ICE agents return more than $3,500 to victim of telemarketing fraud

CHICAGO - Special agents with U. S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) returned $3,561.17 on Friday to an elderly victim of telemarketing con artists operating from Canada.

The money was returned April 15 to a 72-year-old resident of Downers Grove, Ill., following a multi-agency investigation under a joint U.S.-Canada initiative called "Project COLT." Although there are many variations to the scam, in this case the callers told the elderly man that he had won a $1 million lottery prize, but he had to pay fees and service charges to be able to collect the fictitious winnings. This victim, who wishes to remain anonymous, lost about $30,000 of his savings to the scam artists over the past two years.

ICE HSI special agents warn that con artists often pose as lawyers, customs officials, police officers or lottery company officials to scam their victims out of millions of dollars.

Project COLT was formed in 1998 to identify, disrupt and dismantle telemarketing fraud operations in the United States and Canada. Project COLT members include the following law enforcement agencies: ICE HSI, the Royal Canadian Mounted Police, Surete du Quebec (Quebec Provincial Police), Montreal Police, the FBI, and the U.S. Postal Inspection Service (USPIS).

"Don't fall prey to unscrupulous scam artists," said Gary Hartwig, special agent in charge of ICE HSI in Chicago. "Together with our law enforcement partners, ICE will do our best to put this criminal enterprise out of business. However, the best defense to this scam is to be very suspicious of anyone who asks for money up front so you can collect a lottery prize."

Fraudulent telemarketers often instruct their victims to pay for service charges, federal or provincial taxes, customs duties, handling, insurance or other charges. Victims are told to send the funds via mail, courier or wire-transfer companies, such as Western Union or MoneyGram. Scammers are often able to then receive the transferred funds using false identification. Con artists frequently pose as government officials to convince their victims to send money.

Project COLT includes a unit of officers who intercept funds and work to prevent further victimization through public education. They also investigate these cases to bring to justice those who commit the fraud. Project COLT intercepts about $1 million annually. These funds are returned to victims who are instructed how they can avoid future victimization.

Project COLT members have formed partnerships with the Canada Border Services Agency, Canada Post Corporation, Federal Express, Purolator, UPS, DHL and other companies to assist with intercepting and returning funds to the victims.

ICE encourages the public to report suspected telemarketers or fraudulent activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators.

ICE and CBP release 2010 report on counterfeit seizures

WASHINGTON - Today, U.S. Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP) announced that in fiscal year 2010 their continuing commitment to fight the trade in stolen intellectual property yielded 19,959 seizures, a 34 percent increase over 2009 numbers. Seizures of products that could have harmed consumers, vital infrastructure and national security soared 97 percent over the previous year, and accounted for 23 percent of all Intellectual Property Rights (IPR) seizures by domestic value.

The total domestic value of the fake goods seized in fiscal year 2010 totaled $188.1 million, the estimated manufacturer's suggested retail price, the value the goods would have had if they had been the real thing totaled $1.4 billion.

"Fiscal year 2010 was a very successful year for the ICE-led Intellectual Property Coordination Center and our law enforcement partners," said ICE Director John Morton. "The protection of intellectual property is a top priority for Homeland Security Investigations, as counterfeit products represent a triple threat by delivering shoddy and sometimes dangerous, goods into commerce, by funding organized criminal activities and by denying Americans good-paying jobs. The IPR Center will continue to strengthen its efforts in 2011 in order to keep counterfeit products off our streets."

"The risks of counterfeit products go beyond damaging the reputation of a name on a label; consumers can put their health, or even their lives, at risk when they purchase seemingly harmless items such as medicines, perfume and holiday lights. Ultimately, the cost of purchasing a fake product is much greater than the savings and may result in catastrophic consequences," said CBP Commissioner Alan Bersin.

Trade in counterfeit and pirated goods poses significant threats to the United States innovation-based economy, the competitiveness of our businesses, the livelihoods of U.S. workers, and in some cases, national security and the health and safety of consumers.

China continues to be the number one source country for counterfeit and pirated goods seized, accounting for 66 percent or $124.6 million of the total domestic value of seizures.

For the fifth year in a row, footwear was the top product seized, accounting for more than 24 percent of the entire domestic value of IPR-infringing goods.

The top 10 categories of IPR-infringing products seized were footwear, consumer electronics, wearing apparel, handbags/wallets, optical media, computers/hardware, cigarettes, watches/parts, jewelry, and pharmaceuticals.

As the largest investigative arm of the Department of Homeland Security, ICE plays a leading role in targeting criminal organizations responsible for producing, smuggling, and distributing counterfeit products. ICE focuses not only on keeping counterfeit products off our streets, but also on dismantling the criminal organizations behind such illicit activity.

As the federal agency responsible for the management, control and protection of U.S. borders, CBP is on the frontline of IPR enforcement. The men and women of CBP protect our nation's economy, the safety of its people, and our national security against harm from counterfeit and pirated goods. The continued vigilance of CBP personnel protects United States citizens and businesses every day.

The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. The IPR Center is led by ICE's Homeland Security Investigations (HSI) and includes partners from CBP; the FBI; the Department of State; the Food and Drug Administration; the Postal Inspection Service; the Department of Commerce; the Naval Criminal Investigative Service; the Defense Logistics Agency; the Defense Criminal Investigative Service; the Army Criminal Investigative Command; the General Services Administration; the Consumer Product Safety Commission; INTERPOL; the Royal Canadian Mounted Police; and the Government of Mexico Tax Administrative Service.

The IPR Center allows law enforcement and the private sector jointly to address the growing transnational problem of counterfeit products. The IPR Center coordinates outreach to U.S. rights holders and conducts domestic and international law enforcement as well as coordinates and directs anti-counterfeiting investigations.

Canadian Fugitives Arrested for Complex Lottery/Sweepstakes Scam

RALEIGH—United States Attorney George E.B. Holding announced that earlier this month two of three defendants were arrested and extradited from Canada. On March 8, 2011, CLAY ATKINSON, and DAVID STEWART, Canadian citizens residing in Montreal, Quebec, Canada, appeared before United States Magistrate Judge James E. Gates for Initial Appearances. The remaining defendant, JAMAAL MCKENZIE, is pending extradition from Canada to the Eastern District of North Carolina as well.

A Federal Grand Jury returned a 35-count Criminal Indictment on March 5, 2008, charging all three defendants with conspiring to commit offenses against the United States, in violation of Title 18, United States Code, Section 371; wire fraud, in violation of Title 18, United States Code, Section 1343; mail fraud, in violation of Title 18, United States Code, Section 1341; and interstate transportation of stolen property, in violation of Title 18, United States Code, Section 2314.

According to the Indictment, from December, 2004, the defendants targeted victims who resided in the United States. The defendants, using fictitious names, false government titles and company names, would call the elderly victims convincing them that they had “won” a large sum of money from a lottery or sweepstakes. The defendants, posing as officials of government agencies, such as the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Customs, promised that upon payment of “fees” or “taxes” the victims would be awarded large cash prizes.

The Indictment further alleges that the defendants coordinated the complex scheme by persuading victims to provide money, checks, and goods, via the United States mail or commercial carriers, to the defendants. The money, checks, and goods totaled more than $900,000.

The maximum penalties are as followed: For the conspiracy charge, up to five years’ imprisonment; for each count of mail fraud and wire fraud, up to 30 years’ imprisonment; and for interstate transportation of stolen property, up to ten years’ imprisonment.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.

Investigation of this case was conducted by the Federal Bureau of Investigation and the Royal Canadian Mounted Police. Assistant United States Attorney J. Gaston B. Williams represents the United States in this matter.

ICE agents return over $8,400 to victim of telemarketing fraud

CLARKSVILLE, Tenn. - A Tennessee resident received more than $8,400 from special agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) on Wednesday, following a joint investigation against fraudulent telemarketers.

The investigation was part of a multi-agency, U.S-Canada initiative called, "Project COLT."

Although there are many scam variations, in these cases, the callers fraudulently represented themselves as lottery officials. The scammers would tell unknowing or elderly victims they had won the lottery and must pay fees and service charges to be able to collect their fictitious winnings.

According to ICE HSI special agents, the con artists often pose as lawyers, customs officials, police officers or lottery company officials, in order to bilk their victims out of millions of dollars.

"This case is a good example of the outstanding cooperation between HSI and the Royal Canadian Mounted Police," said Raymond R. Parmer, Jr, special agent in charge of ICE HSI in New Orleans. "Because of this cooperation, fraudulent telemarketers and other criminals are discovering how difficult it is for them to hide their illegal activities from authorities. We are dedicated to identifying and dismantling these types of criminal operations wherever and whenever we find them."

Since its inception in 1988, Project COLT has seized and returned more than $25 million to U.S. and Canadian victims of telemarketing fraud. Furthermore, ICE HSI has initiated numerous complex criminal investigations due to Project COLT efforts, resulting in 26 U.S. grand jury indictments and 161 U.S. and Canada-based arrests. In addition, Canadian law enforcement authorities have executed more than 50 search warrants and shut down 44 Western Union branch offices involved in telemarketing fraud conspiracies.

Many people are unaware of how complex these telemarketing schemes can be and how official looking presentations may lead individuals to believe there is an actual offer and a legal chance to win. Letters and phone calls may appear to be legitimate, as the telemarketers may know a lot of information about citizens and their families.

Many Americans don't know they have been duped until special agents return a portion of the funds that were seized in the fraudulent telemarketing scheme.

Telemarketing fraud has become one of the most pervasive forms of white-collar crime in Canada and the United States, with annual losses in both countries in the billions of dollars. These criminal organizations are heavily involved with international and violent organized crime, including the Hell's Angels motorcycle gang and, as such, represent a significant assault on the U.S. homeland and upon the financial security and livelihood of its citizens.

ICE HSI special agents work diligently to promote public safety and national security by protecting the revenue of the United States, tracing various money trails leading into and out of the country, interdicting illicit drugs, preventing the export of U.S. military munitions/equipment and high technology items to embargoed countries, deterring illegal immigration, preventing immigration-related crimes and removing criminals who are unlawfully present in the United States.

ICE HSI special agents recommend that anyone with questions about telemarketing offers should contact their local police department and/or ICE HSI, to prevent becoming a victim of fraud.

Ringleader of international drug trafficking organization sentenced

PHILADELPHIA - Phuong Thi Tran, 39, of Mississauga, Ontario, Canada, was sentenced on August 24 to 70 months in prison for her role in two drug trafficking conspiracies, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, United States Attorney for the Eastern District of Pennsylvania Zane Memeger, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade and Director of U.S. Immigration and Customs Enforcement John Morton.

Tran was the ringleader of an international drug trafficking organization which smuggled millions of ecstasy pills and other drugs from Canada into the United States between 2002 and her arrest in April 2008. The drugs were manufactured in Canada by various Asian organized crime groups and were distributed to drug dealers across the United States. Tran and her associates often smuggled 100,000 ecstasy pills into the United States per week.

Tran's role in this drug smuggling conspiracy initially came to light during the course of an investigation by special agents with the Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) in Detroit after they had seized several shipment of drugs which Tran had arranged to smuggle into the United States. In October 2006, a grand jury in the Eastern District of Michigan indicted Tran for conspiring to distribute ecstasy pills.

At the same time, ICE-HSI special agents in Philadelphia were conducting a separate but related investigation. This investigation culminated in September 2007, when Tran and her associates sent two couriers, Jessica McNeill and Krystal Grant, to deliver 100,000 ecstasy pills to customers in Philadelphia and Boston. Unbeknownst to Tran and her associates, ICE-HSI special agents learned of this shipment and, with the assistance of Philadelphia Police, stopped the couriers' vehicle and seized the drugs. In December 2009, Tran was charged by the U.S. Attorney in the Eastern District of Pennsylvania with conspiracy to distribute ecstasy pills. The charges from Detroit were then transferred to Philadelphia.

For the past several years, the U.S. Department of Justice Organized Crime & Racketeering Section in conjunction with the U.S. Attorney's Offices have been working closely with ICE-HSI, the Drug Enforcement Administration (DEA), and various Canadian law enforcement agencies, to crack down on these Asian organized crime groups which smuggle billions of dollars worth of drugs into the United States from Canada each year.

The case was prosecuted in Detroit by Assistant United States Attorney Kathryn McCarthy. The case was prosecuted in Philadelphia by Trial Attorney Robert Livermore of the United States Department of Justice Organized Crime and Racketeering Section. The case was investigated by special agents with the ICE-HSI. The investigation also received assistance from: the Drug Enforcement Administration, Philadelphia Police, Pennsylvania State Police, U.S. Customs and Border Protection, the Royal Canadian Mounted Police, the Ontario Provincial Police Department, and the Toronto Metropolitan Police Department.

Royal Canadian Mounted Police

The Royal Canadian Mounted Police, Coquitlam, BC, will host a Crime Analysis Applications Course from October 6th to October 10th 2008. The course will be presented by Steve Gottlieb, Executive Director of the Alpha Group Center for Crime and Intelligence Analysis Training, and may be used for Certification purposes in the Certificate in Crime and Intelligence Program offered by the California Department of Justice and the California State University system.

This will be a "hands-on" applications course which takes a "learning-by-doing," practical approach to training. Students will actually perform the tasks associated with Crime Analysis work. Each participant will also receive a copy of Mr. Gottlieb's book, "Crime Analysis: From First Report to Final Arrest," a textbook over 600 pages which explains how to design, implement, and operate a Crime Analysis program, and how to use a wide variety of analytical techniques to forecast when and where criminals are likely to strike again. Each participant will also receive a copy of Mr. Gottlieb's 150-page step-by-step "Crime Analysis Study Guide and Workbook," which will be used throughout the class. Tuition is $525.00 and includes the week of instruction, the text, workbook, and a wealth of handout materials.

To obtain a course brochure or to register for the course, please contact remittance Cpl Robert McDonald, RCMP, 2986 Guldford Way, Coquitlam, BC, Canada.You may also register by phone by calling Cpl McDonald at (604)945-1472 by faxing your registration form to him at (604)552-7303 or by email to: Robert.mcdonald@rcmp-grc.gc.ca or Diana Olson of the Alpha Group at (909) 484-2169 or contact by e-mail at: crimecrush@aol.com. Additional information about the content of the course can also be found on the Alpha Group website at www.alphagroupcenter.com