A federal jury in Baltimore convicted a senior executive of a California lending firm yesterday of more than 50 fraud counts for helping fund and operate a telemarketing scheme that authorities said bilked more than 31,000 people of more than $3.6 million.
Mark F. Cohn, 49, of Woodside, Calif., was the last of six defendants charged in the scheme to be convicted. Four Star Financial Services LLC of Burbank, where Cohn was general counsel and executive vice president, also was found guilty of fraud charges and faces fines of more than $500,000.
Federal prosecutors said Cohn was part of a far-reaching scheme that targeted individuals with poor credit histories by offering preapproved credit cards for fees ranging from $49.95 to $149.95. In telephone sales pitches scripted by Ruxton businessman Joel Katz, customers were promised a credit card with a $1,000 limit. But what they received instead were small packages, valued at less than $5, containing credit card applications, store coupons and telephone calling cards.
