U.S. Department
of Justice
Magazine Scam - Victim Information
Case Information:
Russell Rahm Guilty Plea Press Release
Questions & Answers:
What is the “magazine case”?
The “magazine case” is a series of federal cases brought in the District of Minnesota, which charge more than 60 defendants with a telemarketing scam that swindled seniors and other vulnerable victims out of more than $300 million. The scam has been going on for at least twenty years, and it has victimized well more than 100,000 people. The companies who perpetrated this scheme were located in Minnesota as well as in states across the country, and were also located in Canada and The Philippines. The victims of this scheme were located in all 50 states.
The defendants carried out their telemarketing fraud scheme by calling victim-consumers who had one or more existing magazine subscriptions and offering to reduce the cost of an existing magazine subscription. The defendants were lying. In reality, they were not calling from the victim-consumers’ magazine companies, and they were not calling to reduce the cost of an existing subscription. Instead, the defendants were tricking the victims into signing up for entirely new magazine subscriptions, which they did not want and often could not afford. This resulted in many victims being billed by several—even dozens—of magazine companies every month. Some victims were scammed out of hundreds or thousands of dollars. Other so-called “mega victims” were scammed out of $50,000 or more.
Some defendants would call victim-consumers, including “mega victims,” claiming they were calling from the “cancellation department.” The defendants would offer to cancel the magazines the victims were receiving and pay off money the victims “owed” in exchanged for a large payment, often of $199 or $507. The defendants were lying. They were not calling from a cancellation department and were not cancelling any existing subscriptions or paying off any money owed. In reality, they were simply stealing the money from the victims.
How do I know if I’m a victim in the magazine case?
Law enforcement has identified many of the victims in the magazine case. Federal agents have reached out to some of these victims by phone, and are also sending letters to identified victims of the case asking for victim information.
A list of companies involved in this scheme is available HERE—look for these companies when you check your credit card statements for possible fraudulent charges.
Can I get my money back?
If you were defrauded by any of the defendants as a part of this scheme, you can apply to get “restitution”—to get a portion of the money you lost paid back to you by the defendants. The government has seized money and assets from the defendants, and the defendants are being ordered to pay millions more in restitution. However, you should know, that while each victim should be able to get some amount of restitution, given the losses in the case, it is unlikely that you will be paid back 100% of what was stolen from you. This website will be updated with more information on the status of the restitution order once it is entered by the court.
Why was the case brought in Minnesota? What if I don’t live in Minnesota?
The scam occurred across the United States so a federal case could have been brought in many different places in the country. The US Attorney’s Office for Minnesota happened to investigate and bring the case, in part due to a cluster of fraudulent companies located in Minnesota. The fact that the case was brought in Minnesota does not affect your rights as a victim, regardless of where you live.
How many defendants have been charged? Can I read the indictment?
To date, 64 defendants have been charged in several related cases, all known broadly as “the magazine case.” Right now, there are seven related cases, but they all essentially charge the same scheme. The indictments are as follows:
- United States v. Russell Rahm, et al., 20-cr-232 (JRT/KMM) (43 defendants)
- United States v. Daniel Mathias, et al., 20-cr-231 (JRT/BRT) (8 defendants)
- United States v. Cody Timmerman, et al., 20-cr-233 (JRT/KMM) (9 defendants)
- United States v. Wayne Dahl, 18-cr-305 (JRT) (1 defendant)
- United States v. Michael Oelrich, 20-cr-128 (JRT) (1 defendant)
- United States v. Carol Olberg, 20-cr-285 (JRT) (1 defendant)
- United States v. Jeremy Wilson 21-CR-101 (NEB) (1 defendant)
The defendants were charged by indictment with several crimes, including mail fraud, wire fraud, and/or conspiracy to commit those crimes. Most of the defendants were also charged under the SCAMS Act, a law passed by Congress specifically aimed at increasing the penalties for defendants who scam senior citizens using telemarketing schemes. The indictments describe the crimes in detail and can be found here:
United States v. Russell Rahm, et al.
United States v. Daniel Mathias, et al.
United States v. Cody Timmerman, et al.
United States v. Michael Oelrich
What has happened to each of the defendants in this case?
Each defendant has been found guilty—either because they plead guilty or because a jury found them guilty after a trial— and has been sentenced by Judge Tunheim accordingly. The defendants will typically face a sentence between zero and thirty years in prison. The federal sentencing guidelines suggest a “range” of imprisonment a defendant should receive, in months. However, this guidelines range is just a recommendation. The sentencing judge can sentence each defendant to whatever sentence the judge believes is fair and just, within the statutory range (0 – 30 years, typically).
You can find the sentences for each defendant in the chart attached below:
Can I talk to someone on the phone about this scam?
We do not have a phone line set up, in part due to the vast numbers of victims in the case. If you call the FBI, Postal Inspection Service, or the U.S. Attorney’s Office, you will be redirected to the online victim information form. After you fill out that form—or return the pre-paid letter you received from us in the mail—you can expect a federal agent to reach out to you, including by phone, to make contact.
What if an attorney contacts me about the case? Do I have to talk to them?
It is unlikely an attorney or investigator will contact you, but if they do, it is entirely your choice whether or not you want to talk with them. Understand that they may represent one of the defendants charged in the case. The only people who will contact you from the government will be federal agents—FBI agents or Postal Inspectors—who will identify themselves as such.
Do I have rights as a victim?
Absolutely you do. A federal law entitled the Crime Victims’ Rights Act (18 USC § 3771) sets out the rights that victims of federal crimes have during legal proceedings. Some of these rights include the right to be notified of public court proceedings, the right to be reasonably heard during court hearings involving release, plea, and sentencing, including during the sentencing process, and the right to be treated with fairness and with respect for the victim’s dignity and privacy. A full copy of the Crime Victims’ Rights Act is here: https://www.justice.gov/usao/resources/crime-victims-rights-ombudsman/victims-rights-act
You can also visit the FBI’s website for the magazine case, located here, which provides information about this case and other scams targeting the elderly and otherwise vulnerable: https://www.fbi.gov/resources/victim-services/seeking-victim-information/seeking-victims-in-magazine-subscription-scams-investigation