04/01/2008

EAST ST. LOUIS — A Las Vegas man hatched a fraudulent telemarketing scheme that took about $40 million from more than 325,000 people who were misled to believe they would get credit cards, a prosecutor said Monday as the trial began in federal court here.

Instead of credit cards, those who responded to the pitch and paid fees of $159 or more got an application for a debit card, along with "a package of what was, in essence, junk mail," Assistant U.S. Attorney Bruce Reppert told jurors in an opening statement.

Kyle Kimoto, a Las Vegas resident whose business, Assail Inc., was based in Utah, was indicted by a grand jury in June on one count of conspiracy to commit mail fraud, wire fraud and money laundering, one count of mail fraud and 12 counts of wire fraud. Authorities allege residents of 34 Southern Illinois counties were among victims of the alleged fraud, resulting in the case being held in East St. Louis.

Reppert said Kimoto and co-conspirators had telemarketers call a consumer whose applications for a credit card had recently been denied, imply that they represented the financial institution that had denied credit, ask several questions and then tell them they would receive a VISA or MasterCard.

The scheme was based on "misdirection, misimpression and misunderstanding," Reppert said.

But the "scripts" that Assail provided for telemarketers never offered a credit card, said defense attorney Robert M. Draskovich of Las Vegas. He said consumers were told they were eligible for a VISA or MasterCard that was a "pay-as-you-go" card, one that had to be "loaded" with money by the consumer before it could be used to pay for goods or services.

Draskovich said telemarketers were fired for suggesting to consumers they would receive credit cards. As with any large business promotion, some of those contacted misunderstood the offer but "most consumers understood the nature of the product," Draskovich said.

A former business associate of Kimoto, Peter Porcelli II of Oldsmar, Fla., pleaded guilty of federal conspiracy, mail fraud and wire fraud charges in May and is expected to testify for the government.

Draskovich said Porcelli was "the real criminal" and did things he did not tell Kimoto about.


NOTE: IN FACT THE TRUTH ACTUALLY IS THAT KYLE KIMOTO IS THE MASTERMIND BEHIND BOTH SCHEMES (TELEMARKETING & FORECLOSURE RELIEF LOAN FRAUD)! MR PETER J PORCELLI II HAS MADE AN HONEST EFFORT TO HELP THE FTC & VARIOUS OTHER AGENCIES CRACK BOTH CASES. HE HAS ALSO ACCEPT HIS JUDGEMENT LIKE A MAN SHOULD. UNLIKE KYLE KIMOTO WHO TRIES TO HIDE LIKE THE WORM HE IS. THE COMMENT IS NOT SURPRISING SINCE THIS ATTORNEY HAS HAD SOME LEGAL ISSUE'S REGARDING HIS FIRM ACCEPTING ILLEGAL FUNDS FOR PAYMENT FROM KYLE KIMOTO. SEE MORE BLOGS REGARDING ATTORNEYS LEGAL ISSUE'S ON THIS BLOG.

BEWARE OF SAFE HARBOUR FOUNDATION (NEVADA & FLORIDA), KEYSTONE FINANCIAL LLC (A NEVADA COMPANY), MT25 LLC (A NEVADA COMPANY), KYLE & JULIETTE KIMOTO (AKA MRS NEVADA 2006), MICHAEL HENRIKSEN (NEVADA - INVOLVED IN BOTH SCHEMES OF KIMOTO'S), BONNIE A HARRIS (FLORIDA & MICHIGAN), CHRISTOPHER TOMASULO (AKA DR. SULO - FLORIDA), THOMAS C LITTLE (FLORIDA ATTORNEY), MICHAEL GAINES (FLORIDA ATTORNEY), KATHY WELLINGTON ( FIRST AMERICAN TITLE INSURANCE COMPANY - FLORIDA), ATILLA M TOTH (MOBILE NOTARY FLORIDA) AND MANY OTHERS.