FOR IMMEDIATE RELEASE                                          CR
FRIDAY, JUNE 28, 1996                              (202) 616-2765
                                               TDD (202) 514-1888

  HUNDREDS OF VICTIMS OF AN ADA BUSINESS SCAM TO GET MONEY BACK 


     WASHINGTON, D.C. --  Hundreds of people who spent millions of
dollars buying phony disability-access inspector licenses and
useless skid resistant chemicals, which actually can make surfaces
more dangerous for wheelchair users, will be getting their money
back.
     The scam, first detected in October 1994, was investigated by
a multi-agency federal force involving the Justice Department, the
Customs Service, the Internal Revenue Service, the U.S. Secret
Service and the Postal Inspection Service.  
     The repayment follows a federal grand jury indictment last
February of six family members and two associates on charges of
mail fraud, wire fraud and money laundering.  Seven of the
defendants have pleaded guilty and now face up to a maximum of five
to ten years in prison.  
     Under the scam, investors were told they could earn up to
$45,000, per year inspecting businesses for violations of the
Americans with Disabilities Act (ADA) -- a federal law requiring
most businesses to improve access for people with disabilities. 
For up to $10,000, a sham company, National Consulting Institute,
Inc. (NCI) sold people ADA inspector licenses -- even though the
law does not authorize licenses.
     Using a standardized form, the NCI victims would inspect a
business and for a $100 fee send the form back to the company for
processing.  When the form revealed potential violations, the
victims would charge between $400 and $1000 to tell the business
what steps it had to take to avoid a lawsuit.  The information
sought by the form was not adequate to determine whether the
business was complying with the ADA.
     "The ADA is a common sense law that seeks to make businesses
accessible to millions of Americans with disabilities," said
Associate Attorney General John Schmidt.  "We will not permit con
artists and swindlers to scare businesses into thinking the ADA
requires more than is reasonable."
     Under a second scam, investors were sold skid resistant
adhesive chemicals to be used by businesses seeking to become safer
for wheelchair users.  There is no specific requirement for skid
resistance under the ADA. The investors, who paid between $10,000
and $14,000 to store the chemicals, were told that company salesmen
would sell the chemicals to businesses in their area and they would
make $5 or more on each gallon sold.  
     After an investor purchased the chemicals, the sham company
would fake small orders of about $100 each for a few months.  By
the time a victim realized the fraud, the defendants were hidden
behind layers of sham corporations and could not be located.
     The Justice Department today is sending out about 800 letters
to individuals who invested in these scams notifying them that they
may be able to get some of their money back.  Federal agents have
seized $3.1 million in cash and property.
     "This investigation uncovered a massive telemarketing, money
laundering conspiracy to defraud hundreds of citizens out of
millions of dollars," said George Weise, Commissioner, U.S. Customs
Service.  "Customs and other Treasury bureaus will strive to
target, investigate and dismantle all facets of international money
laundering."
     After each of the eight are sentenced, which is expected to
begin in August, the U.S. District Court in Tampa will order the
seized assets to be sold and the proceeds to be distributed.
     "Telemarketing fraud is one of the top prosecutorial
priorities of the Middle District of Florida," said Charles Wilson,
U.S. Attorney in Tampa.  "This case will send a strong message that
telemarketing criminals will be swiftly and severely prosecuted and
deprived of all illegal proceeds."
     The ADA, passed in 1990, prohibits discrimination against
persons with disabilities.  One part of the ADA requires existing
business facilities to be made more accessible where it is readily
achievable, or can be done without much difficulty or expense. 
Whether a business must remove barriers to access depends on the
size and resources of the business as well as the cost.
     Over the past three months, seven of the eight defendants have
pleaded guilty to violating federal criminal statutes.  Three
defendants, Marvin Sherman, Irving Belsky, and Laurie Uhl, pleaded
guilty to conspiring to commit mail and wire fraud.  That charge
carries a maximum penalty of five years in prison and a $250,000
fine. Two defendants, Craig and Ryan Sherman, Marvin's sons,
pleaded guilty to conspiring to commit illegal money transactions. 
That charge carries a maximum penalty of 10 years in prison and a
$250,000 fine.  
     Maia and Rita Sherman, the wives of Ryan and Marvin,
respectively, pleaded guilty to filing false tax returns.  Wendy
Jozina Peters, a 21 year old, a foreign national, was ordered to
leave the country by the U.S. District Court.  
     Anyone who believes they were mislead by NCI or any other
party or has question about the ADA, should call the Justice
Department's ADA Information Line at 800-514-0301 or 800-514-0383
(TDD).
     In 1994, Attorney General Janet Reno launched a nationwide
public service campaign to educate Americans about their rights and
obligations under the law.  The Information Line, which was
established as part of the education effort, receives over 75,000
calls each year.
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