Ten Years Fighting Extradition, Then Convicted: The $18 Million "Fraud Protection" Telemarketing Scheme

It didn't work.

What happened?

On March 30, 2018, the U.S. Attorney's Office for the Central District of California, part of the Department of Justice (DOJ), announced that a federal jury convicted Mark Eldon Wilson, 57, of Vancouver, British Columbia, of seven counts of mail fraud and two counts of wire fraud. The trial ran five days before U.S. District Judge S. James Otero.

Wilson had fought extradition for more than 10 years. He was finally extradited from Canada in late February 2017.

How the scam worked

According to the evidence at trial, from 1998 through 2001 Wilson ran a cross-border telemarketing scheme through companies including OPCO International Inc. and American Fraud Watch Services.

• Telemarketers made victims think the companies were tied to their credit card companies.
• They falsely suggested victims were exposed to credit card fraud and would be on the hook for fraudulent charges.
• They sold a credit card "protection" service, which didn't exist, for about $300, with a fake 100% money-back guarantee.
• In many cases, they charged the full fee without authorization, even after telling victims it cost as little as $2 a month.

The reality: the credit card companies wouldn't hold victims liable for fraud charges anyway, and the "protection" never existed.

The haul: more than $18,000,000 from over 60,000 victims in 37 states, mostly elderly. Wilson moved over $100,000 to an offshore account in Vanuatu, bought vehicles through his companies and negotiated to buy a luxury boat priced over $400,000.

At trial, prosecutors called about 22 witnesses, including insiders and victims, and played undercover recordings of the actual sales pitches.

Because the jury found the crimes happened in connection with telemarketing, Wilson faced a maximum of 90 years in prison. Sentencing was set for July 30, 2018.

The Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), the Federal Trade Commission (FTC), the Royal Canadian Mounted Police and Canada's Department of Justice investigated.

Here's the thing ...

Selling fear. That's what this was. Read that again.

"You're vulnerable. You'll be liable. Pay us and you're safe." Fear is the most powerful sales tool there is, and the most abused.

And look at the evidence: recordings of the pitches. Your calls get recorded, too. Would you be proud if a jury heard yours?

What to do this week

• Listen to five of your own calls. Pretend a jury is listening.
• Never imply you're affiliated with a bank or card company if you're not.
• Charge exactly what you said, with clear authorization.
• Honor your guarantees. If you say money-back, mean it.

Sell value, not fear. You'll sleep better.