A federal jury in Baltimore convicted a Ruxton businessman yesterday on fraud and money-laundering charges in a telemarketing scheme that authorities said bilked about 27,000 people of more than $3.3 million.

Joel Katz, 62, was found guilty on 46 fraud and money laundering counts after a three-week trial in U.S. District Court in Baltimore. Judith Lugo, 33, of Baltimore, a former supervisor at Katz's Timonium-based business, was convicted on 27 counts of mail and wire fraud.

Federal prosecutors described Katz as the central figure in a scheme that targeted individuals with poor credit histories by dangling the promise of pre-approved credit cards.

For fees ranging from $49.95 to $149.95, customers were told they could join financial clubs with names such as "The Tele-Money Club" and "Cash Card Express." In over-the-phone pitches written by Katz, customers were told they would receive a credit card with a limit of up to $1,000 as well as valuable coupons and consumer discounts, prosecutors said in court records.

What customers received instead were small packages, valued at less than $5, containing credit card applications, store coupons and telephone calling cards, investigators said.

In addition to Katz and Lugo, four men and a California-based financial services company also were indicted in the telemarketing fraud case. Two of the men have pleaded guilty, court records show. The others are awaiting trial.

Katz, who lived in a $1 million house and once bought his girlfriend a $340,000 Bentley Azure convertible, also was convicted last fall in a separate bankruptcy fraud case, court records show.

Federal prosecutors said then that Katz had avoided paying $15 million to creditors, $100,000 in federal taxes and $50,000 in state taxes by claiming $5,280 in assets in a bankruptcy petition.