Attorney General James, CFPB, and Multistate Coalition Protect Consumers from Debt-Relief Company that Took Over $100 Million in Illegal Fees

 

StratFS Charged Exorbitant Fees and Misled Consumers about Debt Relief Services, Harming Already Vulnerable Consumers

AG James and Coalition Win Court Order to Immediately Stop the Illegal Scheme

New York Attorney General Letitia James, the Consumer Financial Protection Bureau (CFPB), and a multistate coalition of six attorneys general sued StratFS LLC (StratFS), formerly known as Strategic Financial Solutions, LLC and a web of related shell companies for running an illegal debt-relief enterprise and defrauding consumers. Also named in the suit are the scheme’s key operators, Ryan Sasson, CEO of StratFS, and Jason Blust, who controlled the purported law firms alleged to have been involved in the scheme. The day after filing suit, Attorney General James, CFPB, and the coalition won a temporary restraining order (TRO) immediately stopping the fraudulent scheme. StratFS tricks consumers into paying exorbitant fees by claiming that the company’s network of law firms will negotiate down their debts, but most work is done by non-attorneys. Since 2016, StratFS has swindled thousands of financially vulnerable consumers out of more than $100 million. StratFS is based in New York, with offices in Buffalo and New York City, but provides its so-called services to consumers nationwide. With this lawsuit, Attorney General James, CFPB, and the coalition are seeking to stop StratFS from illegally operating and are asking the court to order damages, penalties, and restitution for impacted consumers. 

“People can fall into debt, but New Yorkers — and all Americans — should not face even greater financial hardship when they attempt to seek help,” said Attorney General James. “StratFS, Sasson, and Blust preyed on hardworking consumers and charged illegal fees to unjustly enrich themselves and their business. Let this lawsuit serve as a warning to all who would follow in their footsteps: we can and will use the full force of the law to stop predatory schemes and protect consumers. I want to thank CFPB and my fellow attorneys general for their continued partnership in protecting hardworking Americans.”

“The operators of this scheme established a network of shell companies and law firms to hide their illegal activities from law enforcement,” said CFPB Director Rohit Chopra. “The CFPB and state attorneys general are seeking to shut down this outfit's illegal activity.”

The complaint alleges that StratFS runs a scheme that targets financially vulnerable consumers and their families with misleading advertisements that trick them into believing they qualify for loans to pay down their debts. When consumers call the advertised number seeking help, StratFS employees typically instead tell consumers that they do not qualify for the advertised loan. The employees then persuade consumers to enroll in the company’s debt-relief services with the promise that its network of purported law firms will negotiate lower debt amounts. StratFS instructs consumers to stop paying their creditors, which can lead to creditors charging additional interest and fees and can have a significant negative impact on their credit score. Consumers are told to make payments into an escrow account. StratFS collects illegal advance fees before settling any debts, leaving many consumers worse off than when they entered the program.

For one consumer who enrolled in debt-relief services, approximately 84 percent of the funds she paid into her StratFS account were extracted as fees, and only 16 percent of the funds were paid to creditors to relieve her debt. Another consumer paid StratFS more than $7,000 before a payment was finally made to a creditor. Ultimately, only 6.5 percent of the funds she put into her StratFS account went to paying off debt.

Attorney General James, CFPB, and the coalition allege that StratFS violated the Telemarketing Sales Rule. In addition, Attorney General James alleges that StratFS engaged in fraudulent and deceptive business practices in violation of New York Executive Law § 63(12) and New York General Business Law § 349. Specifically, StratFS harms vulnerable consumers by: 

• Charging advance fees: StratFS illegally charges and collects fees before any of a consumer’s debts have been settled. StratFS charges pre-determined fee amounts without any connection to actual settlements or debt-relief savings. Since 2016, StratFS and its web of shell companies have swindled consumers out of more than $100 million.
• Falsely claiming lawyers will provide debt relief: StratFS tricks consumers into believing that contracted law firms will negotiate lower payoff amounts. However, the firms are not meaningfully involved, and most debt-relief negotiations that do take place are conducted by StratFS employees, who are not lawyers. 

Attorney General James, CFPB, and the coalition filed the complaint and requested a TRO and preliminary injunction in the U.S. District Court for the Western District of New York on January 10, 2024. On January 11, 2024, the court granted the request for a TRO, ordered a freeze of StratFS’ assets, and appointed a temporary receiver. 

Joining Attorney General James and CFPB in this action are the attorneys general of Colorado, Delaware, Illinois, Minnesota, North Carolina, and Wisconsin.

Any consumer who feels that they have been a victim of fraud is encouraged to file an online compliant with OAG.

CEO Of Cryptocurrency Ponzi Scheme “IcomTech” Sentenced To Five-Year Prison Term

 

Damian Williams, the United States Attorney for the Southern District of New York, announced that MARCO RUIZ OCHOA was sentenced principally to five years in prison for his role in promoting a large-scale cryptocurrency Ponzi scheme known as IcomTech.  OCHOA was sentenced today before U.S. District Judge Jennifer L. Rochon.  On September 27, 2023, OCHOA pled guilty to one count of conspiracy to commit wire fraud.   

U.S. Attorney Damian Williams said: “Ochoa took advantage of the hype around cryptocurrency to con unsuspecting victims into investing in the IcomTech pyramid scheme. This significant sentence sends a message to anyone considering following in his footsteps: that path leads to serious prison time.”   

According to the Indictment and statements made in court:

DAVID CARMONA started IcomTech in 2018, and IcomTech promotional materials put OCHOA forward as IcomTech’s CEO until 2019, when a new CEO replaced him.  IcomTech was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products.  OCHOA and the other promoters of IcomTech, including his co-defendants CARMONA, JUAN ARELLANO, MOSES VALDEZ, and DAVID BREND, falsely promised their respective Victims, among other things, that profits from the company’s cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments.  In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and OCHOA and IcomTech’s other promoters used Victim funds to pay other Victims to further promote the schemes and to enrich themselves.

IcomTech promoters, including OCHOA, traveled throughout the United States and internationally, where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York.  During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged Victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning.  IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech.  The atmosphere of these events was festive and designed to generate excitement about the schemes.

Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency.  Following a Victim’s investment, a Victim would be provided with access to an online portal where the Victim could monitor the purported returns.  While Victims saw “profits” accumulate on the online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments.  By contrast, IcomTech’s promoters, including OCHOA, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate.

At least as early as August 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all.  Despite these complaints, IcomTech promoters, including OCHOA, continued to promote IcomTech and accept Victims’ investments.  As complaints mounted, IcomTech began offering proprietary crypto tokens for sale as a means of injecting liquidity into IcomTech.  Promoters of the schemes claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services.  This was false.  In reality, “Icoms” were essentially worthless and resulted in further financial loss to Victims.  By in or about the end of 2019, IcomTech stopped making payments to Victims and IcomTech collapsed.

In addition to the prison term, OCHOA, 35, of Nashua, New Hampshire, was sentenced to two years of supervised release and ordered to forfeit $914,000 in criminal proceeds.

Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force.  Mr. Williams also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.

If you believe you are a victim of the IcomTech fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator is available here.

NYS Office of the Comptroller DiNapoli: As State Tax Check-off Options Increase, Spending Lags for Most

 

New York state has the highest number of personal income tax (PIT) check-offs in the nation, but an analysis by State Comptroller Thomas P. DiNapoli found that even as the number of check-offs have grown over the last decade, only a fraction of the money has been actually spent on their target purposes each year.

“New York state offers many worthy causes for income tax filers to donate to on their income tax forms, but money from less than one-third of the tax check-off funds has been spent in the last six years,” DiNapoli said. “Donors expect their funds to serve the causes they support. Agencies need to comply with reporting requirements to provide greater clarity on why spending from the funds is lagging.”

In State Fiscal Year (SFY) 2022-23, contributions to the state’s PIT check-offs totaled $3.2 million, led by the NYS Campaign Finance Fund, which received 24.9% of the total, followed by Breast Cancer Research and Education (8.9%) and Food Banks (7.9%).

While the number of check-offs has grown, the number of taxpayers donating to these funds has declined over time. In SFY 1983-84, the first year a tax check-off option appeared, there were over 344,000 contributors. In SFY 2022-23, with 34 eligible check-offs, the number of contributors totaled 218,400, a 63.4% decline. A potential reason for the decline in contributors may be the large increase in the number of check-offs; taxpayers are now required to file a separate form with their returns to participate. Previously, the check-offs accounted for just one line on a taxpayer’s annual return.

Disbursements for many of the funds lag even though contributions are statutorily required to be disbursed in the year they are received, to the extent practicable. Over the last five fiscal years, less than half of the 27 check-off funds this report examines showed disbursements. Of these, only the funds for Breast Cancer Research and Education and Alzheimer's Disease Support Services demonstrated spending every year. As a result, fund balances have grown. In SFY 2022-23, the aggregate, accumulated fund balances of the 27 funds totaled nearly $13.7 million. Less than one-third of the funds had a decline in their accumulated balances.

Statutorily, state agencies administering tax check-off funds are required to report annually to the Legislature, the State Comptroller, and the public on their disbursement of dedicated funds. However, this reporting is sparse; reports were issued for less than half of the funds with spending. Agencies should improve compliance with reporting requirements to provide greater clarity on how funds are being spent and why spending from many funds is delayed or not happening.

Analysis

Economic and Policy Insights – As Personal Income Tax Check-offs Increase in Number, Disbursements Lag for Most Funds

Related Reports

2021 Tax Check-off Donations Report

ELEVATOR SAFETY AND STANDARDS ADVISORY BOARD MEETING

 

WHEN: Tuesday, January 23, 2024

TIME: 10 a.m.

WHERE: Department of Labor, Harriman State Office Campus, Building 12, Albany, NY

On Tuesday, January 23, 2024, at 10 a.m., the Elevator Safety and Standards Advisory Board will convene in Albany. The Board assists the NYS Department of Labor and the Commissioner of Labor with regulations, compliance and licensing covering elevators, motorized lifts and walkways, chair lifts and other similar equipment.

The meeting is open to the public in person or via Zoom:

In-Person:

NYS Department of Labor Harriman State Office Campus Building 12 Training Rooms D&E Albany, NY 12240

Zoom Webinar Information:

Topic: Elevator Safety and Standards Advisory Board Meeting

When: Jan 23, 2024, 10:00 AM Eastern Time (US and Canada)

Join Zoom Webinar 

https://us06web.zoom.us/webinar/register/WN_s7uPyjv3S1eq6NSOkG06OA

Webinar ID: 885 4826 9964

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(646)876-9923, 88548269964# US (New York)

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CEO of Crypto Investment Platform Charged in Multi-Million Dollar International Fraud Scheme

  

Defendant Falsely Guaranteed Returns to Investors and Then Absconded with Over $150 Million

This morning, Horst Jicha, a German national, will be arraigned at the federal courthouse in Brooklyn on an indictment charging him with securities fraud and conspiracies to commit securities fraud, wire fraud, and money laundering for his role in a cryptocurrency scheme called USI Tech.  Jicha was arrested, and the charges against him were unsealed when he entered the United States on December 23, 2023 attempting to vacation in Miami, Florida. 

Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

“As alleged, in the early days of crypto, the defendant deployed a multilevel marketing scheme to defraud U.S. investors excited about the crypto market,” stated United States Attorney Peace.  “Although the defendant did not return to the United States for half a decade, my Office and the FBI worked to ensure that when he did, he would be brought to justice.  Our Office is committed to prosecuting any criminal actor defrauding U.S. investors for their own gain, regardless of where in the world they may come from.”

“Too often honest investors fall victim to schemes surrounding emerging financial opportunities. Horst Jicha allegedly advertised a platform that made cryptocurrency investing simple and more accessible to investors, with guaranteed returns.  In reality the platform was  just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country.  No matter how long it takes, the FBI will continue to bring to justice criminal financial fraudsters,” stated FBI Assistant Director-in-Charge Smith.

As alleged in the indictment, USI Tech was an online platform that began in Europe and purported to make cryptocurrency investments easy and accessible to the average retail investor.  In reality, it was a multilevel marketing scheme that relied on investors recruiting other investors below them to buy various purported cryptocurrency investments.  Jicha was one of USI Tech’s founders and its Chief Executive Officer.  In 2017, Jicha brought USI Tech to the United States and aggressively marketed it to U.S. retailers on social media and through in-person presentations in which he falsely guaranteed high returns on investments and made false claims about the legality of the platform’s investment offerings. 

In early 2018, after USI Tech faced regulatory scrutiny in the United States, it ceased all U.S. operations overnight, leaving investors with no ability to access their money and resulting in millions of dollars in losses.  Much of the missing money – Ether and Bitcoin valued at approximately $150 million as of the date of his arrest – was sent to cryptocurrency deposit addresses controlled by Jicha after USI Tech ceased operations.  Jicha had not returned to the United States for over five years, until the date of his arrest.  

If you believe that you have been a victim of this crime, please contact USITechFraud@fbi.gov. 

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.

CEO Sentenced for Transnational “Cherry-Picking” Scheme Involving Foreign Exchange and Cryptocurrency Futures Contracts

 

First Criminal Charge Against a Commodities Trading Advisor and Commodities Pool Operator for Engaging in a “Cherry-Picking” Scheme Involving Cryptocurrency Futures Contracts

A chief executive officer of an investment firm was sentenced today to two years in prison followed by one year and six months of home confinement and ordered to forfeit approximately $1.6 million for a “cherry-picking” scheme, in which he fraudulently misappropriated profitable trades to himself and saddled his investors with losses. 

According to court documents, Peter Kambolin, 48, a U.S.-Russian national of Sunny Isles Beach, Florida, was the owner and chief executive officer of Systematic Alpha Management LLC (SAM), an investment firm that Kambolin marketed as offering algorithmic trading strategies involving futures contracts. Established in 2007, by 2011, SAM had more than $720 million in assets under management. Between January 2019 and November 2021, Kambolin, who at the time was a commodity trading advisor and a commodity pool operator, engaged in a cherry-picking scheme in which he fraudulently allocated profits and losses from futures trades in a manner designed to benefit his own accounts unfairly at the expense of his clients. Kambolin also misrepresented to his clients that SAM employed trading strategies focused on cryptocurrency futures contracts and foreign exchange futures contracts, when in reality, approximately half of Kambolin’s trading in each pool involved equity index futures contracts. In doing so, Kambolin defrauded investors located in the United States and abroad by, among other things, depriving them of profitable trades. Kambolin used the proceeds of the scheme to fund personal expenses, including rent for a beachfront apartment, and transferred proceeds to foreign bank accounts his co-conspirator controlled in Belarus and Dominica.

During the relevant period, Kambolin executed trades for pool participants together with trades he executed on behalf of his proprietary accounts, and fraudulently allocated the profits and losses of the trades to benefit his own accounts.

Kambolin pleaded guilty on Oct. 11, 2023, to one count of conspiracy to commit commodities fraud.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.

The FDIC-OIG investigated the case. The Commodity Futures Trading Commission previously charged Kambolin and SAM by complaint

Five Defendants Arrested For $7 Million Embezzlement Scheme Targeting IT Services Company

Damian Williams, the United States Attorney for the Southern District of New York; Stuart M. Goldberg, the Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); Thomas M. Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”); and Jonathan Mellone, the Special Agent in Charge of the Northeast Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), announced the arrests today of five defendants on fraud charges: MARK ANGAROLA, ALLISON ANGAROLA, JOSE GARCIA, MICHELLE COX, and LISA MINCAK.  The five defendants are charged with perpetrating a yearslong embezzlement scheme that involved both no-show jobs and disguising personal expenses as purported business expenses.  In addition, three of the defendants — MARK ANGAROLA, GARCIA, and COX — are charged with tax fraud for their failures to report income to the IRS, including income derived from the embezzlement scheme.  MARK ANGAROLA and ALLISON ANGAROLA were arrested earlier this week in Point Lookout, New York, and were presented in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker; JOSE GARCIA and MICHELLE COX surrendered today and will be presented in Manhattan federal court before Magistrate Judge Parker; and LISA MINCAK surrendered yesterday and was presented in the Eastern District of Texas before U.S. Magistrate Judge Kimberly C. Priest Johnson.  The case has been assigned to U.S. District Judge Dale E. Ho. 

U.S. Attorney Damian Williams said: “As alleged, the five defendants engaged in a brazen, lengthy embezzlement scheme that involved no-show jobs, false timesheets, fraudulent billings, and disguising personal expenses as purported business expenses.  In total, they allegedly bilked a corporate victim out of more than $7 million.  As part of the alleged scheme, the defendants charged an array of personal expenses to a corporate victim, including a cruise, hotels, private car service, gentlemen’s clubs, and more.  Several defendants also allegedly sought to conceal the fraud by failing to report, or pay taxes on, the income they received from the scheme.  Today’s arrests are yet another example of this Office’s commitment to holding accountable those who commit financial fraud.” 

FBI Assistant Director in Charge James Smith said: “When an individual puts in an honest day’s work, they deserve to be compensated fairly.  The defendants in this case allegedly sought to do the opposite, scheming to create a dishonest plan involving no-show jobs and reporting personal spending as business.  Through their alleged scam, they received significant benefits including payment, travel, and entertainment.  The FBI will ensure that anyone attempting to benefit from deceit is instead held accountable in the justice system.”

IRS-CI Special Agent in Charge Thomas M. Fattorusso said: “The five defendants allegedly created a web of lies, resulting in a scheme to embezzle millions, while three are additionally charged with evading taxes on their illicit gains.  Though it’s purported they ‘lived the good life’ through this deception, today’s arrests ensure that their very near future won’t be so comfortable.”

According to the allegations in the Indictment:[1]

From at least in or about May 2010 through at least in or about February 2019, the five defendants and others (the “Conspirators”) executed a fraudulent scheme to unlawfully enrich themselves by submitting and causing to be submitted fraudulent invoices and expenses to an information technology (“IT”) services company (the “Contractor”), at which MARK ANGAROLA was employed in a senior position. 

Specifically, MARK ANGAROLA was a Global Account General Manager at the Contractor, working out of the Contractor’s office in New York, New York.  MARK ANGAROLA was responsible for managing the Contractor’s relationship with a particular client, which was a subsidiary of a global financial institution (the “Client”).  The Contractor had a service contract with the Client, pursuant to which the Contractor would provide IT support services to the Client at locations across the United States.  The Contractor subcontracted certain of its work under the Service Contract to a technology solutions company (the “Subcontractor”) based in New Jersey.  Pursuant to the agreement between the Contractor and the Subcontractor (the “Subcontract”), the Subcontractor provided certain IT support services directly to the Client in the place of the Contractor.  MARK ANGAROLA was responsible for oversight of the Subcontractor’s performance under the Subcontract, which included approving payment to the Subcontractor on invoices submitted for work purportedly performed and expenses purportedly incurred in the Subcontractor’s performance on the Subcontract. 

MARK ANGAROLA used his position at the Contractor — and in particular his oversight of the Contractor’s relationship with the Client and the Subcontractor — to fraudulently enrich himself, his family, and his friends.  For example, MARK ANGAROLA arranged for the Subcontractor to hire certain of his family members, friends, and subordinates, despite the fact that these individuals — which included a schoolteacher, a homemaker, a police sergeant, and a manager in the construction industry — lacked apparent qualifications to perform deskside IT work.  MARK ANGAROLA arranged for the Subcontractor to hire, among others, ALLISON ANGAROLA, JOSE GARCIA, MICHELLE COX, and LISA MINCAK, the defendants.  Thereafter, ALLISON ANGAROLA, GARCIA, COX, MINCAK, and others who MARK ANGAROLA caused to be hired by the Subcontractor, repeatedly falsely reported to the Subcontractor that they had performed work under the Subcontract and incurred business expenses.  GARCIA also used nominee corporate and limited liability entities to further disguise his receipt of funds for purported work performed under the Subcontract, including for alleged “Management Fees” due.  The Subcontractor submitted invoices to the Contractor for the hours purportedly worked by several of the Conspirators, for purported management fees allegedly due and for the purported business expenses incurred by several of the Conspirators in connection with that work, which hours, fees, and expenses were falsely reported to the Subcontractor by the Conspirators.  MARK ANGAROLA, in turn, caused the Contractor to pay the Subcontractor on these fraudulent invoices.

The purported business expenses incurred by several of the Conspirators and ultimately paid for by the Contractor at the direction of MARK ANGAROLA included, among other things, restaurant meals, hotel stays, transportation fees, a cruise, and gentlemen’s clubs.  In fact, the expenses were personal expenses and were not reimbursable.  In addition, to circumvent the Contractor’s expense policies, MARK ANGAROLA charged certain of his own personal expenses — including a private car service that he used for personal travel to restaurants, cigar bars, and gentlemen’s clubs, and to transport his children to visit family regularly and his friends to parties at his residence — to credit cards in the name of co-conspirators, including LISA MINCAK.  MARK ANGAROLA, with the assistance of MINCAK and others, who falsely represented to the Subcontractor that the expenses were incurred in connection with work for the Subcontractor, fraudulently caused the Contractor to pay for such personal expenses of MARK ANGAROLA.

As a result of the scheme, MARK ANGAROLA, ALLISON ANGAROLA, JOSE GARCIA, MICHELLE COX, and LISA MINCAK, and entities controlled by certain Conspirators, received personal benefits, including travel, meals, and entertainment, and were paid substantial sums.  For example, despite the fact that most Conspirators provided few, if any services, to the Client, the Conspirators fraudulently obtained at least the following approximate amounts through this scheme: $1,468,215 to MARK ANGAROLA; $751,641 to ALLISON ANGAROLA; $4,554,950 to JOSE GARCIA and entities he controlled; $335,500 to MICHELLE COX; $88,793 to LISA MINCAK; and $90,521 to Anthony Lisi, a previously charged co-conspirator who pled guilty for his involvement in the embezzlement scheme on September 13, 2022, before U.S. District Judge Paul A. Engelmayer.

Several participants in this fraud scheme also committed related tax fraud by concealing from the IRS substantial income that they had obtained through the scheme.  For several years, MARK ANGAROLA and JOSE GARCIA committed tax evasion, and MICHELLE COX failed to file individual income tax returns.

MARK ANGAROLA, 50, of Point Lookout, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and three counts of tax evasion, which each carry a maximum sentence of five years in prison.

ALLISON ANGAROLA, 53, of Point Lookout, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.

JOSE GARCIA, 52, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and three counts of tax evasion, which each carry a maximum sentence of five years in prison.

MICHELLE COX, 52, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and two counts of failure to file an individual income tax return, which each carry a maximum sentence of one year in prison.

LISA MINCAK, 46, of Plano, Texas, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.

The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the outstanding efforts of the FBI, IRS-CI, and DOL-OIG.  Mr. Williams also noted that the investigation is ongoing.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.