More Iowa City businesses reporting scam

Iowa City police investigators say since making a business scam public, more and more Eastern Iowa businesses are calling to complain that they, too, were duped.

“It was just an explosion of phone calls,” said Detective D.J. Steva of the Iowa City Police Department after the agency issued a press release last week warning area businesses of the scam.

The scam involves an Illinois man who posed as a representative of two Iowa City high schools, trying to sell advertising for their football teams.

”He was offering advertising to sponsor City High football,” said John Logan, owner of Russ' Northside Service, one of the victim's of the scam.  “What he was offering was t-shirts, announcements during the game, etc.”

Logan said a man who identified himself as Tony Phiathep approached him in June with the deal.

”He was really very convincing,” Logan said.  “He talked a good game.”

Logan had long been interested in purchasing high school football advertising, so he signed up.

“He wrote me a really nice looking invoice and I wrote him a really nice looking check,” he said.  “That's the last I heard from him.”

Start-up business owner Dr. Michael Ross also was blinded side by Phiathep.   His story about being swindled is similar, and when Dr. Ross realized he'd been scammed, he called police.

”At first I was ticked off at myself for being so gullible,” said Dr. Ross, owner of Veterans and Family Wellness Chiropractic off Highway 1 in Iowa City.  “Most people would say ‘It was only 300 bucks, it's not that big of a deal.”  But for a start-up company, every dollar counts.”

Detective Steva says Phiathep's finagling has hurt numerous businesses.

”We're finding more victims every day,” he said.

So far, 13 businesses have called Detective Steva.  Most of those are in Johnson County, though victims extend all the way up to Cedar Rapids.

While Detective Steva is still gathering evidence of the extent of damage Phiathep has caused, he said athletic directors at Iowa City City High and West High are concerned this incident could mar future high school fundraisers.

”When legitimate kids or teams go to ask for fundraising from businesses, they may be turned down,” Steva said.  “They're not going to want to be scammed again.”

Detective Steva said an arrest warrant for Phiathep, who police believe lives in Illinois, is imminent.  Phiathep will likely face multiple theft charges.

Police are offering some tips to avoid such scams: be wary of people who only list a cell phone and an email address not tied to a business; and check out the organization online and ask to see the merchandise before you ever give money.

If you have fallen victim to this scam, call Iowa City Police Department.