Final Defendant Admits Shaking Down Investors Connected to $40 Million Ponzi Fraud

February 22, 2010 - United States Attorney Benjamin B. Wagner, FBI Special Agent-in-Charge Drew Parenti, and IRS-Criminal Investigation Special-Agent-in-Charge Scott O'Briant announced today that MICHAEL DAVID SANDERS, aka David Dennis Sanders, and Dave Sanders, 42, of Fair Oaks, pleaded guilty to Conspiracy to Impersonate an Officer and Employee of the United States. SANDERS was the final defendant to plead; co-conspirator CRAIG ANDERSON, 39, of Chicago, pleaded guilty on February 1, to the same charge; CASSANDRA MOORE, 26, of Beverly Hills, and SEAN SMARTT, 41, of Sacramento, pleaded guilty to misdemeanor Unlawfully Possessing False Documents on February 4 and 5, respectively.

This case is the product of a joint investigation by the FBI and IRS-Criminal Investigation.

According to Assistant United States Attorneys Robin R. Taylor and Jean M. Hobler, who are prosecuting the case, the defendants admitted that they attempted to recover funds for investors who lost money in a Ponzi investment fraud scheme carried out by ANTHONY VASSALLO (VASSALLO was charged in a separate indictment filed on April 16, 2009, with mail fraud, wire fraud, and money laundering, and has pleaded not guilty). On March 8, 2009, three hedge fund operators were invited to a meeting in a Folsom office purportedly to meet a wealthy investor. Once the individuals were inside the office, ANDERSON tapped on the window with an identification badge to gain entry. SANDERS, ANDERSON, MOORE, and SMARTT entered wearing bulletproof vests, earpieces, and credentials falsely bearing identification information and the authentication feature of the United States. Giving the impression that they were federal law enforcement agents, SANDERS and ANDERSON paced around the office, exposed a weapon, and blocked the entrances and exits of the office suite. The hedge fund operators were told that the defendants were there to collect funds taken from the Equity Investment Management, and Training Inc. (EIMT) account on behalf of fraud victims. ANDERSON said that they had until noon on Monday, March 9, 2009, to wire $378,300.16 to a Patelco Credit Union account in the name of the "Spirit Foundation" and provided wiring instructions, the routing number, the account number, the bank name, the amount, and an e-mail address.

SANDERS and ANDERSON will be sentenced by the Hon. John A. Mendez, United States District Court Judge, on May 11 and April 27, respectively. SMARTT and MOORE will be sentenced on April 25 and 26, respectively, by the Hon. Gregory G. Hollows, United States Magistrate Judge. SANDERS and ANDERSON face up to five years in prison for the conspiracy charge. MOORE and SMARTT face up to one year in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.