Arizona Attorney General Mark Brnovich announced Tuesday that four people have been indicted for their alleged involvement in a nationwide telemarketing scam targeting seniors. 

The indictment alleges Lukeroy Kendrick Rose, Solana DePaola, Cordell James Bess, and Dino Nick Mitchell conspired to operate Rose Marketing LLC, a telemarketing business, in order to convince seniors across the country to invest thousands of dollars in fictitious business opportunities.

A total of 16 victims were identified in the indictment.  The total loss is more than $298,000.

In August 2013, the Federal Trade Commission filed a civil complaint in federal court against Rose Marketing, Rose, DePaola, Bess and Mitchell, and against several other entities and individuals alleging those parties operated an illegal telemarketing scheme.

In connection with the FTC case, the U.S. Postal Inspection Service learned that Rose Marketing was allegedly operating boiler rooms in Phoenix. Telemarketers allegedly cold-called elderly persons across the country and solicited them to invest in work-from-home business opportunities.  The victims were told they were investing in credit-card machines and were promised a commission each time a business used the machine.  

Victims who invested were allegedly contacted a few days later and given the opportunity to purchase “leads” for businesses in need of credit-card-processing services.  The victims invested anywhere from $3,000 to $40,000 each to purchase these “leads.” 

 Reportedly, the business opportunities were fictitious, no legitimate leads were provided, and the victims lost all of their investment.

Following the Postal Service Inspection investigation, the matter was referred to the Arizona Attorney General’s Office for criminal prosecution.  

Rose, DePaola, Bess, and Mitchell are charged with conspiracy, illegally conducting an enterprise, fraudulent , theft, and money laundering. 

Assistant Attorney General Andy Kvesic is prosecuting this matter.