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Press Release

United States Attorney And SEC Act Cooperatively To Shut Down Alleged Investment Fraud

For Immediate Release
U.S. Attorney's Office, Southern District of Florida

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrest of Joseph Signore, 49, of Palm Beach Gardens, and Paul Lewis Schumack, II, 56, of Coconut Creek, in connection with an alleged $70,000,000 investment fraud concerning the sales and marketing of a “Virtual Concierge” machine by a Jupiter-based company, JCS Enterprises, Inc., and T.B.T.I., Inc. formerly of Highland Beach. The Securities and Exchange Commission (SEC) sought and obtained a temporary restraining order freezing the accounts and assets of the companies in a separately-filed civil action.

According to the criminal complaint, Signore and Schumack allegedly collected approximately $70,000,000 from investors nationwide with the representation that for an approximate investment of $3,500 the investor would be guaranteed a monthly payment of $300 for three years, and their payments would be based on advertising revenue earned from ads sold on “Virtual Concierge” machines (VCMs). The criminal complaint alleges that detailed financial analysis revealed that little advertising revenue was actually received by JCS Enterprises, and that in fact old investors were paid with new investors’ money which is the hallmark of a Ponzi scheme. The criminal complaint alleged that TBTI served as the sales arm for JCS Enterprises.

Signore and Schumack each have been charged with conspiracy to commit mail and wire fraud, five counts of mail fraud each, and six counts of wire fraud. Each of those counts carries a maximum period of twenty years in prison, three years of supervised release, a fine of up to $250,000 and mandatory restitution.

Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorneys Stephen Carlton and Ellen Cohen.

A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at Related court documents and information may be found on the website of the District Court for the Southern District of Florida at or on

Updated March 12, 2015