Eleven more people have pleaded guilty in a $300 million telemarketing fraud scheme dubbed the “magazine case,” which targeted the elderly, the U.S. attorney’s office announced Friday.
The FBI dismantled the network and in October charged 60 people for their roles in what authorities are calling the nation’s largest elder fraud scheme and the largest single conspiracy prosecution in Minnesota.
The 20-year-long scam used fake magazine subscriptions to fleece at least 150,000 victims from all 50 states.
The defendants would call victim-consumers who had one or more existing magazine subscriptions and offer to reduce the cost of an existing subscription. The defendants were tricking the victims into signing up for entirely new magazine subscriptions, which they did not want and often could not afford. This resulted in many victims being billed by several — even dozens — of magazine companies every month. Some were scammed out of hundreds or thousands of dollars. Other “mega victims” were scammed out of $50,000 or more.
Sixty defendants, who were indicted Oct. 27, pleaded guilty in U.S. District Court to one count each of conspiracy to commit mail fraud.
The following are the additional defendants who also pleaded guilty to one count each of conspiracy to commit mail fraud:
- Jannice Kristina Laur, 39, the manager of a telemarketing call center in Pompano Beach, Fla., was ordered to pay $100,000 in restitution.
- Vasean Berioisova Ricks, 53, a telemarketer at a call center in Oxford, Miss., was ordered to pay $15,000 in restitution.
- Jared Thomas Michelizzi, 37, the owner and operator of fraudulent magazine sales companies in Fridley, Minn., and San Diego was ordered to pay $22 million in restitution.
- James Anthony Sierra, 55, the manager of telemarketing call centers in Tempe, Ariz., was ordered to pay $100,000 in restitution.
- Daniel Mathias, 62, the owner and operator of an Oxford, Miss.-based company involved in fraudulent magazine sales, was ordered to pay $2.7 million in restitution.
- Lloyd Joseph Loftis, 60, the manager of a telemarketing call center in Cape Coral, Fla., was ordered to pay $50,000 in restitution.
- Corlos Kentrell Smith, 41, a telemarketer at a call center in St. Louis Park, Minn., was ordered to pay $15,000 in restitution.
- Irma Beatrice Timmerman, 47, an owner and operator of Arizona-based companies involved in fraudulent magazine sales, was ordered to pay $1.8 million in restitution.
- Ronald Ollo Coleman, 59, an owner and operator of Georgia-based companies involved in fraudulent magazine sales, was ordered to pay $1.8 million in restitution.
- John Michael Blalock, 53, the owner and manager of a fraudulent magazine sales company in Cape Coral, Fla., was ordered to pay $100,000 in restitution.
- Sharon Denise Mcewen, 54, a telemarketer at a cell center in Oxford, Miss., was ordered to pay $15,000 in restitution.
The U.S. attorney’s office has set up website containing additional information about the case, including information about how victims of the fraud scheme can submit claims for restitution.
The website is www.justice.gov/usao-mn/magazine-scam-victim-information.
This case is the result of an investigation conducted by the U.S. Postal Inspection Service and the FBI. Additional assistance was provided by the Treasury Inspector General for Tax Administration and the Minnesota attorney general’s office. Assistant U.S. Attorneys Joseph Thompson, Harry Jacobs and Melinda Williams are prosecuting the case.
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