Seven in Photocopier Supplies Firm Charged With Mail Fraud

Seven members of a Los Angeles photocopier supplies company were indicted Tuesday by a federal grand jury here on charges of mail fraud in an alleged boiler-room telephone solicitation scheme that netted more than $3 million.

Assistant U.S. Atty. David A. Katz said the owners and key sales personnel of General Supply Systems and International Supply Systems fraudulently sold photocopier supplies from a sales office in Palms, using post office boxes in Culver City and Encino.

Katz said victims of the alleged fraud were given a “deceptive sales pitch which left the false impression that the caller was affiliated with the victim’s regular supplier of photocopier products.”

He said representatives of the company deceived victims by telling them they had not been notified of recent price increases, but could still receive the same merchandise at the “old price as a courtesy.”

Katz added that bills were subsequently inflated with unidentified charges.

Those charged were: H. L. Marks, 47, of Culver City, owner and president of the company; Kenneth Gelbert, 35, of Hermosa Beach, general manager of General Supply; Karen Ross, 23, of Fullerton, a manager; and salesmen Marvin Melaten, 55, of Malibu; Daniel P. Hernandez, 39, of Monterey Park; Richard Wacker, 63, of Glendale and Jack Ahler, 37, of Redondo Beach.