FOR IMMEDIATE RELEASE CIV MONDAY, FEBRUARY 24, 1997 (202) 616-2765 TDD (202) 514-1888 U.S. RECOVERS $2.8 MILLION FOR INTERNET FRAUD VICTIMS WASHINGTON, D.C. -- The United States has recovered $2.8 million that had been wired to bank accounts in Antigua, West Indies, by the promoters of a fraudulent marketing scheme championed on the Internet, the Department of Justice announced today. The recovery will be used to reimburse victims of the scheme, said Assistant Attorney General Frank W. Hunger of the Civil Division. "We will not tolerate information superhighway robbery," said Hunger. "We are taking our fight against fraud to the Internet. We will track down electronic rip-off artists and we will continue to reimburse Americans who are swindled." The scheme, as promoted on the Internet by Fortuna Alliance, promised consumers in more than 60 countries profits of more than $5,000 a month if they paid an "enrollment fee" of $250. Upon receipt of the money, Fortuna, however, wired it immediately to offshore trust accounts in the Swiss American Bank, Limited, in St. John's, Antigua. Acting on behalf of the Federal Trade Commission, the Department obtained an order from the High Court of Antigua freezing the wired funds. Also named in the Antigua action were Augie and Monique Delgado, Libby Welch and Donald Grant, who operated the scam primarily from Bellvue, Washington. The Department acted after the FTC on May 23, 1996, obtained an order from U.S. District Court in Seattle, Washington, enjoining Fortuna from promoting the scheme over the Internet. The court also ordered the promoters to return to the U.S. the millions of dollars they had wired to Antigua. Delgado and the other Fortuna promoters agreed to the transfer of the funds as part of a settlement to end the FTC's litigation against them. The case is the 12th fraudulent scheme involving the Internet. ##### 97-081