An American citizen who spent over a year running the day-to-day operations of a fraudulent tech
support call center in Costa Rica is heading to prison. Michael Cary Lawing, 34, of Lincolnton,
North Carolina, has been sentenced to serve 18 months behind bars for his role as the CEO of ABC
Repair Tech (ABC) from 2015 to 2016. Lawing pleaded guilty in October 2018 to a one-count felony
information charging him with conspiracy to commit wire fraud.
According to court documents, Lawing’s company was affiliated with another fraudulent tech support
business in South Florida known as First Choice Tech Support, which later changed its name to
Client Care Experts (CCE). Both ABC and CCE purchased pop-up advertisements that would appear
suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and
falsely informed the victims that serious problems, such as viruses or malware, had been detected
on their computers. Often, the pop-ups caused the person’s internet browser to freeze up and stop
responding. The pop-ups also typically warned the victims not to shut down their computers or else
they would lose all their data. Instead, the ads directed them to call a toll-free number, where
they were connected to sales representatives who continued the fraud.
The sales representatives at ABC and CCE would convince the victims to grant them remote access to
their computers, where normal computer functions and routine processes were highlighted as evidence
of serious computer problems. Victims were never told that the pop-ups that had hijacked their
computers were just advertisements purchased by the tech support company, or that in most instances
they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold
remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked
at the steep prices, the sales representatives would offer them a discount for being a senior
citizen or a military veteran or something else.
From 2013-2016, the two companies – CCE and ABC – combined to defraud more than 40,000 people.
Victims were located in all 50 States, the District of Columbia, Puerto Rico, several
U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other
foreign countries. At least 57 victims of the scams were residents of the Southern District of Illinois,
representing 22 of the district’s 38 counties, including St. Clair and Madison. All told, the two
companies took in over $25 million.
In handing down the 18-month sentence, Chief United States District Judge Nancy J. Rosenstengel
explained that the need to deter other would-be scammers was a “big factor” in her decision. “The
general public needs to see that this kind of crime is taken seriously,” she said.
As part of his sentence, Lawing was ordered to pay back over $266,000 in restitution to ABC victims
– a figure that represents ten percent of the roughly $2.6 million in actual losses incurred by
over 10,000 victims during Lawing’s tenure as the company’s top executive. Evidence presented in
court showed that Lawing himself made only about $90,000 from the scam. The bulk of ABC’s
fraudulent earnings were reportedly reinvested in the company.
Lawing’s sentence comes just one week after CCE’s Vice President, Grand Clark Wasik, 36, of Oakland
Park, Florida, was sentenced to 125 months in prison and ordered to pay over $10 million in
restitution. Wasik pled guilty to count one of a 14-count superseding indictment earlier this year.
Two former owners of CCE, Michael Austin Seward, 32, of Deerfield Beach, Florida, and Kevin James
McCormick, 46, of Delray Beach, Florida, also pled guilty to their role in the conspiracy and are
due to be sentenced on November 18. The Honorable Joe Billy McDade from the Central District of
Illinois, who presided over Wasik’s case, will also conduct the sentencings of Seward and
McCormick.
Since April 2017, 14 other employees of CCE and ABC have also pleaded guilty to federal fraud
violations in the Southern District of Illinois:
• Joseph Ralph Aievoli, IV, 26, of Boynton Beach, FL – Salesperson at CCE
• Cory Steven Bachman, 26, of Boynton Beach, FL – Salesperson at CCE
• Andrew Douglas Broad, 27, of Boynton Beach, FL – Director of Training at CCE
• Ryan Stocker Carr, 24, of Mount Laurel, NJ – Team Leader at CCE
• Joshua Dennis Cortez, 38, of Lake Worth, FL – Director of Training at CCE
• Erica Marie Crowell, 30, of Maple Shade, NJ – Salesperson at CCE
• Nicholas James Davidson, 27, of Boynton Beach, FL – Salesperson at CCE
• Patrick M. Dougherty, 36, of Boynton Beach, FL – Salesperson at CCE
• Tatum Elyse Espenshade, 27, of West Palm Beach, FL – Salesperson at CCE
• Eric M. Iannaccone, 33, of Monroe Township, NJ – Sales Manager at CCE
• Anthony Vincent Ludena, 30, of Boca Raton, FL – Salesperson at CCE
• Robert Thomas McCart, 33, of Boynton Beach, FL – Team Leader at CCE
• Timothy James Miller, II, 28, of Schwenksville, PA – Salesperson at CCE
• Jonathan Matthew Richardson, 28, of Lake Worth, FL – Salesperson at CCE
• Kyle Evan Swinson, 27, of Boynton Beach, FL – Team Leader at ABC/CCE
Eleven of these additional defendants have been sentenced already:
Date
Defendant
Prison Sentence
Restitution
Mar. 8, 2018
Ryan Carr
12 months + 1 day
$20,384.36
May 7, 2018
Joshua Cortez
18 months
$3,034.00
June 8, 2018
Patrick Dougherty
12 months + 1 day
$240,966.94
June 14, 2018
Anthony Ludena
12 months + 1 day
$176,692.26
June 29, 2018
Nicholas Davidson
5 years probation
$181,808.40
July 26, 2018
Timothy Miller
5 years probation + 200 hours
community service
$127,042.06
Aug. 3, 2018
Tatum Espenshade
1 day + 18 months home detention
$132,683.68
Sept. 11, 2018
Andrew Broad
12 months + 1 day
$55,238.28
Sept. 20, 2018
Jonathan Richardson
12 months + 1 day
$78,638.99
Oct. 4, 2018
Cory Bachman
1 day
$156,806.25
Oct. 10, 2019
Joseph Aievoli
1 day
$106,355.82
Because the crimes allegedly took place in connection with telemarketing and victimized 10 or more
persons over the age of 55, the maximum punishment in each case is 30 years imprisonment. The
defendants could also be ordered to serve up to five years of supervised release and pay a fine of
up to $250,000. Under federal law, restitution to identified victims is mandatory.
These cases are part of an ongoing investigation by the St. Louis Field Office of the Chicago
Division of the United States Postal Inspection Service and are being prosecuted by Assistant
United States Attorneys Nathan D. Stump, Scott A. Verseman, and Ranley R. Killian.
The Florida Attorney General’s Office raided CCE in June 2016 and has been cooperating with the
federal investigation, in addition to bringing its own civil enforcement action against CCE under
Florida state law.
The Federal Trade Commission has been working for some time to shut down illegal tech support
scams. For more information about the FTC’s “2019 Tech Support Takedown,” please visithttps://www.consumer.ftc.gov/blog/2019/03/ftcs-tech-support-takedown-2019.
Some consumers who were victimized by ABC or CCE / First Choice Tech Support have
received additional fraudulent calls. These calls typically come from companies claiming either
(a) that the technical support the victims purchased has been transferred to them and additional
funds are now needed; or (b) that they can help the victims obtain a refund. Victims should be
advised that no companies have been authorized to provide them with any tech support services on
behalf of ABC or CCE / First Choice Tech Support, or to provide them with a refund for any
previous purchases.
The former vice president and sales manager of a fraudulent tech support business known as Client
Care Experts, LLC (CCE) will be spending the next 10½ years in federal prison, U.S. Attorney Steven
D. Weinhoeft announced today. Grant Clark Wasik, 36, of Oakland Park, Florida, was sentenced
yesterday in federal district court in East St. Louis, Illinois, to 125 months in prison for
conspiracy to commit wire fraud. The court also ordered Wasik to pay over $10.5 million in
restitution to the victims of the fraud scheme.
Wasik was the vice president and sales manager of CCE, formerly known as First Choice Tech Support,
which was based in Boynton Beach, Florida. The company also operated a similar tech support
business called ABC Repair Tech (ABC), located in Costa Rica.
According to court documents, the defendants purchased pop-up advertisements that would appear
suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and
falsely informed the victims that serious problems, such as viruses or malware, had been detected
on their computers. Often, the pop-ups caused the person’s internet browser to freeze up and stop
responding. The pop-ups also typically warned the victims not to shut down their computers or else
they would lose all their data. Instead, the ads directed them to call a toll-free number, where
they were connected to sales representatives who continued the fraud.
The sales representatives would convince the victims to grant them remote access to their
computers, where normal computer functions and routine processes were highlighted as evidence of
serious computer problems. Victims were never told that the pop-ups that had hijacked their
computers were just advertisements purchased by the tech support company, or that in most instances
they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold
remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked
at the steep prices, the sales representatives would offer them a discount for being
a senior citizen or a military veteran or something else.
From 2013-2016, the two companies – CCE and ABC – combined to defraud more than 40,000 people.
Victims were located in all 50 States, the District of Columbia, Puerto Rico, several
U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other foreign
countries. At least 57 victims of the scams were residents of the Southern District of Illinois,
representing 22 of the district’s 38 counties, including St. Clair and Madison. All told, the two
companies took in over $25 million.
Wasik pled guilty to count one of a 14-count superseding indictment earlier this year. Two former
owners of CCE, Michael Austin Seward, 32, of Deerfield Beach, Florida, and Kevin James McCormick,
46, of Delray Beach, Florida, also pled guilty to their role in the conspiracy and are set to be
sentenced on November 18. The Honorable Joe Billy McDade from the Central District of Illinois, who
presided over Wasik’s case, will also conduct the sentencings of Seward and McCormick.
The former CEO of ABC, Michael Cary Lawing, is due to be sentenced on October 15 before the
Honorable Nancy J. Rosenstengel, Chief United States District Judge for the Southern District of
Illinois. Lawing, 34, of Lincolnton, North Carolina, pled guilty to a felony information late last
year. Since April 2017, 14 other employees of CCE and ABC have also pleaded guilty to federal fraud
violations in the Southern District of Illinois:
• Joseph Ralph Aievoli, IV, 26, of Boynton Beach, FL – Salesperson at CCE
• Cory Steven Bachman, 26, of Boynton Beach, FL – Salesperson at CCE
• Andrew Douglas Broad, 27, of Boynton Beach, FL – Director of Training at CCE
• Ryan Stocker Carr, 24, of Mount Laurel, NJ – Team Leader at CCE
• Joshua Dennis Cortez, 38, of Lake Worth, FL – Director of Training at CCE
• Erica Marie Crowell, 30, of Maple Shade, NJ – Salesperson at CCE
• Nicholas James Davidson, 27, of Boynton Beach, FL – Salesperson at CCE
• Patrick M. Dougherty, 36, of Boynton Beach, FL – Salesperson at CCE
• Tatum Elyse Espenshade, 27, of West Palm Beach, FL – Salesperson at CCE
• Eric M. Iannaccone, 33, of Monroe Township, NJ – Sales Manager at CCE
• Anthony Vincent Ludena, 30, of Boca Raton, FL – Salesperson at CCE
• Robert Thomas McCart, 33, of Boynton Beach, FL – Team Leader at CCE
• Timothy James Miller, II, 28, of Schwenksville, PA – Salesperson at CCE
• Jonathan Matthew Richardson, 28, of Lake Worth, FL – Salesperson at CCE
• Kyle Evan Swinson, 27, of Boynton Beach, FL – Team Leader at ABC/CCE
Because the crimes allegedly took place in connection with telemarketing and victimized 10 or more
persons over the age of 55, the maximum punishment in each case is 30 years imprisonment. The
defendants could also be ordered to serve up to five years of supervised release and pay a fine of
up to $250,000. Under federal law, restitution to identified victims is mandatory.Ten of these additional defendants have been sentenced already:
Date
Defendant
Prison Sentence
Restitution
Mar. 8, 2018
Ryan Carr
12 months + 1 day
$20,384.36
May 7, 2018
Joshua Cortez
18 months
$3,034.00
June 8, 2018
Patrick Dougherty
12 months + 1 day
$240,966.94
June 14, 2018
Anthony Ludena
12 months + 1 day
$176,692.26
June 29, 2018
Nicholas Davidson
5 years probation
$181,808.40
July 26, 2018
Timothy Miller
5 years probation + 200 hours community service
$127,042.06
Aug. 3, 2018
Tatum Espenshade
1 day + 18 months home detention
$132,683.68
Sept. 11, 2018
Andrew Broad
12 months + 1 day
$55,238.28
Sept. 20, 2018
Jonathan Richardson
12 months + 1 day
$78,638.99
Oct. 4, 2018
Corey Bachman
1 day
$156,806.25
These cases are part of an ongoing investigation by the St. Louis Field Office of the Chicago
Division of the United States Postal Inspection Service. The cases are being prosecuted by
Assistant United States Attorneys Scott A. Verseman, Ranley R. Killian, and Nathan D. Stump.
The Florida Attorney General’s Office raided CCE in June 2016 and has been cooperating with the
federal investigation, in addition to bringing its own civil enforcement action against CCE under
Florida state law.
The Federal Trade Commission has been working for some time to shut down illegal tech support
scams. For more information about the FTC’s “2019 Tech Support Takedown,” please visit https://www.consumer.ftc.gov/blog/2019/03/ftcs-tech-support-takedown-2019.
Some consumers who were victimized by ABC or CCE / First Choice Tech Support have received
additional fraudulent calls. These calls typically come from companies claiming either
(a) that the technical support the victims purchased has been transferred to them and additional
funds are now needed; or (b) that they can help the victims obtain a refund. Victims should be
advised that no companies have been authorized to provide them with any tech support services on
behalf of ABC or CCE / First Choice Tech Support, or to provide them with a refund for any
previous purchases.
Attorney General Focuses on Threats Posed by Technical-Support Fraud
East St. Louis, IL – Attorney General William P. Barr and U.S. Attorney Steven D. Weinhoeft today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over $750 million.
"Crimes against the elderly target some of the most vulnerable people in our society," Attorney General William P. Barr said. "But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America’s seniors."
"Fraud is a multi-billion dollar problem that impacts banks, retailers, health care providers, industries, and individuals. Truly, none of us are beyond the reach of these thieves who constantly find new and innovative ways to lie, cheat, and steal," said Steven D. Weinhoeft, United States
Attorney for the Southern District of Illinois. Weinhoeft also noted that according to a 2018 FTC report, while Americans of all ages are susceptible to fraud schemes, people ages 80 and older reported the highest median losses – over twice the median loss amount reported by those under age 60.
Telemarketing fraud is a primary tool for those who target the elderly. For this reason, the U.S. Attorney’s Office for the Southern District of Illinois has made telemarketing fraud a top priority. The Southern District of Illinois is recognized as a national leader in telemarketing fraud prosecutions, particularly on schemes that victimize seniors. This year’s sweep included three Canadian citizens – Fawaz Sebai, 41, Vassilios Klouvatos, 34, and Lefkothea Klouvatos, 27 – charged with conspiracy to commit mail and wire fraud in the Southern District of Illinois. According to the indictment, Sebai and Vassilios Klouvatos owned and operated a telemarketing business located in Quebec, Canada. Lefkothea Klouvatos managed the call center for the business. The telemarketers employed by the business allegedly made unsolicited telephone calls to elderly victims in the United States. By making false statements and misrepresentations, the telemarketers convinced the U.S. victims to purchase supposed prescription drug discount cards. The fee for these products was typically $299. The Office of International Affairs sought extradition in 2015. Canada extradited Sebai to the United States on Sept. 19, 2018. Vassilios and Lefkothea Klouvatos were surrendered to the United States on Oct. 4, 2018. The trio pleaded guilty earlier this year and are set to be sentenced on March 26, 2019.
This year’s sweep also includes additional Southern Illinois prosecutions and convictions of defendants engaged in tech support scams. In May 2018, two former owners of a Florida-based company, Client Care Experts, LLC (formerly known as First Choice Tech Support, LLC), and a Costa Rican-based company, ABC Repair Tech, Ltd., were indicted by a federal grand jury in East St. Louis with criminal conspiracy and 13 counts of wire fraud. Michael Austin Seward, 31, of Deerfield Beach, Florida, and Kevin James McCormick, 45, of Delray Beach, Florida, were named in a superseding indictment charging them and their former vice president, Grant Clark Wasik, 35, of Boynton Beach, Florida, with running a fraudulent tech support scheme. The inbound call center they operated allegedly generated calls through pop-up messages that falsely claimed consumers had serious viruses or malware on their computers. According to the charging documents, telemarketers convinced consumers to grant remote access and ultimately used false representations and scare tactics to induce consumers to send money. In three years, the scheme allegedly brought in over $25 million, a large portion of which came from older Americans. At least 57 victims of the alleged scams were located in 22 counties within the Southern District of Illinois, with multiple victims in both St. Clair and Madison Counties.
Sixteen other defendants involved in the same fraudulent scheme have been prosecuted in the Southern District of Illinois, including three during the sweep. Michael Cary Lawing, 33, of Lincolnton, North Carolina, Kyle Evan Swinson, 27, of New Bern, North Carolina, and Erica Marie Crowell, 29, of Marlton, New Jersey, were recently charged in separate cases for their
involvement in the conspiracy. The cases against Seward, McCormick, and Crowell are scheduled for trial in the coming months. The other defendants have all entered guilty pleas.
Members of the public are reminded that all charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Fact sheets with more information on the Department’s tech support fraud cases, mass mailing fraud cases, and cases involving extradition in which the Office of International Affairs played a substantial role can be found here.
More information on the tech support fraud prosecutions being brought in the Southern District of Illinois is available here.
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY
Description: The code of the federal judicial circuit where the case was located
Format: A2
Description: The code of the federal judicial district where the case was located
Format: A2
Description: The code of the district office where the case was located
Format: A2
Description: Docket number assigned by the district to the case
Format: A7
Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3
Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3
Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5
Description: Case type associated with the current defendant record
Format: A2
Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18
Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15
Description: The status of the defendant as assigned by the AOUSC
Format: A2
Description: A code indicating the fugitive status of a defendant
Format: A1
Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD
Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD
Description: The date when a case was first docketed in the district court
Format: YYYYMMDD
Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD
Description: A code used to identify the nature of the proceeding
Format: N2
Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD
Description: A code indicating the event by which a defendant appeared before a judicial officer in the district court where a charge was pending
Format: A2
Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2
Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE1
Format: N2
Description: The four digit AO offense code associated with FTITLE1
Format: A4
Description: The four digit D2 offense code associated with FTITLE1
Format: A4
Description: A code indicating the severity associated with FTITLE1
Format: A3
Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5
Description: The date of the last action taken on the record
Format: YYYYMMDD
Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD
Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD
Description: The date upon which the case was closed
Format: YYYYMMDD
Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8
Description: A count of defendants filed including inter-district transfers
Format: N1
Description: A count of defendants filed excluding inter-district transfers
Format: N1
Description: A count of original proceedings commenced
Format: N1
Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants terminated including interdistrict transfers
Format: N1
Description: A count of defendants terminated excluding interdistrict transfers
Format: N1
Description: A count of original proceedings terminated
Format: N1
Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1
Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1
Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10
Description: A sequential number indicating the iteration of the defendant record
Format: N2
Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD
Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year