MINNEAPOLIS — Federal prosecutors say a Canadian man has pleaded guilty to two counts of wire fraud for a scheme that targeted vulnerable people who had already been victimized by unscrupulous scammers.
The U.S. Attorney's Office - District of Minnesota announced Tuesday that 36-year-old Abdou Diallo of Montreal admitted to his role in the $30 million scheme on day one of his federal trial.
Prosecutors alleged that Diallo was co-owner and operator of Readers Services, a Canadian-based company that ran a telemarketing operation targeting seniors and vulnerable adults from 2011 through 2020. Authorities say Diallo and his cohorts would identify people who were being billed by one or more fraudulent magazine companies, and then promise to pay off outstanding balances and end those costly subscriptions for a lump sum fee.
In truth, prosecutors say, Diallo and his company had no power or ability to cancel those subscriptions or pay off the victim's outstanding balances. As a result of what the U.S. Attorney's office calls a "piggyback scheme," the defendant and his associates defrauded more than 20,000 victims across the country out of approximately $30 million. In essence, the victims were hoodwinked twice, once by fraudulent magazine companies and then by Diallo.
A sentencing hearing is set for June 5, 2024, before U.S. District Judge John Tunheim.
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