Securities Industry Commentator by Bill Singer, Esq

November 23, 2017

District Court Enters Permanent Injunctions Shutting Down Two Groups of International Defendants Responsible for Multi-Million Dollar Mail Fraud Schemes (DOJ Press Release) The Department of Justice obtained consent decrees in two civil actions against 14 individuals and entities that had operated international mail-fraud schemes that preyed on elderly victims and other vulnerable consumers. As set forth in the DOJ Press Release:

Both schemes followed a similar pattern, involving a complicated web of actors located across the world.  Fraudulent "direct mailers" created letters falsely claiming that the recipient has won, or will soon win, cash or valuable prizes, or otherwise will come into good fortune.  In order to collect these benefits, the letters say that the recipients need only send in a small amount of money for a processing fee.  The letters appeared to come from legitimate sources, typically on official-looking letterhead, but were in fact fictitious individuals and organizations including "Baroness de Rothman," "DNF Funds Office," "Finkelstein & Partner," the "Harrison Institute," and Marie de Fortune.  Moreover, even though the solicitations are in reality identical form letters sent to thousands or tens of thousands of recipients - the letters appear to be personally addressed.