An owner of a defunct Old City internet company pleaded guilty today to fraud and tax charges connected to what federal prosecutors say was a scam that collected up to $75 million in bogus charges from 350,000 small businesses.
Neal D. Saferstein, of Maple Shade, entered the plea after a jury had been selected for a trial.
Sentencing is tentatively scheduled for February. Federal prosecutors said he could face 30 years, but Saferstein's defense attorney contends that the amount of the fraud was far less than $75 million.
Saferstein admitted to charging small businesses for Internet services their owners did not want or know about.
Prosecutors said Saferstein started GoInternet.net Inc. in 1997 and closed it in October 2004. He was charged in 2007.
Two other men were also charged in the case, Tyrone L. Barr of Philadelphia, and Billy D. Light of Voorhees. Saferstein was part owner of the firm.
The Federal Trade Commission previously won a $58 million civil judgment against Saferstein.
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