Telemarketing Fraud Based in Camden

Telemarketers bribed workers at companies and nonprofit institutions, including some in Pennsylvania, in order to sell lighting and maintenance supplies at grossly inflated prices, federal authorities charged Wednesday.

The Camden County-based ring took in more than $23 million from 1994-98, prosecutors said.

It sold trash can liners for more than $1 each, according to a fraud and money laundering indictment against six people. By contrast, Home Depot sells a box of 100 33-gallon bags for less than 11 cents each.

Victims included the University of Pennsylvania's Museum of Archaeology and Anthropology; the Erie Family Health Center, a federally funded health care provider in Chicago; South Carolina Electric And Gas Co.; and Ruder Finn, a New York public relations firm.

"In cases like these, the success of the scheme often hinges on the defendants' ability to reach employees who are willing to cash in on the trust of their employers," said Patrick L. Meehan, U.S. attorney for the Eastern District of Pennsylvania.

His office, and the U.S. attorney's office for New Jersey, said they obtained the indictment after tracking 59,000 invoices to more than 10,000 victims across the country.

The ring, based in Clementon, N.J., bribed workers with gift certificates, money orders and, in at least one instance, a night at a fancy hotel, prosecutors said.

"Typically, the victims in these types of cases are business entities such as health clinics, universities, and corporations," said Christopher J. Christie, U.S. attorney for New Jersey. "However, the true victims are those who look to non-profits for needed services, those who pay tuition, those seeking health care, those who own stock through retirement plans, and the taxpayers."

The scheme operated through CSC Supply Inc., owned by Larry Harber, 52, of Voorhees, N.J., the indictment said.

Also charged are five of his salespeople: Michael Sees, 33, of Marlton, N.J.; James Steuer, 36, of Windermere, Fla.; Carlos Cruz, 46, of Boca Raton, Fla.; John Mullen, 34, of Andalusia, Pa., and Randi Lyons Wassmer, 38, of Turnersville, N.J.

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Author: NBC10/AP