Attorney General's News Release

March 19, 1996

California telemarketer pleads guilty to fraud

Jefferson City, Mo. — A southern California man pled guilty yesterday in Cole County Circuit Court to a charge of unlawful merchandising practices brought by Attorney General Jay Nixon as part of a crackdown on fraudulent telemarketing calls into Missouri.

Matthew Bertram Grob, 56, admitted telephoning into the state to try to persuade an elderly Columbia woman to send him money. The intended victim's phone calls were forwarded to an undercover investigator with the Attorney General's Office, who tape-recorded the conversation.

Grob was arrested in November by local authorities in California, who worked in cooperation with the Federal Bureau of Investigation and the Missouri Attorney General's Office. He was then extradited to Cole County to stand trial.

In pleading guilty, Grob admitted that he and his company, All Star Products, fraudulently sought to obtain money by representing that the money would be used to pay fees connected with the woman's prize award. Grob told the woman that she had won one of four prizes, which included a $20,000 cashier's check and a new car. Grob admitted that he did not intend to use the money for this purpose or to award a prize.

Additionally, Grob admitted that during the telephone conversation, he:

• Used a false name and gave a false address for his company
• Misrepresented the actual number of prize winners
• Misrepresented that All Star Products did business with large retailers such as Walmart, Kmart, Sears and J.C. Penney.

Nixon said Missouri and other states are sharing information about fraudulent telemarketers and using tapes of fraudulent pitches as tools in prosecuting cases. “We must work smarter and harder to beat fraudulent telemarketers at their own game,” said Nixon. “Con men who dial into Missouri run the risk of having their sales pitch recorded and criminal charges filed against them if they violate state law.”

Grob will be sentenced following a presentence investigation, which will be conducted by the Missouri Department of Probation and Parole. He faces a maximum penalty of five years imprisonment and a $5,000 fine.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818