The owner of a Las Vegas call center is facing charges of fraud, according to federal officials.
A Las Vegas man who ran a telemarketing call center was recently charged with fraudulent fundraising activities by federal authorities. Richard Zeitlin, a 53-year-old from Las Vegas, was taken into custody by federal agents, and has now been hit with multiple charges including conspiracy to commit wire fraud, wire fraud related to telemarketing, conspiracy to obstruct justice and obstruction of justice.
The same charges were also levied against Robert Piaro, a 73-year-old from Wisconsin, who served as treasurer for four political action committees (PACs). He was accused of wire fraud and mail fraud.
According to Damian Williams, the U.S. attorney for the Southern District of New York, officials claimed that Piaro raised more than $28 million from hundreds of thousands of donors, all the while misleading them about the purpose of their donations.
“Zeitlin and Piaro deceived donors who believed they were contributing to organizations aiding vets, helping law enforcement and combating breast cancer,” Williams said in a statement.
This isn't the first time Zeitlin has faced such allegations. In 2021, a class action lawsuit was filed against him in Pennsylvania following the release of a report by the Center for Public Integrity. The lawsuit accused Zeitlin and his companies of violating the Telephone Consumer Protection Act by "siphoning off" donations in the form of enormous profits.
Deceptive Practices
From 2017 to 2020, the Zeitlin Call Centers, based in Nevada, are said to have defrauded donors through deceptive practices. The call center allegedly spread false information to donors about how their money would be spent and the true identity of the organizations they were supporting.
During phone calls, call center workers even changed scripts to make it appear as though donors were giving to charities instead of PACs, according to Williams.
The four PACs allegedly tied to the scam were Americans for the Cure of Breast Cancer, the Association for Emergency Responders & Firefighters, the U.S. Veterans Assistance Foundation, and Standing By Veterans.
The Zeitlin Call Centers proudly raised hundreds of millions of dollars for charities and PACs during this period. However, prosecutors note that Zeitlin's companies kept a "significant portion" of the funds raised by the call center, up to 90%, while the remaining funds went to the intended recipients.
In addition, prosecutors claim that from May 2022 onwards, Zeitlin instructed an employee to have other workers delete email communications related to the business operations. Additionally, he encouraged clients to create PACs instead of charities in order to skirt more stringent regulations.
If found guilty, each count carries a maximum sentence of either 20 years or 30 years behind bars.
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Source: www.casino.org
