The United States Attorney's Office in the Northern District of Illinois has posted a press release about the indictment of two Filipino Nationals who allegedly swindled a total amount of $10 million from American senior citizens who invested in their telemarketing scam.
The two are now considered as fugitives but will remain innocent until proven guilty.
According to the indictment, Jonathan Papa and Methsiri "Lal" Palliyaguru sold phony investments in certificates of deposit and real estate to nearly 200 investors, primarily American senior citizens. They knowingly misrepresented that Warren Buffett and Berkshire Hathaway were involved with the purported real estate investments, in order to lure in unsuspecting investors who idolize Buffett and Hathaway.
The two found their targets through online research of American retirement homes. Then, the identified victim was contacted by a representative from a call center that was managed directly by Papa in Manila, Philippines.
The tandem managed to get $10 million worth of investments from their investors from August 2008 until August 2013. The defendants sent fraudulent account statements to the investors, which falsely stated that the investments were increasing in value. In actuality, their money had never been invested into any securities.
According to the indictment, Papa and Palliyuguru managed various companies, which includes Bradley Cooper Financial Services, which was purported to be in the business of offering and selling investments.
They set up "virtual offices" in or near any major American cities, including one at 500 N. Michigan Avenue in Chicago, to make it look like that the companies were legitimately operating inside the United States, but in reality their 'agents' were not in the "virtual offices" but in Manila, using voice-over-internet-protocol (VOIP) technology to make it appear that the calls from the Philippines had originated from telephone numbers in the U.S.
Papa, 43, and Palliyaguru, 57, were each charged with eight counts of mail fraud that victimized ten or more persons over the age of 55. Each count carries a maximum sentence of 30 years in prison.
