<h2>Former Massachusetts Man Pleads Guilty to Multi-Million Dollar Ponzi Scheme</h2>
<p>BOSTON – A former Massachusetts-resident pleaded guilty on Friday, Sept. 16, 2016, in U.S. District Court in Boston in connection with running a $10 million Ponzi scheme.</p>
<p>Mark Anderson Jones, 64, pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions in proceeds of unlawful activity. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Dec. 21, 2016.</p>
<p>Between 2008 and 2015, Jones obtained approximately $10 million in investments from over 20 individuals by leading them to believe that they would be providing financing to Jamaican businesses. Jamaican banks can take time to close loans to businesses and Jones claimed that he was offering these businesses “bridge loans” as an interim measure (i.e., to “bridge” the gap between the date a <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/loans/" title="loan" data-wpil-keyword-link="linked" data-wpil-monitor-id="222">loan</a> was sought from Jamaican banks and the distribution of funds by those banks). However, Jones made misrepresentations to investors about the purported bridge loan investments and how their money would be used. Specifically, rather than investing in bridge loans and paying returns based on investments, Jones paid a significant amount of investment returns, or repaid investment principal, to investors from new capital provided by other investors.</p>
<p>For example, in January 2015, a Massachusetts-based investor invested approximately $200,000 with Jones. Later that month, Jones used approximately $180,000 of that investor’s money to pay four other investors.</p>
<p>U.S. Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Valuable assistance was also provided by the U.S. Postal Inspection Service and the Internal Revenue Service’s Criminal Investigations in Boston. The case is being prosecuted by Assistant United States Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit, and Special Assistant U.S. Attorney Eric A. Forni from the SEC.</p>
<p><a href="https://www.justice.gov/usao-ma/pr/former-massachusetts-man-pleads-guilty-multi-million-dollar-ponzi-scheme">Original PressReleases&#8230;</a></p>

Category Archives: Fraud News From World
A “Fraud News From World” directory is a collection of news articles about fraud and scams from around the world. These directories can be a valuable resource for staying informed about the latest scams and how to protect yourself from them. The directory typically includes information about the scam, such as the type of scam, the target audience, the location of the scam, and the date of the scam. It may also include information about how to protect yourself from the scam, such as how to identify a phishing email or how to report a scam to the authorities.
Financial Fraud: Karamchand “Raj” Doobay Charging With Conspiracy to Commit Mail and Wire Fraud
<h2>Canadian Man Ordered Detained Pending Federal Trial Relating To An RV Park And Immigrant Investor Fraud Scheme</h2>
<p>Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Karamchand “Raj” Doobay (42, Ontario, Canada and Orlando, Florida) with conspiracy to commit mail and wire fraud and substantive counts of mail and wire fraud. If convicted on all counts, he faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Doobay that the United States intends to forfeit $8,248,547, representing the amount of proceeds obtained as a result of the offenses, and several parcels of real property in Hamilton County, Florida, and a residence in Winter Garden, Florida, which are also alleged to be traceable to proceeds of the offenses. Doobay was arrested on September 1, 2016, and was ordered detained pending trial.</p>
<p>According to the indictment, Doobay operated business entities in Hamilton County, through which he acquired a parcel of land located at 7516 SE 113<sup>th </sup>Blvd., in Jasper. From about March 2009, through December 2015, Doobay solicited investors to purchase subdivided lots on the land, guaranteeing them returns between 9 percent and 41 percent for investments in RV lots and other lots for sale by his entity, Florida Gateway Resort. He utilized various bank accounts to collect funds for the purchase of RV lots that he purported to sell to investor purchasers. However, Doobay failed to disclose that he had previously contracted to sell and purportedly sold the same RV lots to other investors.</p>
<p>The indictment also alleges that, from about May 2011, through about May 2016, Doobay conspired to commit wire fraud by promising to immigrant investors to use their investments for the development, renovation and/or new construction of Senior Premier Living, a retirement community in the city of Jasper. In fact, Doobay used a portion of the investors’ funds to pay Florida Gateway Resort investors and for his own personal use and enjoyment. This included a withdrawal of $190,000 in immigrant investor funds on or about October 27, 2014.</p>
<p>An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.</p>
<p>This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Hamilton County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kelly S. Karase.</p>
<p><a href="https://www.justice.gov/usao-mdfl/pr/canadian-man-ordered-detained-pending-federal-trial-relating-rv-park-and-immigrant">Original PressReleases&#8230;</a></p>

Financial Fraud: Domonic McCarns with Other 14 Defendants Sentenced to Commit Mail Fraud and Mortgage Fraud
<h2>Final Defendant Sentenced to 14 Years in Prison for Nationwide Foreclosure Rescue Scam</h2>
<p class="node-subtitle center"><strong>Over $90 Million in Fraudulent Loans and Hundreds of Homes Stolen from Homeowners</strong></p>
<p>SACRAMENTO, Calif. — On Wednesday, September 14, 2016, Domonic McCarns, 41, of Irvine, was sentenced to 14 years in prison by U.S. District Judge Kimberly J. Mueller for conspiracy to commit mail fraud for his participation in a nationwide foreclosure-rescue scam, Acting U.S. Attorney Phillip A. Talbert announced.</p>
<p>McCarns is the final defendant to be sentenced for a pair of schemes that lured homeowners with the promise to help them avoid foreclosure and repair their credit. Two indictments were brought in 2008. Four defendants were convicted after two jury trials, 13 defendants pleaded guilty, and now, all 17 defendants have been sentenced. On September 9, 2013, Charles Head was sentenced to 35 years in prison, and on October 29, 2014, his brother and fellow leader in the scheme Jeremy Michael Head was sentenced to 10 years in prison.</p>
<p>Acting U.S. Attorney Talbert said: ‘This scheme purposely targeted the financially vulnerable during their time of greatest distress with promises of help. The defendants tricked the victims into handing over their most valuable assets, their homes. Few economic crimes are more reprehensible. This final sentence, in this case, will bring some measure of justice for their victims.”</p>
<p>“In large fraud schemes like the one devised by Charles Head, we can’t forget about the individual homeowners who comprised the millions of dollars in losses,” said Monica M. Miller, Special Agent in Charge of the Sacramento division of the FBI. “Today’s sentencing ends an investigation that has been ongoing for more than 10 years and brings some closure to the innocent people who were victimized by Head’s callous scheme.”</p>
<p>“Dominic McCarns and his co-conspirators assured innocent homeowners across the country facing foreclosure that they could turn around their misfortunes and keep their homes,” said Michael T. Batdorf, Special Agent in Charge, IRS-Criminal Investigation. “However the defendants had other plans which resulted in one of the most harmful <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/mortgage/" title="mortgage" data-wpil-keyword-link="linked" data-wpil-monitor-id="68">mortgage</a> fraud schemes in the country. The sentence handed down today by the court is befitting of this defendant and his actions.”</p>
<p>According to court documents, the defendants solicited homeowners facing foreclosure, and through misrepresentations, fraud, and forgery, substituted straw buyers for the victim homeowners on the titles of properties without the homeowners’ knowledge. These straw buyers were often friends and family members of the defendants or were solicited on the internet. Once the straw buyers were on the title to the homes, the defendants applied for mortgages to extract the maximum available equity from the homes. The defendants then shared the proceeds of the ill-gotten equity and the “rent” that the victim homeowners paid them. Ultimately, the victim homeowners were left with no home, no equity, and with damaged credit ratings.</p>
<p>Initially, the scam focused on distressed homeowners in California before expanding throughout the United States. In the course of the schemes, between January 2004 and June 2006, the defendants obtained over $90 million in fraudulent loans, caused estimated losses of over $50 million, and stole title to over 300 homes.</p>
<p>On December 2, 2013, McCarns was convicted after a five-week trial along with Charles Head, 36, of Pittsburgh, Pennsylvania, (formerly of Los Angeles); and Benjamin Budoff, 46, of Colorado Springs, Colorado. Head had been previously convicted in a trial in a nearly four-week trial in May 2013 with his brother Jeremy Michael Head, 34, of Huntington Beach.</p>
<p>This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew Morris prosecuted the case.</p>
<p>Fourteen other defendants have been sentenced:</p>
<p>Elham Assadi, 39, of Irvine, sentenced to 5 years’ probation with 6 months of home detention;</p>
<p>Leonard Bernot, 50, of Laguna Hills, sentenced to 18 months in prison;</p>
<p>Akemi Bottari, 36, of Los Angeles, sentenced to 3 years’ probation with 6 months of home detention;</p>
<p>Keith Brotemarkle, 51, of Johnstown, Penn., sentenced to 5 years, 10 months in prison;</p>
<p>Benjamin Budoff, 49, Colorado Springs, Colo. sentenced to 4 years in prison;</p>
<p>Joshua Coffman, 37, of North Hollywood, sentenced to 20 months in prison;</p>
<p>John Corcoran, 61, of Anaheim, sentenced to 4.5 years in prison;</p>
<p>Sarah Mattson, 33, of Phoenix, Ariz., sentenced to 3 years’ probation with 3 months of home detention;</p>
<p>Omar Sandoval, 36, of Rancho Cucamonga, sentenced to 4 years and 10 months in prison;</p>
<p>Xochitl Sandoval, 37, of Rancho Cucamonga, sentenced to 8 months in prison;</p>
<p>Lisa Vang, 31, of Westminster, sentenced to 3 years’ probation;</p>
<p>Andrew Vu, 38, of Santa Ana, sentenced to 6 months in prison with 6 months of home detention;</p>
<p>Justin Wiley, 37, of Irvine, sentenced to 18 months in prison, and</p>
<p>Kou Yang, 40, of Corona, sentenced to 4 years in prison.</p>
<p>This case was part of the President’s <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="Financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="606">Financial</a> Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. For more information on the task force, please visit <a href="https://www.stopfraud.gov/"><strong><em>www.StopFraud.gov</em></strong></a>.</p>
<p><a href="https://www.justice.gov/usao-edca/pr/final-defendant-sentenced-14-years-prison-nationwide-foreclosure-rescue-scam">Original PressReleases&#8230;</a></p>

Financial Fraud: Sherman Carl Vaughn Pleaded Guilty In An Investment Fraud Scheme
<h2>Former Owner of Investment Firms Pleads Guilty to $9 Million Fraud</h2>
<p>RICHMOND, Va. – Sherman Carl Vaughn, 45, of Blackstone, pleaded guilty today to charges related to his role in an <strong>investment fraud scheme</strong> that caused more than $9 million in losses to over 50 investors.</p>
<p>According to the statement of facts filed with the plea agreement, in 2009, Vaughn and co-conspirator Merrill Robertson, Jr., 36, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth management, LLC. From 2009-2016, Vaughn and Robertson solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/military-scammer/" title="Military" data-wpil-keyword-link="linked" data-wpil-monitor-id="377">Military</a> Academy, the University of Virginia, and the National Football League, while Vaughn focused on developing investment opportunities.</p>
<p>According to the statement of facts, Vaughn and Robertson led individuals to believe they have experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.</p>
<p>As a result of this conspiracy, Vaughn and Robertson <em>fraudulently obtained more than $9 million</em> from over 50 investors, spending much of the money on their own personal living expenses, including <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/mortgage/" title="mortgage" data-wpil-keyword-link="linked" data-wpil-monitor-id="67">mortgage</a> and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.</p>
<p>Vaughn faces a maximum penalty of 20 years in prison when sentenced on December 14. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.</p>
<p>Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the guilty plea was accepted by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Katherine Lee Martin is prosecuting the case.</p>
<p>This investigation was initiated based on information received from the U.S. Securities and Exchange Commission (SEC).</p>
<p>A copy of this press release may be found on the website of the <a href="https://www.justice.gov/usao/vae"><u>U.S. Attorney’s Office</u></a> for the Eastern District of Virginia. Related court documents and information may be found on the website of the <a href="http://www.vaed.uscourts.gov/"><u>District Court</u></a> for the Eastern District of Virginia or on <a href="https://pcl.uscourts.gov/"><u>PACER</u></a> by searching for <strong>Case No. 3:16-cr-111.</strong></p>
<p><a href="https://www.justice.gov/usao-edva/pr/former-owner-investment-firms-pleads-guilty-9-million-fraud">Original PressReleases&#8230;</a></p>

Financial Fraud: Josiah Larkin Convicted Of Tax Fraud
<h2>San Francisco-Based Tax Preparer Convicted Of Tax Fraud</h2>
<p class="node-subtitle center"><strong>Defendant Owned Storefront in the Bayview/Hunter’s Point Neighborhood and Advertised Refunds for the Unemployed</strong></p>
<p>SAN FRANCISCO – A federal jury convicted Josiah Larkin of conspiracy to file false claims and presenting false claims to the IRS, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The guilty verdicts, reached yesterday, followed a six-day jury trial before the Honorable Susan Illston, U.S. District Court Judge.</p>
<p>Evidence at trial showed that Larkin, 40, of San Francisco, set up a storefront on Third Street in the Bayview/Hunter’s Point neighborhood of San Francisco in December of 2012. Although not authorized to do so, he identified the shop as a Colbert Ball Tax franchise. Larkin advertised “Get Up to $600- Even if Unemployed, On SSA or SSI.” Larkin prepared <strong>false tax returns</strong> for clients, reporting that they had no income and that they paid $4,000 in qualified education expenses to attend college. This combination of zero income and $4,000 in qualified education expenses resulted in a <em>$1,000 tax refund based</em> on the American Opportunity Tax Credit (“AOTC”). Larkin took approximately half of the <strong>fraudulently-obtained tax refunds</strong> and gave the remaining half to his clients. Larkin was indicted on January 6, 2015, and charged with one count of conspiracy to file <em>false federal income tax returns</em> as well as multiple counts of filing false claims and aiding and abetting filing false claims, all in violation of 18 U.S.C. §§ 286 and 287. The jury found Larkin guilty of the conspiracy charge and five counts of filing false claims.</p>
<p>“<strong>The fraudulent preparation of tax returns</strong> is an insidious drain on the public fisc,” said U.S. Attorney Brian J. Stretch. “This office will continue to devote resources to prosecute those who seek to profit by submitting fraudulently prepared tax returns to the IRS.”</p>
<p>“Josiah Larkin’s verdict today marks another example of a tax return preparer who preyed on the vulnerable,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “He used personal identifying information to make a quick buck. Educating the public about these schemes is a continuing focus for IRS-CI. Tax preparers should take note that if they attempt to defraud the IRS they will be caught and held accountable.”</p>
<p>Defendant&#8217;s sentencing hearing is scheduled for January 13, 2017, before Judge Illston. The maximum statutory penalty for conspiracy to file false claims is ten years’ imprisonment and a fine of $250,000. The maximum statutory penalty for presenting false claims to an agency of the United States is five years’ imprisonment and a fine of $250,000, plus restitution if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.</p>
<p>Assistant U.S. Attorneys Cynthia Stier and Laurie Gray prosecuted the case. The prosecution is the result of an investigation by the Internal Revenue Service.</p>
<p><a href="https://www.justice.gov/usao-ndca/pr/san-francisco-based-tax-preparer-convicted-tax-fraud">Original PressReleases&#8230;</a></p>

Financial Fraud: SALVATORE CRIBARI Indicted And Charged For Wire Fraud With a Scheme to Defraud
<h2>Lake in the Hills Man Charged with $340,000 Scheme to Defraud</h2>
<p>ROCKFORD — A Lake in the Hills, Ill. man appeared today before U.S. Magistrate Judge Iain D. Johnston on wire fraud charges.</p>
<p>SALVATORE CRIBARI, also known as “Sal Fradillio,” 59, was indicted on Sept. 13, 2016, by a federal grand jury in Rockford and charged with nine counts of wire fraud, in connection with a scheme to defraud &#8220;Company A,&#8221; an operator of a nationwide chain of home improvement stores. Cribari was arrested on Sept. 15, 2016, in Algonquin, Ill. Cribari pleaded not guilty during his arraignment today before U.S. Magistrate Judge Iain D. Johnston, and he was ordered detained pending a hearing scheduled for Sept. 19, 2016 at 1:00 p.m.</p>
<p>According to the indictment, Cribari knowingly and intentionally stole merchandise from Company A stores located in the Northern District of Illinois. The indictment alleges that Cribari returned the stolen merchandise to Company A without receipts, and he falsely and fraudulently presented the stolen merchandise as legitimately having been purchased from Company A. Cribari received store credit in the form of Company A gift cards during those non-receipted returns. The indictment alleges that Cribari fraudulently obtained more than $340,000 in Company A gift cards as part of the scheme to defraud, and Cribari subsequently used those gift cards to purchase over $310,000 of merchandise and services from Company A. It is alleged that Cribari provided over 1,300 false Illinois driver’s license and state identification numbers to conduct non-receipted returns of stolen merchandise at Company A.</p>
<p>Wire fraud carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. The Court may also impose a sentence of probation of one to five years, a term of supervised release of up to three years, and restitution. If Cribari is convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.</p>
<p>The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.</p>
<p>The indictment and arrest were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The Lake Zurich and Lake in the Hills Police Departments provided assistance in the investigation.</p>
<p>The government is represented by Assistant U.S. Attorney Talia Bucci.</p>
<p><a href="https://www.justice.gov/usao-ndil/pr/lake-hills-man-charged-340000-scheme-defraud">Original PressReleases&#8230;</a></p>

Financial Fraud: Nayosha Aice Sentenced for Credit Card Fraud And Identity Theft
<h2>New York women sentenced for credit card fraud</h2>
<p class="node-subtitle center"><strong>Over 75 counterfeit credit cards recovered during investigation</strong></p>
<p>CHARLESTON, W.Va. – Two New York City women were sentenced today for credit card fraud, announced United States Attorney Carol Casto. Sasha Nelson, 21, was sentenced to six months in federal prison, followed by three years of federal supervised release. Nayosha Aice, 25, was sentenced to five years of probation, with the first six months to be served on home incarceration, and ordered to pay a $1,000 fine. Both women previously pleaded guilty to possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered to contain stolen account information that is magnetically re-encoded on the credit card.</p>
<p>Nelson and Aice admitted that as part of their credit card fraud scheme, they possessed 78 counterfeit access devices. Nelson and Aice drove from New York City to West Virginia, using these counterfeit credit cards to buy cartons of Newport cigarettes and other merchandise. They were observed at the St. Albans Go-Mart using multiple counterfeit cards on June 25, 2015, buying cartons of cigarettes. After noticing the suspicious behavior, store employees contacted law enforcement. Nelson and Aice further admitted that once they realized officers were observing them, they attempted to get rid of the counterfeit credit cards in nearby stores by hiding the cards or throwing the cards in the garbage. Officers successfully recovered the credit cards and subsequently confirmed that the credit cards were counterfeit access devices.</p>
<p>Nelson also pleaded guilty in January 2016 in Virginia to the felony offenses of use of a stolen credit card and credit card fraud. Nelson received a suspended sentence in April 2016. Nelson’s plea in the Virginia state prosecution was based on criminal conduct from May 10, 2015, six weeks prior to the conduct in West Virginia. Nelson was stopped for speeding and was found to have 30 cartons of cigarettes, 44 counterfeit credit cards that were re-encoded with stolen credit card numbers, a laptop computer, and a credit card reader/re-encoder.</p>
<p>The St. Albans Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorneys Erik S. Goes and Eric Bacaj are in charge of the prosecutions. United States District Judge John T. Copenhaver, Jr., imposed the sentences.</p>
<p><a href="https://www.justice.gov/usao-sdwv/pr/new-york-women-sentenced-credit-card-fraud">Original PressReleases&#8230;</a></p>

Financial Fraud: James Seltzer Pleaded Guilty to Securities Fraud
<h2>Former Securities Lawyer Pleads Guilty To Securities Fraud</h2>
<p class="node-subtitle center"><strong>Disbarred Marin attorney admits he defrauded investors of more than $2.5 million</strong></p>
<p>SAN JOSE – James Seltzer, a former attorney and resident of Marin County, pleaded guilty to securities fraud, announced United States Attorney Brian Stretch, FBI Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The guilty plea was accepted yesterday by U.S. District Judge Lucy H. Koh.</p>
<p>According to the plea agreement, beginning no later than October of 2007 through at least May of 2011, Seltzer, 67, formerly of Belvedere, defrauded and deceived multiple individuals in connection with the purchase and sale of securities. Seltzer admitted he misrepresented to the investors that he would use their money to make certain investments for their exclusive benefit but instead diverted the funds to other uses. Seltzer acknowledged that in many cases, he diverted all or virtually all of the monies he had obtained from his investors and spent the monies on his own personal and business expenses after depositing the funds into his own personal bank accounts. Seltzer further admitted that he had more than ten victims resulting in losses of more than $2,500,000.</p>
<p>Seltzer was indicted by a federal grand jury on June 18, 2015. He was charged with five counts of securities fraud, in violation of 15 U.S.C. § 78; one count of mail fraud, in violation of 18 U.S.C. § 1341; and three counts of money laundering, in violation of 18 U.S.C. § 1957. Pursuant to the plea agreement, Seltzer admitted his guilt to one count of securities fraud and the remaining counts were dismissed. After being apprehended in Hawaii in September 2015, Seltzer was ordered to appear in San Jose to face the charges presented in the indictment.</p>
<p>The maximum term of imprisonment for securities fraud is 20 years. Additional periods of supervised release, fines, and special assessments also could be imposed. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Seltzer remains free on a bond and is scheduled to appear before Judge Koh on February 15, 2017, for sentencing.</p>
<p>Assistant U.S. Attorneys Timothy Lucey and Arvon Perteet are prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation.</p>

Healthcare Fraud: ROMY MACASAET JR. Admitted That he Paid Illegal Kickbacks to Procure Referrals of Elderly Patients on Medicare
<h2>Owner of Illinois Home Health Company Admits Paying Illegal Kickbacks to 20 Medical Directors for Referrals of Medicare Patients</h2>
<p>CHICAGO — The owner of a home health care company headquartered in Lemont admitted in federal court today that he paid illegal kickbacks to procure referrals of elderly patients on Medicare.</p>
<p>ROMY MACASAET JR. paid kickbacks to medical directors to obtain referrals of Medicare beneficiaries to his company, Home Bound Healthcare Inc., which was one of the largest home healthcare and hospice companies in Illinois. Macasaet acknowledged in a plea agreement that he retained and paid Medical Directors a monthly fee solely for the purpose of obtaining patient referrals, and not for medical services. Macasaet also acknowledged that he used Medical Director agreements as a way to conceal the payment of kickbacks.</p>
<p>Between approximately December 2006 and September 2014, Macasaet paid $789,327 in bribe payments to approximately 20 medical directors, according to the plea agreement. As a result of the payments, Home Bound improperly sought and received Medicare reimbursements totaling several million dollars.</p>
<p>Macasaet, 47, of Homewood, pleaded guilty to one count of violating the Anti-Kickback Statute. The conviction is punishable by up to five years in prison. U.S. District Judge Samuel Der-Yeghiayan set sentencing for Feb. 15, 2017, at 10:30 a.m.</p>
<p>Macasaet and Home Bound also agreed to pay the United States $6.8 million to resolve the civil false claim and anti-kickback allegations, per the terms of a settlement agreement announced today. The agreement settles claims that Home Bound and its subsidiaries violated the federal False Claims Act and Anti-Kickback Statute by obtaining referrals through illegal kickbacks that served as <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="605">financial</a> inducements for false certifications of eligibility for home health services, and by improperly submitting those false claims to Medicare for reimbursement.</p>
<p>As part of the civil settlement, Macasaet agreed to immediately resign his employment with Home Bound and refrain from seeking future employment with the company. Macasaet further agreed to divest his ownership interest in Home Bound within 120 days of formal entry of the agreement. The settlement was reached by the Justice Department on behalf of the Office of the Inspector General of the U.S. Department of Health and Human Services.</p>
<p>Contemporaneous to the settlement agreement, Home Bound and the HHS Inspector General’s Office entered into a corporate integrity agreement to promote compliance with the directives of Medicare, Medicaid, and other federal health care programs. As part of the integrity agreement, Home Bound must establish a compliance program to develop and implement policies, procedures, and practices designed to ensure compliance with the requirements of federal health care programs.</p>
<p>The plea agreement and civil settlement were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. Substantial investigative assistance was provided by the U.S. Department of Labor Office of Inspector General, and the Chicago Field Office of the U.S. Department of State Diplomatic Security Service.</p>
<p>The government is represented in the criminal case by Assistant U.S. Attorney Sunil Harjani, and in the civil case by Assistant U.S. Attorney David R. Lidow.</p>
<p><a href="https://www.justice.gov/usao-ndil/pr/owner-illinois-home-health-company-admits-paying-illegal-kickbacks-20-medical-directors">Original PressReleases&#8230;</a></p>

Healthcare Fraud: Andre Kirkland Sentenced For Defrauded Medicare and Medicaid
<h2>Cleveland Mississippi Hospice Owner Sentenced for Healthcare Fraud and Ordered to Pay Over 5 Million Dollars in Restitution</h2>
<p>Jackson, Miss – Andre Kirkland, 52, of Cleveland, Mississippi was sentenced in U.S. District Court in Oxford on September 1, 2016, on charges that he defrauded Medicare and Medicaid by signing up patients for hospice care who were not terminally ill, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway, Special Agent in Charge Derrick L. Jackson with the U.S. Department of Health and Human Services Office of Inspector General, and Mississippi Attorney General Jim Hood.</p>
<p>Kirkland, who owned and operated Revelation Hospice in Clarksdale, pled guilty on May 4, 2016, to conspiracy to commit health care fraud. U.S. District Judge Michael Mills sentenced Kirkland to serve 48 months in home confinement in lieu of imprisonment due to recurrent metastatic cancer, which requires substantial medical care. Kirkland was also ordered to pay restitution in the amount of $5,400,843.50 to Medicare and $66,171.43 to Medicaid.</p>
<p>The investigation revealed that Andre Kirkland and Revelation Hospice were knowingly enrolling non-hospice eligible Medicaid and Medicare recipients and then filing false hospice claims to Medicaid and Medicare for services that were not medically necessary or were not ever provided. Kirkland, as a registered nurse and Revelation’s Director of Nursing, personally admitted non-hospice appropriate Medicaid and Medicare recipients into Revelation and deceived the patients about the true nature of the services in which they were being enrolled. As part of this deception, many patients unknowingly signed Do Not Resuscitate forms along with undated hospice revocation forms. Kirkland would later use the revocation forms to discharge patients from Revelation Hospice without the patient’s knowledge.</p>
<p>As the Director of Nursing for Revelation, Andre Kirkland was responsible for hospice admissions and the supervision of all nursing staff. He also treated patients in the field. According to patient interviews, Kirkland deceived patients about the true nature of the services they were being enrolled in and never told the patients that they were terminally ill. Most of the patients enrolled in hospice care were not terminally ill and were therefore not eligible for hospice care. For example, one of the patients enrolled was a 29-year-old pregnant female who was not terminally ill and was not in any way hospice eligible. She remains in good health today, years after Kirkland fraudulently enrolled her in hospice care.</p>
<p>A medical review of a 30-patient Medicare patient sample revealed that 100% of those patients were not eligible. The revelation had a live discharge rate of 93.30%, meaning that 93.30% of patients enrolled were discharged from Revelation Hospice while still living. By comparison, 2010 data shows that the national average live discharge rate for hospices is 18.2%.</p>
<p>“The health care fraud perpetrated by this defendant was an abuse of public trust motivated by greed. Patients were deceived into being signed up for services intended to help those with terminal illnesses. We remain committed to protecting the integrity of our health care system and will continue to strictly enforce our federal health care laws,” said U.S. Attorney Gregory K. Davis.</p>
<p>“Health care fraud costs our country billions of dollars each year, and the FBI will continue to seek out those that extort health care in the United States,” said Donald Alway, special agent in charge of the FBI in Mississippi. “These are not victimless crimes because health care fraud harms our overall economy. The FBI and our partners are committed to identifying and charging those that engage in this type of activity.”</p>
<p>“Hospice fraud has reached epidemic proportions in Northern Mississippi,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “Patients are being falsely diagnosed as terminally ill in order to line the pockets of hospice owners who are treating Medicare like their own personal ATM.”</p>
<p>“Joint investigations have proven to be an essential tool in the fight against fraud in health care benefit programs,” Attorney General Jim Hood said. “We will continue to work with our federal and state partners in this ongoing battle to protect our most vulnerable citizens.”</p>
<p>The case was investigated by the United States Department of Health and Human Services Office of the Inspector General, the Medicaid Fraud Control Unit of the Mississippi Attorney General’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Dave Fulcher.</p>
<p>Original PressReleases&#8230;</p>

Identity Theft: Francisco Matos-Beltre And Alejandro Tello-Rojas Commit Human Smuggling for Financial Gain And Trafficking the Identities
<h2>Two Men Plead Guilty for Their Roles in Identity Trafficking Scheme</h2>
<p>Two individuals each pleaded guilty today to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain in relation to their respective roles in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.</p>
<p>Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Bill A. Miller of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.</p>
<p>Francisco Matos-Beltre, 42, a U.S. citizen formerly of Philadelphia, and Alejandro Tello-Rojas, aka Joel Ocasio-Cancel, aka William Davila, 36, a Mexican citizen formerly of Lawrenceville, Georgia, pleaded guilty before U.S. District Judge Juan M. Perez-Gimenez of the District of Puerto Rico. On Aug. 6, 2015, Matos-Beltre, an identity document supplier, and Tello-Rojas, an identity document broker, were charged in an indictment returned by a federal grand jury in Puerto Rico. To date, 14 individuals have been charged for their roles in the identity trafficking scheme, eight defendants have pleaded guilty and six individuals remain fugitives.</p>
<p>According to admissions made in connection with today’s pleas, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, were located in various cities throughout the United States and allegedly solicited customers for the sale of social security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set, the defendants admitted. The defendants acknowledged that the conspirators used text messages, money transfer services, and U.S. mail to complete their illicit transactions.</p>
<p>The defendants also admitted that they sold Puerto Rican identity documents to customers, who generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="604">financial</a> fraud and attempted to obtain a U.S. passport, according to the plea agreements. At the time of his arrest, Tello-Rojas had assumed the identity of Ocasio-Cancel, a Puerto Rican U.S. citizen.</p>
<p>The Chicago offices of ICE’s Homeland Security Investigations (HSI), USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from the HSI San Juan Office and the DSS Resident Office in Puerto Rico. The HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support with assistance from ICE, USPIS, DSS and IRS-CI offices around the country.</p>
<p>Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.</p>
<p>Potential victims and the public may obtain information about the case at <a href="https://www.justice.gov/criminal/vns/caseup/beltrerj.html">www.justice.gov/criminal/vns/caseup/beltrerj.html</a>. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes, in this case, should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at <a href="http://www.ice.gov/tipline">www.ice.gov/tipline</a>.</p>
<p>Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, <a href="http://www.ftc.gov/idtheft">www.ftc.gov/idtheft</a>. Additional resources regarding identity theft can be found at <a href="http://www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html">www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html</a>; <a href="http://www.ssa.gov/pubs/10064.html">www.ssa.gov/pubs/10064.html</a>; and <a href="http://www.irs.gov/privacy/article/0,,id=186436,00.html">www.irs.gov/privacy/article/0,,id=186436,00.html</a>.</p>
<p><a href="https://www.justice.gov/opa/pr/two-men-plead-guilty-their-roles-identity-trafficking-scheme">Original PressReleases&#8230;</a></p>

Investment Fraud: BRYAN LEE ADDINGTON Indicted For Identity Theft, Securities, Commodities, & Investment Fraud
<h2>Federal Grand Jury Indicts Ethel Businessman For Investor Fraud Scheme Worth Over $3.5 Million</h2>
<p>BATON ROUGE, LA &#8211; United States Attorney Walt Green announced today the unsealing of an Indictment against BRYAN LEE ADDINGTON, age 55, of Ethel, Louisiana. The Indictment charges the defendant with five counts of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The Indictment also includes a forfeiture allegation that will require the defendant to forfeit the proceeds of his fraud if convicted.</p>
<p>The Indictment alleges that the defendant engaged in a scheme to defraud numerous victim-investors from January 2010 through at least April 2016. According to the Indictment, the defendant solicited and obtained over $3.5 million from his victims. To induce the victims into investing with him, ADDINGTON falsely represented to his victims that their money would be invested in real estate and land, insurance products, and stock, and would be used to purchase insurance policies. He allegedly represented that such investments were safe and would yield good returns and that they would, in some cases, bring guaranteed returns. Meanwhile, according to the Indictment, ADDINGTON allegedly hid from his victims that the <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="Financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="603">Financial</a> Industry Regulatory Authority had permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.</p>
<p>According to the Indictment, once ADDINGTON was in control of the victim investors’ funds, he diverted a substantial portion of the funds to his own personal use, the use of others, and to make payments to other victim investors. Examples of his personal use including spending at Ruth’s Chris Steak House, Galatoire’s Bistro, Victoria’s Secret, Disney Resort, various casinos, and thousands of dollars in purchases of Louisiana State University athletic tickets.</p>
<p>This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the Louisiana Office of Financial Institutions, in coordination with the Louisiana Department of Insurance and Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Ryan Rezaei and Ryan Crosswell.</p>
<p><strong>NOTE:</strong> An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.</p>
<p><a href="https://www.justice.gov/usao-mdla/pr/federal-grand-jury-indicts-ethel-businessman-investor-fraud-scheme-worth-over-35">Original PressReleases&#8230;</a></p>

Financial Fraud: Brian K. Stepp Charged To Commit Fraudulent Financial Schemes
<h2>Medina man indicted for stealing $275,000 from employer, using money to pay for vehicles, country club membership</h2>
<p>A Medina man was named in a 22-count indictment, charged with stealing approximately $275,000 from his employer and using the money to pay for a country club membership, vehicles and purchases at Victoria’s Secret and GNC, law enforcement officials said.</p>
<p>Brian K. Stepp, 50, was charged with multiple counts of conspiracy to commit <em>wire fraud</em>, <strong>wire fraud</strong>, making false statements and other charges. Rachel M. Penn, 41, of Wellington, was also indicted on charges of conspiracy to commit wire fraud and wire fraud.</p>
<p>“These defendants used this company’s coffers like their own personal bank, stealing from their employer to provide for a lavish lifestyle,” U.S. Attorney Carole S. Rendon said.</p>
<p>“These two conspired in a variety of <strong>fraudulent <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="602">financial</a> schemes</strong> to steal money for car and country club membership purchases and exorbitant retail purchases,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to root out <em>financial fraudsters</em> and hold them accountable for their criminal actions.”</p>
<p>Stepp and Penn worked together at Variety Contractors, Inc., a company based in Medina County that provided general contracting services for large public and commercial retail construction projects in Ohio and other states.</p>
<p>Stepp joined the company as vice president and eventually was promoted to acting president, although the company owner retained ultimate decision-making authority. Penn worked in the company’s accounting department. Her duties included reviewing expense claims submitted by employees and issuing reimbursement checks, according to the indictment.</p>
<p><em>Stepp and Penn conspired together between February 2014 and May 2015 to defraud Variety Contractors.</em></p>
<p>Stepp incorporated S&;S Kelsey LN, a shell company that did not engage in any actual business. He submitted a variety of fake invoices from S&;S and other vendors to Variety Contractors of goods and services that were not provided. Stepp and Penn caused Variety Contractors to make payments on those <strong>fraudulent invoices</strong>, according to the indictment.</p>
<p>For example, in September 2014, a check request for $31,500 was made for payment to G.C.I. for “Deposit for Exterior Metal Panels”. Three days later, Penn issued a check in the same amount made payable to Ganley, which Penn knew that Stepp used to partially pay for a 2015 Chevy Silverado pickup truck that he purchased in his wife’s name, according to the indictment.</p>
<p>Stepp also fraudulently used a company credit card to pay for personal expenses, such as membership and related fees at Weymouth Country Club, payments made to purchase vehicles to himself and his family, local hotel charges, legal fees, and charges at stores including Victoria’s Secret and GNC, according to the indictment.</p>
<p>The loss to Variety Contractors was approximate $275,000, according to the indictment.</p>
<p>Stepp also made numerous false statements in attempting to get several loans, according to the indictment.</p>
<p>This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.</p>
<p>If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.</p>
<p>An indictment is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.</p>
<p><a href="https://www.justice.gov/usao-ndoh/pr/medina-man-indicted-stealing-275000-employer-using-money-pay-vehicles-country-club">Original PressReleasess&#8230;</a></p>

Financial Fraud: RANDY MILAND Guilty Plea For Operating a Ponzi Scheme
<h2>Serial Fraudster Pleads Guilty to Investment Advisor Fraud and Money Laundering</h2>
<p>United States Attorney Andrew M. Luger today announced the guilty plea of RANDY MILAND, 62, for operating a Ponzi scheme through which he stole or attempted to steal more than $500,000 from purported investors. MILAND pleaded guilty today before United States District Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn.</p>
<p>“Randy Miland is a serial scam artist who has had a long career of defrauding his victims with false claims that he would use their money for legitimate investments,” said Minnesota Commerce Commissioner Mike Rothman. “He may once have worked as a chiropractor, but his real profession has been operating Ponzi schemes to steal people’s money. The Commerce Fraud Bureau worked with federal authorities to stop Miland’s criminal activities and prevent even more Minnesotans from being ripped off by him.”</p>
<p>“Today&#8217;s guilty plea of Randy Miland demonstrates how law enforcement cooperatively works together to help put an end to the criminal behavior of those who prey on investors for their personal <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="601">financial</a> gain,” said Special Agent in Charge Shea Jones of St. Paul Field Office IRS Criminal Investigation. “IRS Special Agents will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”</p>
<p>“Despite two prior convictions, Randy Miland continued to steal from friends and acquaintances through lies and misrepresentations,” said Assistant United States Attorney Joseph H. Thompson. “The Minnesota Department of Commerce and Criminal Investigation Division of the IRS worked together to investigate this case and put an end to Miland’s fraudulent conduct.”</p>
<p>According to the defendant’s guilty plea, between 2010 and 2014, MILAND fraudulently solicited approximately $575,000 from investors, telling them that he would use their money to invest in futures and other legitimate investments. Instead, he used their money to pay personal expenses, including court-ordered restitution to victims of his prior scams, and to make Ponzi-type payments to other purported investors.</p>
<p>MILAND concealed from the new victims that he had been twice convicted of fraudulent conduct, that he was forbidden by the Minnesota Department of Commerce from offering or selling securities, and that he still owed more than $1.5 million in restitution to victims of prior schemes.</p>
<p>MILAND was convicted in 1999 in state court of theft by swindle and ordered to pay more than $1.5 million in restitution to the victims of his scheme. As of May 2016, MILAND still owed to the victims nearly the entire amount.</p>
<p>MILAND was convicted in 2006 in federal court of fraud and ordered to pay more than $250,000 in restitution to the victims. As of May 2016, MILAND owed approximately $124,000 in restitution.</p>
<p>The case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.</p>
<p>This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Commerce Fraud Bureau.<br />
Defendant Information:</p>
<p>RANDY MILAND, 62<br />
White Bear Lake, Minn.</p>
<p>Convicted:<br />
• Mail fraud, 1 count<br />
• Money laundering, 1 count</p>
<p><a href="https://www.justice.gov/usao-mn/pr/serial-fraudster-pleads-guilty-investment-advisor-fraud-and-money-laundering">Original PressReleases&#8230;</a></p>

Financial Fraud: KIRSTEN ANN TJOSAAS Sentenced For Wire Fraud & Money Laundering
<h2>Former CFO Of Granite Falls Industrial Contractor Sentenced To More Than Six Years In Prison For Embezzling Nearly $6 Million</h2>
<p>United States Attorney Andrew M. Luger today announced the sentencing of KIRSTEN ANN TJOSAAS, 38, for embezzling $5,773,410 from Fagen, Inc. (Fagen), an industrial contracting company for which she served as Chief Financial Officer. TJOSAAS pleaded guilty on May 6, 2016, <strong>to wire fraud and money laundering.</strong></p>
<p>According to her guilty plea, between 2006 and November 2015, TJOSAAS abused her authority as Corporate Controller and Chief <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="Financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="600">Financial</a> Officer of Fagen to issue at least 19 checks and make wire transfers totaling approximately $4.5 million from Fagen to Fairmont Investments, LLC (Fairmont), a Nebraska-based corporation controlled by the defendant.</p>
<p>According to her guilty plea, after registering Fairmont, TJOSAAS opened a bank account at Granite Falls Bank in the name of Fairmont for the purpose of <em>embezzling money</em> from Fagen. TJOSAAS signed these checks using the signature stamp of another Fagen executive without the authority or knowledge of that executive. The defendant also entered false entries into Fagen’s general ledger to disguise the illegitimate checks as payments to Fagen partners or payments to legitimate Fagen vendors. After depositing checks into the Fairmont account, TJOSAAS transferred the funds she had stolen into her own personal bank accounts.</p>
<p>According to her guilty plea, TJOSAAS also fraudulently issued Fagen checks payable to another company. TJOSAAS had access to and control over the bank account of this company. Between June 2006 and November 2015, TJOSAAS issued approximately 25 fraudulent checks into this account, totaling more than $1.2 million.</p>
<p>TJOSAAS used the illicit proceeds to buy homes in Florida, Minnesota, Kentucky, and Arizona. She purchased time-shares in Arizona and the U.S. Virgin Islands, as well as at least three automobiles, two all-terrain vehicles, a motorcycle, a jet-ski, and a sailboat.</p>
<p>TJOSAAS spent more than $500,000 of the <strong>stolen money on travel</strong>, including $346,000 on airplane tickets, $213,000 on hotel stays and more than $90,000 in restaurants.</p>
<p>This case is the result of an investigation conducted by the FBI.</p>
<p>Assistant U.S. Attorney Joseph H. Thompson prosecuted the case.</p>
<p> ;</p>
<p>Defendant Information:</p>
<p>KIRSTEN ANN TJOSAAS, 38</p>
<p>Granite Falls, Minn.</p>
<p>Convicted:</p>
<ul>
<li><strong>Wire fraud</strong>, 1 count</li>
<li><strong>Money laundering</strong>, 1 count</li>
</ul>
<p> ;</p>
<p>Sentenced:</p>
<ul>
<li>78 months in prison</li>
<li>3 years supervised release</li>
<li>$5,773,420 in restitution</li>
</ul>
<p><a href="https://www.justice.gov/usao-mn/pr/former-cfo-granite-falls-industrial-contractor-sentenced-more-six-years-prison-embezzling">Original PressReleases&#8230;</a></p>

Financial Fraud: Wright Olivares And Daniel C. Olivares Sentenced For Million Internet Ponzi Scheme
<h2>ZeekRewards&#8217; Former Chief Operating Officer And Former Senior Technology Officer Sentenced In Federal Court</h2>
<p>CHARLOTTE, N.C. – U.S. District Judge Max Cogburn, Jr., sentenced Dawn Wright Olivares, 48, and Daniel C. Olivares, 34, both of Clarksville, Ark., to 90 and 24 months in prison, respectively, for their involvement in an $850 million Internet Ponzi scheme that promised victims a bogus return on investments, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.</p>
<p>The two Arkansas residents were associated with the Lexington, N.C. based Rex Venture Group, LLC (RVG), which owned and operated Zeekler and ZeekRewards. In addition to the prison term imposed, Judge Cogburn also ordered each defendant to serve three years under court supervision. The restitution amount will be set at a later date.</p>
<p>Michael Rolin, Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join U.S. Attorney Rose in making today’s announcement.</p>
<p>According to filed court documents and today’s sentencing hearings, from January 2010 through August 2012, Dawn Wright Olivares, her stepson, Daniel Olivares, and Paul Burks, the owner of RVG, conspired with each other and engaged in Ponzi scheme that raised more than $850 million through a sham internet-based penny auction company named “Zeekler” and its purported advertising division “ZeekRewards” (collectively “Zeek”). According to court records, the conspirators induced more than 900,000 victims – including over 1,500 victims in the Charlotte area – to invest in their fraudulent scheme, by falsely representing that Zeekler was generating massive retail profits from its penny auctions and that the public could share in such profits through investment in ZeekRewards. Court documents indicate that, at one point, the conspirators claimed that investors would be guaranteed a 125% return on their investment.</p>
<p>Court records show that the co-conspirators represented that victim-investors in ZeekRewards could participate in the Retail Profit Pool (RPP), which supposedly allowed victims collectively to share 50% of Zeek’s daily net profits. The co-conspirators did not keep books and records needed to calculate such daily figures. Instead, Burks simply made up the daily “profit” numbers. Contrary to the conspirators’ claims, the true revenue from the scheme did not come from the penny auction’s “massive profits.” Instead, approximately 98% of all incoming funds came from victim-investors, which were then used to make Ponzi-style payments to earlier victim investors.</p>
<p>In addition to promising massive returns on investments, the conspirators used a number of ways to promote Zeek to current and potential investors. For example, the conspirators hosted weekly conference calls and leadership calls, where participants could call in and listen to Burks, Dawn Wright Olivares, and others make false representations intended to encourage victim-investors to continue to invest money and to recruit others to invest in Zeek. Burks and Dawn Wright Olivares also organized and attended “Red Carpet Events,” where victim investors came to hear details of the scheme in person. During these events, Burks and his conspirators made false representations about the massive retail profits generated by Zeek. They also used electronic and print media, including websites, emails, and journals, to make false and misleading statements about the success of Zeekler to recruit victim investors.</p>
<p>As the Ponzi scheme grew in size and scope it became unsustainable and it eventually began to unravel as the outstanding liability resulting from the bogus 125% return on investment continued to rise beyond control. By August 2012, the conspirators fraudulently represented to the collective victims that their investments were worth nearly $3 billion, but had no accurate books and records to even determine how much cash on hand was available to pay such liability. Contrary to representations made to victim investors, at that time, the conspirators had only $340 million available to pay out investors.</p>
<p>According to court records, Dawn Wright Olivares was closely involved in the strategic operations and ultimately served as the Chief Operations Officer of Zeek. Dawn Wright Olivares also owned 95% of Wandering Phoenix, LLC, a company that she used, among other things, to receive payments from Zeek and RVG. During the course of the conspiracy, Dawn Wright Olivares and Wandering Phoenix received approximately $7.2 million in victim funds.</p>
<p>Daniel Olivares was RVG’s senior technology officer and was responsible for, among other things, database design, management, and operations for Zeek. During the course of the conspiracy, Daniel Olivares personally enriched himself with victim funds totaling approximately $3.1 million. Other unnamed co-conspirators also personally enriched themselves with millions of dollars of victim funds.</p>
<p>Dawn Wright Olivares and Dan Olivares previously pleaded guilty to one count of investment fraud conspiracy. Dawn Wright Olivares also pleaded guilty to one count of tax fraud conspiracy.</p>
<p>In July 2016, a federal jury convicted Paul Burks of wire and mail fraud conspiracy, wire and mail fraud, and tax fraud conspiracy, following a three-week trial. Burks is currently awaiting sentencing.</p>
<p>In making today’s announcement, U.S. Attorney Rose thanked the U.S. Secret Service and IRS-CI for investigating the case, and the U.S. Securities &; Exchange Commission, Division of Enforcement for its assistance with the investigation.</p>
<p>The prosecution is handled by Assistant United States Attorneys Jenny Grus Sugar and Corey Ellis of the U.S. Attorney’s Office in Charlotte.</p>
<p><a href="https://www.justice.gov/usao-wdnc/pr/zeekrewards-former-chief-operating-officer-and-former-senior-technology-officer">Original PressReleases&#8230;</a></p>

Financial Fraud: Evans Appiah Sentenced from an Internet Romance Scheme – Mail and Wire Fraud, Identity Theft
<h2 class="node-title">Silver Spring Man Sentenced To 7 Years In Federal Prison For Internet Romance Scheme In Which Victims Were Defrauded Of Over $300,000</h2>
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<p><strong><em>Greenbelt, </em></strong>Maryland – U.S. District Judge George J. Hazel sentenced Evans Appiah, a/k/a Sean Carter, age 28, of Silver Spring, Maryland, on September 12, 2016, to seven years in prison, followed by four years of supervised release, for conspiracy, mail and wire fraud, and aggravated identity theft arising from an internet romance scheme in which the victims were defrauded of more than $300,000. Judge Hazel also ordered Appiah to forfeit and pay restitution of $303,800.11, the total amount of the loss. Appiah has been detained since Judge Hazel ordered that he be immediately taken into custody following the jury’s guilty verdict on May 4, 2016.</p>
<p>The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge James Murray of the United States Secret Service &#8211; Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.</p>
<p>According to testimony at his six day trial, Appiah and his co-conspirators searched online dating websites and initiated romantic relationships with male and female victims in order to obtain money from them. The relationships began with emails and instant messaging and escalated to telephone calls and primarily text messages. After gaining the victims trust, Appiah and his co-conspirators began asking for money for a variety of reasons, often invoking false stories and promises to convince the victims to send them money.</p>
<p>According to evidence presented at trial, from December 2013 through June 2015, Appiah opened and maintained accounts in order to receive money from the victims. Once the victims had deposited the funds requested by Appiah and the co-conspirators into the accounts controlled by Appiah, he disbursed the money by transferring it to other accounts, withdrawing cash, and by purchasing goods for shipment to co-conspirators outside of the United States. At least eleven confirmed victims were defrauded of more than $300,000.</p>
<p>Appiah also used the name and identifying information of one victim in particular, while depositing one of the victim cashier’s checks into his own bank account.</p>
<p>Today’s announcement is part of the efforts undertaken in connection with the President’s <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="Financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="599">Financial</a> Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit <a href="http://www.stopfraud.gov/"><u>www.StopFraud.gov</u></a>.</p>
<p>United States Attorney Rod J. Rosenstein commended HSI Baltimore, the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Special Assistant U.S. Attorney Jennifer L. Wine, who prosecuted the case.</p>
<p><a href="https://www.justice.gov/usao-md/pr/silver-spring-man-sentenced-7-years-federal-prison-internet-romance-scheme-which-victims">Original PressReleases&#8230;</a></p>
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Identity Theft: Angelbert Evoulou Sentenced For A Stolen Identity Refund Scheme
<h2>Man Convicted at Trial on Offenses Related to a Stolen Identity Refund Scheme is Sentenced to 57 Months in Federal Prison</h2>
<p><strong>DALLAS — </strong>Angelbert Evoulou was sentenced today by U.S. District Judge Sam A. Lindsay to 57 months in federal prison following his conviction at trial in May 2016 on several offenses related to a stolen identity refund scheme, announced U.S. Attorney John Parker of the Northern District of Texas.</p>
<p>Specifically, the jury convicted Evoulou of Conspiracy, Theft of Public Funds, Interstate Transportation of a Stolen Security, and Aggravated Identity Theft.</p>
<p>The government presented evidence at trial that during the investigation of a stolen refund ring, an individual advised an undercover special agent with Internal Revenue Service (IRS) Criminal Investigation that he could sell him an IRS refund check of approximately $595,000. After confirming the refund check was genuine and then arranging the purchase, two undercover agents met with Evoulou and three co-conspirators at an IHOP restaurant in Dallas at 1:00 in the morning on May 16, 2013. Evoulou and the coconspirators had flown in from Atlanta several hours earlier with the check. At the restaurant, Evoulou pulled out a magazine in which he had concealed the check. To prove the legitimacy of the refund check, he gave the undercover agent screenshots from an internal IRS database showing details about the victim taxpayer. When two of the conspirators stepped outside to retrieve the purchase money to pay the undercover agents, IRS agents converged to arrest the participants. Evoulou managed to elude arrest by exiting the restaurant with a group patrons of the restaurant.</p>
<p>The other conspirators were arrested and charged with federal offenses to which they pleaded guilty and were sentenced. Evoulou was subsequently identified, indicted, and arrested in March 2015.</p>
<p>IRS Criminal Investigation investigated the case. Assistant U.S. Attorneys Christopher Stokes and Camille Sparks prosecuted.</p>
<p><a href="https://www.justice.gov/usao-ndtx/pr/man-convicted-trial-offenses-related-stolen-identity-refund-scheme-sentenced-57-months">Original PressReleases&#8230;</a></p>

Financial Fraud: Alfonso Apu Guilty to Conspiracy to Commit Mail Fraud And Scheme to Defraud Insurance
<h2>Modesto Man Pleads Guilty to Staging Car Accidents in a Scheme to Defraud Insurance Companies</h2>
<p>FRESNO, Calif. — Alfonso Apu, 48, of Modesto, pleaded guilty today to conspiracy to commit mail fraud and admitted that he staged car accidents in a scheme to defraud insurance companies, Acting U.S. Attorney Phillip A. Talbert announced.</p>
<p>According to court documents, from at least October 2011 until August 2014, Apu conspired with at least six other individuals to stage dozens of car accidents and submit false claims to insurance companies seeking compensation. Apu and other defendants staged accidents with two or three vehicles that caused $5,000 to $10,000 in damage to each vehicle. After the staged collision, the defendants submitted a cover story to an insurer that concealed the true cause of the accident. The cover story used aliases, false identities, and false addresses for the defendants. The defendants used many different vehicles in the staged collisions by using false identities to register the vehicles and obtain insurance policies. They also recruited other individuals to allow their cars to be used in a staged accident and to make false claims under their insurance policies.</p>
<p>According to the plea agreement, as part of the scheme, the defendants offered to repair the recruited individual’s vehicle at automobile repair shops that they had access to or that were owned by co-defendants, usually performing cosmetic repair or none at all. It allowed them to repair damaged vehicles for an amount significantly less than the payment from an insurance company. In all, Apu caused at least $115,000 in false insurance claims.</p>
<p>This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Insurance, Fraud Division. Assistant United States Attorneys Patrick R. Delahunty and Henry Z. Carbajal III are prosecuting the case.</p>
<p>Apu is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on December 12, 2016. On September 6, 2016, Cristopher Santiago Sanchez-Becerra, 32, of Stockton, pleaded guilty to the scheme and is scheduled to be sentenced on November 28, 2016. Apu and Sanchez-Becerra each face a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.</p>
<p>Charges are pending against co-defendants Juan Ortiz Rivas, 39, of Ceres; Oscar Diaz Landa, 46, of San Jose; Victor Hugo Soriano-Villafan, 26, of Modesto; Liobigildo Vargas, 46, of Turlock; Juan Marquez Cadenas, 30, of Patterson. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.</p>
<p><a href="https://www.justice.gov/usao-edca/pr/modesto-man-pleads-guilty-staging-car-accidents-scheme-defraud-insurance-companies">Original PressReleases&#8230;</a></p>

Telephone Dating Scam: Patrick Giblin Sentenced On Wire Fraud Charges Related to a Similar Scheme to Defraud Women
<h2 class="node-title">Atlantic County, New Jersey, Man Charged With Using Telephone Dating Services To Defraud Multiple Women Across Several States</h2>
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<p>CAMDEN, N.J. &#8211; An Atlantic County man who was previously sentenced for wire fraud was charged today with using telephone dating services to lure and defraud multiple women after he escaped from a halfway house and later, while being on federal supervised release, U.S. Attorney Paul J. Fishman announced.</p>
<p>Patrick Giblin, 52, formerly of Ventnor, New Jersey, is charged by complaint with one count of wire fraud. He made his initial appearance today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was detained.</p>
<p>Giblin was previously sentenced in April 2007 to 115 months in federal prison on wire fraud charges related to a similar scheme to defraud women. Giblin was sentenced again on Oct. 2, 2015 to 24 months in prison for violating the terms of his supervised release. He was taken into custody today following the completion of this sentence at FCI-Fairton.</p>
<p>According to the complaint:</p>
<p>Between December 2012 and Dec. 16, 2014, Giblin contacted telephone dating services in an attempt to lure and defraud women by preying on their hope of developing a relationship. Giblin used a series of false representations to convince women on these services to <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/loans/" title="loan" data-wpil-keyword-link="linked" data-wpil-monitor-id="221">loan</a> him money based on the false promise that he would pay them back.</p>
<p>Giblin posted advertisements and messages on the telephone dating services wherein he falsely claimed, among other things, that he was moving to a victim’s location, that he owned oceanfront property in Atlantic City, and that he worked in the casino business.</p>
<p>Giblin fraudulently told the victims he needed to borrow money for bills, car repairs, moving expenses, and other phony expenditures. He received money from the women via interstate wire services such as Western Union and Moneygram. The complaint – which only includes a sample of the victims involved in the scheme – discusses eight separate victims in five different states and Canada, who lost a total of over $7,000 to Giblin. The investigation remains ongoing.</p>
<p>During the course of the scheme, Giblin, who was on federal supervised release for previously defrauding over 50 women for over $200,000 in losses, unlawfully fled New Jersey for Colonie, New York, where he continued to receive money until his arrest by the U.S. Marshals on Dec. 16, 2014. Giblin has been in federal custody since that time.</p>
<p>Giblin faces a statutory maximum term of imprisonment of 20 years and a $250,000 fine if convicted.</p>
<p>U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. Fishman also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, for its assistance in this case.</p>
<p>The charge and allegations against Giblin are merely accusations, and he is considered innocent unless and until proven guilty.</p>
<p>The government is represented by Deputy Attorney in Charge Matthew J. Skahill and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office in Camden.</p>
<p><a href="https://www.justice.gov/usao-nj/pr/atlantic-county-new-jersey-man-charged-using-telephone-dating-services-defraud-multiple">Original PressReleases&#8230;</a></p>
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