April 5, 2007

Canadian man sentenced for telemarketing fraud

BOSTON - A Canadian man was sentenced late yesterday in federal court for his telemarketing fraud scheme, which preyed on American citizens.

United States Attorney Michael J. Sullivan and Bruce M. Foucart, special agent in charge of U.S. Immigration and Customs Enforcement's Office of Investigations in Boston, announced today that Canadian citizen David Chityal, 30, was sentenced by U.S. District Judge O'Toole to seven years imprisonment, to be followed by two years of supervised release. He was also ordered to pay restitution in the total amount of $2,480,710. On January 3, 2007, Chityal pleaded guilty to two counts of wire fraud.

"The imposition of this sentence, which was an upward deviation from the sentencing guidelines, is just punishment for the defendant and should help deter those who prey on the most vulnerable among our citizenry," stated U.S. Attorney Sullivan. "I would also like to thank the Royal Canadian Mounted Police for their cooperation and assistance in this investigation and prosecution."

At the earlier plea hearing, the prosecutor told the Court that had the case proceeded to trial, the Government's evidence would have proven that commencing in approximately September 2002, Chityal conducted a fraudulent telemarketing scheme from Canada that targeted victims in the United States, including Massachusetts. As part of his scheme, Chityal represented to his victims that they were entitled to recover a large sum of money in the form of prize winnings but would first have to pay taxes or fees as directed by Chityal. Chityal lulled his victims into believing his false representations by, among other things, sending them fraudulent document that purported to confirm his misrepresentations and by falsely posing as a bank security officer. Victims forwarded more than $2 million to Canada pursuant to Chityal's directives. No prize winnings existed and no monies were ever distributed to any of his victims.

"Telemarketing schemes like this are operated by individuals who, motivated by greed and self interest, seek to prey on the vulnerabilities of others," said Bruce M. Foucart, special agent in charge of ICE's Office of Investigations in Boston. “Financial crimes are not just crimes on paper. They victimize real people. ICE will continue to pursue those who devise plans to exploit our nation's laws and steal from U.S. citizens."

As part of his plea agreement with the government, Chityal also admitted that he attempted to arrange for the murder of a grand jury witness during the grand jury investigation into the telemarketing fraud to prevent that witness' testimony.

"We will continue to devote all the resources necessary to stop these predatory crimes," commented U.S. Attorney Sullivan. "Continuing to work in concert with Canadian law enforcement officials will ensure successful prosecution of such cases. Our citizens need to be vigilant in dealing with anyone who tells them they have won money and requires them to send money, in advance, in order to claim the prize."

Tips to Avoid Telemarketing Fraud - (Courtesy of AARP-Massachusetts)

Beware of anyone who asks you to send money or buy anything sight unseen, unless you are certain you are dealing with a reputable firm.

Never give out your credit card information over the phone.

Don't pay for a free prize.Free is free.

If a caller tells you the payment is for taxes on the prize, he or she has violated federal law.

Offering to send a messenger to pick up your payment is a clear sign of fraudulent activity.

Asking the caller to put the offer in writing rarely offers protection to the consumer. It often leads to credible-looking letters that in the consumer's mind seem to legitimize what in fact is a bad deal.

U.S. Immigration and Customs Enforcement investigated the case with assistance from the Royal Canadian Mounted Police. Assistant U.S. Attorney Lori J. Holik in Sullivan's Economic Crimes Unit prosecuted it.

-- ICE --

U.S. Immigration and Customs Enforcement (ICE) was established in March 2003 as the largest investigative arm of the Department of Homeland Security. ICE is comprised of five integrated divisions that form a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities.

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