Arizona Men Sentenced for Telemarketing Fraud Scheme

Arizona Men Sentenced for Telemarketing Fraud Scheme

Three men from the Phoenix area have been sentenced for their involvement in a telemarketing fraud scheme that defrauded over 1,000 victims across the United States, raising more than $10 million in the process. The scheme was carried out between 2014 and 2019 through a company called GTT Financial.

Sentencing Details

Brian Hopkins, 62, from Chandler, was sentenced to 21 months in prison and ordered to pay $1.8 million in restitution after pleading guilty to mail fraud and other charges. Richard Kuhlmann, Jr., 58, from Tempe, received a 42-month prison sentence and was instructed to pay $2.1 million in restitution on May 30. David Bartlett, 54, from Scottsdale, was sentenced to 24 months in prison and required to pay $500,000 in restitution in November 2022.

Operation of the Fraudulent Scheme

The fraudulent operation initially claimed to help customers lower their credit card interest rates. Once victims succeeded in reducing their rates, they were targeted for a deceptive “sales lead” investment scheme. Customers were solicited to purchase “sales leads” for $1 each, with the assurance they would receive a commission from each lead generated by GTT Financial. Prosecutors have characterized this investment opportunity as a scam, indicating that the funds collected went directly to the defendants and their employees rather than to legitimate business operations.

Involvement and Responsibility

Hopkins co-owned GTT Financial with Kuhlmann, while Bartlett worked as an employee at the company. During the course of their involvement, Hopkins expressed doubts about the company’s profitability and became wary of the business practices as he noticed a high volume of chargebacks and fraudulent merchant accounts. His concerns led him to distance himself from GTT Financial in 2017. Despite his suspicions, both Kuhlmann and Hopkins continued to manage the scheme that preyed on unsuspecting victims.

Investigation and Legal Action

The investigation and subsequent prosecution of the three men were spearheaded by the U.S. Attorney’s Office of Arizona, in collaboration with the IRS Criminal Investigation’s Phoenix Field Office. Authorities emphasized that their coordinated efforts were crucial in unveiling the fraudulent activities and holding the individuals accountable for defrauding thousands of people who trusted the company’s claims.

Impact of the Scheme

The fraudulent activities not only resulted in significant financial loss to the victims but also highlighted the vulnerability of consumers targeted by deceptive telemarketing practices. The case serves as a reminder of the ongoing threats posed by financial fraud schemes and the importance of vigilance when dealing with unsolicited offers promising financial benefits.

Conclusion

As part of their sentencing, the three men must also adhere to their restitution orders, ensuring that the victims of this fraud have a chance to recover some of their lost funds. This case contributes to ongoing efforts to combat telemarketing fraud and protect consumers from financial exploitation.