Scam artists targeting Arkansans

Thursday, April 27, 2000 | 11:04 a.m.

Satellite Partners Inc., of Beverly Hills, Calif., is trying to sell membership units for $5,000 each in Virtual Vegas, LLC, the department said. Virtual Vegas is an online Las Vegas-style gambling site.

One unnamed Virtual Vegas prospect was contacted by phone in Arkansas and sent a packet of printed materials. Although he decided not to invest, the Securities Department is concerned other Arkansans may be taken in.

A Satellite executive reportedly told the prospect that there was no risk in the investment and it would probably give him a 105 percent return per year, the Securities Department said in a news release.

The executive also told the prospect the company's greatest success was Tel Com Plus, which the prospect could not find. The prospect was told the company was going by its old name, United States Telecommunications, or UST on the New York Stock Exchange.

On the Exchange, UST is a company that has no relation with Satellite, according to the Securities Department.

Tel Com Plus has been given cease and desist orders by state securities regulatory agencies in Florida, Illinois, Iowa, North Dakota, Pennsylvania, South Dakota (twice), and Wisconsin, according to the Securities Department.

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On the Net: www.state.ar.us/arsec