THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, May 23, 1995 TAG: 9505230291
SECTION: LOCAL PAGE: B3 EDITION: FINAL
DATELINE: NORFOLK LENGTH: Short : 32 lines
A federal jury on Monday convicted the owner of a Norfolk telemarketing company of ripping off about 200 customers for $138,000 in a telephone solicitation scam.
The owner, Gus John Boogades, was convicted in U.S. District Court on 16 counts of wire fraud and money laundering. The jury was split on a single charge of conspiracy.
Employees of the company, Colonial Distributing Inc., called victims in seven states - Louisiana, Florida, Massachusetts, Tennessee, Missouri, West Virginia and Ohio - but not Virginia. Each victim lost $298 to $998.
The callers sold health and beauty packages, imprinted pens, drink holders, calendars, key chains and a ``Say No to Drugs'' package with bumper stickers and anti-drug merchandise. The customers were promised cash awards or bonus prizes, but never received them.
Boogades' partners in the scam, Gerald A. Parady and Steven H. Wroten, testified against him. Earlier, they each pleaded guilty to one count of wire fraud.
Boogades will be sentenced Aug. 15. He faces up to 10 years in prison for each count of wire fraud, and five years for each count of money laundering.
KEYWORDS: TELEPHONE FRAUD by CNB