A third man is now facing up to five years in federal prison for his alleged role in an "auto warranty" telemarketing scheme. 62-year old Robert Dolan of Miami, Florida plead guilty Friday in federal district court to fraud charges arising out of the telemarketing sales practices of Transcontinental Warranty, a Florida company selling "auto warranties" through robo dialing and voice blasting.
The statute Dolan plead guilty to prohibits the use of a fictitious name in connection with a mail fraud scheme. It carries a potential penalty of five years in prison, a $250,000 fine and a term of supervised release not to exceed three years. Dolan could also face an additional five years of incarceration under the SCAMS Act, because the offense involved telemarketing.
According to a release from the Department of Justice, Dolan falsely implied that he was calling from, or was affiliated with, automobile manufacturers, represented that the consumer's factory warranty had expired or was about to expire, and offered the consumer the opportunity to extend or reinstated the warranty. The charge against him also all edges that Transcontinental used another company to act on behalf of the company to robo-dial customers through the United States and that once a customer answered a Transcontinental telemarketer would tell them they were calling from the "Warranty Services Center".
Christopher D. Cowart, the President and CEO of the company and Cris D. Sagnelli, who served as Transcontinental's Vice-President, were each sentenced to five years in prison in October of 2011.