Fake scooter TV infomercial took investors for a $1.9 million ride
The TV infomercial for the "Boomer Rider" looked pretty slick, and Keith Allen Mills told his investors he had $10 million in revenues, a big inventory of the electric mobility scooters and a way to make Medicare pay most of the cost for customers.
The sales pitch — accompanied by the video — persuaded 91 people from all around the country to invest more than $2 million with the Palm Beach County man's business, federal prosecutors said.
But it was all a ruse and Mills, 53, was just taking investors for a ride, court records show. He pleaded guilty to one count of wire fraud in October in federal court in West Palm Beach and admitted defrauding about $1.9 million from his investors.
The infomercial never aired on TV, Mills didn't have $10 million, he didn't have Medicare approval and he didn't have hundreds of the scooters — he had four, his lawyer Valentin Rodriguez told U.S. District Judge Donald Middlebrooks at sentencing on Friday.
Mills did have a drug and alcohol abuse problem and he and his associates, one of whom since died, blew a lot of the money on a "lavish lifestyle", according to court documents.