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UNITED STATES ATTORNEY ALEXANDRIA NEWPORT NEWS NORFOLK RICHMOND CHUCK ROSENBERG UNITED STATES ATTORNEY |
FOR IMMEDIATE RELEASE:
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June 8, 2007 |
Richmond Resident Indicted in International Fraud Scheme
( Richmond, VA) – Frank A. Goley, age 39, of Richmond, Virginia, was indicted yesterday by a federal grand jury on charges of wire fraud and money laundering.
Chuck Rosenberg, United States Attorney for the Eastern District of Virginia and Charles J. Cunningham, Special Agent-In-Charge, Federal Bureau of Investigation, Richmond Division announced the charges.
Frank A. Goley was President and sole operator of Frank Enterprises, Inc. (“FEI”) from 2000 through 2003 in Norfolk, Virginia. FEI was described by Goley as a provider of business planning, loan packages, and business consulting.
On or about December 16, 2003, Goley incorporated Financiers International (“FI”) in Richmond and continually conducted business as FI through at least December 2006. FI was described by Goley as an international commercial loan brokerage and business consulting firm.
Goley maintained his primary residence and business office at 1206 Shockoe Lane, Apartment 204, Richmond, Virginia.
According to court documents, throughout the course of Goley’s operation of Frank Enterprises and FI, Goley devised a scheme to obtain payments or “advance fees” from clients through means of one or more false representations. An advance fee scheme generally consists of an individual or company that promises to render services in the future, but requires an upfront fee to initiate these services. The up-front fee is typically represented as necessary to cover start-up expenses and then cover overhead expenses while rendering the services. An illegal advance fee scheme occurs when the individual or company collects and retains the up-front fee with no intention of rendering the promised services. The individual or company routinely employs numerous stalling or lulling tactics in an effort to ultimately force the client to seek funding or services elsewhere, typically resulting in the forfeiture of the advance fee or fees.
In furtherance of his scheme to defraud, Goley caused the transmission of false pretenses and representations and accepted payments from clients by means of international and domestic wire transmissions, including electronic mail and/or telephone. Among other things, Goley represented that FI maintained an experienced staff, with multiple offices and twenty divisions in the United States and abroad, and that he used client funds solely for business purposes. The investigation revealed that while at least 16 victims—including some from the United States, Canada, Australia, Korea, and Japan---invested a total of over $650,000 with Goley, none of them received any commercial lending as promised, nor did they receive any refunds of their advance fees. Financial records reveal that from January 2003, through December 2006, Goley spent over $300,000 on day spas, dining, country club expenses, clothing, limousines, airfare, Ritz Carlton hotels, and rental payments for his Shockoe Slip apartment. Additionally, records reflect that over the same three year time period, Goley withdrew over $95,000 in cash from his FEI business bank account which held the advance fees wired by clients, and transferred the funds to his personal bank account.
The case is being investigated by the Federal Bureau of Investigation, Richmond Division. Assistant United States Attorney Brian L. Whisler is prosecuting the case for the United States.
Defendants are presumed to be innocent until and unless proven guilty.