On November 5, 2007, Shevin Goodman and Cary Krugly were each charged by Information for their involvement in Debit Corporation of America, Inc. (“DCA”), a Miami corporation that sold business opportunities from approximately January 2003 to January 2004. Goodman was charged with one count of criminal contempt of court under Title 18, United States Code, Section 401, and one count of conspiracy to commit mail fraud under Title 18, United States Code, Section 371. Krugly was charged with one count of conspiracy to commit mail fraud. Goodman was an organizer and leader of DCA, while Krugly participated in the scheme and served as an undisclosed owner. See Justice Department Press Release, 11/5/07, regarding this and other related cases.
According to the charges, DCA purported to sell prepaid MasterCard® sales systems, along with assistance in establishing, maintaining, and operating a prepaid MasterCard® business. For a purchase price of roughly $15,000, potential DCA purchasers were told that they would receive three “Debit Card Sales Systems,” plus assistance operating a prepaid debit card business opportunity. According to DCA, a business opportunity purchaser would earn substantial profits from the commissions generated when members of the public purchased prepaid debit cards from the distributor’s display racks.
The criminal contempt charge against Goodman is based on his violation of an order entered by the United States District Court for the Southern District of Florida in May 2002, in a consumer fraud civil case filed by the Federal Trade Commission. The order banned Goodman from participating in the sale of business opportunities.
These defendants and others fraudulently induced over four hundred consumers to invest more than $6 million in DCA business opportunities.
If convicted, Goodman faces a maximum statutory term of up to life imprisonment, a possible fine, and mandatory restitution on the criminal contempt count. Goodman and Krugly face a maximum statutory term of imprisonment of five years on the mail fraud conspiracy count, a possible fine, and mandatory restitution.
On January 29, 2008, Shevin Goodman pled guilty to conspiracy to commit mail fraud and criminal contempt. Sentencing is scheduled before Judge Seitz on April 8, 2008, at 8:30 a.m. at 301 North Miami Ave., Miami, Florida, Courtroom No. 5.
On April 8, 2008, Shevin Goodman was sentenced to 120 months' imprisonment to be followed by 3 years of supervised release. A restitution hearing is scheduled before Judge Seitz on June 23, 2008, at 8:30 a.m., but may be determined before then.
On April 23, 2008, Cary Krugly was sentenced to 57 months' imprisonment to be followed by 3 years of supervised release. He was also ordered to pay a fine of $12,500. Resittution will be determined by June 24, 2008.
Declarations of loss were sent out to Debit Corp. victims in February 2008. If you are a Debit Corp. victim and have not yet submitted a declaration of loss to the U.S. Department of Probation, please do so immediately, but in any event no later than June 6, 2008. Send your declaration of loss and address any questions concerning the declaration to:
Gregory R. Jenkins
U. S. Probation Officer
Room 315, 300 NE 1st Avenue
Miami, FL 33132-2126
Voice #: 305.523.5327
Fax #: 305.523.5496
Internet email: email@example.com
The restitution date for Shevin Goodman has been continued until July 1, 2008.
The restitution date for Cary Krugly has been continued until July 2, 2008.
On June 30, 2008, Judge King ordered Cary Krugly to pay restitution in the amount of $3,529,276.75 to the victims of Debit Corp. of America in amounts owed to each according to the list prepared by the Probation Office.
On July 3, 2008, Judge Seitz ordered Shevin Goodman to pay restitution in the amount of $3,757,633.75 to the victims of Debit Corp. of America in amounts owed to each according to the list prepared by the Probation Office.