Two Canadians Guilty of Telemarketing Fraud

BOSTON, MA—United States Attorney Michael K. Loucks and Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division, announced today that GINO IOVANNONE and IVAYLO MARINOV, both of Montreal, Canada, pleaded guilty before U.S. District Judge Patti B. Saris to conspiracy to commit telemarketing fraud.

At today’s plea hearing, the prosecutor told the Court that had the case proceeded to trial the government’s evidence would have proven that IOVANNONE and MARINOV participated in a long running scheme to trick victims in the United States and in Great Britain into believing that the victims had won large lottery prizes that could only be released once the victim prepaid a tax or fee. Victims were directed to send money to Canada in order to redeem their prizes and were warned to keep the winnings strictly confidential or risk forfeiting the prize. To keep up the charade, the telemarketers went so far as to send the victims congratulatory bouquets of flowers. Altogether, this conspiracy defrauded U.S. citizens of more than $2.5 million.

Judge Saris scheduled MARINOV’s sentencing for October 19, 2009 and IOVANNONE’s sentencing for November 4, 2009. Both men face up to five years imprisonment, to be followed by three years of supervised release, and a $250,000 fine.

Both men were extradited from Canada for purposes of this prosecution.

The case was investigated by Project Colt, a cross border law enforcement telemarketing initiative based in Montreal including the participation of the Federal Bureau of Investigation and other federal agencies and the Royal Canadian Mounted Police. It is being prosecuted by Assistant U.S. Attorney Lori J. Holik of Loucks’ Economic Crimes Unit.