LAWFUEL – The Law News Network – R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, announced that defendants, James W. Long, 49, of Miami, Florida, and Cash Today USA, Inc., a Florida corporation, were convicted today on all counts by a jury after a six (6) day trial in Miami federal court on one (1) count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 371, and nine (9) counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing is set for May 26, 2006 at 10:00am before United States District Court Judge Gold.
At sentencing, Long faces a maximum of five (5) years imprisonment on each count and a $250,000 fine, and restitution. The corporate defendant, Cash Today USA, Inc., faces a fine of up to $250,000 on each count.
According to the evidence presented at trial, Long and others created Cash Today USA, Inc. at 5701 Margate Blvd., Margate, Florida in April 2001. From this location and the use of independent sales organizations, Long and others solicited investors around the United States through the internet and telephone to invest a minimum of $10,000 in so-called Accounts Receivable Purchase Agreements, which purportedly offered to pay 36- 42 % interest a year on the investments. During April, May, and June 2001, more than 110 investors invested over $2,100,000 to Cash Today to purchase these Accounts Receivable Purchase Agreements.
The evidence at trial showed that Cash Today falsely represented in their investment materials that the accounts were guaranteed by Teletrack TM and that no commissions were taken out of the investors funds. In reality, Teletrack had no contract with Cash Today and Cash Today was paying salesmen commissions of up to 45%, using investor funds to run the company. Of the investor money, only $146,000 remained on June 29, 2001, when FBI agents searched Cash Today’s office and froze its bank accounts. The evidence demonstrated that Cash Today operated as a “Ponzi Scheme,” where investors’ money was being used to pay their interest.
Mr. Acosta commended the investigative efforts of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jeffrey Kay.
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 www.usdoj.gov/usao/fls . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on .