Man guilty in Sterling Group scam

Brian Seals

Thursday, Oct. 29, 1998 | 10:52 a.m.

A San Diego man pleaded guilty Wednesday to a misdemeanor count of conspiracy to commit securities fraud in a Las Vegas case that has spawned numerous civil lawsuits and a nationwide manhunt.

Philip Balestrieri agreed to pay $2,000 restitution to a victim and cooperate with state and federal authorities in an ongoing investigation of Affordable Media, doing business as the Sterling Group. By pleading guilty, Balestrieri avoided prosecution on felony charges of racketeering, securities fraud, sale of an unregistered security and operating as a broker without a license.

"But that's up to the judge," Deputy Attorney General Matthew Gabe said.

His co-defendant, Ina Bell, faces a Nov. 12 preliminary hearing on felony charges. Another defendant, Eric Steven Stein, remains at large and is being sought by authorities.

Authorities say the Sterling Group sold "media units" that were used to buy broadcast time to advertise impulse items. Investors were told they would get a share of the profits and they could realize up to a 50 percent return on their investments.

But the plan began to unravel this year when investors were unable to recoup money. Complaints spawned state criminal charges and the Federal Trade Commission filed a lawsuit against the companies and others that solicited money for it, calling the operation a Ponzi Scheme in which old investors were paid with money coming in from new investors.

A San Diego couple whose company solicited investors for the Sterling Group have been jailed since June on federal contempt charges in connection with the FTC's lawsuit. Michael and Denyse Anderson were jailed for not repatriating assets from a trust they held in the Cooke Islands. The FTC estimated the couple has about $1.3 million in the overseas account.