FOR IMMEDIATE RELEASE
October 9, 2001
DENVER – John W. Suthers, United States Attorney for the District of Colorado, Mark J. Mershon, Special Agent-in-Charge of the Federal Bureau of Investigation’s Denver office, and Thomas W. Brewer, Special Agent In Charge, IRS-Criminal Investigation, Denver Field Office, today announced the arrest of RANDALL G. MORSE of Boulder, Colorado for mail, wire and loan fraud, as well as money laundering, tax evasion, conspiracy to defraud the government and tampering with a witness. MORSE was arrested October 8, 2001 without incident at a hotel in the Denver Tech Center by the FBI, IRS and local authorities.
According to an indictment unsealed today, MORSE operated a corporation named National Funding Source, Inc., which did business as “The Business Solution.” From May 6, 1997 through June 21, 2000, MORSE allegedly defrauded 1200 people of $1,890,414 by having telemarketers phone victims who were in need of financing or tax assistance. The telemarketers often targeted financially distressed victims, obtaining names from business lead cards or from tax lien lists. If victims expressed interest in obtaining funding during the initial contact, then telemarketers took additional financial profile information. Later that day, or within several days, MORSE would follow up with the victim, either by phone or by mail. He would request that the victim pay an advance fee for the company’s services. The fee ranged from $395 to $6,750 and was paid either by Federal Express or U.S. Mail. On very few occasions did the defendant actually obtain financing on behalf of the victims.
“It is imperative that we prosecute complex economic fraud cases, especially those involving vulnerable or distressed victims,” United States Attorney John Suthers said. “As prosecutors, we must aggressively pursue these types of cases to maintain consumer confidence in the many legitimate businesses and financial institutions that try to assist people in need,” Suthers said.
MORSE is charged with 10 counts of mail fraud, 12 counts of wire fraud, 23 counts of money laundering, 1 count of tax evasion, 1 count of conspiracy to defraud the government, 4 counts of loan fraud and 1 count of witness tampering. Mail and wire fraud as well as conspiracy to defraud the government carry maximum penalties of up to five years in prison and/or a $250,000 fine. Money laundering carries a 20 year maximum penalty with not more than a $500,000 fine. Tax evasion carries a 5 year penalty with up to $100,000 fine. Loan fraud carries a 30 year penalty with not more than a $1,000,000 fine. Tampering with a witness carries a 10 year penalty with up to a $250,000 fine.
These charges are only allegations and the defendant is presumed innocent unless and until proven guilty.