U.S. Attorney’s Office recovers $650,000 for victims in two cases residing in 3 states including Massachusetts – New Bedford Guide

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$454,945 recovered for victims in intercontinental pupil recruitment scheme and $229,882 recovered for victims of Ponzi scheme.

The United States Attorney’s Office environment introduced these days approval by the Department of Justice’s Money Laundering and Asset Recovery Area to direct $454,945 recovered from forfeited assets to the victims of Keenam “Kason” Park. Park was convicted in August 2020 of 1 count of wire fraud in relationship with a scheme to defraud non-public higher schools and intercontinental college students of millions of bucks in tuition and other service fees.

The United States Attorney’s Business also announced acceptance to immediate $229,882 recovered from forfeited assets to the victims of Raymond K. Montoya. Montoya was a hedge fund manager convicted in October 2018 of 3 counts of wire fraud, five counts of mail fraud and two counts of conducting an unlawful financial transaction in relationship with functioning a multi-million-dollar Ponzi plan.

Keenam Park

In December 2020, Park was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 5 many years in prison and a few yrs of supervised launch and was purchased to shell out restitution of $7,332,407. The court also purchased forfeiture in the amount of money of $7,332,407.

Park – as a result of his organization, EduBoston – gathered tuition and other payments from students’ family members for the 2019-2020 tutorial calendar year but unsuccessful to fork out the comprehensive tuition owed to partnering schools. As an alternative, Park made use of the money on unrelated costs, which includes private costs. Park also brought on EduBoston to obtain advance tuition and other payments for the 2020-2021 tutorial 12 months, which Park unsuccessful to return to the students’ families following EduBoston went out of small business in or all-around September 2019.

The government pursued forfeiture of a selection of Park’s belongings, like seizing lender accounts, a Lexus and other private house, which resulted in this restoration. The money will be distributed to victims pursuant to the Amended Judgment entered in this scenario. The U.S. Attorney’s Office environment will proceed to pursue property to compensate Park’s quite a few victims.

Raymond Montoya

In March 2019, Montoya was sentenced by U.S. Senior District Court docket Choose George A. O’Toole Jr. to 175 months in jail and three many years of supervised launch. Montoya was purchased to spend restitution in the quantity of $38,386,802 and forfeiture.

Concerning 2009 and June 2017, Montoya ran a pooled financial investment hedge fund in Boston identified as RMA Strategic Prospect Fund, LLC. Montoya falsely told his investors—including his loved ones, close friends and acquaintances who resided in Massachusetts, Ohio and California—that the fund was earning sizeable returns, when in reality, by 2014, the RMA Fund was sustaining substantial losses. The investors transferred thousands and thousands of bucks of their own savings and 401(k) retirement programs to Montoya and the RMA Fund. Montoya advised the buyers that he would spend their cash in stocks and bonds, but he in fact invested only a part of their funds, while diverting the rest—totaling millions of dollars—to organization and personalized bank accounts. Montoya applied the diverted revenue for particular costs these types of as luxurious cars.

The federal government pursued forfeiture of a quantity of Montoya’s assets, together with seized forex and financial institution accounts, jewelry, a Ferrari, Lamborghini, Rolls Royce and other vehicles. Of the resources obtained from the forfeited belongings, $229,882 was accredited by the Section of Justice’s Funds Laundering and Asset Recovery Segment to be utilized to restitution. These resources will be dispersed to victims pursuant to the Amended Judgment entered in this circumstance. Beforehand, the federal government recovered about $9 million which has now been turned around for victim restitution. The U.S. Attorney’s Business office will go on to pursue assets to compensate Montoya’s numerous victims.

Performing United States Lawyer Nathaniel R. Mendell and Joseph R. Bonavolonta, Distinctive Agent in Demand of the Federal Bureau of Investigation, Boston Division made the announcement nowadays. Assistant U.S. Lawyer Carol E. Head, Main of Mendell’s Asset Recovery Device, taken care of the forfeiture factors of these scenarios. Assistant U.S. Lawyer Leslie A. Wright of Mendell’s Securities, Money & Cyber Fraud Unit prosecuted the Park case. Assistant U.S. Lawyer Neil J. Gallagher Jr. of Mendell’s Felony Division prosecuted the Montoya scenario.