Feds: Judge issues TRO to stop elder fraud schemes with ties to Long Island

A federal judge in Central Islip issued a temporary injunction Tuesday against the operators of three related international mail-fraud schemes that cheated mostly older and vulnerable victims out of $4.8 million this year alone, according to federal officials.

The civil injunction against 15 individuals and corporations by U.S. District Judge Joan Azrack targeted the schemes that sent out yearly hundreds of thousands of mailings worldwide promising the victims millions of dollars in cash prizes in return for fees of between $20 and $40, or their equivalent in European currencies, officials said.

In fact, there were no huge prizes, but at most cheap jewelry or a leaflet explaining how to enter other prize contests, officials said. Most of the mailboxes into which returns came were located on Long Island, though participants in the scheme lived both on Long Island and in Las Vegas and British Columbia, Canada, and as far away as Germany, according to court papers.

Each week about 3,200 victims responded to the scam, mostly sending payments to Long Island mailboxes, the papers said.

The judge “found probable cause to believe that the defendants are engaged in mail fraud" and entered a temporary restraining order to prevent the operators from "continuing to send fraudulent solicitations," officials said. A hearing on the injunction is scheduled for Dec 3.

The operators were identified by prosecutors as Charles Kafeiti, of Scottsdale, Arizona; Anthony Kafeiti, of Port Jefferson; and Steven Diaz, of Mount Sinai. They could not immediately be reached for comment.

The case was brought as part of the Justice Department’s Elder Fraud Initiative, and involves prosecutors from Washington, D.C., and the Eastern District.

The schemes were run independently, but the operators shared information, officials said.

“These fraudulent solicitation schemes target elderly and vulnerable residents in our district, around the country and around the world with a promise of cash prizes that never arrive,” the U.S. Attorney for the Eastern District, Richard Donoghue, said in a statement. “We are committed to protecting our residents, and victims everywhere, from these cruel schemes.”

The victims “in many cases gave away money needed for day-to-day necessities," said Philip Bartlett, head of the Postal Service Inspection Service in New York, adding that if you have to pay to collect lottery winnings it “is a telltale sign it’s a scam.”

Prosecutors attached to the court file letters to the lottery operators from some of the alleged victims. One victim, who was not identified, and who had not received the prize money expected, wrote after getting another solicitation.

“Thank you for the money you have said I have won, like the other time you have said, and I have not received any money. I have sent 30 [British pounds] each time. I have no money to spare, I am very poor, I keep trying to spare some money, so I hope it’s time this time.”

By Robert E. Kessler

Robert.Kessler@newsday.com

Bob Kessler covers federal law, including law enforcement agencies such as the FBI, DEA, IRS and ATF, as well as the federal courts.