Keivy Chavez, Mail Fraud, North Carolina 2021

CHARLOTTE, N.C. – In a shocking turn of events, a federal court has issued a Temporary Restraining Order (TRO) against Keivy Chavez, Jhon F. Palacio, and Richard Diamond, Sr., as well as three of their companies, KC Promotions, TJ Ads, and CS Enterprises, to stop their alleged ‘get-rich-quick’ scheme.

The scheme, which has targeted thousands of victims across the United States, particularly the elderly, has resulted in significant financial harm to its victims. According to the complaint, the defendants made material misrepresentations and fraudulent statements through deceptive mass mailings in the form of chain letters and Internet advertisements, inducing victims to enroll in their fictitious ‘money-making’ programs.

The programs, including the ‘Cash and Gold Tycoon Program’ and the ‘MAJOR BUX! HUGE BUZZ!! Money Making Program,’ promised exponential profits in the form of cash, commission payments, gold coins, and silver bars. However, many victims relied on the defendants’ fraudulent misrepresentations and paid over $1,000 each to enroll in the programs, only to receive nothing in return.

Since February 2021, the defendants have sent thousands of unlawful mass mailings, and during the same time frame, the United States Postal Inspection Service (USPIS) has collected over 30 mailings, including enrollment applications and payments, addressed to KC Promotions, from victims residing in 18 states, including North Carolina.

The TRO entered today by the U.S. District Court bars the defendants and their companies from continuing to engage in such predatory schemes to prevent further harm to potential victims. In making today’s announcement, Acting U.S. Attorney Stetzer commended Postal Inspectors with USPIS for conducting this investigation.

The enforcement action is handled by Assistant U.S. Attorneys Katherine Armstrong and James B. Gatehouse, of the U.S. Attorney’s Office in Charlotte.

According to the complaint, the defendants’ efforts have resulted in significant financial harm to their victims. The Elder Justice Initiative, a program aimed at combating elder financial exploitation, also warns consumers about these types of fraudulent schemes, stating that they could be committing a federal crime.

The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a determination of liability.

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