Quatloos! > Advance Fee > Exhibit: Nigerian 4-1-9 Scam > California Nigerian Fraud

SACRAMENTO MAN INDICTED IN
INTERNATIONAL ADVANCE FEE SCHEME

SACRAMENTO, CA – United States Attorney John K. Vincent announced today that a federal grand jury returned a ten-count indictment charging ROLAND ADAMS, 36, of Sacramento, in connection with his involvement in a fraud scheme that used sham web sites to defraud victims around the world. ADAMS was arrested by U.S. Secret Service agents at his office, located in downtown Sacramento at 926 J Street, late in the day on Monday, June 17, 2002. ADAMS is scheduled to be arraigned before U.S. Magistrate Judge Gregory G. Hollows on Monday, June 24, 2002, at 2:00 p.m.

According to Assistant U.S. Attorneys Benjamin B. Wagner and Camil A. Skipper, who are prosecuting the case, the indictment and the previously unsealed complaint allege that ADAMS, along with co-conspirators in South Africa and Canada, sent letters to potential victims which purported to be from officials with African government agencies. Each letter informed the recipient that the African officials were attempting to divert a large sum of money under the control of their agency to their own use, but needed the assistance of a foreign account holder to receive the funds and transfer them on to the officials. Persons who agreed to assist were promised a percentage of the money, often several million dollars. The funds were represented to be in the custody of certain offshore banks, and would be transferred to the victim once certain bank fees and other fees were paid. In order to further entice the victims, the indictment alleges, ADAMS created Internet web sites, including Afribankcorp.com and BancofAfrica.com, which appeared to be web sites for legitimate foreign banking institutions. The web sites included a "Foreign Payment Verification" link. Victims were prompted to enter an "Authorization Code" by which they could access information as to the amount of money that had purportedly been designated for transfer to that victim upon the payment of fees. ADAMS and others also acquired telephone numbers for at least one "bank", and communicated with victims by telephone, fax and E-mail, while posing as employees of the bank. Victims were directed to send fees, ranging from several hundred to several thousand dollars, to bank "agents" in South Africa and Canada. The indictment further alleges that a portion of the "fees" extracted from victims was routed back to ADAMS in Sacramento through accounts in Canada and elsewhere. ADAMS is alleged to have used the funds to further the scheme, to purchase a home and for other personal expenditures.

In the indictment, ADAMS is charged with conspiracy to commit mail and wire fraud, five counts of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. All the charges are felonies. In two forfeiture counts, the Government seeks the forfeiture of ADAMS' residence, two bank accounts, the domain names for Internet web sites he used, and other assets. If convicted, ADAMS faces up to five years in prison on each of the fraud counts, and up to ten years in prison on each of the two money laundering charges. He could be fined up to $250,000 on each count.

The United States Attorney's Office noted that an indictment is only an accusation, and that ADAMS is presumed innocent until and unless proven guilty.

The case is being investigated by the U.S. Secret Service. Persons who have any information about the alleged scheme are urged to contact the U.S. Secret Service in Sacramento.