Three charged in alleged pyramid scheme targeting Cambodians
- From: "Chim" <ChimS1@xxxxxxx>
- Date: 18 Nov 2005 03:12:20 -0800
BOSTON (AP) - Three people have been charged in a pyramid scheme
prosecutors say bilked hundreds of Cambodian immigrant investors out of
at least $5 million, authorities said Wednesday.
Christian Rochon, 54, of Attleboro, and James Bunchan, 50, formerly of
Attleboro, were arrested on mail fraud charges. A third person, Seng
Tan, remains at large.
Prosecutors say the three solicited investments in amounts of
approximately $26,000. In return for that investment, they promised
they would make an initial lump sum payment of $2,400 and would then
pay them $300 per month for life, which would pass on to their
children.
Although some initial payments were made to investors, they eventually
stopped making the promised payments, authorities allege.
The three were principals of WMDS, also known as World Marketing Direct
Selling Inc., and an affiliated company, OneUniverseOnline Inc., with
offices in Boston, Canton and Attleboro, which purported to be in the
business of selling health care and dietary products through a
multilevel marketing program.
According to an affidavit filed by FBI Special Agent Joseph Consoli,
the real business of the companies was a "classic 'pyramid scheme' in
which investors are lured into making investments with a promise of a
return on their investment, when in reality their 'returns' have simply
been payments of their own principal and the principal of later
investors brought into the program."
Authorities allege that initial payments were made to lull investors
into thinking that their investments were legitimate and to get them to
recruit additional investors.
Hundreds of people made investments; many of them were from the
Cambodian community, authorities said.
If convicted, each defendant faces a maximum of 20 years.
Rochon's lawyer, James Krasnoo, did not immediately return a call
seeking comment. Bunchan, who now lives in Miami, was arrested there
Tuesday. His lawyer could not immediately be reached.
.
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