Press Release
STUART RESIDENTS CHARGED IN FOREIGN CURRENCY TELEMARKETING SCHEME
July 1, 2008
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida, Michael E. Yasofsky, Jr., Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, announced the unsealing of a Criminal Information charging Frank DeSantis, 40, of Stuart, FL, with one count of conspiring to commit mail and wire fraud and one count of conspiracy to defraud the Internal Revenue Service (IRS). Also charged with one count of conspiracy to commit mail and wire fraud was Erin DeSantis, 33, of Stuart, FL. If convicted, each defendant faces a maximum term of imprisonment of up to five (5) years and a fine of up to $250,000 on each count in which they are charged. Both defendants surrendered this morning and will have their initial appearances in federal court before U.S. Magistrate Judge James Hopkins at the Federal Courthouse in West Palm Beach, FL.
The Information alleges that the defendants, along with others, operated, controlled, and had a financial interest in several investment and telemarketing rooms throughout South Florida. The Information charges that Frank DeSantis would knowingly operate and oversee these investment and telemarketing operations and cause others to make material misrepresentations regarding investment facts to potential investors, in order to convince them to invest in foreign currency options, known as "forex." The telemarketers would intentionally misrepresent that the rate of return on investments would be very high, with little risk of loss. Potential investors were not told, for example, that more than 95% of investors had lost money and that the National Futures Association had barred Frank DeSantis from acting as a broker. Through these misrepresentations, investors were defrauded out of millions of dollars from 2002 through 2005.
As well, the Information charges Frank DeSantis with conspiring to impede and obstruct the Internal Revenue Service by failing to report, account, and pay approximately $2,097,326 in income taxes during the tax years 2002 through 2005. Lastly, the Information also calls for the forfeiture of more than $ 8,500,000 in cash and assets seized by the government as part of the investigation.
Mr. Acosta commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division and Federal Bureau of Investigation in this long term international scheme. This case is being prosecuted by Assistant United States Attorney Jeffrey H. Kay of the Fort Lauderdale Office.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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