Editorial: Telemarket game needs vigilance

Friday, May 16, 1997 | 11:59 a.m.

EIGHTEEN months ago, Las Vegans were grateful to law enforcement agencies for taking giant steps to rid this city of a longstanding black eye -- illegal telemarketing.

Unfortunately, despite the multi-agency sweep of boiler rooms in the city, it will take considerable vigilance to ensure the shameful industry doesn't make a comeback.

There already are indications that many of those arrested are plying their trade in the same or a related business.

Las Vegas has been saddled with the bad reputation of the capital of telemarketing fraud after about half the national operations sprang up in this community.

Now, after the legal assault, only about a dozen operations are left. But it took 400 warrants and a massive sting operation involving senior volunteers to stem the growing scam.

Seniors were logical volunteers in the sting, since their age group has been targeted by telemarketers. Pitchmen working for so-called rip-and-tear companies offered free trips and prizes to lure people to buy items that often were worthless or valued much less than represented. The gullible emptied their savings accounts or borrowed money.

The losses have been considerable. Nationwide, about $40 billion has been lost to the boiler room operators. One widow lost $240,000 from her life savings. Another who lost $180,000, paid an additional $5,250 to get the original sum back without success.

After the crackdown, legitimate telemarketers have complained that their image was wrecked by the scam artists and that it's now difficult to stay in business in Las Vegas. But, if the industry had taken steps to regulate itself, it could have avoided the image problem.

The telemarketing sweep was worth the effort in stemming the financial assaults on the gullible. But the battle is far from over. Other operations will spring up -- when the heat's off -- as quickly as it takes to hook up a few phone lines. The American Association of Retired Persons has taken an encouraging step in providing volunteers for continuing sting operations.

That may constitute a permanent deterrent as long as there are vulnerable people and too many con men eager to take their money.