Friday, October 30, 2020

4 executives of Vancouver’s PacNet Services charged in international mail fraud scheme


Four executives with a Vancouver payment processing company have been charged in the U.S. with several crimes linked to their alleged roles as middlemen in a massive international mail fraud scheme.

The U.S. Department of Justice announced charges Thursday against PacNet Services owners Rosanne Day, 51, and Robert Paul Davis, 63, as well as senior managers Genevieve Renee Frappier, 49, and Miles Kelly, 55.

“The defendants are charged with enriching themselves by helping fraudsters who took money from elderly and otherwise vulnerable victims,” assistant U.S. attorney general Jody Hunt said in a news release.

“The United States Department of Justice will seek to hold accountable those who knowingly advance elder fraud schemes — including individuals outside our borders who enable fraudsters to move their ill-gotten gains into the banking system and benefit from their crimes.”

- Advertisement -

Each of the four executives is charged with one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit money laundering, and multiple counts of mail fraud and wire fraud.

Each of the charges carries a maximum prison sentence of 20 years.

The Justice Department alleges that Day and Davis each earned about $15 million between 2013 and 2015, the last three full years the company was active. Day was in charge of PacNet’s Vancouver office, while Davis oversaw the branch in Shannon, Ireland.

CBC has reached out to PacNet for comment. The company stopped doing business on Sept. 22, 2016.

- Advertisement -

Alleged victims were elderly and vulnerable

The charges come nearly three years after the U.S. Treasury Department designated PacNet and 12 individuals connected to the company as a “significant transnational criminal organization.”

That designation was lifted in 2017, but company officials have said the announcement “obliterated” PacNet.

The new indictment from the Justice Department says PacNet knowingly processed payments for companies that mailed out notices falsely claiming the recipients would receive large prizes, cash or psychic services if they paid a fee.

PacNet allegedly collected the payments from victims, who were often elderly or vulnerable, and deposited them into bank accounts it controlled, before distributing to the clients. U.S. attorneys say numerous people in Nevada were victims of the scheme.

Davis, who is also a pilot, allegedly opened post offices boxes in the U.K., where certain payments would be sent. He allegedly flew the mail back to Ireland, where it was opened and the cheques or cash would be processed.

The indictment alleges that Davis also flew to the Netherlands to pick up other payments.

The criminal investigation into PacNet was led by the U.S. Postal Inspection Service, with help from the Vancouver Police Department, the Canadian Competition Bureau, Ireland’s Criminal Assets Bureau, the United Kingdom’s National Crime Agency, and the Netherlands’ Fiscal Information and Investigation Service.


Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...

Former South Korean President Lee Myung-bak sent back to prison for 17 years in corruption case

Former South Korean president Lee Myung-bak was ordered back to prison on Thursday (Oct 29) as the country's Supreme Court upheld a 17-year jail...

Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

South Korea’s former Vice Justice Minister sentenced to jail for bribery and sexual favors

Former Vice Justice Minister Kim Hak-eui, the figure at the center of one of Korea’s biggest political sex scandals, was placed under pretrial detention...

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...

Two U.S. Navy service members get prison for defrauding military insurance program

Two U.S. Navy service members were sentenced in San Diego federal court Friday for their roles in an insurance fraud scheme that involved making false medical claims to...

Actress Felicity Huffman complete full sentence for role in college admissions scam

Felicity Huffman has completed her full sentence for her involvement in the college admissions scandal. As of Sunday, she has finished her sentence, which included jail...

Former solicitors used 60 fake identities, homeless people to defraud banks

A married couple who are former solicitors created 60 false identities, donned disguises and paid homeless people for their PPS numbers in order to...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks