GILLETT WOMAN SENTENCED FOR WORK-AT-HOME SCHEME

Martin C. Carlson, Acting United States Attorney for the Middle District of Pennsylvania, announced that Misty Stafford, age 26, of Gillett, Bradford County, Pennsylvania, was sentenced by United States District Judge Thomas I. Vanaskie to a little over 22 months in prison for her part in running a fraudulent work-at-home business. Having served that time awaiting her sentencing, Stafford was released with time served. Judge Vanaskie ordered her to pay $293,619.97 in restitution and a $100 special assessment and spend one year on supervised release. In April of this year, Stafford had pleaded guilty to misprision (concealing) of felony.

According to Acting U.S. Attorney Carlson, in the year 2004 through January 2005, Stafford, along with her husband William, owned, operated, or had a financial interest in a company known as National Home Assemblers of Columbia Cross, Pennsylvania. The company placed advertisements in trading guides, shopper flyers, and “penny saver” newspapers throughout the United States soliciting those interested in easy, profitable work that could be done at home. The advertisements listed a toll-free telephone number to call for further information.

Callers to the number received a scripted description of the work-at-home business and were mailed literature advising that National Home Assemblers would pay up to $800 per week for “a very easy job.” The job was to assemble decorative refrigerator magnets in the shape of a cat. National Home Assemblers promised $400 for every 60 magnets assembled that met specifications.

Upon receiving the literature, individuals were instructed to pay $31 as a “registration fee,” along with $6.75 for shipping and handling. A sample magnet was available for $12. Those who sent in the registration money received a small envelope with glue, paint, lace, and other materials necessary to make a single magnet. Those spending the extra $12 received a small cat-shaped magnet in a plastic bag with a tag that read “Made in America–$17.95.” Kits with enough material to make 60 magnets were also available for $100.

Anyone who assembled magnets and sent them to National Home Assemblers expecting payment received instead a letter rejecting the magnets as having been shipped past an artificial due date set by the company or that the magnets did not meet “Inspection Department” standards. According to United States Postal Inspectors, over 77,000 people nationwide fell victim to the scheme and lost from $12 to $2,000 each. Losses totaled over $3 million dollars. When Postal Inspectors executed a search warrant at the National Home Assemblers business, they found out-buildings filled with returned cat magnets. National Home Assemblers had falsely asserted that the cat magnets were being manufactured for the overseas market.

Previously, National Home Assemblers had been the subject of civil litigation instituted by the Federal Trade Commission for fraudulent and deceptive business practices. During this joint investigation with the U.S. Postal Inspection Service, the assets of the Staffords and National Home Assemblers were frozen and seized. The company is now out of business.

In imposing sentence, Judge Vanaskie noted that Stafford had married her husband at age 15 and that he had led her into committing this large-scale, nationwide fraud. The U.S. Attorney’s Office received nearly 3,000 requests for restitution in response to a mass mail to potential victims and a special website set up to alert consumers of the fraud.

Earlier this year, Stafford’s husband William, pleaded guilty to conspiracy to commit mail fraud, which carries a maximum sentence of five years’ incarceration, a $250,000 fine, and a term of supervised release. He is awaiting sentencing.

Acting U.S. Attorney Carlson commended the work of all those involved: “Work-at-home schemes prey upon senior citizens, shut-ins, and those on a fixed income, some of the most vulnerable members of our society. Every one of us has seen the advertisements for opportunities promising easy money for work done in the comfort of one’s home. Sadly, the opportunity in this case, like so many others, was too good to be true--a complete fraud designed to victimize the public at large. This scheme was particularly disturbing since it reached a wide range of people all over the country. My office’s criminal and civil divisions, as well as our Victim-Witness Coordinator, were pleased to work closely with the United States Postal Inspection Service and Federal Trade Commission for over three years on this investigation. Their meticulous investigation and creative efforts brought down this fraudulent enterprise.”

This case was investigated by the United States Postal Inspection Service and the Federal Trade Commission and prosecuted by Assistant U.S. Attorney Christian A. Fisanick, Chief of the Criminal Division, and Assistant U.S. Attorney G. Michael Thiel.

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