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Put on hold
Company accused of fraud in $29 million
national ring
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Secret Service agents load confiscated computers,
files and other equipment from Infinium Inc. The
company was accused of participating in a national
fraud ring that scammed $29 million from low-income
Americans. The raid occurred Wednesday.
ANNIE MCCONNELL / UNIVERSITY JOURNAL
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By TYLER JOHNSON
Secret Service agents confiscated computers, files and
other equipment and sent employees home from Infinium
Inc. (formerly Allied Teleservices), 1579 N. Main St.
on Wednesday, executing a federal search warrant in connection
with a national fraud investigation.
Mike Fithen, special agent in charge of Salt Lake City’s
Secret Service office, said agents entered Infinium, told
employees to leave their workstations and go home because
the business was closed.
Agents loaded computers and other equipment into a U-Haul
van while a Cedar City locksmith changed the locks on
the doors.
Wednesday’s raid was the result of an 18-month investigation,
Fithen said.
The Secret Service and the Federal Trade Commission are
accusing Infinium of cooperating in a ring of national
telemarketing companies that scammed $29 million from
people throughout the United States.
Fithen said the telemarketing companies took calls from
people with low credit who were under the impression they
were going to receive a credit card and have the transaction
reported to Equifax and TRW to help improve their credit
ratings.
Neither promise was fulfilled, Fithen said.
The callers were sent a “pay-as-you-go” debit
card instead of the promised credit card, Fithen said.
Consumers who called to complain about not receiving what
they were guaranteed were not able to speak with customer
service agents but were offered phone cards and other
items instead.
Fithen said the consumers who were targeted had little
to no income.
As a result of the alleged scam, the companies’
owners lived in large houses and enjoyed a high standard
of living, Fithen said.
“The guys were living high on the hog,” he
said.
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Other companies involved in the alleged scam
include Capital First, Premier One and Advantage One.
Approximately 240 people were employed at the Cedar City
facility when it was closed, said Brooke Ulrich, a junior
communication major from Holden, and an Infinium supervisor.Approximately
50 of those employees were students.
“It’s bad news,” Fithen said. “Besides
the victims, we have legitimate employees who now have no
jobs.”
Fithen said an SUU student called him Wednesday because
Infinium owed her $750 for tuition reimbursement she was
going to use to pay this semester’s tuition. He said
he felt bad because she now has no way to pay for school.
Infinium’s employees were required to submit forms
to the Secret Service offering their names, addresses and
social security numbers.
Ulrich said the employees do not know whether they will
retain their jobs, but she expects to hear from the company
shortly.
Other employees said they are also concerned because they
don’t know what to expect.
“We don’t even know if we’re going to
get paid,” said Adam George, a freshman marketing
major from Monroe. “We got screwed, and we didn’t
even do anything wrong.”
Another student, Crystal Ervin, a freshman communication
major from Las Vegas, said, “It’s kind of sad.
This is where all the college kids worked.
“I don’t think anyone will find a job as good
as this,” she added. “I think it’s crazy
and ridiculous.”
Ulrich agreed.
Infinium was a good company to work for, she said, and she
has a hard time believing the company is guilty of wrongdoing.
“Everything (in the Cedar City facility) to my knowledge
was 100 percent legitimate,” Ulrich said. “They
have been the best employers; I have 100 percent faith in
them. I’m sure this will all work out in the end.”
Ulrich also said Cedar City’s office did not handle
credit card calls. She said she doubts the Cedar City branch
was involved in illegal activity.
Investigators failed in their first attempt to raid Infinium’s
office because they went to the wrong telemarketing company.
Andrew Langston, a freshman undecided major from West Jordan
who works at TLR, said investigators showed up at its offices.
Infinium used to be housed there.
Fithen said Wednesday’s raid is only part of what
he called a “lengthy” investigation. The items
confiscated will be analyzed by the Secret Service.
The St. George facility was also closed.
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C&O VP charged
with assault
By ELIZABETH MILLER
University Journal
SUUSA Clubs & Organizations Vice President Spencer Koelliker
was arrested Tuesday and charged with aggravated assault, a
second-degree felony, in connection with an incident at an off
campus party on Nov. 9.
Cedar City Police arrested Koelliker in the Dixie Leavitt Business
Building just before a 10 a.m. class. He was arraigned in 5th
District Court later Tuesday and was released on $10,000 bail.
Koelliker is accused of taking part in an assault on a non-SUU
student in which the victim was badly beaten. The victim was
visiting his girlfriend from out of town.
Two other arrest warrants were issued in connection with the
incident.
SUUSA President Matt Glazier told the Journal he is aware of
the situation but offered no further comment except to say,
“This is a serious situation; we’re not excited.”
Specifically, Glazier declined to say whether he would request
Koelliker’s resignation.
“We’re allowing due process to take its course,
in accordance with state laws and the SUUSA Constitution,”
he said.
Koelliker declined to comment.
In an open forum just before Tuesday’s SUUSA Senate meeting,
Academic Vice President Kolby Day told senators of the arrest
and asked them not to engage in gossip or back-biting.
“This definitely does not mean he is not competent as
an Executive Council member,” Day said.
While he did not allude specifically to a possible resignation,
Day added, “Spencer is making personal decisions as to
what his actions will be.”
Article VIII of the current Constitution, dated April 24, 2002,
specifies acceptable behavior of SUUSA officers and provides
for impeachment of elected officials.
Section 1 says an officer may be impeached for failure to act
in a manner deemed necessary for the effective operation of
SUUSA, as defined by the Senate. Section 6 provides for automatic
removal of officers who, among other things, are placed on social
probation.
Mindy Benson, director of Student Activities, said it is unlikely
SUUSA will pursue the matter until the case has been decided.
Neal Cox, associate vice president of Student Services, said
a student may be placed on social probation for a variety of
offenses committed on or off campus.
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“Dishonesty or assault are two of many examples that
fall under this policy,” Cox said.
Regarding the Koelliker situation, he added, “We are following
with interest what will be done in a court of law. It would
be premature to issue any (other) statement from our office.”
Cox said he became aware of the alleged assault approximately
48 hours after it occurred in November, but Tuesday’s
arrest was a surprise.
“Two students had filed a complaint with varying stories
of what happened,” Cox said.
Because the same students also had talked with police, Cox said
his office was awaiting the outcome of police proceedings before
taking action.
Social probation decisions are usually made after court decisions,
he said.
“We will not shield any student from the law, nor are
we in a position where we feel we need to make judgments in
advance of the law,” Cox said.Koelliker’s situation
will not be handled differently because of his standing as an
SUUSA officer, Cox said.
“He still has rights like any other student,” he
said.
Even if the student body removes Koelliker from office under
Article VIII of the SUUSA Constitution, that would not necessarily
affect his social standing as an SUU student.
If a student is placed on social probation, Cox said no public
record is created. A confidential university record is established
and kept on file for five years. That information is made available
upon request to other universities if the offending student
transfers or applies to graduate schools.
The aggravated assault charge could result in a maximum prison
sentence of five years and a $5,000 fine, said Jerry Womack,
Cedar City Police detective.
Although the alleged fight took place Nov. 9, Womack said no
arrests were made at that time. Cedar City Police investigators
completed their reports Dec. 16 and forwarded them to the Iron
County Attorney’s Office, which filed charges in 5th District
Court on Dec. 30.
A warrant for Koelliker’s arrest was issued Monday; he
was taken into custody Tuesday.
Koelliker was arraigned before Judge Robert Braithwaite via
video conference while in jail Tuesday, a deputy clerk at 5th
District Court told the Journal.
Because it was unclear whether Koelliker could afford an attorney,
Braithwaite appointed William Leigh to serve as public defender.
Koelliker may have to reimburse the county for a portion of
his legal fees if he is later found financially solvent, the
clerk said.
Koelliker must appear before a judge in a preliminary hearing
within 30 days of the arrest to determine whether there is enough
evidence to go to trial, Womack said.
Arrest warrants for two other suspects also were issued Monday.
Womack said it is uncertain when more arrests will be made —
or even if they will be made — because the suspects may
have left the area during Christmas break and not returned.
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