Faces of Fraud: Cases and Lessons from a Life Fighting Fraudsters

Chapter 12

Kids and Coins: Scoundrels without a Conscience

Some cases just shock the soul and bring into question just how low people can go in defrauding the trusting and the unsuspecting. The faces of fraud can take only so much until even they are ashamed for the evil they perpetrate. That is what I found in an appalling fraud case I investigated. The fraudsters in this case used a defunct children's charity as a front for the sale of rare coins and fundraising in the name of police officers. In the process they defrauded individuals who believed they were contributing to a charity doing important work on behalf of children. They also defrauded financial institutions that provided the organization with merchant accounts to deposit the credit card payments received from contributors and customers.

The defendants in this case operated two different fraudulent schemes at the same time and location. Kid Watch, which was also known as the American Child Protective Association, purported to be a charitable organization that helped prevent the exploitation of children and assisted families in finding missing children. Metro Rarities purported to offer gold and silver numismatic coins for sale to individuals throughout the United States. Both schemes operated in a boiler room atmosphere with numerous fraudulent representations and promises.

In reality, Kid Watch was not a charitable organization and did not provide the services promised including helping parents with missing, abused, ...