Three Individuals Charged in Florida-Based Investment Fraud Scheme
On June 21, 2018, a grand jury in Miami indicted three individuals for their alleged participation in an investment fraud scheme that targeted investors throughout the Nation, defrauding them out of approximately $2 million. The main office operated out of Broward County, Florida.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Florida Office of Financial Regulation (OFR), West Palm Division, made the announcement.
Thomas Michael White, 59, of Parkland, Florida, John Kevin Reech, 56, of Delray Beach, Florida, and Joseph Mario Genzone, 53, of Boca Raton, Florida, were all charged with conspiracy to commit mail fraud and wire fraud, as well as substantive mail fraud charges. In addition to those charges, White was also charged with wire fraud. The defendants had their initial appearances in U.S. Magistrate Court today.
The indictment charges the defendants with participating in an alleged conspiracy involving the sale of stock and debt equity in First Call Ventures, LLC and its subsidiaries, all of which were owned and operated by Thomas Michael White. According to the Indictment, from January 2012 to November 2014, the defendants solicited investors located throughout the United States to buy shares or ownership units in First Call Ventures, LLC and its subsidiaries, which included, First Call Auto Transport, Frist Call Freight and First Call List.
The indictment alleges that the defendants made materially false statements which included, but were not limited to, that First Call Ventures would provide a “safe and profitable investment” where “you won’t lose your money,” that investors would receive a guaranteed return on investments, that no fees would be charged to investors unless First Call Ventures turned a profit, that the value of the investment would increase significantly, that First Call Ventures was successful and profitable, and that investor funds would be used for sales and marketing, working capital and general corporate purposes.
In fact, over 80% of all First Call Ventures’ investor funds went to White for salaries, fees and other monetary distributions to himself, Reech, Genzone, and others.
Mr. Greenberg commended the investigative efforts of the FBI and the Florida Office of Financial Regulation, West Palm Division. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Individuals who believe that they may be a victim in this case should contact the FBI at www.fbi.gov for more information.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty in a court of law.