SOUTHERN CALIFORNIA : 12 Arrested in Phone Scams

FBI agents from Los Angeles arrested a dozen people in three Southern California counties Thursday as part of a nationwide sweep that targeted telemarketing “boiler rooms.”

U.S. Atty. Terree Bowers said that boiler rooms in Los Angeles, Orange and Riverside counties were searched, and that 23 bank accounts worth $300,000 were seized. Bowers said most of the alleged illegal operations involved “prize scams,” in which victims are talked into parting with their money in exchange for trinkets--not the cash, trips or new cars they supposedly have “won.”

“Many of the victims do get prizes, such as a small radio,” Bowers said. “It’s almost like a bait-and-switch (technique).” Bowers said 47 such operations were searched nationwide, and a total of about 240 people were arrested.