Public warned against telemarketing scam

The Attorney General’s Office warned the public Wednesday against a nationwide telemarketing scam victimizing consumers by promising them government grants.

Over the past few weeks, the AGO has received reports from several Saipan residents who were contacted via telephone by a man promising government grants.

The man reportedly identifies himself as “Vicky Joseph” or “John Sinah” based out of Florida. The caller is described as having a South Asian accent.

According to the AGO, the caller falsely informs consumers that the United States government has selected them to receive a grant ranging in value from $10,000 to $12,500. The caller then asks the consumers for their checking account information. Consumers who say they do not have a checking account are actually offered to have one set up for them.

But in order to receive the grant, the consumer must authorize the electronic withdrawal of a “small processing fee” from their checking accounts. The processing fee may be as little as $29.95.

The caller also “forewarns” the consumer that an additional amount of money may be needed in the future to “expedite” the grant monies.

“The intent of the con artist is to string the consumer along, extracting increasing larger ‘fees’ until the consumer finally realizes that no grant is coming,” the AGO said.

Similar scams have been reported in Texas, Illinois, Massachusetts, and West Virginia. The scam reached the CNMI in November 2004 and has apparently resurfaced recently.

The AGO said that sometimes, the scam artist claims to be a representative of the U.S. Department of Education. The caller uses various business names including: Free U.S. Government Grants, Federal Government Grant Information Center, New Federal Government Grant Information, or similar names.

Another form of this scam involves a caller who claims to be a representative of the Federal Emergency Management Agency claiming the consumer is entitled to federal disaster relief funds.

Regardless of the claimed agency, the caller will ask consumers to give their bank account information to secure the grant.

“Consumers should know there is no legitimate government program that employs people to call consumers to offer grants. Government grants, including student financial aid, are available through an application process, not through telemarketers,” the AGO advised the public. “Consumers should never reveal their bank account number or other personal information over the phone. If you get a call asking for this type of information, hang up.”