Benton, IL (KSDK) - A Miami, Florida man pleaded guilty Friday to selling so-called auto warranties through robo-dialing and voice blasting, U.S. Attorney for the Southern District of Illinois Stephen Wigginton said.
According to court documents, 62-year-old Robert Dolan was one of three people behind Transcontinental Warranty, a Florida company selling vehicle service contracts. Transcontinental Warranty is accused of falsely implying that they were calling from, or were affiliated with, auto manufacturers, and saying that the consumer's factory warranty had expired or was about to expire.
Transcontinental was really selling the service contracts from third party companies. Those contracts provided some coverage for car repairs, similar to that of a factory warranty.
Once the customer answered a call from robo-dialing machine, they were transferred to a Transcontinental telemarketer, who would tell the customer that he or she was calling from the "warranty service center," implying that the call was from the warranty office of the automobile customer.
Robert Dolan pleaded guilty to a statute prohibiting the use of fictitious name in connection with a mail fraud scheme. He faces up to five years in jail followed by three years of supervised release, and a $250,000 fine when he's sentenced on October 1, 2012.
Dolan's co-conspirators, Christopher Cowart and Cris Sagnelli, were each sentenced to five years imprisonment last October.