rarely met anyone willing to be completely honest. In fact, I would
have to think long and hard and research hundreds of records of employees in the twenty
different companies I worked for or owned to find somebody honest.
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Telemarketing to residences must be made completely illegal, and cold calling to
businesses must be made with pre-authorization in writing from the companies.
It is too much to ask citizens to be responsible for investigating the validity of every call
they receive. If there were a basic law that outlawed telemarketing completely, then people
would simply know that, if someone is calling them in their home to sell them something, it
is illegal.

There is no law that can possibly be enforced to protect the public domain. You are
dealing with people who are below the law. What makes the government think, that these
people actually follow any particular law governing telemarketing?

A final thought … if we did eliminate cold calling to residences and businesses, and
attempted to eliminate 200,000 telemarketing terrorists jobs, where would all these
criminals go for work? The fact that the majority of the 200,000 have to come up with a
minimum of $30.00 a day for drugs, cigarettes, food, and shelter (not necessarily in that
order) creates the question of where else would they get that money. Perhaps they will
resort to violent crime or make attempts at white-collar corporate espionage. Maybe they
would pose a worse threat to society. So perhaps it is better for us to have an ineffective
legal system and bankrupt and defraud senior citizens. The telemarketers are an
important part of society. Maybe we are better off with the telemarketing terrorists.

We are part of the food chain, I guess.



                                    DEDICATION

      I would like to dedicate this book to all the telemarketers in this country who have
chosen another line of work and are seeking a spiritual solution to their inner pain.


                                          Disclaimer

Nothing in this book is true. I made up everything, just to tell a good story. All the facts
about the lies of telemarketers and stories about their lives are not true, to the best of my
knowledge. I have been an honest person most of my life and never committed a crime that
I didn’t get caught for, and even then I made, or I am in the process of making, complete
amends for them.




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