Attorney General Reyes Joins Effort to Protect Senior Victims of Fraud, Urges Congress to Pass Legislation

FOR IMMEDIATE RELEASE

August 12, 2020

Attorney General Reyes Joins Effort to Protect Senior Victims of Fraud Urging Congress to Pass Legislation; Joins Bipartisan Group of 44 AGs

SALT LAKE CITY — Utah Attorney General Sean D. Reyes is urging the U.S. Senate and House of Representatives to include Edith’s Bill in COVID-19 relief legislation. This bipartisan legislation would amend the Victims of Crime Act of 1984 (VOCA) to include victims of senior fraud as eligible for reimbursement by the Crime Victims Fund for states that provide compensation to victims. Scam artists know that seniors are especially at risk from COVID-19 and they are targeting seniors who are isolated at home, separated from families and support networks.

Edith’s Bill, or the Edith Shorougian Senior Victims of Fraud Compensation Act (S. 3487/H.R. 7620) will also amend VOCA so that penalties and fines from deferred prosecution and non-prosecution agreements, which can include white collar criminal conduct against seniors, are deposited into the Crime Victims Fund. The bill is being led by Sen. Baldwin of Wisconsin and Sen. Cassidy of Louisiana in the Senate and Rep. Bonamici of Oregon and Rep. King of New York in the House, who both co-chair the Elder Justice Caucus.

Across all states, there has been a surge in COVID-19 scams targeting vulnerable seniors. The U.S. Department of Health and Human Services Office of Inspector General has warned that fraudsters “are offering COVID-19 tests to Medicare beneficiaries in exchange for personal details, including Medicare information.” This is unfortunately just one of many COVID-19 scams targeting seniors.

Even after the pandemic, it is widely expected that seniors will continue to be targeted by fraudsters. By using this legislation to add senior fraud as an eligible reimbursement expense under VOCA, states will be able to help victims receive the financial relief they deserve. States would be incentivized but not mandated by this legislation to provide compensation to victims of senior fraud.

A copy of the letter can be found here.

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Utah Fraud Squad: Watch Out for Stimulus Package Scams

April 15, 2020

Today, the Utah Department of Commerce launched a new website aimed at informing Utahns of the latest COVID-19 scams, such as scams involving the federal stimulus package. View the Utah Fraud Squad website here.

Starting this week, most Utahns will receive money as the result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion stimulus package providing emergency assistance to the American people, businesses and health care providers amid the response to the COVID-19 outbreak. The package includes a one-time direct cash payment to individuals and families across the country to help them financially weather this crisis.

Unfortunately, the bill’s passage has opened up a brand-new opportunity for scammers to take advantage of vulnerable people during an emergency situation.

Taxpayers should be advised that the Internal Revenue Service will not ask you to pay anything up front to get this money. There are no fees or charges associated with receiving the payment. No one from the federal government will call, email or text message you and ask for your Social Security number, bank account information or credit card number. Anyone who does this is a scammer.

U.S. Treasury Secretary Steven Mnuchin has said the checks will be sent out for people who have been working and paying taxes since 2018. Anyone calling and telling you they can get the check to you sooner is a scammer. We advise you to not answer calls, emails or text messages from phone numbers or email addresses you do not know. Do not click on links from unsolicited emails or text messages. If you do answer a phone call and realize it is not someone you know, just hang up.

The Treasury Department plans to run a public awareness campaign for those who have not filed a tax return for either 2018 or 2019. Information will be posted as it becomes available online on www.irs.gov/coronavirus.

Stay aware of the latest scams by visiting the Utah Department of Commerce Utah Fraud Squad website.

To report scams, call the Utah Division of Consumer protection at 801-530-6601 or 1-800-721-7233, or visit them online at: consumerprotection.utah.gov.

Read the Department of Commerce press release regarding the Utah Fraud Squad website here.

Attorney General Reyes Warns Utahns on Fraud and Price Gouging During Virus Emergency

FOR IMMEDIATE RELEASE
March 16, 2020

FRAUD AND PRICE GOUGING DURING VIRUS EMERGENCY
Attorney General Reyes: “I Want Citizens and Consumers to be Protected.”

SALT LAKE CITY – Today, Utah Attorney General Sean D. Reyes continues to alert both consumers and merchants of scams and price gouging which are a serious, potential threat to the health and well-being of citizens in the State of Utah.

Scams
Right now, health threats from the coronavirus are affecting people’s physical, mental and behavioral well-being and are the most pressing concerns. While we are focused on those emergencies, predators will try to take advantage of people’s uncertainties and fears.

“Our office is receiving questions and concerns about phone calls, emails and websites that are potentially frauds or scams,” Attorney General Reyes said. “As Utahns, we are known for generosity when it comes to donating and supporting others in emergencies. We also tend to be very trusting. Both are great qualities that can be potentially exploited during emergencies.”

“Scams and fraud proliferate during natural disasters like Hurricane Katrina,” Reyes continued. “The Utah Attorney General’s Office and Utah Division of Consumer Protection continually work together to investigate and prosecute these types of cases.”

Scams may come in the form of requests for charities that don’t exist or donations to causes that sound real but are not.

Simply because someone calls you and uses the name of a recognized charity doesn’t mean they are legitimate. If someone contacts you asking for money or your personal information, you can always hang up and call the business or entity back at a number that you can confirm.
No government agency will call you for payment over the phone or by wire. Before you send any money to help others, particularly via wire, cash or on a debit card, please check with a trusted advisor or contact the Division of Consumer Protection or Attorney General’s Office.

Price Gouging
The Utah Attorney General’s Office and Division of Consumer Protection are becoming aware of several allegations of price gouging due to the temporary shortage of certain consumer items in stores. Unlike some states, our legislature passed laws to outlaw this conduct during emergencies. The Governor has now declared a state of emergency so our anti-gouging laws are in effect and penalties can be enforced.

Remember, excessive price inflation during emergencies is against the law. (Utah Code 13-41-101-202, Price Controls Under Emergencies Act).

“We hope this warning gives offenders a chance to do the right thing and stop the exploitation,” Attorney General Reyes said. “But if they don’t, they are in danger of state enforcement. Taking advantage of this tragedy for the sake of profit is NOT acceptable.”

Attorney General Reyes points out that some mark-ups will in fact reflect the scarcity of items and is acceptable under the statute.

Items like baby formula or medicine, toilet paper, bottled water, batteries, hand sanitizer filtering masks, etc. are among the items that can be typically marked up. Sellers should review the statute with their legal counsel if they have any questions.

We are working with our friends at the Division of Consumer Protection on both price gouging and scams, and they are working hard to investigate complaints.

If you notice incidents of price gouging, please call their office 801-530-6601 or 1-800-721-7233, or visit them online at consumerprotection.utah.gov.

If you suspect criminal fraud has occurred, you may also reach out to the Attorney General’s Office at 801-366-0260.

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Substantial Amount of Property Returned to Retailer Victimized by Pawn Shop Scheme

October 17, 2019

The Utah Attorney General’s Office received permission from the courts to return a substantial amount of property to the retailers victimized by the recent pawn shop scheme.

In August, the Attorney General’s Office filed felony charges against the manager of West Jordan Xtreme Pawn for a continuing pattern of buying and selling property with the knowledge that the merchandise had been stolen from various retail businesses in Utah. During the investigation, investigators seized an estimated $1.2 million in brand new merchandise, still in their original packaging.

On Friday, October 11^th, property seized during this investigation was returned to the original retailers. Roughly one pickup truckload of merchandise identified as belonging to Home Depot will be delivered to their Riverdale Store at 12 PM.

Watch the media coverage below:

Weapons, Drugs, Cash, Phony Social Security Cards Seized in SECURE Case

FOR IMMEDIATE RELEASE
September 13, 2019

WEAPONS, DRUGS, CASH, PHONY SOCIAL SECURITY CARDS SEIZED IN SECURE CASE
Three Charged in Investigations Led by Utah AG’s Office

SALT LAKE CITY – This week, the Utah Attorney General’s SECURE Strike Force successfully executed a search warrant and arrested and charged three men with the felonies listed below. (The focus of the SECURE Strike Force is to investigate major crimes committed by or against people who are present in the United States without legal documentation).

The case centers on 32-year-old Eduardo Romo-Vazquez, who faces the bulk of the drug, weapons, stolen goods and fraud charges. Vazquez possesses a “U Visa”, which is a temporary visa and does not allow him to possess firearms. Two of the firearms in his possession were stolen rifles. He will face deportation when/if he is convicted.

Also charged are his brothers, Emmanuel and Juan Pablo, who are facing fraud charges and will be deported as soon as possible.

SECURE investigators acted on a tip from a concerned citizen about potential legal activity at a home in Magna. During the course of the two-month investigation, undercover officers confirmed the activities, built the case and arrested the suspects without incident.

Charged are:
Eduardo Romo Vazquez, (DOB 2/13/87): 16 Felonies including drugs and weapons charges: 2 counts of possession of a controlled substance with intent to distribute (2^nd degree felony); 9 counts of Possession of a forged writing-phony social security cards, (3^rd degree felony); 3 counts of possession of a firearm by a restricted person, (2^nd degree felony); 2 counts of receiving stolen property. (2^nd degree felony).

Two other subjects were also arrested:
Emmanuel Romo-Vazquez, DOB not available: 5 counts of possession of fraudulent documents, (possession of a false writing), 3^rd degree felony.

Juan Pablo Romo-Vazquez, DOB not available: 2 counts of possession of fraudulent documents, (possession of a false writing), 3^rd degree felony.

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NOTES:

Read the charging document and probable cause statement for Emmanuel Romo-Vasquez here: https://attorneygeneral.utah.gov/wp-content/uploads/2019/09/State-of-Utah-v.-Emmanuel-Romo-Vasquez.pdf.
Read the charging document and probable cause statement for Eduardo Romo-Vasquez here: https://attorneygeneral.utah.gov/wp-content/uploads/2019/09/State-of-Utah-v.-Eduardo-Romo-Vasquez.pdf.
Read the charging document and probable cause statement for Juan Pablo Romo-Vasquez here: https://attorneygeneral.utah.gov/wp-content/uploads/2019/09/State-of-Utah-v.-Juan-Pablo-Romo-Vasquez.pdf.
View photos of the drugs, weapons, cash, and phony social security cards: https://attorneygeneral.utah.gov/wp-content/uploads/2019/09/Phony-Social-Security-Cards-Seized.zip.

Scammer Uses Facebook Messenger, Impersonates Utah AG

August 16, 2019

Recently, scammers impersonating Utah Attorney General Sean D. Reyes have contacted victims through Facebook Messenger offering a grant worth thousands of dollars — for a small fee. The scammer directed the victim to a bogus personal page where they went through a series of grant application questions. Once the application was “approved”, the victims sent payment and received a grant check in return. The check bounced, of course, but by then the scammer had disappeared, along with the victim’s money.

Another victim reported that the scammer supplied a phone number that the victim could use to contact “Sean Reyes” further. The victim contacted us worried that the grant offer was fraudulent, and we were able to confirm that neither our office nor the Attorney General, were involved in this and that it was indeed a scam.

Unfortunately, this is not the first time we have heard of a scam of this nature. In September 2018, we released a similar warning regarding a scammer who was impersonating the Utah Attorney General through Facebook Messenger. Our team of Investigators is working diligently to put an end to these scams.

At this time, we would like to emphasis our tips to protect yourself from fraud, and especially of the following if you are contacted by someone claiming to be from the Utah Attorney General’s Office:

Don’t wire money.

True lotteries, sweepstakes, or grants awarded do not ask for money – not for shipping and handling, taxes, or customs. State officials and agencies do not typically ask people to send money for prizes, grants, unpaid loans, or to avoid being thrown in jail. When they do, they follow a formalized process.

Stop and think.

With any online or phone transaction that you conduct, always look up the business or entity online to make sure they are reputable. This goes for anyone asking for money or personal information. Technology makes it easy for scammers to alter their identity and assume someone else’s. If the offer references a state agency or official, contact the respective office through a confirmed phone number or email to verify its validity before moving forward. You can also check with the Utah Consumer Protection Division and the Utah Better Business Bureau to see if the person/organization is credible.

Do not share your financial or personal information.

If you receive a call about a debt that you believe may be legitimate, contact that business or entity directly. Whether it’s over the phone, email, social media, or in person, don’t give out your personal information. This includes banking and financial information, your birthdate, and social security number.

Contact us.

If you receive a message, call, or email from someone claiming to be someone from our office or any other official, please contact our office to report and verify whether or not it is real at 801-281-1200 or uag@agutah.gov.

Background by Starline

Utah AG Partners with DOJ, Sister-States in National Takedown on Tech Support Scams

FOR IMMEDIATE RELEASE
March 11, 2019

UTAH AG PARTNERS WITH DOJ, SISTER-STATES IN NATIONAL TAKEDOWN ON TECH SUPPORT SCAMS

SALT LAKE CITY – Today, Attorney General Sean D. Reyes announced the Utah Attorney General’s Office is partnering with sister-states and the DOJ as part of a nationwide crackdown on fraudsters who try to trick consumers into buying costly tech support and repair services.

Utah, in coordination with attorneys general from across the country through the National Association of Attorneys General (NAAG), has joined the U.S. Department of Justice, the Federal Trade Commission (FTC) and other regulators to combat tech support scams. As part of this effort, NAAG and the Department of Justice announced a sweep of elder fraud cases and focused particular attention on tech support scams as a major threat to senior citizens.

These scams work in similar ways. Scammers use phone calls and online ads resembling security alerts from major technology companies to trick consumers into contacting the operators of these schemes and providing access to the consumers’ computers. The scammers will claim consumers’ computers are infected with viruses or experiencing other problems. They then try to pressure consumers into buying unnecessary computer repair services, service plans, anti-virus protection or software, and other products and services.

“We are sending a clear message to scammers that Utah will continue to aggressively investigate and prosecute these types of frauds. Locally, we are fortunate to partner with the Utah Division of Consumer Protection on the front line of stopping scammers,” said Attorney General Reyes.

In Utah, the Utah Attorney General’s Office collaborated with partners in the tech world regarding computer fraud schemes targeting consumers in Utah. Tech company representatives informed investigators that fraudulent businesses, claiming to be affiliated with computer support companies, were contacting computer users via pop-ups and malware, informing them that multiple viruses were found on their computer when in fact, their computers were fine. These criminals would then take over the consumers computer and steal personal information, placing viruses and malware on the computers and then charging to fix the problems.

During the joint investigation, Attorney General Investigators identified multiple businesses using this fraud scheme. Covert investigative methods were utilized by this team revealing the location of these illegitimate businesses. In some cases, our partners had global resources available to contact and shut down these schemes.

Attorneys general through the National Association of Attorneys General, the Department of Justice, and the FTC worked for more than a year on the initiative. In addition to Utah, other state participants included Arizona, Connecticut, Florida, Kentucky, Louisiana, Minnesota, Mississippi, Montana, Nebraska, Nevada, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, and Washington D.C.

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NOTES:

NAAG press release: https://www.naag.org/naag/media/naag-news/state-attorneys-general-join-federal-agencies-in-tech-support-scam-sweep.php
Department of Justice press release: https://www.justice.gov/opa/pr/justice-department-coordinates-largest-ever-nationwide-elder-fraud-sweep-0

Utah AG Offers 5 Tips to Protect Yourself from Fraud

FOR IMMEDIATE RELEASE
March 7, 2019

DURING NATIONAL AWARENESS WEEK UTAH AG SHARES FIVE TIPS TO FIGHT FRAUD

SALT LAKE CITY – In observance of National Consumer Protection Week, Utah Attorney General Sean D. Reyes reminded Utah citizens to defend themselves from fraud by observing the following five tips:

1. Guard Your Personal Information

Scammers often pretend to be someone reputable such as a business, government entity, or a charity. They may claim they need to verify your personal information, or you owe them money. Whether it’s over the phone, email, social media, or in person, don’t give out your personal information. This includes banking and financial information, your birthdate, and social security number.

2. Don’t Believe Everything You See

Technology makes it easy for scammers to alter what is displayed on your caller ID, so the information isn’t always correct. If someone contacts you asking for money or your personal information, you can always hang up and call the business or entity back at a number that you can confirm.

3. Consider Payment Methods

Credit cards are the safest way to pay online because you can dispute the charges and they often have built-in fraud protection. However, not all money transfers have the same protections. Wiring money, for instance, is risky because it’s nearly impossible to get your money back. This is also true for gift cards. Most government offices and honest companies won’t ask you to use these payment methods. Should you be asked to provide financial or other sensitive information online, make sure that the address in the URL changes to “https” or “shttp” instead of just “http”.

4. Do Your Homework

With any online or phone transaction that you conduct, always look up the business or entity online to make sure they are reputable. This goes for anyone asking for money or personal information. You can also check with the Utah Consumer Protection Division and the Utah Better Business Bureau to see if the person/organization is credible.

5. Be Careful Where You Click

Never click on any links from unsolicited emails or text messages. These links can download malware onto your computer and potentially steal your identity. Even if it looks familiar, it can be fake. The best approach to receiving these emails or text messages is to simply delete them.

“Utah is a very trusting state which is good in many ways unless you trust the wrong person,” said Attorney General Reyes. “President Ronald Reagan often said, “Trust but verify.” One of the most effective ways to immunize yourself from fraud is to verify information before doing business with anyone, even those you know well.”

“The bad news is these cases are so prevalent. The good news is we are perhaps more effective today than ever at fighting scams in Utah. The famous fraudster turned federal agent, Frank Abagnale, has said publicly he has never worked with a better team than the Utah AG Office at fighting fraud, cyber-crimes and identify theft.”

How the Utah Attorney General’s Office Combats Fraud

The Utah Attorney General’s Office and partner agencies are committed to combating fraud and protecting citizens’ rights.

In an age where technology is abundant and quickly evolving, scammers and hackers prey upon unsuspecting people – this costs them time, money, and stress. The Utah Attorney General’s Office is devoted to educating people on how they can protect themselves in an effort to prevent anyone from falling victim to fraudulent situations, and to providing resources and time to directly battling the growing threat of fraud.

In 2016, the Utah Attorney General’s Office launched the White Collar Crime Offender Registry (WCCOR), the nation’s first website that provides consumers with a central database of white-collar offenders. It allows investors to look up white-collar offenders and protect themselves from financial fraud. Since its launch, the WCCOR has been accessed in 119 countries and hosts over 200 offenders convicted in Utah. In the current 2019 Utah Legislative Session, the AG’s Office is working with Senator Curt Bramble on SB234 White Collar Crime Registry which enacts penalties for failure to register.

This last year, the Utah Attorney General’s Office worked alongside the Utah Division of Consumer Protection and 49 other attorneys general to reach a settlement with Wells Fargo after they opened 3.5 million fraudulent bank accounts in consumers’ names without their knowledge or consent. Utah received $10 million in the settlement, which went into the Division of Consumer Protection’s Education Fund.

Attorney General Reyes is fighting big corporate data breaches that can lead to citizen identity theft. He is working with Senator Lyle W. Hillyard and Representative V. Lowry Snow on SB193, which strengthens Utah’s data breach laws. The Utah Attorney General’s Office works closely with the Utah Division of Consumer Protection and other states’ attorneys general to enforce data breach laws and to sanction large corporations that fail to properly secure their customers’ personal information. For example, last year Utah received nearly a million dollars from a settlement with Uber over delayed reporting of a data hack that stole Uber drivers’ license numbers.

Attorney General Reyes announced last year that he joined a bipartisan group of 40 state attorneys general to stop or reduce annoying and harmful robocalls. The coalition is reviewing the technology major telecom companies. The Utah Department of Commerce consistently receives reports from Utah consumers of illegal robocalls. These robocalls often fake caller ID information on phones and pitches student loan debt consolidation, vacation packages, timeshare resales, among other areas. Illegal robocalls and spoofing have cost Americans billions of dollars in fraudulent claims. Attorney General Reyes and the coalition are working to minimize these unwanted robocalls and illegal telemarketing.

The AG’s Office is also home to the Mortgage and Financial Fraud Unit and the Medicaid Fraud Control Unit that investigate and prosecute fraud committed within the State of Utah. Both divisions pursue justice on behalf of the state and victims of fraud and vigorously applies resources toward investigation, prosecution, and financial remedies and recovery.

The Utah Attorney General’s Office encourages all Utahns to participate in National Consumer Protection Week by taking advantage of the resources available, reviewing the ways to safeguard information and finances, and teaching the Five Tips to family and friends.

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Alan Dean McKee Sentenced to Up to 15 Years in LDS Church Impersonation Case

SALT LAKE CITY December 9, 2016 – The Utah Attorney General’s Office Mortgage and Financial Fraud Unit announces the sentencing of Alan Dean McKee, 57, of Benjamin, Utah, to 1 to 15 years in the Utah State Prison. McKee had previously entered a guilty plea to two Second Degree Felonies for his role in hatching various fraudulent schemes netting him approximately $1.2 million. McKee’s case was investigated and prosecuted by the Utah Attorney General’s Office Investigations Division in cooperation with the Utah County Attorney’s Office. A companion case against McKee’s alleged co-defendant Gary Anderson is still pending.

“The Utah Attorney General’s Office will continue to fight white collar crime as one of its top priorities,” said Utah Attorney General Sean Reyes. “As the year comes to a close and we look forward to 2017, I want to commend the investigators, paralegals, attorneys and staff in our office and among our many law enforcement partners who work tirelessly to stop scams and shut down fraudsters.

“From within our office, I would like to highlight, the hard work by Che Arguello, Assistant Attorney General and Division Director of White Collar and Commercial Enforcement, and Brian Williams, Mortgage and Financial Fraud Unit Section Director, and their entire team for their success in building this case, as well as Tyson Downey, Investigator for the Utah Attorney General’s Office. These are very time intensive, difficult cases that require specialized expertise to investigate and prosecute. We are fortunate to have such excellent public servants working for the people of Utah.”

One of the McKee schemes involved telling representatives from Ames Construction that he was facilitating a project involving the Church of Jesus Christ of Latter Day Saints, netting McKee over $300,000. McKee also defrauded two other individuals out of almost $900,000 in separate schemes involving the purchase of farm equipment. After charges were initially filed against McKee in February 2016, the Utah Attorney General’s Office discovered McKee was also involved in another fraudulent scheme. McKee had claimed to own a stretch of railroad track in Utah County and then sold the rights to remove the track for $130,000. It was later discovered the track belonged to Union Pacific Railroad, causing them approximately $175,000 in losses.

McKee was sentenced by Judge Vernice Trease of the Utah Third District Court for Salt Lake County. Judge Trease noted the complexity of the crime, the size of the loss, and the number of victims as factors she considered before ordering imprisonment. In addition to the term of incarceration, McKee was ordered to pay full restitution to all victims.

The investigation was assisted by Tyson Downey from the Investigations Division and Richard Hales from the Utah County Attorney’s Office Investigation’s Division.

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Alan Dean McKee Pleads Guilty In Connection With Scam Impersonating LDS Church Officials

SALT LAKE CITY October 18, 2016 – The Utah Attorney General’s Mortgage and Fraud Unit announced today that Alan McKee of Benjamin has pleaded guilty to one count of a Pattern of Unlawful Activity and one count of Theft, all Second Degree Felonies. A separate case against Gary Anderson of Springville is ongoing.

According to charging documents, Anderson and McKee were previously accused of defrauding Ames Construction and two individuals out of approximately $1.2 million between July 2013 and October 2015. McKee is alleged to have sent letters to Ames Construction purporting to come from the Church of Jesus Christ of Latter-day Saints (“LDS Church”) in connection with the construction of a building site in Elberta, Utah. Anderson is alleged to have assisted by making at least one phone call posing as an LDS Church official to an Ames Construction employee. McKee and Anderson were also alleged to have induced two victims to invest in a scheme to purchase excess farm equipment.

“Stopping white collar crime has always been one of my highest priorities for the Utah Attorney General’s Office,” said Utah Attorney General Sean Reyes. “Our investigators, paralegals, attorneys and staff work tirelessly to stop scams and shut down fraudsters.

“I appreciate the hard work by Che Arguello, Assistant Attorney General and Division Director of White Collar and Commercial Enforcement, and Brian Williams, Mortgage and Financial Fraud Unit Section Director, and their team for their hard work to build this case.”

The investigation was assisted by Tyson Downey from the Investigations Division and Richard Hales from the Utah County Attorney’s Office Investigations Division.

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