COUNTYWIDE : 2 Accused in Scam as Credit Card Club

Following a monthlong investigation, police have arrested two men suspected of operating an Orange County credit card pyramid scheme.

Robert Joseph Shea, 40, of Garden Grove and Michael William Berger, 37, of Placentia were arrested by detectives on Tuesday following a meeting with prospective customers at a meeting hall of the Westminster Manor, said Westminster Police Detective Robert Gill.

The two men, connected to Inglewood-based Credit Card Bank Club Inc., were charged on Thursday, with bail set at $10,000.

Gill said investigators suspect that similar scams all over Southern California may be linked to the Inglewood operation.

Sgt. Harold Moret, spokesman for the Inglewood Police Department, would not comment on the credit card club, only saying that Inglewood is conducting its own investigation.

Gill said it was still too early to determine how much money was exchanged, but according to the arrested men’s records, 300 people had been involved with the scheme.

During his investigation, Gill attended two of the credit card seminars. Those who attended the meetings were asked to pay $88 to join the club. They were promised MasterCards, regardless of their credit histories, but the cards were never produced, Gill said.

Members also were told to bring in more people, which would increase their credit limit. This way, Gill said, members could start out with a $500 limit and increase the credit limit every time they got someone else to join.

“In the end, the only people who were making money were the owners of the credit card club,” said Gill.

Gill said potential customers were notified of meetings by phone numbers given in advertisements that ran in the Los Angeles Times, the Orange County Register, USA Today and Penny Saver.

When Gill arrested Shea and Berger, 38 people were attending the meeting. Many said they didn’t know the practice was illegal.

“It was really strange,” Gill said. “The people who were attending these meetings came by Cadillac and bus. But they all had the idea they would be making fast and easy money.”

Gill said the investigation is continuing and urged anyone who thinks that he or she may have been the victim of this operation to call the Westminster Police Department at (714) 893-3315.