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Bucks County man admits part in $1.3M ad scam

A Bucks County man admitted yesterday in federal court that he had scammed nearly 1,000 small businesses, netting more than $1.3 million for selling advertisements in magazines that didn't exist.

NOTE: THIS STORY HAS BEEN CORRECTED

A Bucks County man admitted yesterday in federal court that he had scammed nearly 1,000 small businesses, netting more than $1.3 million for selling advertisements in magazines that didn't exist.

Richard Lazar, 46, of Churchville, pleaded guilty to conspiracy and mail fraud. U.S. District Judge Stewart Dalzell set sentencing for Nov. 18. Lazar could face up to 78 months in a federal lockup under advisory sentencing guidelines.

Authorities said Lazar and codefendant David Feldman, 55, of Las Vegas, operated their scheme from 2006 to 2009.

Lazar or Feldman would purchase a list of small businesses in a particular area and call each of them to solicit advertising space in a nonexistent public-safety magazine, the government's plea memo said.

The men priced the fake ads between $350 and $500 each, the plea memo said.

To induce a sale, they convinced victims they had previously committed to buying an ad and thus were obligated to pay for it because it had already been printed and placed in magazines, court papers said.

Assistant U.S. Attorney Michelle Rotella said 982 businesses were scammed in all 50 states.

In addition, Lazar or Feldman allegedly made other false statements to victims, namely that the magazine would be distributed locally near a victim's business and that the businesses would receive a copy of the magazine in which their ads had been published.

Authorities said Lazar, a high-school dropout, was responsible for the business end of the operation.

The plea memo said he prepared invoices and mailed them to victims, who were required to send payment upon delivery.

Lazar initially directed victims to send their checks to his residence, but in March 2009 began using a Federal Express/ Kinko's in Philadelphia to send and receive packages, the feds said.

In May 2009 agents observed Lazar receiving packages from the store.

Authorities said Lazar then cashed checks at local check-cashing and loan stores, which was captured on video cameras.

The plea memo said that Lazar and Feldman kept records and that Lazar paid Feldman varying amounts based upon who made the sale.

Lazar sent Feldman, who has not yet been arraigned, his share in cash or money orders via Federal Express.

CORRECTION: We incorrectly reported the first name of a defendant who pleaded guilty in federal court on Monday. Richard Lazar, 46, of Churchville, Bucks County, admitted to scamming nearly a thousand businesses into buying ads in magazines that didn't exist.