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According
to trial
testimony, one
elderly victim
who indicated
she was going
to stop paying
was warned by
a conspirator
that they knew
where she and
her family
lived.
/ A.M. Costa Rica wire
services photo.
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Two
Costa Rican
residents
sentenced to
lengthy prison
terms
in connection
with $10
million
international
telemarketing
scheme
|
By
the A.M. Costa Rica
staff
The U.S. Department of Justice
reported that, two individuals
from Costa Rica were sentenced
to 25 and 20 years in prison
today for their roles in a $10
million telemarketing scheme
that defrauded primarily
elderly victims in the United
States from call centers in
Costa Rica.
Assistant Attorney General
Brian A. Benczkowski of the
Justice Department’s Criminal
Division, U.S. Attorney R.
Andrew Murray of the Western
District of North Carolina,
Inspector in Charge David M.
McGinnis of the U.S. Postal
Inspection Service’s Charlotte
Divison, Acting Special Agent
in Charge William Cheung of
the IRS Criminal
Investigation’s (CI)
Cincinnati Field Office and
Special Agent in Charge John
Strong of the FBI’s Charlotte
Field Office made the
announcement.
The two men are surnamed
Smith, 46 years old and Lee
Griffin, 45 years old, both of
San Jose, Costa Rica, were
sentenced by U.S. District
Judge Robert J. Conrad of the
Western District of North
Carolina to 25 years and 20
years in prison,
respectively.
Judge Conrad also ordered
Smith to pay $10,222,838.76 in
restitution to be paid jointly
and severally with his
co-conspirators and forfeit
$406,324.96.
Griffin was ordered to pay
$9,612,590.39 in restitution
to be paid jointly and
severally with his
co-conspirators and forfeit
$182,439.
Following a three-day jury
trial in February 2018, Smith
and Griffin were each
convicted of one count of
conspiracy to commit wire
fraud, eight counts of wire
fraud, one count of conspiracy
to commit money laundering,
and seven counts of
international money
laundering.
“Smith and Lee Griffin
participated in a deplorable
scam to defraud hard-working
elderly Americans out of
millions of dollars,” said
Assistant Attorney General
Benczkowski. “The severe
sentences imposed today
represent a significant
victory in our continuing
efforts to fight elder fraud
and protect some of the most
vulnerable members of the U.S.
public. These sentences
should serve as a strong
deterrent to anyone seeking to
enrich themselves by taking
part in similar scams.”
“Smith and Griffin used
shameless tricks and brazen
lies to convince victims their
dream of financial security
had come true.
That dream soon turned
into a devastating nightmare,
one that took a financial and
emotional toll on the victims,
many of whom were elderly,”
said U.S. Attorney
Murray. “The depravity
of this scheme is reflected in
the sentence handed down to
these two criminals, for it
takes a special kind of
wickedness to steal from the
elderly. Today’s
sentence also underscores our
commitment to stopping
financial scams and holding
offenders accountable for
their actions, no matter where
they are.”
“We are proud to work
alongside our federal law
enforcement partners in
efforts to target those
individuals who take advantage
of the American public,
especially our vulnerable
older Americans, for illegal
profits,” said Inspector in
Charge McGinnis. “Anyone who
engages in deceptive practices
like this should know they
will not go undetected and
will be held accountable,
regardless of where they are.”
“Quite simply, the conduct in
this case is egregious. This
investigation uncovered a
fraudulent telemarketing
scheme that generated millions
of dollars through a web of
financial lies that preyed on
countless elderly victims, all
so these defendants could line
their pockets with stolen
money,” said IRS-CI Acting
Special Agent in Charge
Cheung. “These types of
investigations are often
solved most efficiently
through a multiple-agency
approach to crime fighting.”
“Years ago, our parents taught
us not to talk to
strangers. Their advice
has proven to be timeless,”
said FBI Special Agent in
Charge Strong.
“Strangers are reaching
out to us on social media,
sending us emails, calling our
homes and cell phones.
If you fall for a scam, you
can bet your life, they will
call you again. They
might have a different sales
pitch or a sob story, but they
are the same crooks.
These prison sentences should
serve as a warning to the
thieves, the FBI and our law
enforcement partners will work
tirelessly to find you and put
you out of business for good.”
According to evidence
presented at trial, both Smith
and Griffin worked in a call
center in Costa Rica in which
conspirators, who posed as
representatives of the U.S.
Securities and Exchange
Commission and the Federal
Trade Commission (FTC),
contacted victims in the
United States to tell them
that that they had won a
substantial “sweepstakes”
prize.
After convincing victims, many
of whom were elderly, that
they stood to receive a
significant financial reward,
the conspirators told victims
that they needed to make a
series of up-front payments
before collecting their
supposed prize, purportedly
for items like insurance fees,
taxes and import fees.
Conspirators used a variety of
means to conceal their true
identities, such as Voice over
Internet Protocols, which made
it appear that they were
calling from Washington, D.C.,
and other places in the United
States.
According to trial testimony,
one elderly victim who
indicated she was going to
stop paying was warned by a
conspirator that they knew
where she and her family
lived.
Smith and Griffin arranged for
victims to transmit payments
through international wire
transfers directly to Costa
Rica or through “runners,” who
collected money from victims
in the United States and
forwarded payment to Smith,
Griffin and others in Costa
Rica, according to evidence
presented at trial.
Runners dispatched by Smith
and his co-conspirators met
elderly victims at their homes
to collect bags of cash, which
they in turn remitted to Costa
Rica, the evidence showed.
Smith, Griffin and their
conspirators stole more than
$10 million from victims, the
evidence
showed.
This case was investigated by
the U.S. Postal Inspection
Service, IRS-CI and the FBI,
with assistance from the FTC
and U.S. Immigration and
Customs Enforcement’s Homeland
Security Investigations.
The case is being prosecuted
by Trial Attorneys William
Bowne and Jennifer Farer and
Assistant Chief Anna Kaminska
of the Criminal Division’s
Fraud Section.
The U.S. Attorney’s Office
for the Western District of
North Carolina provided
substantial assistance with
this matter.
The Criminal Division’s
Office of International
Affairs, U.S. Department of
State’s Diplomatic Security
Service and Bureau of Consular
Affairs, along with government
authorities in Costa Rica,
provided critical assistance
with the extradition of these
defendants.
The original report on this
case can be reached at U.S.
Department of Justice
link*
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Have you ever heard about telemarketing scheme crime in
Costa Rica?
We
would like to know your thoughts
on this story. Send your comments
to: news@amcostarica.com
*Link to reach the place map.
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