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Philadelphia Daily NewsA Mount Laurel, N.J., man admitted in federal district court yesterday to fraud and tax-evasion charges.
Neal D. Saferstein, 36, pleaded guilty to mail fraud, wire fraud and filing false tax returns for 2002 and 2003 in connection with a telemarketing scam that the government said bilked as many as 400,000 small businesses out of as much as $75 million between 2001 and 2004.
Authorities also alleged that Saferstein had not reported $725,000 in commissions and personal expenses paid him by his company on his 2002 and 2003 tax returns.
U.S. District Judge Cynthia M. Rufe set sentencing for February.
Prosecutors said Saferstein could face up to 30 years behind bars.
Authorities said Saferstein was president and chief executive officer of a now-defunct Old City firm called GoInternet.net, Inc.
The company employed telemarketers who duped customers into receiving a welcome packet for Internet-related services without disclosing that the mailing would trigger a $29 monthly charge on their phone bills unless they called to cancel.
The packets were made to look like bulk business mail that recipients would discard, the feds said.
Saferstein prevented customers from receiving notices disclosing the cost of services, and delayed and prevented refunds to customers who had been bilked and were promised refunds.
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