In a shocking case of exploitation, 19 defendants have been charged with participating in a massive telemarketing scam that targeted the elderly and swindled over $20 million in sales. The Phoenix-based telemarketing enterprise, which operated under multiple business names and entities, sold false and fictitious business opportunities to unsuspecting victims across the United States and Canada.
The indictment, which includes charges of conspiracy to commit mail, wire and bank fraud, wire fraud, mail fraud, bank fraud, money laundering, and conspiracy to commit money laundering, was returned in October 2016 and superseded last month with additional charges against 10 defendants. The defendants, including Michael McNeill, Joshua Flynn, Timothy Murphy, Shawn Casey, Thomas Silha, Jennifer Hansen, Dean Miller, Michael Silver, John Balleweg, Donald Schnock, Ashley Powell, Scott Shocklee, Jason Gallagher, Andre Devoe, Bruce Doll, Anthony Swiantek, Philip Hale, Cybill Osterman, and Brian Phillips, are scheduled to be arraigned today by Magistrate Judge Shirley Padmore Mensah.
According to the indictment, the telemarketing scheme generated over $20 million in sales, with the defendants using multiple business entities, including Smart Business Pros LLC of Warson Woods, Missouri, to carry out their scheme. The victims of the scam were often elderly individuals who were targeted with false promises of business opportunities and investment returns.
If convicted of wire fraud or mail fraud in connection with telemarketing, a defendant faces up to 30 years in prison, a fine of $250,000, or both. If convicted of conspiracy to commit money laundering, a defendant faces up to 20 years in prison, a fine of $500,000, or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Office of the Arizona Attorney General, United States Postal Inspection Service, IRS Criminal Investigation, and the Federal Bureau of Investigation. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The U.S. Attorney’s Office has worked tirelessly to bring this case to justice, and it is a testament to their dedication that these defendants are facing charges for their alleged crimes. The elderly and vulnerable members of our community deserve to be protected from scams and exploitation, and we will continue to work to hold those responsible accountable.
Related Federal Cases
- Timothy Murphy, ‘Mr. Black,’ Pleads Guilty in $20M Telemarketing Scam · Arizona
- Michael McNeill, Joshua Flynn Sentenced in $20M Telemarketing Scam · Arizona
- Western Union Scam · Washington
- 23andMe Faces Legal Fire for Genetic Data Sale · Washington
- 23andMe Faces Lawsuit for Selling Genetic Data · Washington
Key Facts
- State: Missouri
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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