2 Sentenced in $10-Million Elderly Fraud Case : Crime: It’s one of the largest prosecutions in federal crackdown on boiler rooms that sell bogus investments.

SANTA ANA —  Two Orange County men were sentenced Thursday for defrauding more than 1,000 mostly elderly people from across the nation of more than $10 million.

The case was one of the largest prosecutions so far in Operation Disconnect, a federal crackdown on boiler rooms that sell bogus investments or goods costing far more than their value. The FBI last year made 240 arrests involving boiler-room scams in 13 states, including California.

“This represents a continuing effort at weeding out the scurrilous telemarketers who prey on old people,” said Assistant U.S. Atty. Thomas Brown.

Todd Beard, 30, of Huntington Beach pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced to 30 months in federal prison, plus about $9,000 in fines and restitution to victims of the scam.

Dean Bowman, 35, of San Juan Capistrano, was sentenced to six months in federal prison after pleading guilty to concealing a felony from authorities. He also was ordered to pay about $4,500 in fines and restitution.

The two are the first of nine defendants who are expected to be sentenced today and on April 3 for their part in an operation the FBI raided in March, 1993.

Brown said the scam involved dozens of telephone salespeople at the four companies who persuaded people to buy home safety products for far more than they were worth by telling victims they had won expensive prizes.

To collect the prizes, victims were told, they had to buy the products, such as bacterial spray, an emergency kit or flame retardant spray. Victims were told to send hundreds and sometimes thousands of dollars for prizes and products worth much less.

“They targeted the elderly because they were the most vulnerable,” Brown said. “They were usually partially or fully senile, widowed and alone with no close family around. . . . They grew up in an era when if someone promised you something, more times than not they followed through, so they trusted.”

Bowman’s role was to make the initial calls to potential victims. He earned the company $110,000. Beard made follow-up calls to people who had been duped once to try and dupe them again. He brought in $350,000.

After sentencing, Beard declined comment, but Bowman said he was sorry for his part in the scam that involved four companies with offices in Orange County and Texas.

“I regret ever working for the companies,” Bowman said. “I feel terrible about all the victims. I wish I was wealthy enough to give back every dime I took from them, but I’m not.”

The other seven defendants, including the owners and managers of the company, were found guilty last November of multiple fraud and conspiracy charges after a 5 1/2-month trial. Prosecutors expect to ask U.S. District Judge Alicemarie Stotler to sentence them to four to eight years in federal prison.

In court, Brown urged the judge to give Bowman and Beard relatively light sentences because both had pleaded guilty to their crimes. Bowman also helped prosecutors by testifying against seven other men during their trial.

The companies involved were United Safety Associates of Huntington Beach; Life Pro International of Tustin; American Superior Products of Costa Mesa and Fountain Valley, and Midwest Home and Family of Huntington Beach and San Antonio, Tex.