A 7th years ago -
Although the FTC strictly monitors TV advertisements, it is not a foolproof system. One of the most well known scams in recent history occurred not on the Internet, not by email, but on TV, in the form of infomercials. The man behind these scams is Guy Paul Beaupre, an Ontario resident, who goes by the alias King Con. In fact, through various schemes he profited a gross $25,000,000 of victims' money. Here’s how he did it:
Scam 1: Universal Payphone Systems This investment scam guaranteed Americans huge potential profits they can pocket if some money is invested into payphones. Beaupre with his associates will place them for you in high traffic locations such as shopping malls and carnivals. The investor would just sit back and the money will flood in like Niagara Falls. What the consumer didn't know were the phones are cheap poor quality counterfeits that rarely worked. Investors were severely disappointed at the results, especially one hopeful who put in over $1,000,000 into Beaupre's scheme. In the end, Beaupre scooped in over $16,000,000. The main strategy used in this was the illegal application of the name "Nortel Networks" on the payphones. This causes the consumer to falsely assume that the product sold is genuine and efficient.
Scam 2: Silver Jewelry Vending Machines In this scam, Beaupre boasted of highly inflated profits associated in owning your own jewelry kiosk. He claimed in a matter of months, a meager $140,000 in invested machines can output a gross $912,500. The infomercials used a transfer of feeling, trying to sell the better life you and your family could achieve if invested in this. The feeling of freedom and a good family relationship was so strong people didn't care or think of the lousy potential of the unreasonable jewelry vending, but instead, are dreaming away about their new life. In this scheme, Beaupre used promises to make the investor more confident and assured that if they are not completely satisfied with the product, it can be returned in 14 months. The problem: Beaupre and his associates did not honor their promise and not only that, the business was shut down in a matter of months. Beaupre's take: $6,000,000.
Scam 3: Anti Aging Solutions Probably the most pathetic but most profitable, Beaupre and his partners launched what seemed to be a revolutionary new device to get rid of wrinkles, bruises and spider veins. It was a nifty little object called a "Revitalite", a portable battery powered laser, which claimed to do the aforementioned. Again it was an investment opportunity, but this time, a new strategy was used: Off the Band Wagon. It rushed investors into being the only one in town to retail this high tech mechanism. Those who acted first would get the contract and receive pure profit. Not only was this a lie, it followed many Beaupre's scamming traits. • Many individuals from the same municipality were told they were the only one. • There was a minimum investment of $20,000 required. • An "unconditional warranty" existed to build confidence and assurance, but was not respected. • Potential profits were grossly inflated. • Infomercials were highly glamorized, bloated with fake plain folks testimonials, and the transfer of emotion. • The business shut down within months, claiming some dumb excuse • Beaupre and his associates ignored orders by the government health inspection to remove their product and website. Investigators decided to take a look into the Revitalite laser and see why sales were consistently poor nation wide. Their findings: this “complicated” device was nothing more than a simple cheap laser pointer, not at all capable of what it claimed. The FDA was ordered off the market.
By that time, the public had already been devastated enough and Beaupre was ordered to court. He pleaded guilty to numerous fraud charged, spending 3 years in jail, but surprisingly, right after his sentencing, a new product called "Soft Laser" entered the Canadian market. This was a replica of the much controversial Revitalite, but was sold under George McDonald, Beaupre's associate. Who knows, his scams may still be on the air today with the help of his friends. Beware and never accept offers possessing the previously mentioned traits.