Source: United States Attorneys General

Headline: Former Logan County Schools Superintendent indicted for fraud scheme

CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that former Logan County Schools Superintendent Phyllis Doty, 68, of Logan, was indicted by a federal grand jury today for charges relating to a scheme to defraud the Logan County Board of Education of money and property. U.S. Attorney Stuart was joined in the announcement by officials from the FBI and the West Virginia Legislature Commission on Special Investigations.

“The numbers as alleged in the indictment are not massive in scale, but corruption in any amount, the theft of precious taxpayer dollars, violations of the public trust by public officials is a true cancer to society,” said United States Attorney Mike Stuart. “There is no such thing as a little bit of public corruption. We will not tolerate it. Standing in defiance of public corruption is a fundamental priority for this United States Attorney and the United States of America,” continued Stuart.

U.S. Attorney Stuart commended the investigative work of the FBI and the West Virginia Legislature Commission on Special Investigations and Assistant United States Attorney Gabriele Wohl for handling the prosecution.

The indictment alleges that Doty, who retired from Logan County Schools in 2016, stole over $12,000 in electronic devices purchased by the Logan County Board of Education and used public funds to decorate and supply her son’s August 2015 wedding. The scheme began in 2011 when the Logan County Board of Education regularly purchased Apple iPods and iPads for Logan County Schools staff. Between 2011 and 2015, Doty is alleged to have stolen at least 20 of these devices, and either sold them on eBay for profit, or gave them to family members as gifts. Doty directed the purchase of the devices or purchased them herself, and then sold them online or gave them away to her family.

According to the indictment, the scheme included ordering over $6,500 in wedding supplies with Logan County Board of Education money. These items included bread baskets, easels, drink dispensers, columns, and decorative urns. Doty claimed that these items were requested by Logan County teachers, however, the teachers knew nothing of these orders and the items mostly remained in boxes until they were used for the wedding. It is further alleged that Doty gave some of these items away to the wedding planner following the wedding.

The indictment also accuses Doty of covering up her scheme once an investigation into suspicious spending became public. It is alleged that the cover-up occurred by Doty attempting to influence a Logan County Board of Education staff member of the falsehood that she had permission to take iPods purchased by the Logan County Board of Education, and then by Doty asking the wedding planner to return the gifted items to a Logan County school.

The indictment charges Doty with two counts of wire fraud, which carries a penalty of up to 20 years in federal prison for each count; two counts of theft from a program receiving federal funds, which carries a penalty of up to 10 years in federal prison for each count; and one count of mail fraud, which carries a penalty of up to 20 years in federal prison.

Attached, please find the indictment.

Please note:  An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

Source: United States Attorneys General

Headline: Federal Jury in San Antonio Convicts Senator Carlos Uresti and FourWinds Logistics Consultant Gary L. Cain on All Charges

In San Antonio today, a federal jury convicted San Antonio attorney and District 19 Texas State Senator Carlos I. Uresti and his business partner, Gary L. Cain, on all charges for their roles in a Ponzi scheme that defrauded investors out of millions of dollars, announced United States Attorney John F. Bash and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio. 

Following a four-week-long trial, jurors convicted Uresti and Cain of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.  Jurors also convicted Uresti of five substantive counts of wire fraud, two counts of securities fraud, one count of engaging in monetary transactions with property derived from specified unlawful activity, and one count of being an unregistered securities broker.  Jurors also convicted Cain of seven counts of engaging in monetary transactions with property derived from specified unlawful activity.  Prior to jury selection, former FourWinds Logistics, Inc. (FourWinds) Chief Executive Officer Stanley P. Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering.

“Today’s verdict powerfully reaffirms the core American belief in equal justice under law—a belief so important to our system of government that it is engraved on the front of the U.S. Supreme Court.  No matter who you are, no matter your title or status or position in the community, you will be held accountable for your actions, particularly when you inflict harm on your fellow citizens. I could not be prouder of this Office’s prosecution team and our law-enforcement partners in achieving justice for the victims of the fraudulent investment scheme at the heart of this case,” stated United States Attorney John F. Bash.

“At the same time, this is in many ways a somber day for our community. A man who long held a position of public trust was found to have deceived those who placed their trust in him—for mere personal enrichment.  So while I am deeply gratified that justice has been done in this case, I am concerned that the criminality revealed by today’s verdict could further erode the public’s faith in our democracy.  For that reason, the public should know that this Office will relentlessly fight fraud and corruption by public officials,” Bash added.

Evidence presented during trial revealed that from February 2014 to December 2015, the defendants developed an investment Ponzi scheme to buy and sell hydraulic fracturing (fracking) sand for oil production.  Evidence showed that the defendants made false statements and representations while soliciting investors in FourWinds.  Collected funds were then used to pay earlier investors and for personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes. 

Evidence also showed that Uresti recruited investors under false pretenses by lying about investing his own money in FourWinds as well as failing to disclose his receipt of a commission and a percentage of the profits resulting from investments in FourWinds.  Evidence also revealed that Uresti was not registered as a broker with the Securities and Exchange Commission (SEC).

Evidence and testimony also revealed that Uresti and Cain engaged in money laundering with the proceeds of wire fraud.

For each fraud related charge, the defendants face up to 20 years in federal prison upon conviction.  For each money laundering charge, the defendants face up to ten years in federal prison upon conviction.  Uresti faces up to 20 years in federal prison upon conviction of being an unregistered securities broker.  Uresti and Cain remain on bond pending sentencing scheduled for 1:00pm on June 25, 2018, before Senior U.S. District Judge David A. Ezra in San Antonio.

The FBI’s Pubic Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, Internal Revenue Service-Criminal Investigation (IRS-CI), Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General.  Assistant United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.

Source: United States Attorneys General

Headline: Hutchins Man Arrested for the Murder of a U.S. Postal Service Employee

DALLAS — Following a collaborative effort by the Dallas Police Department and United States Postal Inspection Service, with assistance from the Federal Bureau of Investigation, Donnie Arlondo Ferrell, 25, of Hutchins, Texas, is in federal custody on a federal criminal complaint for the February 19, 2018 murder of a United States Postal Service employee. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Ferrell is charged with one count of murder of an officer or employee of the United States or of any agency in any branch of the United States government, while such officer or employee was engaged in or on the account of the performance of official duties. Ferrell will make his initial appearance today before U.S. Magistrate Judge Rebecca Rutherford.

“While our family of federal employees is saddened by the tragic loss of one of our own, I am proud of the cooperative effort by our federal and local law enforcement partners to solve this heinous crime, especially the United States Postal Inspection Service and the Dallas Police Department,” said U.S. Attorney Nealy Cox.   “With this arrest, we take a crucial step towards ensuring that the person allegedly responsible for this senseless murder is brought to justice.”

“On behalf of the U.S. Postal Inspection Service, I would like to extend our deepest sympathy to the Mosby family for the tragic loss of their loved one,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division, U.S Postal Inspection Service. “The cooperation among federal and local law enforcement agencies in this matter is a prime example of how we work best when we work together. I would like to thank the dedicated Postal Inspectors and staff as well as the Dallas Police Department, our federal partners, and U.S. Attorney Erin Nealy Cox and her staff for their dedication and partnership in seeing this case brought to prosecution.”

According to the affidavit filed with the criminal complaint, on February 19, 2018, shortly after 2:00 a.m., an United States Postal Service (“USPS”) employee left the Dallas Main Post Office in a USPS box truck.  Minutes later, at least three gunshots were fired at the USPS employee and his truck.  One of the shots fatally struck him in his head.

On the morning of February 21, 2018, two individuals visited the FBI’s office in Fort Worth, Texas, and stated that they had information related to the killing.

According to interviews of the two individuals, on the night of February 18, 2018, they met two other individuals, including Ferrell, at a restaurant in Dallas, Texas. Later that night, after several stops, all four of these individuals left a pool hall in Dallas at approximately 1:30 a.m. in the early morning of February 19, 2018.  Ferrell was sitting in the front passenger seat of the vehicle.

According to additional information provided during the interview, the driver of the vehicle began driving erratically and, at one point, was right behind a large USPS truck.  The driver attempted to drive the vehicle around the USPS truck by passing it on the truck’s left hand side.  Moments later, Ferrell fired several shots from a handgun in the direction of the USPS truck. The occupants of the vehicle observed smoke and sparks coming from the truck and the truck eventually crashing into the barrier. One of the occupants asked Ferrell why he had shot the gun toward the truck and Ferrell responded that the driver of the USPS truck had made a hand gesture towards their vehicle and that angered him.  

A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The penalty for the offense as charged is any terms of years or for life and a $250,000 fine.

The case is being prosecuted by Assistant U.S. Attorneys P.J. Meitl, Keith Robinson, Nicole Dana, Errin Martin, and Brian Portugal.

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Source: United States Attorneys General

Headline: Armed Career Criminal Who Sold Rifle While Working At A Gun Store Sentenced To 15 Years In Prison

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Jose Luis Sanchez-Rosado (44, Volusia County) to 15 years in federal prison for possessing a firearm as a convicted felon. Due to his multiple felony convictions, he qualified for an increased penalty under the Armed Career Criminal Act. Sanchez-Rosado pleaded guilty on December 1, 2017.

According to court documents, in June 2017, the Bureau of Alcohol, Tobacco, Firearms and Explosives received information that Sanchez-Rosado had worked at a gun store in Deltona, handled firearms, and provided tactical training in the use of firearms for customers. Further investigation revealed that Sanchez-Rosado had possessed and pawned a 5.56-millimeter caliber rifle at a pawnshop in Orange City. Due to his prior felony convictions, Sanchez-Rosado is prohibited from possessing firearms or ammunition under federal law.

This case was investigated by ATF and the Volusia County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Sean P. Shecter.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Source: United States Attorneys General

Headline: Sacramento Woman Sentenced to over 5 Years in Prison for a Scheme to Steal Mail Using Fraudulent Vacation Holds and Address Change Forms

SACRAMENTO, Calif. — Latomba Bishop, 33 of Sacramento, was sentenced today to five years and 10 months in prison for a scheme to obtain mail through fraudulent vacation holds and mail forwarding requests and steal the identities of the mail theft victims, U.S. Attorney McGregor W. Scott announced. In addition, U.S. District Judge Troy L. Nunley ordered Bishop to pay $38,371 in restitution to the victims.

On November 30, 2017, Bishop pleaded guilty to mail fraud and aggravated identity theft in connection with the scheme.

According to court documents, Bishop and her co-defendants Joshua Yadon, 33, and Norman Thompson, 37, both of Sacramento, used stolen personal identifying information to fraudulently obtain credit cards, checks, and merchandise. To avoid detection, the conspirators would often request that the items be mailed to the victims’ real addresses but then would file false vacation holds and change of address forms with the United States Postal Service in order to divert the items into the conspirators’ possession.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for the thefts of mail and financial crimes committed against the public.”

Thompson pleaded guilty to the conspiracy and on October 5, 2017, was sentenced to three years and 10 months in prison. Yadon also pleaded guilty and is scheduled to be sentenced on April 12, 2018. Yadon faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, 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.

This case is the product of an investigation by the U.S. Postal Inspection Service with assistance from the Davis Police Department, Sacramento County Probation, and the Woodland Police Department. Assistant U.S. Attorney Jeremy J. Kelley is prosecuting the case.

Source: United States Attorneys General

Headline: Jury Convicts Man Of Bank Robbery

LAS VEGAS, Nev. – A Las Vegas man who was wanted by law enforcement in the District of Arizona for escaping from a Bureau of Prisons facility was found guilty by a jury yesterday of bank robbery, announced U.S. Attorney Dayle Elieson for the District of Nevada.

After a two-day trial, Richard Lee Canterbury, 68, was convicted of one-count of bank robbery. United States District Judge Kent J. Dawson presided over the trial. Sentencing is scheduled for May 30, 2018.

According to the indictment, on March 16, 2016, Canterbury entered a Nevada State Bank on Southern Highlands Parkway wearing a gray “fisherman” style hat, dark glasses, and a blue and white striped long sleeve shirt under a gray zip up vest, carrying a blue zip top bank bag. He approached a teller and showed a handwritten note which stated: “This Is A Robbery No Tricks Loose Bills Only Cooperate No One Gets Hurt Otherwise Everyone Dies.” The teller complied and placed approximately $1,901 and a GPS tracking device into the bag. Canterbury left the bank.

Soon after, using information from the GPS tracker and the description provided by the bank teller, officers with the Las Vegas Metropolitan Police Department located and stopped Canterbury’s vehicle. Officers located the stolen bank cash, the blue zip top bank bag, the handwritten note, and the tracker in his vehicle. Canterbury was still wearing the clothes that he wore during the robbery. He was arrested and taken into custody. Canterbury was serving a 46 month federal sentence for Felon in Possession of Firearms at the time when he escaped from the facility on January 27, 2016.

At the time of sentencing, Canterbury faces the statutory maximum penalty of 20 years in prison and a $250,000 fine.

The case was investigated by the FBI. Assistant U.S. Attorneys Lisa Cartier-Giroux and Jared L. Grimmer are prosecuting the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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Source: United States Attorneys General

Headline: KC Woman Sentenced for Obstruction of Justice After Forging Court Order for Release

KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman who forged a court order to get another inmate released from prison, was sentenced in federal court today for obstruction of justice.

Margie P. Shephard, 53, of Kansas City, Mo., was sentenced by U.S District Judge Roseann Ketchmark to three years and five months in federal prison without parole.

Shephard was incarcerated as an inmate at Federal Prison Camp-Bryan in Bryan, Texas, after being sentenced to 10 years for conspiracy to commit bank fraud and identity theft, aggravated identity theft and obstruction of justice.

Shephard, who pleaded guilty on Aug. 3, 2017, admitted that, while incarcerated, she fabricated a document purporting to be an Amended Judgment in a Criminal Case for fellow inmate Leann Raejeana Turner of Blue Springs, Mo. Turner was also incarcerated at Federal Prison Camp-Bryan after being sentenced to three years in prison for her role in an $11 million mortgage fraud scheme. The fake court order, with a reduced sentence of 120 days of imprisonment for Turner (which would have resulted in her immediate release), included the forged signature of U.S. District Judge Greg Kays.

Shephard mailed the fake court order to her sister, who then faxed it to prison officials from a Sunfresh grocery store in Kansas City, Mo., on Nov. 9, 2014, and again on Nov. 28, 2014. The forged document raised suspicions because of the reduction of Turner’s sentence and typographical errors. Upon receiving the document, prison officials determined it was a forgery.

Shephard’s extensive criminal history includes 29 prior felony convictions (this offense is her 30th felony conviction) and 11 misdemeanor convictions, most of which involved fraudulent conduct. Twice while being held in lawful custody for a felony conviction, she escaped. Both times she was convicted of aggravated escape from custody.

This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the FBI.
 

Source: United States Attorneys General

Headline: Two Delaware Men Indicted For Sex Trafficking Of A Child By Force, Fraud, And Coercion

February 22, 2018                                                                            

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                   at (410) 209-4885

Baltimore, Maryland – A federal grand jury has indicted Steven M. Williams a/k/a “Brother Ray,” a/k/a “Ray”, age 38, and Harry E. Rivers a/k/a “Hakeem,” a/k/a “Pots,” age 28, both of Delaware, for sex trafficking of a child and by force, fraud, and coercion.  The indictment was returned on February 21, 2018.

The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.

According to the indictment, Williams and Rivers were pimps, engaged in the business of recruiting, enticing, harboring, transporting, providing, obtaining, advertising, and maintaining by any means girls and women to engage in commercial sex acts. In July 2017, a female child, “Girl 1,” was a victim of these crimes. “Girl 1” was a resident of Delaware, had recently completed the eighth grade, and was 15 years old.

Williams and Rivers both face a maximum sentence of life in prison. An initial appearance has not yet been scheduled.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.        

Acting United States Attorney Stephen M. Schenning commended the FBI, the Elkton Police Department, the Newark (Delaware) Police Department, the Wilmington (Delaware) Police Department, the Cecil County Department of Social Services, the Cecil County State’s Attorney’s Office, and the Delaware Department of Justice for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Patricia McLane and Zachary A. Myers, who are prosecuting the case.

Source: United States Attorneys General

Headline: Louisville Financial Planner Charged During Nationwide Elder Fraud Sweep Of More Than 250 Defendants

Justice Department coordinates largest nationwide elder fraud sweep – more than one million victims

Louisville financial planner allegedly defrauded mostly elderly customers of over $800,000

LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced today the grand jury indictment this week, of a Louisville financial advisor, charged with multiple counts of investment advisor fraud, money laundering, aggravated identity theft, and wire fraud. Today’s announcement is part of the largest coordinated sweep of elder fraud cases in history.

The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly.  The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.  Of the defendants, 200 were charged criminally.  In each case, offenders engaged in financial schemes that targeted or largely affected seniors.  In total, the charged elder fraud schemes caused losses of more than half a billion dollars.

In the Western District of Kentucky, Derek Payne Burcham, 34, who was the former principal owner of Cornerstone Benefit Advisors, LLC., was charged with fraudulently obtaining over $800,000 by misappropriating monies that investors had provided to Cornerstone to invest, then using those funds to support his lifestyle and to cover operating expenses.

Specifically, between 2011 and August of 2016, Burcham, as Cornerstone’s sole investment adviser representative, had a fiduciary duty to act in his clients’ best interests. During that time, Burcham is alleged to have made numerous false statements, assurances, and representations to clients regarding the nature of their investments. Further, Burcham is alleged to have posted and solicited business through false advertising; induced clients to provide him access to their accounts at brokerage and financial planning companies; forged client signatures on official investment documents; charged unearned advisory fees and repeatedly concealed those over-charged advisory fees; and between 2012 and August of 2016, allegedly reported to the Kentucky Department of Financial Institutions his maximum advisory fee charged by Cornerstone was 1%, when the unearned investment advisory fees from client accounts were in excess of the 1%. 

This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the United States Secret Service (USSS), the Kentucky Department of Financial Institutions, the Internal Revenue Service Criminal Investigation, and Louisville Metro Police Department.

This morning in Washington, Attorney General Jeff Sessions was joined in the announcement of the elder fraud national sweep, by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.

“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions.  “Today’s actions send a clear message:  we will hold perpetrators of elder fraud schemes accountable wherever they are.  When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains.  Today is only the beginning.  I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”

The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians.  A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim.  The schemes charged in these cases caused losses to more than a million victims.

“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.

“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich.  “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”

Actions against the Mass-mailing Fraud Industry

As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals.  In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.

“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue.  “They sold false promises of life-changing prizes that never came true.  We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”

These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars.  Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million.  Click here for map showing a transnational, single fraud scheme.

Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year.  Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. 

Actions against other elder fraud schemes

Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases.  Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year.  Some examples of the elder financial exploitation prosecuted by the Department include:

• “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
• “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
• “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
• “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
• “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.

Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust.  The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.

Public Education

The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.

Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
 

Coordination with state officials

Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation.  He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.

Coordination with foreign law enforcement

Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative.  The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States.  The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents.  Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.

Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.  The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov. 

The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.

burcham_indictment.pdf