Credit Cards Online Information

Editor's note: January's Special Report on credit-card scam artists who prey on golfers under the guise of "risk-free" club testing hit a nerve with readers unlike any Golf Digest story in recent memory. We were inundated with mail from readers detailing how they had been defrauded, and shortly after our story went to press two California men were indicted on 10 counts of mail fraud and 10 counts of wire fraud in a scheme that U.S. Attorney John S. Gordon says collected more than $8 million from victims.

According to the indictment in U.S. District Court in Santa Ana, Calif., Mitchell David Gold, 44, and Jonathan P. Cohen, 29, ran a business that purported to offer golfers a chance to test state-of-the-art golf clubs for no charge, but in fact charged exorbitant "security deposits" for cheap golf clubs, and falsely informed victims that the charges would be reversed if they chose to return the clubs.

According to the indictment, telemarketers at Platinum Pro Tour and State of the Art Golf would cold-call golfers throughout the United States and offer them the opportunity to test-play "state-of-the-art" golf clubs they claimed had a retail value of $2,500. The telemarketers employed by Gold and Cohen told victims they could try the clubs with no financial risk if they agreed to have $1,500 charged to their credit cards as a security deposit. The telemarketers, who have not been charged, went on to tell the victims that at the end of the test-play period golfers could return the clubs and obtain a refund of the deposit. However, according to the indictment, the golf clubs could not be customized as promised and were worth "far less" than the $1,500 deposit. Instead of simply returning the security deposit, Gold and Cohen "obstructed and complicated the return process" and refused to accept cancellations of the test-play period or the return of the clubs before a 60-day period, "thereby causing most victims to lose the opportunity to contest the charges on their credit cards." The indictment adds that funds used to pay refunds to some victims would come from the deposits of other victims.

If convicted on all counts of the indictment, the defendants face a maximum of 200 years imprisonment. Outraged readers who say they have been bilked by other companies detailed variations on the club-testing scheme. One reader's credit-card company flagged a four-figure expense that scam artists attempted to hide in a towing charge (the reader's car had never been towed). Another reader was under the impression that he was on the hook for a security deposit of $14.95, only to be shocked to see a credit-card charge of $1,495. Many readers reported being bullied by telemarketers when they attempted to return clubs. Still other readers were promised that if they provided referrals of other golfers' names they could "earn" free clubs.

Here's a sampling of your letters (to read January's full Special Report, visit www.golfdigest.com/equipment):

When I tried to return clubs, the telemarketers kept trying to sweeten the pot with more clubs and credits. I wondered: Why would a company try to get me to keep a set of woods by offering clubs and cash that supposedly were worth twice as much? I've been called on at least five occasions since then. On one of those occasions, the representative scolded me for allowing him to waste his time making his whole pitch when I had no intention of making an order. In fact, I was in the middle of reading your article when I was called again.

To further confirm that the "pump and dump" practice exists, I got another call the next night! Thanks for a great article that exposes these scam artists.

Rick Wessel, Hampshire, Ill.

While trying to return clubs, I was put on hold, and the people on the other end accidentally hit the speaker button. Not realizing I could hear them, they were laughing and joking about this whole situation, comparing it to a wrestling match!

Randy Badgero, Indianapolis

I had a buyer-protection plan with my credit card, and the charges were reversed, but the victim in the article is correct when he says that the embarrassment of falling victim to a scam prevents people from pursuing the issue.

# posted by Medical Information : 2:39 AM