TYLER, Texas – A Wartrace, TN, man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
John Arthur Fuss, 71, pleaded guilty to conspiracy to commit money laundering today before U.S. Magistrate Judge John D. Love.
According to information presented in court, Fuss was involved in a scheme developed and managed by a co-defendant. The scheme involved call center solicitations of various kinds, including home mortgage modifications, personal loans, payback of Social Security benefits, and IRS demands for payment. Victims were instructed to make payments through various money services businesses, or by mailing payments to specified addresses. Fuss was recruited to pick up payments from money services businesses or receive them in the mail, and then deposit them into accounts as instructed by one of the co-defendants. He also created at least one business so that the co-defendant could set up a bank account to use in the scheme. The overall scheme involved approximately $3.2 million in victims’ payments and almost 2000 victims. Fuss admitted to being responsible for the deposit of approximately $1,173,233 in victim proceeds.
Fuss faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, HUD-OIG, and Treasury IG – Tax Administration and prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Frank Coan.