March 29, 2002

MANHATTAN BEACH AND THOUSAND OAKS ‘PSYCHICS’
ARRESTED IN $600,000 FRAUD AND TAX EVASION SCHEME

 A woman and her daughter-in-law who claimed to be psychics and who initially charged clients low rates before conning victims into making huge payments for services were arrested today on federal mail fraud charges.
 Sonia Merino, 50, of Manhattan Beach, and her daughter-in-law, Nasta Merino, 23, of Thousand Oaks, were arrested after being indicted in a scheme to defraud clients of their Manhattan Beach business, “Sonia Psychic Advisor,” of more than $600,000. Each woman is charged with five counts of mail fraud.
 Court documents filed in relation to this case indicate that Sonia Merino sold at least one victim a vial of “holy water” from the Vatican that a chemical analysis showed was nothing more than Manhattan Beach tap water. Nasta Merino is accused of selling one victim “holy water” from Ste. Anne de Beaupre in Canada, when the product was nothing more than local tap water.
 Sonia Merino’s husband, Steve Merino, 44, who resides with her in Manhattan Beach, was also arrested this morning. Sonia and Steve Merino are charged with conspiring to defraud the Internal Revenue Service by filing false tax returns for the years 1995 through 1999 that under-reported their income by more than $750,000. In the tax part of the indictment, Sonia and Steve Merino are each charged with one count of conspiracy and six counts of subscribing to false tax returns.
 A federal grand jury in Los Angeles yesterday returned a 12-count indictment alleging that Sonia and Nasta Merino defrauded their clients through a variety of lies and misrepresentations. The two women also allegedly charged grossly inflated fees for psychic services, such as group meditation that never occurred.
 The scheme involved placing advertisements that promised psychic services such as tarot card readings for low prices. After the first meeting, according to court documents, Sonia or Nasta Merino would tell the client that additional services were needed to clear a curse or some other negative spiritual force. Those additional services often cost thousands of dollars, and, if the victim was reluctant to pay, Sonia and Nasta Merino would badger and threaten the victim.
 An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
 If convicted, the maximum penalty under federal law for each offense of mail fraud is five years in federal prison and a $250,000 fine. The maximum penalty under federal law for conspiracy is five years imprisonment and a $250,000 fine.  The maximum penalty for each offense of subscription to a false tax return is three years imprisonment and $250,000 fine.
 All three defendants are scheduled to be make their initial appearance before a United States Magistrate Judge this afternoon at 2:00 p.m. in Room 341 of the Roybal Federal Building, 255 East Temple Street, downtown Los Angeles.
 This case is the product of an ongoing investigation by IRS-Criminal Investigation and the Manhattan Beach Police Department. Anyone who thinks they may have been victimized after seeking services at Sonia Psychic Advisor is encouraged to contact the Internal Revenue Service at (213) 576-3206.

 Release No. 02-058

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