Caught and charged with fraud.

Nearly three years ago I interviewed with company from Wichita Kansas. I was flown out with 20 others. Was given a battery of tests and two personal interviews. 7 people were offered jobs with the firm. I was one of them. Base salary 150,000 per year plus commissions. First month I earned nearly 25 thousand dollars. Loved the job! The paycheck never arrived. A man called Shaun Anthony Smoker ran the show. He skipped without paying anyone. 37 people had left their jobs to accept new positions with this company and build something new. Now they were left with no job and no way to collect unemployment. It gave me great pleasure to find the following the other day.

FRAUD SCHEME TARGETED
OWNERS WHO WANTED TO SELL BUSINESSES
FEDERAL INDICTMENT CHARGES

Other grand jury indictments: Immigration, sexual predator,
drug trafficking charges

WICHITA, KAN. – Richard Hagan, 46, Melbourne, Fla.; Brian Renneisen, 32, Media, Penn.; John Persaud, Boca Raton, Fla.; Cheri Persaud, 34, Boca Raton, Fla.; Shaun Anthony Smoker, 41; Andrew Wang, 34, Mount Laurel, N.J.; Marvin Randolph Hicks, 37, Canton, Ga.; and Brandon Cook, 35, Miami, Fla. are charged with defrauding business owners who hired PBS Global, Inc., to help them find buyers for their businesses.

“The defendants are accused of fax blasting small businesses throughout the United States with fraudulent offers to help them sell their businesses,” said U.S. Attorney Eric Melgren.

A 43-count indictment includes:
– One count of conspiracy to commit wire fraud
– 14 counts of wire fraud via faxed transmissions
– Six counts of wire fraud via telephone calls
– 13 counts of mail fraud
– One count of conspiracy to commit money laundering.
– Eight counts of money laundering

According to the indictment:
– The defendants worked for PBS Global, Inc., which caused thousands of unsolicited faxes to be sent to small businesses throughout the United States offering to find buyers for those businesses.
– PBS offered clients a “100 percent money back guarantee” that it would find qualified buyers for their businesses. When clients tried to claim the refund, PBS denied their claims.
– Sellers were required to pay a designated fee to PBS for acting as an intermediary with buyers, a designated sum for hiring an independent firm to prepare a valuation of the business that was being sold, and a fee for successfully matching a seller and a buyer, which would be due two days after the sale.
– PBS received very little money from completed buy/sale transactions. More than 98 percent of the money PBS received from clients was for independent third party business valuations.
– In order to deny the guaranteed refunds, PBS provided clients with sham matches. The buyers PBS claimed were qualified in fact had no interest in purchasing the clients’ businesses.
– PBS had a total income of about $18.5 million, of which approximately $293,392 came from completed buy/sell transactions.
– In order to deny the guaranteed refund, PBS provided clients with references identifying individuals who were represented as business owners who had sold their businesses through the efforts of PBS. In fact, these references were the owners of PBS or PBS analysts and had never owned a business sold by PBS.

Businesses defrauded by PBS include:
– Chamberlain’s Olde Stuff, Shawnee, Kan.
– Mike’s Plumbing, Wichita, Kan.
– Pruitt Appliance Service, Topeka, Kan.
– Southside Plumbing Too, Inc., Overland Park, Kan.
– C&E Doors, Inc., Great Bend, Kan.
– Economy Movers, Wichita, Kan.
– IMC Kansas, Seneca, Kan.
– Engine House Hobbies, Wichita, Kan.

According to the indictment, in June, 2005, the U.S. Secret Service Office in Wichita received a fax from PBS Global, Inc., offering to sell the U.S. Secret Service office. The owner of Engine House Hobbies agreed to assist in the investigation by responding to the fax. Engine House Hobbies was contacted by an appointment setter from PBS Global and scheduled with one of the company’s business analysts. The analyst represented to Engine House Hobbies that the business could be sold for up to $1.5 million and that PBS Global would guarantee a buyer for $850,000 if Engine House Hobbies would purchase a third party valuation that would cost $8,200.

The defendants face the following charges:
Richard Hagan: One count of conspiracy to commit wire fraud, 14 counts of wire fraud via fax transmission, six counts of wire fraud via telephone calls; 13 counts of mail fraud, 1 count of conspiracy to commit money laundering,
eight counts of money laundering.
Brian Renneisen: One count of conspiracy to commit wire fraud, 14 counts of wire fraud via fax transmission, six counts of wire fraud via telephone calls; 13 counts of mail fraud, 1 count of conspiracy to commit money laundering,
eight counts of money laundering.
John Persaud: One count of conspiracy to commit wire fraud, 14 counts of wire fraud via fax transmission, six counts of wire fraud via telephone calls; 13 counts of mail fraud, 1 count of conspiracy to commit money laundering,
eight counts of money laundering.
Cheri Persaud: One count of conspiracy to commit wire fraud, 14 counts of wire fraud via fax transmission, six counts of wire fraud via telephone calls; 13 counts of mail fraud, 1 count of conspiracy to commit money laundering,
eight counts of money laundering.
Shaun Anthony Smoker: One count of conspiracy to commit wire fraud, six counts of wire fraud via telephone calls, and one count of conspiracy to commit money laundering.
Andrew Wang: One count of conspiracy to commit wire fraud, 14 counts of wire fraud via fax transmission, six counts of wire fraud via telephone calls, and one count of conspiracy to commit money laundering.
Marvin Randolph Hicks: One count of conspiracy to commit wire fraud, six counts of wire fraud via telephone calls and one count of conspiracy to commit money laundering.
Brandon Cook: One count of wire fraud via a telephone call.

Upon conviction, the crimes carry the following penalties:
Conspiracy to commit wire fraud: A maximum penalty of 5 years in federal prison and a fine up to $250,000.
Wire fraud via fax transmission: A maximum penalty of 20 years and a fine up to $250,000 per count.
Wire fraud via telephone calls: A maximum penalty of 20 years and a fine up to $250,000 per count.
Mail fraud: A maximum penalty of 20 years and a fine up to $500,000 per count.
Conspiracy to commit money laundering: A maximum penalty of 20 years and a fine up to $500,000.
Money laundering: A maximum penalty of 20 years and a fine up to $500,000 per count.

The U.S. Secret Service, Internal Revenue Service Criminal Investigation, and the Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.