LV man among telemarketing convictions

Friday, Nov. 8, 1996 | 11:59 a.m.

Rochelle K. Whatley, 35, of St. Joseph, and J. Victor Whatley, 38, of Las Vegas, were found guilty Thursday by a jury that deliberated 11 hours over two days in U.S. District Court.

Two other defendants, John Allen Dillinger Jr., 24, of Fort Smith, Ark., and Sean T. Hutto, 22, of St. Joseph, were acquitted of conspiracy and wire fraud.

Charges against the four defendants and seven other people who pleaded guilty before the trial were announced last December as part of a coordinated, national crackdown by the U.S. Justice Department on telemarketing scams that preyed on the elderly.

All of the charges in the western Missouri case stemmed from Rochelle Whatley's operation of Midwest Marketing Concepts Inc. in St. Joseph, which dangled valuable prizes before victims who were also asked to donate to anti-drug education programs.

Both Whatleys were convicted of one count of conspiracy to commit wire fraud, and Rochelle Whatley was found guilty also of five counts of money laundering. She could be sentenced to a maximum of 55 years in prison and $2.75 million in fines. Her husband faces a maximum of five years in prison and $250,00 in fines.

Sentencing dates have not been set for the Whatleys and the seven defendants who pleaded guilty.

Midwest Marketing Concepts Inc. took in at least $610,000 from at least 48 victims nationwide from May 1993 until authorities executed a search warrant and shut it down in March 1994, prosecutors said.

According to prosecutors, Midwest Marketing Concepts bought lists from other telemarketers of names of people known to be easy to cheat. Clues include a potential victim's age and history of taking part in "sensationalistic" sweepstakes and contests.

Victims were told they were the "guaranteed" winners of a new car, $5,000 savings bond, Branson vacation or something from a group of expensive prizes including ancient coins, gem bracelets, watches or a mink jacket.

While hearing about the prizes, victims were asked whether they wanted to donate $500 to $1,000 to an anti-drug education program.

No prizes were sent to any victims until their checks were deposited. And the prizes that were awarded were shoddy items, known in the industry as "gimme gifts," worth $75 at most.