Eight Sentenced in New York Business Opportunity Telemarketing Scheme That Fought Victims' Chargebacks With False Records

The bottom line: the scheme did not stop at the sales call. It also used fake "fulfillment" records to defeat victims' credit card disputes. That conduct drew its own criminal liability.

The scheme

According to the DOJ, from October 2013 through March 2017, a group of telemarketing companies promised victims returns in exchange for an upfront cash "investment" in business development, website design, grant applications or tax preparation services. Most victims were over 70 years old. Many paid thousands of dollars and earned none of the promised returns.

When victims sought refunds or disputed credit card charges, the companies gave the card companies explanations and documents falsely stating that the services had been provided.

Two roles stand out:

• Fulfillment. Raymond Quiles operated a company that sent nominal items, such as boilerplate pamphlets, to victims so the telemarketing companies could falsely show card companies that services had been delivered.
• Chargeback defense. Shahram Ketabchi was responsible for submitting documents to card companies to challenge victims' attempts to recover their money.

The companies named in the case included Olive Branch Marketing and A1 Business Consultants.

The trial and sentences

In November 2018, a jury convicted Andrew Owimrin, a sales representative, and Shahram Ketabchi of conspiracy to commit wire fraud and conspiracy to commit money laundering after a 12-day trial before U.S. District Judge Sidney H. Stein. Six others pleaded guilty in 2018.

Sentences included:

• Arash Ketabchi, 45: 87 months, forfeiture of $1,059,803.84 and restitution of $563,427.99.
• Christopher Wilson, 33: 78 months.
• Joseph McGowan, 32: 72 months, forfeiture of $1,763,582.05 and restitution of $1,705,586.05.
• Anthony Medeiros, 38: 66 months (sentenced by U.S. District Judge Nelson S. Román).
• Andrew Owimrin, 29: 52 months.
• Jack Kavner, 32: 51 months.
• Raymond Quiles, 41: 366 days and 480 hours of community service.
• Shahram Ketabchi, 48: four months, plus six months of home confinement and 480 hours of community service.

Five more defendants had pleaded guilty and were awaiting sentencing. Homeland Security Investigations (HSI) and the New York City Police Department investigated.

Why it matters

Card disputes are a key consumer protection. A telemarketer that fabricates delivery records to defeat them turns a sales problem into fraud on the payment system. Prosecutors charged the people who handled that paperwork, not only the people who made the calls.

What this means for you

1. Never promise earnings or returns on a sales call unless you can substantiate them.
2. Respond to chargebacks with accurate records only.
3. Do not use nominal mailings to create the appearance of delivered services.
4. Review refund and dispute handling as part of your compliance program.

Chargeback responses are statements to a financial institution. They must be true.