AML/CFT: Jail for "jobs" scam

In sentencing Todorovic earlier this week, Judge Hatter noted that, while the case involved a substantial loss amount and involved a large number of victims, Todorovic caused a “loss of hope, a loss of opportunity.” Hatter was handing down sentence after Todorovic was convicted last July when a federal jury found him guilty of seven counts of wire fraud and three counts of mail fraud for making false promises to people seeking work.

The evidence presented at trial showed that Todorovic set up companies in Santa Barbara—American Bartending Institute and Consumer Response Group—to market and sell bogus training programs, “certifications,” and job referrals. Todorovic placed advertisements in newspapers across the country offering bartending and “mystery shopping” positions. Those who enquired about the jobs were then misled into thinking they had to purchase Todorovic’s certification programmes in order to receive referrals to bars and retail establishments that wanted to hire bartenders or mystery shoppers. The certifications, however, were worthless, and Todorovic had no jobs to offer.

The evidence at trial showed that approximately 87,400 victims across the United States were defrauded by the scheme, which ran from 2001 through 2004 and caused nearly USD6.2 million in losses.