Two men, Anthony Eugene Moulder and Abdou-Rahmane Diallo, have been sentenced to prison for their roles in a massive telemarketing fraud scheme that swindled over $300 million from elderly and vulnerable individuals across the United States. This operation, which lasted over two decades, involved 64 people and defrauded more than 150,000 victims.
The Scheme
- Modus Operandi: The fraudsters targeted older adults by posing as representatives from magazine subscription companies. They used deceptive tactics to trick victims into believing they owed money for subscriptions. In reality, the victims did not owe any money, and the scammers had no power to cancel existing subscriptions. The scheme involved fraudulent offers to reduce rates or cancel subscriptions, leading victims to make large lump-sum payments.
- Victims: Many of the victims were elderly, with some being charged over $1,000 monthly for magazine subscriptions they never needed or wanted. The scammers preyed on their desperation and fear, often threatening legal action if payments were not made.
Legal Actions and Sentencing
- Investigation: The FBI and U.S. Postal Inspection Service launched an investigation into the scheme in 2020, leading to 58 guilty pleas and several convictions. The investigation revealed that the defendants came from 14 states, Canada, and the Philippines.
- Sentences: Moulder, from Fort Myers, Florida, was sentenced to 10 years in prison for conspiracy to commit mail fraud. Diallo, who co-owned a Canadian company called Readers Services, was sentenced to 7.5 years for two counts of wire fraud. The scheme netted Diallo’s company alone $30 million from victims through a cancellation scam.
Impact on Victims
- Extent of Fraud: The defendants’ actions caused immense financial and emotional harm to their victims. Many victims were left in financial ruin, having been manipulated into paying large sums for services they never received.
- Recovery Efforts: The U.S. Attorney’s Office in Minnesota has created a webpage for victims to recover stolen funds and make impact statements. This is part of an ongoing effort to provide some measure of justice to those affected by the scam.
The case highlights the vulnerability of elderly individuals to fraudulent schemes and the lengths to which scammers will go to exploit them. The sentencing of Moulder and Diallo marks a significant step in holding those responsible accountable, but the damage done to the victims serves as a reminder of the need for vigilance and protection against such scams.