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Volume 1
Issue    1

ScamNews


      Scamming in the Land of Opportunity

     America is the land of opportunity - everyone knows
that. Unfortunately, for a growing number of Americans, it
is also the land of swindles, scams, cons and frauds.
According to a recent Louis Harris Poll, 9 out of 10
Americans are hit by scammers each year.  We are all
susceptible to scams.  This is the reason for publishing
ScamNews, an informative, entertaining newsletter designed
to show you how these fraudulent activities are perpetrated
on the public.
     The material we have chosen to use comes from many
sources, including the following:
     . Real con artists, men and women, who reveal the secrets 
behind their plans to relieve you of your money and otherassets.   
     . Criminals in prison. We talk to people behind bars who
tell of scams and fraud that led to their prison time. Some
of their scams are old, some are as recent as the 6 o'clock
news.
      . Prosecutors, police, judges and attorneys. We
     describe law citings from cases of scammers caught in the act. 
They give descriptions of the crimes, sentences received, and
potential profit as well as potential loss to the victims.

     The final two sections will come from the readers.
Business Scams will be from people who have been encouraged
to swindle consumers as part of their job 'duties'. While
many of these practices are borderline legal, the majority
are not. As one business owner put it bluntly, "Every dollar
out of your pocket is a dollar in mine."

     Reader Stories is as the name implies. Material is
supplied by the average consumer and/or swindler. We
encourage readers who have been victimized by scams and con-
artists to write their own stories and submit them. While it
probably won't get you your money back, it may help save
someone else from being conned.
     ScamNews is especially interested in getting stories
from people who have committed cons. After all, that is where it
begins. We realize, of course, that not everyone who has pulled off a 
scam is a career shyster. Some do it out of financial need and it's a 
one-time shot, others are inadvertently conned into helping a pro do 
his thing.

    These stories are written and edited for our readers'
protection. Names are never used except with the subject's
permission or in cases that have been resolved in the
courts.




CONTENTS


Doing Business in America

	Home Improvement

	     You can't touch these guys, every thing is
	     legit, yet you might wonder if there "oughtn't
	     to be a law".

Cell Talk
      "The Secrets of My Success"

	 School Money

	     If anyone gets busted, it won't be the pro.  He
	     gets the dough, the new kid gets the egg on his
	     face.

	 Recyled Plastic

	     Plastic to merchandise to paper,--- money that
	    is. $5,000 - $10,000 per day without showing a
	    photo ID.

	 Mice to Know You

	     Traveling across America seems quite affordable
	     with this seemingly harmless ploy.

	 Phony ID's

	     Need to be someone else, or anyone other than
	     you?  Here's 2 shots at it, both state issued
	     and 'valid'.
	     
	 Reality World

	     Really big money and never a complaint from the
	     tenants.
	     
	 Flea Market Gold Mine

	     A scam that leaves the victim smiling...at
	     least for for a while.
	     
Justice Prevails

	 Money by Canon

	     Bucks by the hopper full.  2 brothers thought a
	     Canon copier could bring them pennies from
	     heaven.


	 Easy Credit

	     A little work at home enterprise for the husband
	    and wife who want to 'do' time together.




DOING BUSINESS


 Home Improvement

     Harvesting greenbacks is easier than most think.  This
type of operation would probably work with almost anything one
could sell, especially to senior citizens.  It seems the
method of operation is bully them, sign them and give them
'nothing to complain about'.


	  As a 40-year-old sales representative for a New
England wide home improvement firm, I enjoy meeting and working
with people. I have been with the company 12 years. We
specialize in home additions, garages, vinyl siding, outdoor
decks and vinyl replacement windows.
     My company placed an advertising insert in the Sunday
newspapers. The ad was a single page heavy stock paper with a
detachable post card. When a prospective customer mailed in the
card, they received a call from a telephone operator in a
boiler room. The prospective client is "qualified" by the
boiler room employee as to whether the client can pay or owns
their own home. Next comes a sales agent who qualifies them as
definite buyers by asking questions to determine how much they
need the product and the level of their seriousness. The final
qualifying question are two, really: does the product meet all
their needs, and are they satisfied all their questions have
been answered? If the client checks out affirmatively, a sales
representative calls at the client's home. All the answers are
right on target. The sales rep stays on top of the client and
will do everything to close the deal - even if it means
spending the night!
     We work closely with a bank and can draw up a second
mortgage on the client's home if it's necessary. All of the
members of our office are Notary Publics to speed up the
process of the deal.
     To me, the questionable part of our business is the way we
target the elderly. The older a person is, the more expensive
the product. A two-car garage, for example, that would cost
most customers $4,200 has brought in as much as $12,000. There
is little the buyer can do once the job is completed, even when
the neighbors comment on the high cost, since the workmanship
is up to par and all the materials are standard.
     My firm also sells and installs windows we buy for $95.
Our minimum price is $500, and I once witnessed a deal when a
couple in their 80s paid $1,200 for each window. To me, it was
unconscionable. And even at $95, a person would not save enough
on heat loss to regain their cost.
     Am I proud of what I do? Of course not. But it does
affords my family a comfortable life.


CELL TALK

       "The Secrets of My Success"

	  Note:  These stories contain detailed information on
how scammers do their thing.  Hopefully the detail will show
the inner workings of scams and thereby provide information to
prevent you from falling victim to any of these ploys.  In
providing any kind of detailed information there is always a
risk of someone using it in ways not intended.  Although it is
absolutely not the intention of ScamNews for this to happen, it
is obviously a possibility.  So remember:  THE FOLLOWING
INFORMATION COMES DIRECTLY FROM PRISONERS WHO HAVE LOST THE
THING AMERICANS , AND PEOPLE EVERYWHERE, CHERISH MOST...
FREEDOM.  THEY LOST IT BY A SCAM...


School Money


     Plastic has been a boone to just about every segment of
society as the following attests.  This is an ideal example of
how easily corruption can and does perpetuate itself in
American society.

   I'm 32, I live in the Boston area, and I've been pulling
scams as long as I can remember.
     People ask if I ever had a real job. I don't think I ever
did, except maybe after my first release from juvenile
detention. I delivered pizzas.
     Everyone seems to think scamming is easy money. It really
isn't. A lot of planning and scheming has to go into the scam,
otherwise it doesn't work. Me? I like simplicity. That is why
this holiday weekend scam was one of my favorites. It's quick,
it's easy, it works and it's extremely profitable.
     There is a minimal risk because ATM machines have
surveillance cameras and voice print recorders. As long as I
wear something to hide my face without appearing too
conspicuous, I feel I'm relatively safe. It takes a week to
pull off the scam, and my profit is limited only by how many
cards I can buy.
     My prospective target is college-age kids, and I work it
in any large city. We did this particular scam over the
Memorial Day weekend. In fact, those long three-day weekends
are the best time to swindle bank customers. A friend and I
knew some college-age yuppies who would rely on us every so
often to help them out financially. We asked them to put out
the word that we were buying ATM cards and their PINs for
$1,000 each. Anyone who helped us get such a card would be paid
the Tuesday after Memorial Day.
     The kids would report their cards were stolen on Saturday
of the holiday weekend, meaning it would not be processed by
the bank until that Tuesday. Two kids came across with 20 cards
for us the week before the Memorial Day weekend.
     Beginning on Friday afternoon, we started cashing in on
the ATMs. Banks always make sure to load up their machines on
weekends, particularly holidays, and we wanted to make sure we
got more than our share. Some of the cards permitted
withdrawals on unverified funds - we had the college kids find
out which ones these were when they secured the cards. All we
had to do was put an empty envelope into the machine, claiming
we had deposited $1,000 cash, and then start withdrawing.
     Most of the cards had a $200 a day limit, so we hit all
the accounts at least once a day, every day for four days. It
was an incredibly successful weekend. Each of us made over
$6,000. We paid the kids $500 each, and paid the card owners
$100 each. Which brings up the first lesson when you're getting
involved in a scam: never,  trust a crook.



Peddlin' Plastic

     Apparently some con men are industrious.  This next scheme
seems to require the scammer to go to a lot of trouble for a
buck.


     The risk factor on this undertaking is very minimal, and
my profit margin is $5,000 to $10,000 per episode. All I need
is a friend or associate's credit card who is willing to wait
an hour or a day to report it stolen.
     How much can a scammer make on this deal? Around $5,000
per hour or more, while the other party waits to call in the
"stolen" credit card. The more creative I am, the and the
longer I hold the card, the more I can make.
     I acquire a recently "stolen" credit card and go to a
department store chain. I make a number of purchases such as VCRs,
microwaves or stereo equipment in the $300 to $500 range,
taking around 15 minutes in each store, and using city shopping
areas or malls for my purchases.
     I have found it possible to make purchases in 15 different
stores in a morning or afternoon, for around $7,500. It's easy
to do with practice, and I've got plenty of practice.
     Immediately after receiving a receipt from the credit card
purchase, I grab a candy bar or a pack of cigarettes from the
rack next to the cashier and pay for the item with cash. I
always use the same cashier and register.
   I don't bring any personal ID to any store. If a problem
should arise with the card, I make a polite excuse to go to my
car to get proper verification - and leave!
     Once I'm home with my merchandise and receipts, I
carefully line the receipts up with each other, laying one over
the other and holding them up to a light with the words "Total"
on top of each other. Where it says type of purchase, "Cash,"
the other will read "Credit Card."
     I tear both receipts simultaneously with an irregular
pattern. The cash segment   fits perfectly on the credit card
receipt.
     For added insurance, I smear smoked oyster oil or mustard
or grease on the receipt. Then crumple it into a ball to make
it difficult to read.
     I have someone else return the unopened product to the
store over the next 10-day period to declare that the wrong
product was purchased. Then when the return counter takes the
receipt, it is simply explained that it was in the trash - and
that's why it is torn and stained.
     It has been my experience that 9 times out of 10, the
cashier won't even handle the stained receipt. All the cashier
will be concerned about is the product ID number, the price and
the words "Cash Purchase."


MICE TO KNOW YOU


     This scheme could result in 'innocents' being hurt, maimed
or dead.  Beware the ASPCA!


	 This is an easy, effective way to stay at luxury
hotels at absolutely no cost. Before registering at the hotel,
I stop at a local pet shop and buy two live mice.
     Around midnight, I just release the mice in the room. I
have a female friend (my "wife" or "fiancee"),  call the front
desk excitedly, preferably on the verge of hysteria. All the
front desk clerk has to hear are the words "rats in the room."
He'll take care of the rest.
     I've found this scam to be good for a total refund, a
possibly free suite, and complimentary dinners and wine. The
least I get is a free night in another room.



 PHONY ID'S


     Genuine ID's are available for the asking.  It seems for
some people life is not "be who you are", but rather "be
whoever you want to be".


	 #1   This one is so easy, it almost is too simple. The
first thing I do is run a want ad in the local newspaper that
reads,


	  "WANTED: Men/women who have never had a driver's
	   license. Ages ?-?  Call 555-1212. Needed for
	   research program."

	  When the calls start coming in, I take down all the
vital information such as date of birth, place of birth,
height, weight, hair and eye color.  I tell the applicant that
I will send further information for the procedure to obtain a
license.

	   #2   In my travels across the country I've met many
people... and for the select group who have similar vitals to
me, I've even borrowed their identities for a short while. I
just send an application to the Motor Vehicle Department in the
state where the person lives stating that "I" am going to
school (out of state) and that I've lost my license.  I
indicate that I won't be back in state for another few months
and would appreciate them sending me a temporary license until
then.  There is never any problem and usually there is no
picture on the temporary license only a run down of the normal
vitals.


REALITY WORLD



     Real estate is the American way to wealth.  With this
formula it seems nearly instant wealth comes on a minimal
investment of cash.


	 I've found this works best in populated high rent
districts. My  investment cost is between $5,000 and $10,000,
and the profit gain is limited only by my imagination and
willingness to work.
     A female friend and I pretend to be a husband and wife,
new to the area.  I rent a car, get traveler's checks and
appropriate clothing and, of course, cash. I have found the
risk factors to be minimal. It takes approximately two weeks to
pull off the scam once I've paid the initial rental agreement
costs.
   I contact a realty firm that rents or leases homes and an
appointment is set up to look at a house, preferably without
neighbors who rent from the same realtors.  I'm always careful
to arrive at the appointment with a rental car that has no
identifying stickers.
     I try to appear diligent in my search for a perfect
rental. I act ' normal', do a little bickering about price, and
choose carefully. I talk about possible options to buy and ask
plenty of questions.
   After I choose my rental, I pay the first and last months
rent, plus the deposit using cash or non-traceable traveler's
checks.
     Once I have secured my rental home, I go to the phone
company and pay for immediate service.
   My next step after getting a phone number is to go to the
classified advertising office of the leading newspaper in the
city.  I advertise "my" home without giving an address, using
my new phone number for contact purposes.
     If the home cost me $1,500 a month (first, last and
deposit), I have put up $4,500.  I list the home for $1,000 a
month, or a total cost to new renters of $3,000 for the first,
last and deposit.
	  I wait in the rental unit during the calling hours
listed in the ad, making appointments for the best potential
renters. When the customers arrive, they will see an empty
luxury home, available for rent in an area where most homes
rent for $500 higher.
     I collect the first, last and deposit from each of my
customers, giving them a move-in date of around 10 days.
     If I get 10 customers, I have collected $30,000, for a
profit of nearly $26,000. People who have used the scam report
up to 27 customers in a week.  I've always done well with this
one.


FLEA MARKET GOLD MINE



     The treasure hunter becomes the 'treasured' prey in this
hit and run scam.  The moral here is 'seller' beware.




	This one is a bit tricky, but once it's perfected, the
risk factor is minimal and I've  easily earned thousands of
dollars over a two to four-week period.  My total investment
less than $500. And the only props I need are phony business
cards, a checking account, a newspaper ad, flea market space
and a fake ID.  My initial step is to print 250 business cards
reading:




	'FINE JEWELRY AND GOLD INC.
	We pay the most for jewelry and precious
	metals."


	  I open a personal checking account under a fictitious
name in an out-of-state bank. I  do it in a state with a low
rate of fraud since they aren't hyper about scam artists and
will generally accept any business thrown their way.
     I search out a rural flea market that does a high volume
business, with a large customer base and rent space for a
Sunday.
     I then run an ad in the flea market section of the local
newspaper, offering to pay the highest prices for jewelry and
metals.
     On Sunday I buy up all the precious metals and jewelry I
can get. By the time the bank opens for business Monday
morning, I'm in another state with my treasure.





Justice Prevails


Money by Canon

	  Money seems to be as close as the nearest copying 
shop. Although this could be one answer to somebodies budget 
deficit, it could also help get rid of all ones responsibilities for
awhile.  Uncle Sam is more than agreeable to providing
accomodations for all those with ambitions in 'printing without
permission', as these two brothers found out.



	  On May 15, 1990, Mark John Lamere bought a Canon
color laser copier and had it delivered to a space he had
rented in Minneapolis, Mn. During the next several days, he
made color photo copies of U.S. currency $20  and $100 bills.
     He tried to pass one of the fake $100 bills on May 19th at
the Perimeter, a night club in Minneapolis. The bill
immediately was suspected as counterfeit by the bartend-er.  He
called the club manager who after examining the bill notified
the police.
     Police placed Mark John Lamere under arrest and questioned
him at Hennepin County Jail. Officers confiscated 10 identical
counterfeit bills from him.  Lamere claimed he didn't know the
bills were fake, and said he got them the previous evening from
a man who bought a Rolex watch from him.
     Later that same night, Mark John Lamere called his
brother, Jean-Paul Lamere, from jail and asked him to remove a
portfolio that contained other counterfeit money from his
apartment. JeanPaul Lamere picked up the portfolio and stored
it in a girl friend's attic. Some four months later, the
portfolio was reported to police.
     Law enforcement officers, acting on the report, seized
$12,420 in counterfeit $20 and $100 bills with both fronts and
backs; $15,560 in bills with fronts only; and $11,620 in bills
with backs only, for a total of $39,600 in fake currency.
     Because of the discovery of the fake money in the attic,
U.S. Secret Service agents executed a search warrant on the
business space rented by Mark John Lamere and were able to
recover the Canon color laser copier. Laboratory tests
performed on the seized copier and the bills found a link
between the two pieces of evidence.
	  Mark John and Jean-Paul were charged with
counterfeiting US currency in a 7 count indictment.  They both
plead guilty to 1 count and were sentenced to 12 months in
prison with 2 years supervised release.






EASY CREDIT


     Business was booming for this ambitious couple when... how
does that saying go now...  is it the postman or the US Postal
Inspector 'always rings twice'?



     In 1987, Marshall Peters came up with a scheme to defraud
citizens by soliciting funds for "pre-approved" credit cards
from individuals with poor credit histories. A year later he
and his wife, Linda, began doing business, calling their
company "Credit America".
     The couple operated out of their home, using a mailing
list they bought from a mailing list brokerage firm. The list
was called "Credit Problem Names," and yielded the names and
addresses of some 40,000 individuals with credit difficulties.
     According to authorities, the Peters sent letters of
solicitation to some 30,000 of the individuals on the list. The
letters read in part:

     "CONGRATULATIONS! You have been pre-approved to receive
your very own CREDIT AMERICA MasterCard...We have a MasterCard
reserved for you right now, but you have to complete the
enclosed pre-approved CREDIT AMERICA application, and mail it
back to us with your annual $35.00 membership fee...you cannot
be turned
down, because you are already pre-approved. There is NO CATCH!
     "CREDIT AMERICA has made special arrangements for group
approval with VISA and MasterCard...Your membership is backed by
a 100% MONEY BACK SATISFACTION GUARANTEE,...You have nothing to
lose and everything to gain. To receive your CREDIT AMERICA
MasterCard with NO CREDIT CHECK and NO SECURITY DEPOSIT, your
preapproved application and $35.00 annual membership fee must be
received by CREDIT AMERICA within the next 30 days."
   The letter was signed by Preston Roberts, vice president of
New Accounts. It displayed the VISA and MasterCard logos. There
was, of course, no Preston Roberts, nor had a special
arrangement been made with MasterCard or VISA. And bank cards
had not been pre-approved. In fact, Credit America was not
authorized to use MasterCard or VISA logos. The only Credit
America address was a rented mailbox, and Preston Roberts was a
fictitious name created by Marshall Peters. The Credit America
phone number listed on the solicitations was connected to an
answering machine.
     According to authorities, Peters intended the solicitation
to cause victims to send in $35.00 to join Credit America in
return for the promise of pre-approved credit cards. Some 5,500
persons responded to the solicitations. Each sent in $35.00 for
the "credit card." While some of the targeted individuals
received a postcard acknowledging their request or a membership
handbook from Credit America, none ever got a bank card.
   The Peters profited by more than $200,000 from the scheme
before U.S. Postal Inspectors moved in on their home in
October 1988, seizing some 3,750 opened envelopes containing
credit card applications. The search also produced 150
unopened letters of complaint. Some 700 opened complaint
letters were also confiscated, along with several handwritten
notes recording card applicants complaints left on the
answering machine.
    In May 1990, a federal grand jury indicted the Peters.
Marshall and Linda Peters were charged with 14 counts of mail
fraud. Marshall was also charged with a single count of using a
fictitious name in the alleged swindle. The U.S. government
filed a redacted indictment that lifted four counts of mail
fraud from the indictment.
     The couple entered innocent pleas and a jury trial started
Oct. 16, 1990. Marshall Peters was convicted of 10 counts of
mail fraud and one count of using a fictitious  name to carry
out his scheme to defraud. Linda Peters was convicted of five
counts of mail fraud. Five other counts against her were
dropped.


Reader's Response

Business Scams

Reader's Stories




Note:  The above categories will be reserved for our readers
and any others who desire to share their stories with us.
Sharing knowledge about scams and frauds is the only effective
way  to avoid victimization from them.   Through your
contributions, ScamNews will be able to offer up to date
information on the most current frauds, swindles and confidence
schemes being perpetrated today.




We hope that you have found this first and expanded issue of
ScamNews both entertaining and informative.  Everyone is
susceptible in the scamming game, and by being aware of how
they work you may avoid being the next victim.  Since most
victims of scam are left with little if any recourse to regain their money
or assets, prevention seems the only solution.

 ELECTRONIC BREAK-INS AND BREAK-THROUGHS

       Of special interest to subscribers will be accounts from
computer hackers and phone phreaks.  These are the pro's of the
electronic underground supplying ScamNews with the latest
techniques being employed to breach security systems.  From
minor invasions of privacy, to theft of credit cards, accessing
credit information services to destroy or repair credit
histories, charging thousands to not only stolen cellular phone
numbers but to any private or business phone in America,
embezzeling and transferring funds from private and corporate
bank accounts, creating checks or currency with a computer and
laser printer, and many more detailed examples of just how
unsecure the electronic environment truly is.  In fact, the
government recently estimated that approximately 90% of the
Defense Department's computer systems have been successfully
breached by hackers, a sobering thought indeed.
	After reading this category, you will definitely be
questioning what the extent if any you should entrust
electronic data systems with valuable or vital information.  At
the very least you will become aware of the vulnerabiities in
your own system and possibly
avert an intrusion costing you extreme financial loss.

	Again, be aware that any use of this information with
criminal intentions could, and most likely will result in
imprisonment.  After all some of the above mentioned informa
tion will be from people currently serving a prison sentence
for breaching electronic security systems.  This information is
to be used for prevention and protection purposes by all the
citizens, businesses and law enforcement agencies who subscribe
to ScamNews.

	Scams and frauds occur in nearly every area of our
lives. Upcoming issues will be
carrying numerous variations of the scams and schemes the
average American will most likely encounter in daily
situations.
Here are some of the categories that will be covered:
Credit Card
Sweepstake/Giveaway
Bank Loans,ATM,ect
Mailorder
Investment/Securitie
Home Improvement
Employment
Business Opportunities
Telemarketing
Auto Repair
Vacation Giveaways
Counterfeits
Phone Cards
Financial Planners/ Money Managers,
Jewelry,ID
Living Trusts
Fund Raisers
Equity Skimming
Retirement Associations
800/900#'s
Pyramid Schemes
Direct Debit Accounts
Cellular Phones



	ScamNews will be electronically published EVERY WEEK
through e-mail or monthly issues via US Postal Service.

	Subscribe to ScamNews today and in addition to
receiving America's most up to date and detailed resource on
scams and frauds for less than $1.00 a week, you can also order
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sent.  When you receive your confirmation notice in the mail,
we will also include an order form to use for the above bonus
offer "How to Recognize and Avoid Scams, Swindles and Rip-offs"
at 33% off.  We are sure you'll enjoy this fascinating book in
which much of the information comes from Mr. Mott's personal
experiences.
	Whether you decide to subscribe or not, we would still
like to hear from you.  You can leave us a message with any
suggestions, comments or  if you have any stories you would
like to relate, please simply e-mail them to AYGX42A@
prodigy.com.  We are especially interested in information
pertaining to fraud and scams which occur in the average
consumers everyday experience. Remember this is all anonymous
information, your name will not be used under any
circumstances.   Please let us know what you think!
A NOTE TO MEMBERS OF BBS's:  This will be the only copyrighted
issue of ScamNews allowed for upload onto BBS boards.  If you
feel this would be of value to members of any BBS's you
subscribe to then you are welcome to upload this edition.
Not only could you be credited with upload byte credits, you
could be helping someone avoid a scam.  Subsequent issues,
however, will be for subscribers only and are not to be
distributed by anyone other than the publisher.

Thanks for reading ScamNews and hope to be reading your stories
soon!


Jason Richardson
ScamNews Editor

ScamNews
Rt. 2 Box 56 - E
Jayess, Mississippi  33963
AYGX42A@prodigy.com

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