Friday, April 24, 1998 | 11:50 a.m.
CARSON CITY -- The state Attorney General's Office said today Ina Liberty Bell, 23, Las Vegas has been arrested on charges related to a scam involving millions of dollars invested in infomercials through a company named The Sterling Group.
A 12-count felony complaint charges Bell, Eric S. Stein, 37 of Las Vegas and Philip Balestrieri of San Diego, Calif., with securities fraud and racketeering by misrepresenting to perspective investors a return of between 25 and 53 percent within 60 to 90 days.
The defendants are also accused of failing to disclose material facts to potential investors, such as that the securities were not registered with the Nevada state Securities Division and that the three were not licensed to sell securities in Nevada.
Deputy Attorney General Richard Linstrom said millions of dollars was collected from investors in several states who were taken in by the scheme.
The complaint, filed by the Attorney General's Bureau of Consumer Protection, says The Sterling Group told investors that Affordable Media, which did business as The Sterling Group promoted products by direct response infomercials. Investors were given the opportunity to purchase infomercial time in increments called "media units."
Linstrom said each unit was sold for $5,000 with a minimum purchase of two units required. The investors were told that they would receive a portion of the profits resulting from the sale of infomercial products.
The charges are a result of an investigation conducted by the attorney general's office and the state securities division.
If convicted, Bell faces up to 70 years in prison and fines of up to $170,000. And the law requires she made restitution to the investors.
The attorney general's office is asking people with complaints on The Sterling Group or the whereabouts of the two men at large should contact the Las Vegas office at 486-2440.
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