Maple Shade, N.J., man sentenced to 23 years in GoInternet telemarketing scam

He once enjoyed a high-flying lifestyle that included a bodyguard, a limo driver and other perks, but his past caught up with him yesterday.

Neal D. Saferstein, 37, of Maple Shade, N.J., was sentenced to 23 years in federal prison for running a telemarketing scam that authorities said bilked 350,000 small businesses of $75 million.

U.S District Judge Cynthia Rufe ordered the ex-chief executive of the defunct Old City firm GoInternet.net taken into custody immediately to begin serving his sentence.

Rufe received a letter from Saferstein's psychologist that raised concerns that he might be a "risk" to himself.

Authorities said Saferstein had been the mastermind behind a fraudulent scheme that got small businesses to agree - often through deceptive practices - to receive a "welcome packet" in the mail for e-mail and Web services.

The packet was designed to look like junk mail and unless a business noticed the packet and canceled the contract within 15 days, a $29.95-a-month charge was added to its phone bill.

In 2005, the Federal Trade Commission won a $58 million civil judgment against Saferstein and GoInternet. No money has been recovered but Rufe said Saferstein must comply with the order.

Before the firm went under in October 2004, court papers said, it was adding 7,500 customers per week, with annual gross revenues topping out at $49 million.

Rufe said the fraud, which occurred from 2001 to 2004, was "widespread, long and defiantly deceptive," adding that it was "more dishonest than the robbery of a bank."

Much of yesterday's hearing was dominated by whether Saferstein had accepted responsibility for his criminality.

Saferstein apologized before sentencing and told Rufe that his conduct was "atrocious" and "unconsionable." He said he had not started GoInternet with the intention of defrauding his customers.

But the judge said Saferstein "backtracked" yesterday from what he had told her at his plea hearing in 2009.

Reading from a transcript, she noted Saferstein said then: "I acted willfully with intent to defraud the customers of GoInternet and I did it to get rich . . . "

Defense attorney Carl Poplar explained that his client "doesn't understand how to accept responsibility. He does feel remorse but he doesn't know how to communicate it."

Assistant U.S. Attorney Jennifer Williams said Saferstein ran a "corrupt business" and was motivated by "insatiable greed."

"This is finally, finally, Neal Saferstein's moment to accept the results of his criminal behavior," the prosecutor said.

Saferstein pleaded guilty last October to mail and wire fraud and to filing false tax returns.

Prosecutors said he had not reported $725,000 in commissions and personal expenses paid to him by GoInternet on his 2002 and 2003 tax returns.

Two other GoInternet officials were also charged in the case.

Billy Light pleaded guilty in 2007 to conspiracy to commit perjury and Tyrone Barr pleaded guilty in 2009 to wire fraud.

Light was sentenced to three years' probation and 100 hours of community service, and Barr got a year and a day in federal prison.