Feds shut down Las Vegas firms marketing Elvis books

Friday, Aug. 14, 1998 | 2:39 a.m.

Investors were bilked out of $12 million by three companies with Las Vegas offices that promised their book of Elvis Presley photographs, "Elvis Immortal," would be made the official book of Graceland, says a complaint filed by the Federal Trade Commission.

To lure investors into putting up a minimum of $10,000 apiece, the promoters also claimed their "Elvis Immortal" memorabilia package would include a compact disc featuring a previously unreleased Elvis song and that its products would be sold by the QVC cable channel and Target Stores.

None of those claims were true, FTC officials said after obtaining a restraining order in Los Angeles last week shutting down the Las Vegas and Los Angeles offices of Automated Systems and Concepts International Inc., Premier Entertainment Inc. and Creative Marketing Concepts Inc.

A court froze the companies' assets so the FTC can try to recover some of the investors' money. A receiver was appointed to monitor the companies.

The companies were incorporated in Nevada and had offices at 333 N. Rancho Suite 131 and 7300 Pirates Cove Road Suite 1036, said the FTC's complaint against the firms.

The actual telemarketing operation was in Los Angeles and that is why the FTC sued them in California, said Heather Hippsley of the FTC's Bureau of Consumer Protection.

Charles Moore, investigator with the Nevada Secretary of State's office, said his office looked into the companies and referred the matter to the FTC.

The FTC said the telemarketers also promised investors that an infomercial for "Elvis Immortal" would air on Aug. 16, 1997, on the 20th anniversary of Presley's death. The infomercial never ran, said the FTC.

The telemarketers also reaped some of the $12 million by promising quick cash from schemes to sell books on Frank Sinatra and Milton Berle and on products ranging from a yogurt maker to personal fire extinguisher through infomercials, said the FTC.

The complaint in U.S. District Court in Los Angeles charged that the defendants represented that investors would receive a 50 percent return on their money within three to four months.

Attempts to contact the three companies' principal officers, John R. Munoz and Timothy Munoz, failed today. Also sued was a third officer, Frank Gale.

Mitchell Samuelson, attorney for Automated Systems and John Munoz, was reviewing the case.

"My client has indicated he believes he has operated at all times within the parameters of the law," he said.

FTC officials said investors should be wary of investing in entertainment products, especially ones that promise big sales through infomercials.

Dean Graybill, associate director of the FTC's division of service industry practices, said one reason the Presley scheme succeeded was that the telemarketers falsely claimed to have produced infomercials for a Susan Anton exercise product, a Vanna White tooth whitening system and a Susan Powter weight-loss program. What most investors don't know is that only one in 30 infomercials is a success, said Graybill.

Graybill said Graceland officials were contacted during the investigation and are expected to help in the upcoming civil trial. Only Elvis Presley Enterprises in Memphis, Tenn., is legally entitled to sell and license Elvis memorabilia.