British Columbia’s civil forfeiture office has secured $10 million from a company that provided payment processing services for people either found guilty or alleged to have been running scams against vulnerable seniors.
Solicitor General Mike Farnworth said in a statement the settlement agreement with PacNet Services Ltd. is the largest forfeiture in the history of the program that started in 2006.
Under the settlement deal, there is “no admission or finding of unlawful activity on the part of PacNet” or its principals, while the company agrees to forfeit $10 million.
Mr. Farnworth said the forfeiture “sends a clear message that the province will continue to take decisive action against suspected proceeds of unlawful activity.”
“I can confirm that we will continue to pursue the forfeiture of assets that are suspected to be proceeds of unlawful activity and redirect them to community safety and crime-prevention initiatives,” he said.
The government statement said PacNet was a money-service business headquartered in B.C. but it processed payments for clients around the world, including individuals who allegedly operated scams targeting seniors.
Documents filed in B.C. Supreme Court show authorities in the United States were investigating mass-mailed solicitations believed to be exploiting “vulnerable groups” and it referred potential civil forfeiture of PacNet’s assets to the B.C. Civil Forfeiture Office.
An indictment filed by the U.S. Attorney’s Office in the District of Nevada says PacNet allegedly acted as a “middleman” from 1994 to 2016, and part-owners Rosanne Day and Robert Paul Davis have been charged with mail and wire fraud, as well as conspiracy to commit money laundering in the United States.
The court document said the indictment contained only charges and is not evidence of guilt. It further said the defendants are presumed innocent until their guilt has been proven in court.
The indictment alleged PacNet processed payments from companies that mailed out notifications that misled victims into believing they would receive money, prizes, or “psychic services” upon paying a fee.
“Many victims of PacNet’s fraudulent mass-mail clients were elderly or otherwise vulnerable,” the U.S. indictment said. “Many victims were inundated with fraudulent notifications and were defrauded multiple times.
“Some elderly victims spent hundreds to thousands of dollars responding to fraudulent notifications before a family member, or a victim’s bank, detected the fraud and worked to prevent additional losses.”
The amended notice of civil claim in B.C. Supreme Court against PacNet seeking the forfeiture, said some solicitations used by PacNet clients were personalized with repeated mentions of the target victim’s name, promising a person with “psychic or other supernatural powers” would use those abilities to improve financial, or emotional situations, for a small fee.
The civil claim had sought a forfeiture mix of proceeds and properties from the company’s directors.
