LV man in telemarketing scheme

Wednesday, Oct. 16, 1996 | 11:59 a.m.

Janet Napolitano, U.S. attorney for Arizona, said Tuesday that Richard G. Randall, 29, of Phoenix and Donald A. DiMartini, 38, of Las Vegas also were ordered to forfeit $3.2 million and to pay their victims $3.2 million in restitution.

Neither would comment after being sentenced.

Randall and DiMartini were found guilty in July of 52 counts of mail fraud, wire fraud and money laundering in a scheme Napolitano said targeted the elderly.

The pair owned and operated American Choice Corp. in Tempe from April 1994 until August 1995, during which time the company took in about $4.3 million by fraudulent means, Napolitano said.

She said the scheme involved inducing customers to buy overpriced products by falsely leading them to believe they had won prizes, such as new cars or $7,500 in cash, that would be awarded once a purchase was made or the company was paid a fee in amounts ranging up to $4,000.

One victim paid $47,000 before being given a $7,000 car, officials said. Some were persuaded to borrow on credit cards, to sell stocks and bonds or to take money from retirement accounts.

Arizonans were excluded from the scheme that was operated throughout the rest of the country, she said.

Meanwhile, U.S. District Judge Earl Carroll set a hearing for Nov. 6 to determine whether Randall, who was provided a public defender despite a lifestyle that included a $2,000-a-month home and a $35,000 Porsche, should reimburse the government for his defense, a cost estimated at $75,000.

"It's inconceivable to me that you didn't sell your car to hire a lawyer," Carroll told Randall.

Four other members of the operation pleaded guilty previously.