Two telemarketing firms agree to close shops

Friday, Feb. 7, 1997 | 11:59 a.m.

CARSON CITY -- Two telemarketing firms operating out of Las Vegas, which sold magazines and offered prizes, have agreed to a settlement that penalizes them $184,000.

Family Life and American Publishers Exchange, both owned by Scott Cooke, have signed a voluntary agreement to cease certain operations, Attorney General Frankie Sue Del Papa said Wednesday.

Although operating out of Las Vegas, no Nevada victims are known to authorities.

The two companies were not registered in Nevada to engage in the telemarketing business. The $184,000 will be split between Nevada and Iowa, which operates a national telephone tape bank and assists in prosecuting telemarketing cases nationally.

Cooke and his companies deny any violation of law. But he has agreed to suspend any business for three years that comes under Nevada's telemarketing law. And he will be permanently prohibited from selling or distributing customer information.

If Cooke returns to the telemarketing industry after three years, he must post a $100,000 security bond.

The Federal Trade Commission, which was also involved in the investigation, seized other money and will make restitution to victims.