DODGING ARTFUL DECEIVER; HIGH PRESSURE, HIGH PROFITS MAIN WARNING SIGNS OF SCAMS.

Byline: Deborah Adamson Daily News Staff Writer

The perfect telemarketing fraud victim is one who is gullible, greedy and most of all, controllable.

So says Steve Michaels, who should know since he spent 25 years of his life perfecting the craft of telemarketing scams.

``The issue of control is important,'' he said. ``You're looking for a personality, not an age. . . . I've sold to judges, lawyers, legislators.''

For instance, if Michaels hears television playing in the background during a call to a potential victim, he'll instruct the person to ``go turn it down because I have trouble hearing you.''

If he or she complies to a command by a complete stranger, Michaels knows he has someone pliable in his hands.

Michaels then chats with them to find their Achilles' heel: loneliness, ego, greed or a desire to help people in need.

``If they say the kids don't call enough, empathize and fill that void. Pretend to be who you have to be to gain their confidence,'' he said. ``Become more than a stranger by sharing experiences with them. If you're a Democrat, I'm a Democrat. If you're a Dodger fan, I'm a Dodger fan.''

With one psychiatrist in Washington, Michaels discussed politics, religion and philosophy. He even sent birthday cards to some victims.

Certain people are more vulnerable to manipulation - those who are used to surrendering, who believe in conspiracy theories, who are religious, who tend to be trusting.

During the first call, con artists don't ask for money. They tell them a little about an investment and send a brochure. Michaels has sold commodities options, oil and gas partnerships, rare gold coin investments, among others.

On the second call, Michaels asks potential victims whether they have any questions about the brochure he sent.

Most people don't read it - thereby missing the crucial part of the document that tells them things such as 85 percent of the funds will go toward company services and only 15 percent to the actual investment - making them more vulnerable to believe any information he tells them.

Michaels then orders, not asks, them to get a pen and paper, and write down the investment information he is about to give them.

He will make the investment sound as if it's the victim's answer to any financial fears, be it inflation or poor investment returns.

At this point, Michaels will ask for the money. He's got a number of standard answers for any objections:

Objection No. 1: ``I need to put a new roof on my house.''

Reply: ``This is not about today and your roof. This is about your future. If we had known each other two to three years ago, you would have money to pay for that roof. So how do you want to pay for this?''

Objection No. 2: ``I'm not sure. I'm scared.''

Reply: ``You should be. This is something new you're being asked to do. But I'm more fearful of what will happen to you if you don't do this. The markets are changing and you have to change with it. Bank CDs are paying nothing.''

Objection No. 3: ``I don't really know you.''

Reply: ``Would it make you feel better if the federal government handled this? Wire the money from your bank to my bank through the Federal Reserve wiring system. Would they let us use it if we weren't legitimate?''

Once the victim agrees to pay, the con artist tries to collect the money immediately, either by credit card or a pickup by a courier service.

Michaels further assures the victim by explaining that the bonded courier will give him a receipt and a tracking number. But once the con artist gets the money, the victim almost always will never see it again.

Some people are bilked more than once. Michaels scammed the Washington psychiatrist several times. After the first con, he called back to tell her the investment didn't pan out and she lost it all. But she forgave him, thinking that she gambled and lost. He called her again to tell her about another investment and she fell for it once more.

``She believed that I had her interest at heart,'' Michaels said.

About one out of 10 telemarketing calls are scams, said Ron Gould, a Los Angeles Police Department officer who heads the west San Fernando Valley area Gray Squad, a group that educates seniors about fraud.

Since it's almost impossible to get one's money back, authorities say it's better not to fall for these scams in the first place.

Here are tips on protecting yourself:

Be suspicious of unsolicited phone calls, especially ones that offer a high return on an investment with hardly any risk.

Communicate with others. Don't be isolated and rely only on the con artist for information about the investment.

Hang up when a telemarketer offers a prize that can only be claimed by an upfront payment from the victim.

Avoid being pressured into buying right away. Be skeptical of telemarketers who say, buy it or lose it.

Avoid sharing with a stranger any personal information such as credit card, bank account and Social Security numbers.

To check on a company or report complaints, call the California Department of Corporations at [phone]. Senior citizens may call the LAPD West Valley Gray Squad for complaints and information at [phone].