6 Held in O.C. Scam That Targeted Elderly

Six people charged with running a “prize promotion” telemarketing scam in Orange County were arrested Thursday, federal prosecutors said.

The defendants include Kevin D. Lutz, 39, and Robyn R. Kennedy, 30, both of Garden Grove. The pair were identified as the owners and managers of United Publishing Inc., which operated in Garden Grove, Fullerton and Buena Park from July 1995 until it was closed by authorities in March 1997.

Also arrested and charged with fraud were Lakhi K. Sapra, 63, of Anaheim; James Brian Smith, 29, of Garden Grove; William A. Meloni, 27, of Corona; and Sonny Markovich, 24, of Fullerton. Prosecutors contend all were UPI telephone salespeople.

All of the defendants except Markovich are free on bail.

Another defendant, Randall Richards, 40, is serving a prison sentence for an unrelated conviction. Kathy Spell, 32, of Santa Ana also has been charged in the UPI case but is a fugitive, authorities said.

Assistant U.S. Attorney Ellyn M. Lindsay said the scheme victimized about 1,000 mostly elderly people all over the country. UPI salespeople promised the victims prizes such as cashier’s checks for as much as $15,000, television sets, entertainment centers, cars, “dream vacations” and designer watches, she said.

Victims were told that in order to obtain the prizes they had to send fees ranging from about $299 to $2,200, Lindsay said. UPI took in a total of about $680,000, she said, and all the victims received were cheap watches, “virtually worthless” hotel certificates and--in a small number of cases--a magazine subscription.

The defendants are due to appear in court Aug. 31, when a trial date will be set.