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Eight Million Dollar Boiler Room Scam Exposed
Five individuals were arrested and charged in connection with an $8.4 million boiler room fraud and money laundering scheme that preyed on victims worldwide.
The scheme, which lasted from at least June 2019 to August 2021, was led by ROBERT LENARD BOOTH, also known as Trevor Nicholas, who ran a boiler room operation in Thailand that lied to investors and told them the boiler room was in fact a Manhattan-based investment firm.
BOOTH and his co-conspirators propped up their lies with fake identities and false and misleading webpages, email addresses, and phone numbers. While purporting to sell investors from around the world securities in privately held and publicly traded American companies, BOOTH stole more than $1 million from victim-investors, depriving them of their savings.
The other defendants, Michael D'Urso, Alyssa D'Urso, Jay Garnock, and Antonella Chiaramonte, ran a network of shell companies and associated businesses that helped launder the proceeds of the fraud.
The charges against the five defendants include conspiracy to commit securities fraud and operate unlicensed money transmitting businesses, conspiracy to commit wire fraud, conspiracy to commit money laundering, and operation of unlicensed money transmitting businesses.
The case is assigned to U.S. District Judge Jed S. Rakoff.
BOOTH was arrested in August 2021 at John F. Kennedy International Airport and was previously indicted for his role in the scheme. The other defendants were arrested in Glen Cove, New York, and West Palm Beach, Florida, this morning.
The scheme is an example of how sophisticated international mass-marketing investment fraud schemes can prey on unsuspecting victims worldwide.
According to the indictment, BOOTH and his co-conspirators created fake marketing materials, fake contact information, and fake companies to dupe victim-investors and then laundered the funds for personal gain.
The indictment alleges that the scheme resulted in losses of over $8.4 million for the victim-investors.
The case is an example of how law enforcement agencies, including the IRS-CI and HSI, work together to track down perpetrators of financial crimes.
U.S. Attorney Damian Williams said, "Hiding behind fake investment firms and a network of shell companies, these defendants preyed on victims around the world and cheated them of their hard-earned savings."
HSI Tampa SAC John Condon said, "This case is an example of how HSI is uniquely positioned to disrupt transnational criminal organizations allegedly profiting from cross-border crime."
IRS-CI SAC Thomas Fattorusso said, "Criminals have become extremely sophisticated in preying on unsuspecting victims, and this alleged boiler room scheme is no exception."
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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