A Montreal man is facing charges in Minnesota and another has pleaded guilty for allegedly being a part of a $300 million telemarketing fraud scheme that targeted elderly and vulnerable victims.
The Department of Justice in Minnesota issued a release Friday saying that 34-year-old Abdou Diallo from Montreal was the co-owner of Readers Services and NP Readers Inc., which, the DOJ says, are both Canadian companies involved in an alleged telemarketing fraud scheme.
"From 2011 through 2020, Diallo and his co-conspirators provided 'lead lists' and fraudulent sales scripts to their telemarketing employees for use in carrying out the fraud scheme," reads the DOJ release from the U.S. Attorney's office. "The scheme targeted people who had previously fallen victim to a fraudulent magazine sales scam and been tricked into signing up for multiple expensive magazine subscriptions they did not want and could not afford. Diallo and his co-conspirators took advantage of the victims’ desperation to make the magazine subscriptions stop."
The DOJ says victims were called by people claiming to be from the magazine's cancellation department, and Diallo and his co-conspirators allegedly offered to pay off the victims’ balance and cancel their existing magazine subscriptions in exchange for a large, lump-sum payment.
"None of this was true," the DOJ writes. "In reality, the victims did not owe the defendants or their companies any money."
The DOJ says the alleged scheme defrauded more than 20,000 victims out of $30 million.
Many of the victims were elderly and vulnerable.
Diallo was arrested on March 30 at the Miami airport and appeared before Judge Jacqueline Becerra in Florida.
He will be transported to Minnesota and faces a conspiracy to commit wire fraud charge and four counts of wire fraud.
Montrealer Saman Moghbel, 34, pled guilty to conspiracy to commit wire fraud on Feb. 28 in Minneapolis and is awaiting sentencing.
The DOJ adds that the two men's charges are connected to over 60 cases against suspects who are suspected of defrauding more than 150,000 people of around $300 million. Authorities say 37 defendants have pleaded guilty.
The investigation involved agents from the FBI and United States Postal Inspection Service with help from the Treasury Inspector General for Tax Administration and the Minnesota Attorney General's office.
Those who suspect they may have been a victim of this or a similar fraud can contact authorities at magazinevictims@fbi.gov or go to the agency's website.
