CALL CENTER OWNER PLEADS GUILTY IN ELDERLY SWEEPSTAKES FRAUD CASE

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, September 15, 2014

Owner of Costa Rican Call Center Pleads Guilty to Defrauding Elderly Through Sweepstakes Scam

A dual United States-Costa Rican citizen pleaded guilty today for his role in a $1.88 million sweepstakes fraud scheme that defrauded hundreds of elderly Americans.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Anne M. Tompkins of the Western District of North Carolina made the announcement.

Geoffrey Alexander Ramer, 34, of Costa Rica, pleaded guilty before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina to wire fraud and money laundering in connection with the telemarketing fraud scheme. Sentencing will be scheduled at a later date.

“Ramer preyed upon some of the most vulnerable members of our society, callously and repeatedly defrauding elderly Americans by stealing their life savings,” said Assistant Attorney General Caldwell. “We hope that today's guilty plea brings some solace to his victims. This prosecution sends a clear message to the next would-be con-artist: in protecting our citizens, the reach of the Justice Department will not stop at our country's borders.

“Ramer and his fellow con artists swindled their victims and pocketed people’s life savings,” said U.S. Attorney Tompkins.  “If conscience is not enough to deter scammers from taking advantage of the elderly and vulnerable, the certainty that justice is coming should.”

According to his plea agreement, from 2008 through December 2013, Ramer owned and operated call centers located in Costa Rica. Ramer and his co-conspirators called U.S. residents, many of whom were elderly, and falsely informed them that they had won a substantial cash prize in a sweepstakes. The victims were told that in order to receive the prize, they had to send money to Costa Rica for a purported refundable insurance fee. After receiving the fee, Ramer and his co-conspirators contacted the victims again, and falsely informed them that the prize amount had increased and, therefore, the victims had to send additional money to pay for new purported fees. These attempts to collect additional money continued until the victims ran out of money or discovered the fraud. To mask that they were calling from Costa Rica, Ramer and his co-conspirators utilized VoIP phones that displayed a (202) area code, giving victims the false impression the calls were coming from Washington, D.C. Ramer often falsely claimed to be calling on behalf of a U.S. federal agency to lure victims into a false sense of security.

Plea documents state that, along with his co-conspirators, Ramer was responsible for causing more than $1.88 million in losses to hundreds of elderly Americans.

The case was investigated by the U.S. Postal Inspection Service, FBI, Internal Revenue Service – Criminal Investigation Division, Federal Trade Commission and the U.S. Department of Health and Human Services. This case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section.

9TH PERSON SENTENCED IN BUSINESS OPPORTUNITY VENTURES FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, August 13, 2013

Ninth Individual Sentenced in Connection with Costa Rica-based Business Opportunity Ventures That Defrauded Americans

Michael Kerry Deevy, a Canadian citizen, was sentenced today in connection with a series of business opportunity fraud ventures based in Costa Rica, the Justice Department and the U.S. Postal Inspection Service announced.  Beginning in 2006, Deevy and his co-conspirators in Costa Rica are alleged to have fraudulently induced purchasers in the U.S. to buy business opportunities from companies known as Cards-R-Us Inc., Premier Cards Inc. and Nation West.  The business opportunities cost purchasers thousands of dollars each, with most paying at least $10,000.  Today’s sentencing forms part of the government’s continued nationwide crackdown on business opportunity fraud.

“Business opportunity fraud schemes such as this one can crush the dreams – and wipe out the savings – of Americans who simply want to operate their own small businesses,” said Stuart F. Delery, Assistant Attorney General for the Civil Division.  “The Department of Justice will continue to prosecute those who engage in these schemes, whether they set up shop here or abroad.”

“Business opportunity schemes target believers in a system that rewards those who are willing to sacrifice and work hard in the hope of getting ahead,” said U.S. Attorney for the Southern District of Florida Wifredo Ferrer.  “In this particular case, the business opportunity fraud ventures were based in Costa Rica and targeted purchasers in the United States, including South Florida.  Today’s sentence will hopefully send a message to those who are contemplating engaging in schemes such as this that, no matter where you are, we will pursue and prosecute you and bring you to justice for these illegal schemes.”

Deevy was sentenced by U.S. District Court Judge Patricia A. Seitz in Miami to 60 months in prison and 5 years’ supervised release.  Deevy also was ordered to pay $4,541,914 in restitution.  Prior to Deevy’s sentencing today, 11 other individuals were charged in connection with related business opportunity fraud ventures based in Costa Rica.  Deevy is the ninth of those individuals to be convicted and sentenced in the U.S.

On April 11, Deevy pleaded guilty to one count of conspiracy, three counts of mail fraud and nine counts of wire fraud in connection with the business opportunity scheme.  Deevy was arrested in Costa Rica in 2011 and extradited to the U.S. in 2012 following his indictment by a federal grand jury in Miami on Nov. 29, 2011.  The indictment alleged that Deevy and his co-conspirators purported to sell greeting card and vending machine business opportunities, including assistance in establishing, maintaining and operating these businesses.  Each company operated for several months, and after one company closed, another one opened.

Co-conspirators at the companies made numerous false statements to potential purchasers of the business opportunities.  They indicated that purchasers likely would earn substantial profits; prior purchasers of the business opportunities were earning substantial profits; purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the companies worked with third party “locators” familiar with the potential purchasers’ areas who would secure, or had already secured, high-traffic locations for the prospective buyers’ merchandise display racks or machines.

In addition to these “locators,” the companies also employed various other types of sales representatives, including fronters, references and closers.  Fronters spoke to prospective purchasers when they initially contacted the company in response to an advertisement.  References told potential buyers that they had purchased one of the business opportunities and were making a profit.  Closers subsequently spoke to potential purchasers to finalize deals.  In pleading guilty, Deevy admitted that he was a fronter and reference for Cards-R-Us Inc., Premier Cards Inc. and Nation West.

“This investigation shows the resolve of the U.S. Postal Inspection Service to protect the American public from predatory business opportunity frauds,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division.  “We will continue to work with our law enforcement partners in the United States and overseas to root out these schemes.”

Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service.  The case was prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Alan Phelps with the Consumer Protection Branch of the U.S. Department of Justice’s Civil Division.

TWO FUGITIVE ALLEGED CHILD KIDNAPPERS LOCATED IN COSTA RICA

FROM: U.S. MARSHALS SERVICE

JUNE 17, 2013
Custody Battle Ends In Arrest
Two Fugitives Suspected of Child Kidnapping Found In Costa Rica

San Antonio, TX – Brandy Romano, 35, and Raymond Romano, 42, were arrested this past Friday evening by members of the Gulf Coast Violent Offenders Task Force (GCVOTF) in Houston, TX. Arrest warrants were issued for Brandy and Raymond Romano pursuant to an investigation by the San Antonio Police Department (SAPD), where it is alleged that Brandy and Raymond Romano committed 2 counts of child kidnapping.

Last month, the Lone Star Fugitive Task Force (LSFTF) was contacted by the SAPD for assistance in locating and apprehending Brandy and Raymond Romano. Task force officers initiated an investigation and determined that Brandy and Raymond Romano had previously fled to the Republic of Costa Rica. Task force officers coordinated investigative activities with the United States Marshals Service Investigative Operations Division and their Costa Rican law enforcement counterparts. Costa Rican authorities were able to locate and detain Brandy and Raymond Romano. Brandy and Raymond Romano, both United States citizens, were presented before a Costa Rican immigration judge and determined to have no legal status to remain in the country. Brandy and Raymond Romano were expelled from the Republic of Costa Rica and turned over to the custody of the United States Marshals Service. On Friday evening, Brandy and Raymond Romano were formally arrested by members of the GCVOTF in Houston, TX and transported to the Harris County Sheriff's Office Adult Detention Center.

Brandy and Raymond Romano are currently being held in custody without bond and awaiting transport to Bexar County.

On May 28, 2013, Brandy Romano was ordered by a judge in the 285th District Court to relinquish full custody of her two sons to their biological father, Thomas Walker. Instead of following court orders, Brandy Romano, along with the help of her current husband, Raymond Romano, allegedly kidnapped the two boys, crossed the Mexican border, and fled to the Republic of Costa Rica. Days later, Brandy and Raymond Romano were apprehended by Costa Rican Immigration authorities as they attempted to enter the country. Mr. Walker is currently coordinating with Costa Rican authorities for the safe return of the boys.

Robert Almonte, United States Marshal for the Western District of Texas, stated, "I am thankful for the assistance provided by our Costa Rican counterparts and relieved that both young boys were found quickly and will be returned to their father."

EIGHTH BUSINESS OPPORTUNITY FRAUDSTER SENTENCED IN COSTA RICA-BASED SCHEME

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, May 20, 2013

Eighth Individual Sentenced in Connection with Costa Rica-Based Business Opportunity Fraud Ventures

Sean Rosales, a dual United States and Costa Rican citizen, was sentenced today in connection with a series of business opportunity fraud ventures based in Costa Rica, the Justice Department and the U.S. Postal Inspection Service announced today. Rosales was sentenced by U.S. District Court Judge Ursula M. Ungaro in Miami to 97 months in prison and 5 years supervised release. Rosales was also ordered to pay more than $7.3 million in restitution.

On March 20, Rosales pled guilty to one count of an indictment pending against him, charging conspiracy to commit mail and wire fraud. Rosales was arrested in Chicago, Illinois late last year following his indictment by a federal grand jury in Miami on Nov. 29, 2011. The indictment alleged that Rosales and his co-conspirators purported to sell beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The charges form part of the government’s continued nationwide crackdown on business opportunity fraud.

Prior to Rosales’ sentencing today, eleven other individuals were charged in connection with business opportunity fraud ventures based in Costa Rica. Rosales is the eighth of those individuals to be convicted and sentenced in the United States.

"Many Americans dream of owning and operating their own small business, but fraud schemes such as the one perpetrated by this defendant can turn that dream into a nightmare," said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. "The Department of Justice will continue to be aggressive in prosecuting those who take advantage of innocent, hardworking Americans through business opportunity fraud."

Beginning in May 2005, Rosales and his coconspirators fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc., and Powerbrands Distributing Company. The business opportunities cost thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened. The various companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere.

Rosales, using aliases, participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, Rosales operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities.

The companies made numerous false statements to potential purchasers of the business opportunities, including that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers also were falsely told that the profits of some of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.

The companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to finalize deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser's merchandise display racks.

Rosales, using aliases, was a fronter for USA Beverages, a fronter and reference for Twin Peaks, a fronter and reference for Cards-R-Us, a fronter, locator and reference for Premier Cards, a locator for Coffee Man, and a locator for Powerbrands.

Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. USA Beverages was registered as a Florida and New Mexico corporation and rented office space in Las Cruces, N.M. Twin Peaks was registered as a Florida and Colorado corporation and rented office space in Fort Collins, Colo., and Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nev. Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia, and The Coffee Man was registered as a Colorado corporation and rented office space in Denver. Powerbrands was registered as a Wisconsin corporation and rented office space in Glendale, Wisconsin and Palm Beach Gardens, Fla.

"Fraudulent business opportunity sellers must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the fraudsters conduct their operations from abroad," said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. "Increased international law enforcement cooperation eliminates safe havens for those who seek to cheat Americans from overseas."

"The success of this investigation shows that the U.S. Postal Inspection Service is committed to working with the Department of Justice and our law enforcement partners, both foreign and domestically, to protect Americans from the predatory nature of business opportunity frauds," said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division.

Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service. The case was being prosecuted by Assistant Director Jeffrey Steger and trial attorney Alan Phelps with the U.S. Department of Justice Consumer Protection Branch.