Consumer Alert: Boiler room tactics - WBRC FOX6 News - Birmingham, AL

Consumer Alert: Boiler room tactics

Source: Ivanhoe Newswire Source: Ivanhoe Newswire

A telemarketing scheme cheated hundreds of people out of millions of dollars. Here is more on what you need to know about boiler room tactics.

Carolyn Turner is living on a tight budget after losing $40,000 in a telemarketing scheme.

“Asking if I would be interested in investing in a company that would help small businesses,” fraud victim Carolyn Turner said.

Initially, Carolyn was hesitant but decided the high rate of return with little risk could pay off.

“I was going to make all of this money. I would get my investment back probably within a year,” Turner said.

Before she sent the check, Turner admits she questioned the woman working for the Rose Marketing Company again.

“Really, really sounded like she had my personal well-being in mind,” continued Turner.

Now, she realizes this was all part of the scam.

“I tried to call the number they had given me. I either got a busy signal or nothing happened. So, there was no way for me to contact them,” said Turner.

Postal inspectors say this is exactly how telemarketing schemes work.

“They will try to sell you on a business opportunity at a fairly minimal price of $500 or less usually. At that point, once you have made an initial investment, a re-loader will call you back fairly soon and try to get you to invest in a much higher dollar package,” U.S. postal inspector Liz Davis said.

Carolyn wasn’t alone. 404 victims lost more than $6.6 million in varying schemes run by Lukeroy Rose.

Anybody who wants your money over the phone, it’s a high probability that it could be a scam.

“I’m so sorry that I’ve done it, because the ultimate outcome now is hurting my lifestyle and what I’m able to do,” Turner said.

Four people were indicted on charges linked to the Rose Marketing scams. Lukeroy Rose pleaded guilty to making unlawful telephone solicitations and operating a fraudulent marketing business. Under the plea agreement, Rose will be sentenced to five years in prison.

Copyright 2017 Litton’s Consumer Alert via WBRC. All rights reserved.

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