Westlake toner telemarketer guilty in decades-old scam


A federal jury Tuesday found seven people guilty of conspiracy and mail fraud for participating in a decades-long, multimillion dollar telemarketing scheme that targeted thousands of small businesses and charities.

Among the defendants is Jonathan Brightman, 52, of Westlake Village.

During a seven-week trial in United States District Court, the jury heard evidence that members of the conspiracy as far back as 1988 bilked more than 50,000 victims by posing as their regular supplier of printer toner and selling them the product at greatly inflated prices.

Over one six-year span, victims were induced to send more than $126-million to the telemarketing scammers.

Brightman owned several companies said to be involved in the scheme: Copy Com Distribution, Inc., Independent Cartridge Supplier and Corporate Products.

Also guilty is Sharon Virag of West Hills, owner of XL Supply, Inc., and Francis Scimeca of Woodland Hills, who owned Supply Central Distribution, Inc. and Priority Office Supply. Both are 54.

Authorities said Gilbert Michaels, 77, of West Los Angeles orchestrated the scheme. He owned and operated IDC SERVCO, a Culver City-based business that sold toner to small businesses, charities (such as Easter Seals Disability Services and the United Way), schools, churches, city governments and other entities in the United States and Canada.

Each defendant was found guilty of one count of conspiracy to commit mail fraud. Michaels also was found guilty of 10 counts of mail fraud and five counts of money laundering.

The telemarketers told the victim companies the price of their toner had increased and that they had a chance to purchase the product at a previous, lower price, the U.S Attorney’s office said.

Believing they were dealing with their regular supplier, the employees at the victim companies signed order confirmation forms, which prompted Michaels’ IDC company to ship toner to victims and send invoices that demanded payment at inflated prices.

When the victim companies realized they had been scammed, they called IDC SERVCO to complain. In many cases, IDC employees threatened victims with collections or legal action if they did not pay an invoice. In the cases where IDC agreed to take toner back, victims were forced to pay significant “restocking fees,” the complaint said.

The telemarketers knew there had not been a price increase for toner, and failed to disclose that the prices they were charging were up to 10 times the regular cost of toner, the complaint said.

Fourteen other defendants charged in the case previously pleaded guilty to federal criminal charges.

The defendants face a statutory maximum sentence of 20 years in federal prison when their sentencing hearing is held May 29, 2020.

Acorn staff report