21 Charged with Alleged International Internet-Based Fraud Scheme

CHICAGO Federal fraud charges were unsealed on December 12 against 21 defendants who allegedly participated in an international fraud scheme in which victims were led to believe that they were purchasing items that were listed for sale on the Internet, typically via auctions on eBay, but then did not receive the goods that they paid for. Altogether, the defendants and others allegedly illegally obtained more than $5 million, which was collected mostly in the Chicago area over the last three years from more than 2,000 victims from across the United States and abroad as part of an Internet-based scheme that originated in Romania. Of the 21 defendants, 8 were arrested in the Chicago area, while 5 others were already in custody, one will surrender later, and the remaining 6 are fugitives, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois. Each of the 21 defendants was charged with one count of wire fraud in a complaint that was filed December 11 and unsealed on December 12. Those arrested in the Chicago area were scheduled to appear beginning at 2:15 p.m. December 12 before U.S. Magistrate Judge Maria Valdez in U.S. District Court in Chicago. Anyone who believes they may have been a victim in this matter may e-mail inquiries to usailn.victim.witness@usdoj.gov please include your name, address and phone number, the 10 digit Western Union Money Transfer Control Number (MTCN), the amount transmitted, the date the funds were provided and the name of the individual to whom the funds were sent. Victims may also call a toll-free hotline number for updates about the case (866) 364-2621. The law enforcement agencies investigated a large volume of complaints and reviewed records from Western Union and currency exchanges of more than 2,000 wire transfers of funds believed to be related to the alleged fraud scheme between November 2003 and August 2006. Generally, victims who bid unsuccessfully on items were led to believe that they were being given a "second-chance" to purchase items and were instructed over the Internet to send money via Western Union to be picked up by the seller or the seller's agent, generally in the Chicago area. The fraudulent Internet solicitations allegedly originated from, and a substantial portion of the proceeds typically 50 to 70 percent were transmitted to, unidentified co-schemers located outside the United States, most believed to be living in Romania, according to the complaint affidavit. The government is being represented by Assistant U.S. Attorneys Brian Hayes and Steve Dollear. If convicted, each defendant faces a maximum penalty of 20 years in prison and a $250,000 fine. The Court also must order restitution, and it would determine the appropriate sentence to be imposed under the United States Sentencing Guidelines. The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.