Federal Trade Commission (FTC)

Most recent update: 4/20/10 (See end of document)

U.S. v. Carol Aronowitz, Case No. 09-000045-CR (SD FL)

U.S. v. Jeffrey Burns, Case No. 09-60043-CR (ND TX)

U.S. v. Bradley Cartwright, Case No. 08-60286-CR (SD FL)

U.S. v. David Johnson, Case No. 09-000154-CR (SD FL)

U.S. v. Paul Stephen Pemberton, Case No. 07-60264-CR (SD FL)

12/17/07 Update:

On December 14, Paul Pemberton pled guilty to conspiracy to commit mail fraud in connection with business opportunity sales at TransNet Wireless Corp. According to the Information, TransNet purported to sell Internet kiosks, along with assistance in establishing, maintaining, and operating an Internet kiosk business. For a purchase price of roughly $14,000, potential TransNet purchasers were told that they would receive an Internet kiosk/“wi-fi” base station, plus assistance operating the business opportunity. According to TransNet, a business opportunity purchaser would earn substantial profits from the commissions generated when members of the public used the purchasers’ Internet kiosk and from national advertisements placed on the kiosks once a certain base number of units were in operation. See Justice Department Press Release, 11/5/07, regarding this and other related cases.

1/9/08 Update:

The sentencing for Paul Pemberton has been scheduled for February 22, 2008, at 11:00 a.m. before Judge James Cohn in Courtroom 203-E, at the United States Courthouse, 299 East Broward Boulevard, Fort Lauderdale, FL.

9/16/08 Update:

On February 22, 2008, Paul Pemberton was sentenced to 136 months incarceration in connection with his guilty plea to conspiracy to commit mail fraud at the business opportunity, TransNet Wireless Corp. TransNet purported to sell Internet kiosks, along with assistance in establishing, maintaining, and operating an Internet kiosk business. For a purchase price of roughly $14,000, potential TransNet purchasers were told that they would receive an Internet kiosk/“wi-fi” base station, plus assistance operating the business opportunity. According to TransNet, a business opportunity purchaser would earn substantial profits from the commissions generated when members of the public used the purchasers’ Internet kiosk and from national advertisements placed on the kiosks once a certain base number of units were in operation. Transnet victimized approximately 850 people. The Court subsequently ordered restitution in the amount of $7.77 million.

4/1/09 Update:

On November 20, 2008, Bradley Cartwright pled guilty to conspiracy to commit mail and wire fraud and is scheduled to be sentenced by United States District Court Judge Daniel Hurley on April 3, 2009, at 9:30 a.m., at the United States District Courthouse in West Palm Beach,  FL.  Cartwright was the president and co-founder of TransNet.  On February 19, 2009, a federal grand jury in the Southern District of Florida indicted Nationwide Cyber Systems reference Carol Aronowitz, charging her with conspiracy to commit mail and wire fraud.  Aronowitz's trial is scheduled to begin on April 20, 2009, before United States District Court Judge Kenneth A. Marra on April 20, 2009, at the United States District Courthouse in West Palm Beach,  FL. on February 24, 2009, Nationwide reference Jeffrey Burns pled guilty to criminal conspiracy and is scheduled to be sentenced by United States District Court Judge Sam A. Lindsay on May 18, 2009, at 1:30 p.m., at the United States District Courthouse in Dallas, TX.

4/20/10 Update:

On June 30, 2009, Jeffrey Burns was sentenced to 18 months’ imprisonment, two years supervised release and $802,305.48 in restitution.

Under federal law restitution is ordered in criminal cases, in general, on the basis of losses a defendant causes and without regard to the defendant's ability to pay the restitution. See 18 U.S.C. 3664 (f)(1)(A), which provides: "In each order of restitution, the court shall order restitution to each victim in the full amount of each victim's losses as determined by the court and without consideration of the economic circumstances of the defendant." Any payments made by the defendant will go to the Court and will then be shared among victims. Any amount due a victim shall be reduced by any amount the victim recovers for the same loss from any other source. If you have any questions regarding the restitution order, please contact the Federal Probation Office of the Northern District of Texas.

On November 18, 2009, David Johnson was sentenced to 42 months’ imprisonment, three years supervised release and $1,207,527.68 in restitution.

Under federal law restitution is ordered in criminal cases, in general, on the basis of losses a defendant causes and without regard to the defendant's ability to pay the restitution. See 18 U.S.C. 3664 (f)(1)(A), which provides: "In each order of restitution, the court shall order restitution to each victim in the full amount of each victim's losses as determined by the court and without consideration of the economic circumstances of the defendant." Any payments made by the defendant will go to the Court and will then be shared among victims. Any amount due a victim shall be reduced by any amount the victim recovers for the same loss from any other source. If you have any questions regarding the restitution order, please contact the Federal Probation Office of the Southern District of Florida.

Carol Aronowitz’s trial is currently scheduled for July 12, 2010.