Lukeroy Rose, the owner of Rose Marketing, pleaded guilty to making unlawful telephone solicitations and operating a fraudulent telemarketing business this week.
This is the first criminal prosecution resulting from Arizona’s new telemarketing statute. The Arizona Telephone Solicitations statute, amended in August 2016, makes it a class 5 felony for unregistered telemarketers to make unlawful calls to in-state and out-of-state consumers.
In May 2016, a State Grand Jury indicted Lukeroy Rose on charges of Conspiracy, Illegally Conducting an Enterprise, Participating in a Criminal Syndicate, Fraudulent Schemes and Artifices, Theft, and Money Laundering. Rose operated boiler rooms in Phoenix for two years. Rose’s company called elderly persons across the country and solicited victims to invest in fictitious work-from-home business opportunities. At least 16 victims were tricked into investing anywhere from $3,000 to $40,000.
Lukeroy Rose was released from custody in August 2016 on bond pending trial. In December 2016, the Arizona Attorney General’s Office learned Rose was operating another telemarketing room, a violation of the new telemarketing statute. Special Agents with the Attorney General’s Office immediately began conducting undercover surveillance and confirmed Rose was engaging in unlawful telemarketing again. Rose was arrested again and held without bond.
Rose pleaded guilty to Conspiracy to Commit Theft, Fraudulent Schemes and Artifices, two counts of Theft, and Unlawful Telephone Solicitations. Under the plea agreement, Rose will be sentenced to 5 years in prison.