Four executives of 91原创-based payment processor PacNet were charged Thursday in the U.S. with mail fraud and money laundering over their alleged role in worldwide direct-mailing scams.
The U.S. Department of Justice announced the criminal charges in the District of Nevada against Rosanne Day, 51, a 91原创 resident; Robert Paul Davis, 63; Genevieve Renee Frappier, 49; and Miles Kelly, 55.
Day and David were part-owners and the top managers of PacNet Services Ltd. Frappier was in charge of PacNet鈥檚 marketing and client services departments, and Kelly oversaw PacNet鈥檚 compliance department, according to the indictment.
Each were charged with one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit money laundering, and multiple counts of mail fraud and wire fraud.
鈥淭he defendants are charged with enriching themselves by helping fraudsters who took money from elderly and otherwise vulnerable victims,鈥� said Assistant Attorney General Jody Hunt for the Department of Justice鈥檚 civil division, in announcing the charges.
鈥淭he United States Department of Justice will seek to hold accountable those who knowingly advance elder fraud schemes 鈥� including individuals outside our borders who enable fraudsters to move their ill-gotten gains into the banking system and benefit from their crimes,鈥� said Hunt.
In an emailed statement, PacNet called the indictment factually flawed and vowed to fight the charges.
鈥淭he allegations are focused on a small portion of PacNet鈥檚 business that PacNet voluntarily exited prior to any action by the United States.鈥�
PactNet wrote, 鈥渢he indictment further ignores the fact that the U.S. Justice Department has submitted evidence and has relied upon the effectiveness of PacNet鈥檚 compliance program in other cases to prove that certain PacNet clients actively deceived PacNet to evade its compliance program.鈥�
Each charge carries a maximum penalty of 20 years in prison. The indictment contains only accusations against the defendants and have not been tested in court.
From 1994 until Sept. 22, 2016, PacNet processed payments for a variety of clients 鈥� including mass-mail clients 鈥� who sent fraudulent notifications to consumers in the United States and around the world, according to the U.S. indictment. Several individuals involved in operating mass-mail companies that processed payments through PacNet have been convicted of federal fraud charges during the last two years.
The indictment alleges that the defendants knew that multiple PacNet mass-mail clients obtained payments from victims through fraudulent notifications and nonetheless approved depositing those payments into U.S. bank accounts, allowing the clients to benefit from the fraud. Day, who was in charge of PacNet鈥檚 91原创 headquarters, and Davis, who oversaw PacNet鈥檚 office in Shannon, Ireland, each earned approximately $15 million in 91原创 dollars from 2013 through 2015, the last three full years that PacNet was in operation, according to the indictment.
The 91原创 Police Department, which assisted in the investigation, welcomed the news of the U.S. charges.
鈥淭oday鈥檚 indictments mark an important development in slowing down transnational money laundering,鈥� said Cita Airth, 91原创 police superintendent, investigative services.
PacNet and some of its players, including Day, are the subject of a B.C. Civil Forfeiture Office case attempting to confiscate as proceeds in crime $15.5 million in properties in 91原创, West 91原创 and Keats Island plus money in bank accounts.
PacNet and its principals have denied all allegations in that civil suit, saying that at no time has PacNet knowingly processed payments for any promotion known or found to be fraudulent.
PacNet听came to international attention suddenly听in September 2016 when the U.S. government identified PacNet听as a 鈥渟ignificant听criminal听organization鈥� that听allegedly听worked for 20 years with 鈥渄irect mailer鈥� scammers to launder millions of dollars听defrauded听from numerous vulnerable听victims.
The designation landed PacNet on a list that included drug cartels and mobsters 鈥� and almost immediately shut down PacNet鈥檚 worldwide business, including operations in Ireland, the United Kingdom and subsidiaries or affiliates in 15 other countries, because its reputation was 鈥渟hattered,鈥� the company has said in court documents.
By late 2017, the significant criminal organization designation听had been removed听by the U.S. Treasury Department for the company and the 12 people who had been listed.
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