Four South Floridians Sentenced for Illegal Boiler Room Operation

$1 million telemarketing scheme victimized at least 50 people

June 16, 2008 -- TALLAHASSEE, FL - Florida Attorney General Bill McCollum today announced four South Florida men have been sentenced after they pleaded guilty in January to their participation in an illegal boiler room operation that victimized more than 50 people out of more than $1 million. The men were prosecuted by the Attorney General’s Office of Statewide Prosecution.

“Investment scams are particularly harmful because they target individuals who are trying to use their money wisely, perhaps to fund important life decisions such as buying a home or planning for retirement, and it our responsibility to protect our communities from this threat,” said Attorney General McCollum.

James Augello, 53, of Coconut Creek, was sentenced to two years in prison to be followed by five years probation; Stephen Delong, 39, of North Lauderdale, was sentenced to five years probation; and Paul Stanley, 32, of Lake Worth, was sentenced to five years probation. Each man previously pleaded guilty to charges of racketeering and conspiracy to commit racketeering, both first-degree felonies; grand theft, a second-degree felony; and telemarketing without a license, fraudulent transactions, and grand theft, all third-degree felonies. Thomas Destasio, 51, of Fort Lauderdale was sentenced to five years probation after he pleaded guilty to charges of racketeering and conspiracy to commit racketeering, both first-degree felonies, and telemarketing without a license, fraudulent transactions, and grand theft, all third-degree felonies.

Investigators with the Commodity Futures Trading Commission and the Broward County Sheriff’s Office discovered that from early 2001 through June 2002, the defendants and several other co-conspirators engaged in a scheme to defraud victims through a foreign currency investment scam. Victims were called and asked to invest $5,000 to $10,000 to purchase foreign currency options. Victims were also solicited through advertisements placed in Investors Business Daily, USA Today, and the Wall Street Journal promising substantial returns on the investments.

After paying the several thousand-dollar fees, victims were told that the options had expired and they had lost their investment. Further investigation revealed that no options were ever purchased and the defendants misappropriated the victims’ funds for their own personal use. More than fifty victims filed complaints amounting to more than $1 million in losses. The defendants laundered the unlawfully obtained funds through banks in Yugoslavia, Switzerland, Germany and Belize. Boiler rooms operating in Pompano Beach, Alpharetta and Roswell, Georgia and Kenner, Louisiana were all attributed to the defendants. Florida victims were found in at least five different judicial circuits within the state.

The victims who were named in the criminal trial have been paid full restitution by Daniel Fasciana, 38, who cooperated in the case. The defendants each face up to five years in prison. Other co-defendants in this case are Fasciana and Anthony Garcia, 45, both of Fort Lauderdale, who have previously pled guilty to similar charges and have been sentenced and Elaine Kazanas, 53, of Oakland Park, who also previously pled guilty to similar charges and is awaiting sentencing. Tony Russo 47, of Lighthouse Point, James Sexton 59, of Tallahassee, and Ronald Catone, 53, of Davie, are fugitives. Anyone with information about their whereabouts should contact the Broward County Sheriff’s Office.

Source: Florida Attorney General

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