Auto Warranty Scammers Sentenced To Five Years in Prison

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In a fraud case of epic proportions, two former Florida-based telemarketing corporate executives have been convicted and sentenced to five years behind bars for attempting to deal $40 million in fake car service warranties via unsolicited phone calls.

The calls fell like a hail storm across the country, reaching people everywhere including a United States Senator in the middle of a government conference, the attorney general of Indiana, people who do not own cars, and citizens registered on the “Do Not Call” list. In addition, the two men (ages 50 and 46 from the cities of Fort Lauderdale and Bocan Raton in Florida) were fined $15,000 each and also placed on a five year post-prison parole supervision when released.

The men ran the fraud scam since 2007. As many as one billion fraudulent automated calls were sent out to consumers with a message stating their warranty was about to expire. If the consumer was lured in, they were then patched over to other fake salesmen claiming to be part of a warranty center. However, the bogus company did not have the ability to service or extend any warranties on behalf of the car makers as they led people to believe. Instead, they sold over 15,000 camouflaged and questionable third party car service agreements to unassuming and confused consumers.

If you have suffered from consumer car fraud, contact California car fraud attorney Howard D. Silver at (866) 49-LEMON for a complimentary case review today.