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FOR IMMEDIATE RELEASE                                               CONTACT:  DAVILYN WALSTON
MONDAY, APRIL 16, 2007                                                                       PHONE: (409) 839-2538
WWW.USDOJ.GOV/USAO/txe                                                                   CELL: (409) 553-9881



(Beaumont, Texas)       United States Attorney Matthew D. Orwig announced today that a 32-year-old Port Arthur man has been sentenced to 51 months in prison for federal mail fraud charges in the Eastern District of Texas.

JASON LAMAR KAY was also ordered by United States District Judge Ron Clark to pay restitution of $382,972 to over 80 victims.

            According to information presented in court, Kay operated an internet business known as "" by means of false and fraudulent pretenses.  As part of the scheme, from 2004 to 2005, Kay advertised the sale of 50-inch plasma television sets for $1,999.  The website falsely stated that because the company did business with several major electronic companies directly, the defendants' company was able to charge up to three times less than what other electronic wholesalers charge, allowing the purchaser to obtain products at 50% to 80% below retail value.  The website also falsely stated that because the company shipped its products directly from the factory, there was an estimated delivery time of six to eight weeks.  Kay then used "lulling" or stalling tactics, such as emails after the shipping period had passed without delivery to assure customers that the televisions would soon be delivered or a refund of their purchase payment was forthcoming.

            Despite numerous individuals sending $1,999 for the purchase of plasma televisions, Kay, did not deliver or arrange for delivery of any plasma televisions to customers of "".  As a result, Kay received funds from various customers of "" totaling approximately $275,000.  Kay also received funds of over $200,000 from victims in a subsequent investment fraud scheme that was also considered at sentencing. 

            This case was investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Port Arthur Police Department.  This case was prosecuted by Assistant United States Attorney Robert L. Rawls.