David Goldstein Reports

LOS ANGELES (CBS) ― More people are coming forward with allegations of improprieties at a home shopping network.

"Do they fake auction bids?"

"Yes."

"Do they lie about one of a kind items?"

"All the time."

"Did they fake phone calls?"

"All the time."

"I knew it was wrong but what can you do?"

These people are talking about the Direct Shopping Network or DSN.

"Hello out there in TV land."

It's a TV network that sells jewelry and precious stones. Carried to millions of homes by satellite.

But listen to what this former host says they were told to do.

"I was instructed to lie."

"I was instructed to fake phone calls."

"It's an embarrassment to the entire home shopping industry."

After we exposed the story -- about some DSN hosts rigging auctions with fake bids, lying about selling one of a kind items, and faking phone calls to generate excitement --

"Shout it out. Yellow one going out the door. White one going out the door, thank you."

-- DSN tried to discredit our investigation. Saying it was based on a disgruntled employee who was fired.

But now this DSN employee has come forward to back up the allegations.

"Do they fake auction bids?"

"Yes."

"Do they lie about one of a kind items?"

"Definitely."

"Do they fake phone calls to generate excitement?"

"They certainly do."

This person still works at DSN answering phone calls from consumers. And would only talk if we concealed their identity.

"Do you think it's right what goes on?"

"No, I basically think it's a bunch of cr**."

"It was wrong. It was unethical."

Alex Burrola backs up the allegations. He says he worked as a phone rep at DSN from February 2005 to October 2006. And said hosts and phone reps made up fictitious bids.

"We created Jake in Salt Lake City or Hannah in Miami to put a few hundred in order to get the genuine customer to pay more."

Leslie Becktell also came forward. She says she worked at DSN until April and saw some hosts tout one of a kinds when they weren't.

"They'd say it's one of a kind item and someone will bid $600 and those host would be like, shhhhh we have more than one."

And this former DSN phone rep who didn't want to be identified said customers many times were paying more than they had to at auctions.

"The customer would be bidding against the host basically if no one was bidding."

We took our investigation to Hershel Elkins. He heads up the consumer unit of the California attorney generals office.

"If they say something's one of a kind and it's not -- it's illegal. If they say they sell to the highest bidder and they're putting in fake bids that's illegal."

DSN is run by the man on the left, Art Garbedian -- who also has his own show. We tried to get answers from him prior to our first story.

"Do your hosts fake phone calls? Do they rig auctions?"

"Would you like to come in and talk about it?"

"I would love to talk. Come on. The rules are you don't bring cameras in."

His attorney did the talking, claiming our sources were biased. But this man who still works there says everyone knows what's going on.

"The company claims our sources were disgruntled employees? Haha. I hear it from people that are happy with their jobs."

DSN's attorney told me today the company continues to deny any wrongdoings. Blaming the allegations on people who were terminated. But the attorney general's office says there's enough there for them to look into DSN's practices.

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