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Case 2:18-cr-00022-JS *SEALED* Document 2 Filed 02/07/18 Page
1of6
PagelD #: 4
CCC:EPR
F .# 2016R00623
UNITED
STATES
DISTRICT
COURT
EASTERN DISTRICT
OF
NEW
YORK
-----------------------------X
UNITED
ST
A
TES
OF
AMERICA
- against -
JI
LL
CASTELLANO,
Defendant.
-----------------------------X
THE UNITED STATES
CHARGES:
INTRODUCTION
FI
LED
IN
CLERK'S
OFFICE
U.S.
Dlr::;TRICT
COURT
E.O.N.Y.
*
.FEB
07
2018
*
LONG
ISLAND
OFFICe
INFORMATION
Cr.
No.
_______
_
(T.
18,
U.S.C.,
§§
981(a)(l)(C),
1349
and
3551
et~.;
T.
21,
U.S.C., § 853(p);
T.
28,
U.S.C., § 2461(c))
At
all
times relevant
to
this lnfonnation, unless otherwise indicated:
I.
The defendant JILL
CASTELLANO
was the President
of
a direct mail
list brokerage company
with
corporate offices
in
New
Jersey. CASTELLANO brokered
and
managed mailing lists
on
behalf
of
clients
in
the
direct
mail
business.
2.
The defendant
JILL
CASTELLANO
served
as
an
agent
and
intermediary
for
mailing campaigns involving deceptive mailings sent
to
consumers
throughout
the
United
States
and
abroad.
CASTELLANO
recommended
and
procured
mailing lists
of
consumers
to
whom
the deceptive
mailings
would
be
sent,
and
rented out lists
of
consumers
who
responded
to
these campaigns
to
other mailers seeking
to
send
deceptive
mailings.
Case 2:18-cr-00022-JS *SEALED* Document 2 Filed 02/07/18 Page 2 of 6 PagelD
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5
The Fraudulent Scheme
3.
In
or about and between January 2012 and September 2016, the
defendant JILL CASTELLANO, together with others, knowingly facilitated a scheme to
fraudulently induce victims throughout the United States (the "Victims") to pay money for
falsely promised cash awards and luxury prizes. The fraudulent scheme generally worked
as follows:
(a) Members
of
the conspiracy created dozens
of
direct mail
solicitations falsely and fraudulently notifying the Victims that they had won large amounts
of
money and other valuable prizes
in
a sweepstakes or other contest. Many
of
the
solicitations were purportedly sent
from
official-sounding yet fictitious entities, such as
Registered Disbursement Division, Securities Disbursement Division, and Research
Advisory Associates. Many
of
the solicitations included the name and signature
of
a
fictitious officer or representative
of
the fictitious entity.
(b) As part
of
the scheme, the false solicitations directed the
Victims to send money
to
pay purported processing and delivery fees associated with their
promised winnings and prizes. The Victims were provided pre-addressed return envelopes
and instructed to return payments to mailboxes controlled by a "caging service." A caging
service was a company that opened post office boxes on behalf
of
direct mailers and handled
return mail and payments that arrived at the boxes. Although the solicitations
communicated to the Victims that they had been individually selected, the solicitations were,
in
fact, identical, mass-produced form letters sent
to
the Victims based on their inclusion
in
2
·'
Case 2:18-cr-00022-JS *SEALED* Document 2 Filed 02/07/18 Page 3 of 6 PagelD
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6
mass-mailing lists targeted
to
vulnerable consumers. Members
of
the conspiracy did not ·
send large cash awards or other valuable prizes
to
any
of
the Victims who responded
to
the
deceptive solicitations.
(c) Through the execution
of
the fraudulent scheme, JILL
CASTELLANO, as principal
of
a list brokerage company, supervised list brokerage and list
management on behalf
of
the conspiracy, both directly and through her employees. On a
monthly basis, CASTELLANO acted as a list broker for members
of
the conspiracy,
identifying and ordering mailing lists
of
thousands
of
consumers to whom members
of
the
conspiracy would send deceptive solicitations.
At
the conclusion
of
each monthly mailing
campaign, members
of
the conspiracy conveyed to CASTELLANO the list
of
the Victims
who had sent payments
in
response to a given deceptive solicitation ("buyers") in the
previous month, so that CASTELLANO could recommend lists for the next deceptive
mailing and rent out names
of
recent buyers.
As
a list broker, CASTELLANO identified
and entered into transactions to rent thousands
of
names at a time for members
of
the
conspiracy. CASTELLANO also acted as a "list manager" for members
of
the conspiracy,
meaning that CASTELLANO promoted and rented out mailing lists generated through the
conspiracy, often to other mailers engaged
in
deceptive mailing campaigns.
CASTELLANO's
company received a commission for list brokerage and list management
transactions conducted on behalf
of
the conspiracy.
(d) It was also part
of
the scheme that JILL CASTELLANO knew
that the solicitations created by the members
of
the conspiracy and mailed to millions
of
3
Case 2:18-cr-00022-JS *SEALED* Document 2 Filed 02/07/18 Page 4 of 6 PagelD
#:
7
4
consumers
were
designed
to
deceive
recipient
consumers
into
paying
foes
under
the
false
pretense
of
having
won
prizes
and
other
items.
CASTELLANO
routinely
received
copies
of
the deceptive mailings sent
to
consumers.
At
times,
CASTELLANO
e-mailed a sample
of
the
deceptive mailing piece
created
by
members
of
the
conspiracy
to
mailers
that
owned
lists
offered
for
rental, as
well
as
mailers
seeking
to
rent
lists
owned
by
members
of
the
conspiracy.
(e)
Over
the
course
of
the
conspiracy detailed
above,
JILL
CASTELLANO
and
other
members
of
the
conspiracy caused millions
of
solicitations
to
be
sent
by
United
States
mail
to
the
Victims
-
many
of
whom
were
elderly - throughout
the
United States, including
in
the
Eastern
District
of
New
York.
CONSPIRACY
TO
COMMIT
MAIL
FRAUD
4.
The allegations contained
in
paragraphs
one
through
three
are
realleged
and
incorporated
as
if
fully
set
forth
in
this
paragraph.
5.
In
or
about
and
between
January
2012
and
September
2016,
both
dates
being approximate and inclusive,
within
the
Eastern District
of
New
Xork
and
elsewhere,
the
defendant JILL CASTELLANO, together
with
others,
did
knowingly
and
intentionally
conspire
to
devise a scheme
and
artifice
to
defraud
the
Victims,
and
to
obtain
money
and
property
from
the
Victims,
by
means
of
materially
false
and
fraudulent pretenses,
representations,
and
promises,
and
for
the
purpose of executing such scheme
and
artifice,
did
place matters
and
things
in
a
post
office
and
authorized depository
for
mail
matter,
to
be
sent
and
delivered
by
the
United
States
Postal
Service.
and
did
deposit
and
cause
to
be
deposited
Case 2:18-cr-00022-JS *SEALED* Document 2 Filed 02/07/18 Page 5 of 6 PagelD
#:
8
I·
J
' '
5
matters and things to
be
sent and delivered
by
private and commercial interstate carriers, and
did take and receive therefrom, any such matters and things. contrary to Title 18, United
States Code, Section 1341.
(Title
18,
United States Code, Sections 1349 and 3551
et~.)
CRIMINAL
FORFEITURE
ALLEGATION
6. The United States hereby gives notice
to
the defendant that, upon her
conviction
of
the offense charged herein. the government will seek forfeiture in accordance
with Title 18, United States Code, Section 98 I (a)( I )(C) and Title 28, United States Code,
Section 2461(c), which require any person convicted
of
such offense to forfeit any property,
real
or
personal, constituting,
or
derived from, proceeds obtained directly or indirectly as a
result
of
such offense.
7.
If
any
of
the above-described forfeitable property, as a result
of
any act
or
omission
of
the defendant:
(a) cannot
be
located upon the exercise
of
due diligence;
(b) has been transferred or sold to, or deposited with, a third party;
(c) has been placed beyond the jurisdiction
of
the court;
(d) has been substantially diminished
in
value;
or
(e) has been commingled with other property which cannot be
divided without difficulty;
2:18-cr-00022-JS *SEALED* Document 2 Filed 02/07/18 Page 6 of 6 PagelD
#:
9
6
ii
'.it
is
the
intent
of
the
United
States. pursuant to Title
21.
United States Code. Section 853(p).
I
'io
seek forfeiture
or
any
other property
of
the defendant
up
to
the
value
of
the
forteitable .
I d
'b
d.
h'
.
I'.
II
. .
property escn e
111
t
1s
lor
ellurc a egallon.
l
(Title
18.
United States Code. Section
981
(a)(
I)(('): Title
21.
United States
ode. Section 853(p
):
Title
28.
United
States Code. Section
2461
( c))
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