Four indicted in Vegas-based telemarketing scheme

Four people have been indicted in a telemarketing scheme in Las Vegas that authorities say defrauded small businesses.

The federal indictment, unsealed late Tuesday, names Jason Demko, 38, his mother Lorraine Riddiough, 66, and Lisette Alvarez, 27, all of Las Vegas, as defendants. The fourth defendant, Mark Jones, 32, is from Ohio.

All face conspiracy and wire fraud charges and are free on their own recognizance after pleading not guilty in court.

U.S. Magistrate Judge Cam Ferenbach on Wednesday set a March 16 trial date.

According to the indictment, the defendants were involved in Demko’s telemarketing company, Foundation Processing Center, which defrauded businesses out of hundreds of thousands of dollars by soliciting fees and services to help find federal funding to keep the businesses afloat.

The scheme is alleged to have occurred between January 2013 and February 2014, and federal prosecutors are seeking to recover $307,060 from the defendants.

A confidential FBI source who worked for Demko’s company participated in the investigation.

“Unfortunately, advance fee fraud schemes are very common,” Nevada U.S. Attorney Daniel Bogden said Wednesday. “The con artist will ask for money up front before any tangible service or product is provided, and it will be very difficult to get your money back once you have turned it over to the scammers.”

Las Vegas FBI boss Laura Bucheit added: “These arrests emphasize the FBI’s continued commitment to investigate financial crimes. It also serves as a reminder for consumers to protect themselves and remember if it seems too good to be true, it almost always is.”

The indictment is part of a FBI crackdown on telemarketing companies that defraud struggling small businesses by falsely promising to help obtain federal grants.

In December, seven people were indicted in another boiler room operation authorities say collected $26 million from 3,500 victims nationwide. Among those charged in the 38-count indictment were the alleged leaders,March Bausch, 40 and Alan Rodrigues, 54, who was convicted here last year in a massive nationwide tax scheme that cost the government hundreds of millions of dollars.

The indictment alleges the seven defendants carried out the scheme to defraud the small businesses from 2007 to 2010 through four telemarketing companies — Small Business Funding Co., Company Funds Inc., Foundation Research Inc. and Silver State Holding Co.

Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135. Follow @JGermanRJ on Twitter.