Houston Man and Son Indicted For Fraud
|Aug, 25, 2011|
HOUSTON - Jeffery Wayne O’Neil, 63, of Houston, has been arrested following the return of an indictment charging him and his son, Nathaniel Chilo aka Nathaniel O’Neil, 21, with mail and wire fraud, United States Attorney José Angel Moreno announced today.
Jeffrey O’Neil was arrested last night by United States Secret Service agents without incident. He made his initial appearance before U.S. Magistrate Judge Mary Milloy and was released on a $50,000 bond. A warrant remains outstanding for the arrest of Nathaniel O’Neil. Anyone who has information regarding his whereabouts is asked to contact the United States Secret Service at 713-868-2299.
The 10-count indictment, returned under seal on Aug. 11, 2011, was unsealed today following the arrest of Jeffrey O’Neil. The father and son, both of Houston, are charged with six counts of mail fraud and four counts of wire fraud. Jeffery O’Neil operated various debt relief businesses in the Houston area under different names, including but not limited to J. O’Neil/Associates Inc., World Outlook, World Outlook Management and Universal Restoration, none of which were licensed by the Texas Office of Consumer Credit Commissioner, according to the indictment.
The indictment alleges a scheme allegedly perpetrated by the O’Neils between June 2005 and September 2010 which consisted essentially of a plan to obtain money from individuals throughout the United States by representing that in exchange for paying money for entering into various programs they offered, they could provide debt relief in the form of credit card debt, tax liens, mortgage foreclosure, judgments. The O’Neils allegedly used agents in various parts of the United States to solicit, communicate with and receive payments from individuals seeking debt relief and the O’Neils communicated with agents and individuals seeking debt relief by and through e-mails. The defendants allegedly falsely represented and caused others to falsely represent that debt relief would be obtained through the Federal Trade Commission, the Senate Banking Committee, the Office of the Comptroller of the Currency (OCC), through injunctive action, and through a program called the “Debt Reconciliation Program” or “Debt Relief Program,” referred to as “DRP.” According to the indictment, Jeffery O’Neil falsely represented and caused others to falsely represent that he worked with the Financial Crisis Inquiry Commission.
Additionally, the indictment alleges the scheme further involved the sending of emails to include an altered speech by Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System, which falsely include statements about a debt reconciliation proposal sponsored by World Outlook Management as well as a fraudulent calendar for the Judiciary Committee of U.S. House of Representatives. Also, the O’Neils allegedly created Fair Credit Investigation Company, an entity bearing the initials “FCIC,” the same as the Financial Crisis Inquiry Commission which was falsely represented as a debt relief program. The O’Neils allegedly caused individuals throughout the United States to send checks payable to the FCIC to an address in Houston, to obtain credit card debt relief. When, in actuality, according to the indictment, the majority of the funds were used for the O’Neils’ personal benefit.
The indictment also contains a notice of forfeiture seeking forfeiture of $617,000, the alleged proceeds from the illegal activity alleged in the indictment.
Each count of mail fraud and wire fraud carries a maximum penalty of 20 years imprisonment and a fine up to $250,000.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.