|
FOR IMMEDIATE RELEASE |
Aug. 5, 2009
MAN PLEADS GUILTY IN BLAST FAX FRAUD CASE
Trial set Sept. 15 for other defendants in PBS Global case
WICHITA , KAN. – Shaun A. Smoker, 42, who is in federal custody, has pleaded guilty to one count of conspiracy and one count of wire fraud, U.S. Attorney Lanny Welch said today.
In his plea, Smoker admits he took part in a fraudulent scheme in which a company called PBS Global, Inc., collected more than $6.5 million from customers who were looking for help selling their small businesses. From July 2003 to June 2004, Smoker worked as a business analyst for PBS, which was owned and operated by defendants Richard A. Hagan, Brian P. Renneisen and John R. Persaud.
Seeking to reach potential customers through mass faxed solicitations, the company falsely claimed it had a long record of success finding buyers for small businesses. Advertising for PBS stated the company would be paid only upon the successful completion of a sale. In fact, during Smoker’s employment, no businesses were sold and the PBS did not collect any fees in that way. Instead, PBS collected more than $6.5 million from customers who paid to have their businesses evaluated prior to sale by a third party. During that time, PBS paid less than $171,000 to the companies that prepared the third-party evaluations. Although the company claimed its analysts were on salary, in fact they received a 40 percent commission on the amount their clients paid to have their businesses evaluated.
When prospective customers wanted references, the conspirators took turns posing as satisfied customers who had sold their businesses with the help of PBS. Smoker provided false references for defendants Renneisen, Marvin R. Hicks and Andrew S. Wang, and he used defendants Persaud and Wang to provide false references for him. For instance, in October 2003, Smoker received a call from the owner of a business called Chamberlain’s Old Stuff, who was a prospective client for defendant Renneisen. During the call, Smoker falsely claimed to have sold a company he owned with the help of PBS. During the time he was with PBS, Smoker defrauded approximately 85 clients, generating more than $500,000 in income for PBS.
In this case, defendant Andrew S. Wang is set for sentencing Sept. 19, 2009, and defendant Brandon Cook is set for sentencing Nov. 9, 2009. Trial is set Sept. 15, 2009, for defendants Richard A. Hagan, Brian P. Renneisen, John R. Persaud, Cheri L. Persaud and Marvin R. Hicks.
Smoker is set for sentencing Nov. 4, 2009. Prosecutors are recommending 80 months. Welch commended the U.S. Secret Service, Internal Revenue Service - Criminal Investigation, the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
##