Las Vegas Filmmaking Telemarketer in FTC Investment Fraud Case Permanently Banned From Engaging in Telemarketing Activities

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Rosario "Ray" Filosi, one of the defendants named by the Federal Trade Commission in its "Project Field of Schemes" investment fraud cases, is permanently banned from engaging in, or assisting others, in telemarketing activities. The ban is part of an agreement with the FTC settling charges that Filosi and others made numerous misrepresentations when soliciting consumers to invest in films produced by filmmaker, Lyman Dayton. (Lyman Dayton was not named as a defendant in the Commission's complaint.) The defendants allegedly claimed that Mr. Dayton’s prior films had generated 5 to 1 returns for investors; and that Mr. Dayton and his films had won certain awards, including a Cannes Film Festival award. The Commission also alleged that the defendants sold substantially more units in their film investment partnerships than they claimed they would sell. In addition to the permanent ban, the settlement prohibits Filosi from misrepresenting the risk and profitability of investments in films or other investments or products.

On June 20, 1997, the FTC filed charges against the defendants as part of "Project Field of Schemes" -- a sweep targeted at investment-related fraud. "Project Field of Schemes" comprised approximately 61 law-enforcement actions with a major consumer education component. In its complaint detailing the charges, the FTC named Dayton Family Productions, Inc.; J.J. Dayton Associates, Inc.; High Voltage Pictures, Inc., also known as High Voltage Entertainment; John Rubbico, individually and doing business as J J Family Film Productions, John Iavarone, Glen Burke, Ignacio Jimenez, Kevin Roy, and Fred Davidson. The Commission later amended its complaint to name American Family Productions, Inc.; American Family Consultants, Inc.; Reunion Management, Inc.; Icon Management Services, Inc.; Aztec Escrow, Inc.; Raymond Filosi; and Richard S. Hart as additional defendants.

The FTC alleged that the defendants misrepresented to consumers, among other things, that they would realize a 500 percent return if they invested in family films being produced by an award-winning producer and director, Lyman Dayton. According to the FTC, while Lyman Dayton is an actual movie producer, neither he nor his films have won many of the awards claimed by the defendants; his films have generated substantially fewer profits for investors; and the defendants allegedly oversold their partnerships, thereby reducing each investor's stake in the partnerships and raising the break-even point for the partnerships.

The FTC’s settlement with Mr. Filosi was entered by the United States District Court in Las Vegas and became binding on February 13, 1998.

The Commission vote to authorize staff to file the proposed settlement was 4-0, with Commissioner Mary L. Azcuenaga not participating.

NOTE: This stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Final orders have the force of law when signed by the judge.

Copies of the settlement, as well as other news releases associated with Project Field of Schemes, are available on the Internet at the FTC’s World Wide Web Site at: or from the FTC’s Consumer Response Center, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-3128; TTY for the hearing impaired 1-866-653-4261. To find out the latest FTC news as it is announced, call the FTC’s NewsPhone recording at 202-326-2710.

(FTC Matter No. X970058)
(Civil Action No. CV-S-97-00750-PMP (LRL)

Contact Information

Media Contact:
Brenda A. Mack,
Office of Public Affairs
Staff Contact:
Gregg Shapiro,
Bureau of Consumer Protection

Jerry Steiner,
San Francisco Regional Office
901 Market Street, Suite 570
San Francisco, California 94103