Three Plead Guilty to Shaking Down Investors Connected to $40 Million Ponzi Fraud

February 9, 2010 - SACRAMENTO, CA—United States Attorney Benjamin B. Wagner, FBI Special Agent-in-Charge Drew Parenti, and IRS-Criminal Investigation Special-Agent-in-Charge Scott O’Briant announced today that, on February 5, 2010, CRAIG ANDERSON, 39, of Chicago, pleaded guilty to conspiracy to impersonate an officer and employee, and CASSANDRA MOORE, 26, of Beverly Hills and SEAN SMARTT, 41, of Sacramento, pleaded guilty to unlawfully possessing false documents, a misdemeanor. A fourth defendant, MICHAEL DAVID SANDERS, 41, of Fair Oaks, is confirmed to begin trial on March 1, 2010.

This case is the product of a joint investigation by the FBI and the IRS-Criminal Investigation.

According to Assistant United States Attorney Robin R. Taylor, who is prosecuting the case, the defendants admitted that they attempted to recover funds for investors who lost money in a Ponzi investment fraud scheme carried out by ANTHONY VASSALLO. VASSALLO has been charged in a separate indictment filed on April 16, 2009, with mail fraud, wire fraud, and money laundering. He has pleaded not guilty. On March 8, 2009, three hedge fund operators were invited to a meeting in a Folsom office purportedly to meet a wealthy investor. The meeting was fictitious. Once the individuals were inside the office, ANDERSON tapped on the window with an identification badge to gain entry. SANDERS, ANDERSON, MOORE, and SMARTT entered, wearing bulletproof vests, earpieces, and credentials falsely bearing identification information and the authentication feature of the United States. They carried handcuffs, badges, and some carried radios and appeared to be armed leaving the impression that they were federal law enforcement agents.

The defendants admit that SANDERS and ANDERSON paced around the office, exposed their weapons, and blocked the entrances and exits of the office suite. One of the coconspirators told the hedge fund operators that the defendants were there to collect funds taken from the Equity Investment Management, and Training Inc. (EIMT) account on behalf of fraud victims. ANDERSON told the hedge fund operators that they had until noon on Monday, March 9, 2009, to wire $378,300.16 to a Patelco Credit Union account in the name of the “Spirit Foundation” and to send an e-mail confirmation. The defendants left a sheet of paper with the wiring instructions, routing number, account number, bank name, amount, and an e-mail address.

Sentencing for ANDERSON is set for April 27, 2010, before U.S. District Judge John A. Mendez. He faces up to five years in prison for the conspiracy charge. SMARTT and MOORE are set to be sentenced on April 25 and 26, respectively before U.S. District Judge Gregory G. Hollows. They face up to one year in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.