Justin Wade Smith, 32, formerly of Hilo, was sentenced to 87 months in federal prison Monday for engaging in an “advance fee” fraud scheme that netted him more than $1.2 million, and failing to file income tax returns.
Justin Wade Smith, 32, formerly of Hilo, was sentenced to 87 months in federal prison Monday for engaging in an “advance fee” fraud scheme that netted him more than $1.2 million, and failing to file income tax returns.
According to the U.S. Attorney’s office in Hawaii, Smith earlier pleaded guilty to two counts of wire fraud. Smith told people he would inherit money from a sizable family trust, once he paid certain fees and costs, and he was a contractor for a law enforcement agency, and could generate large fees through drug seizures.
In court proceedings, Smith admitted asking people to “advance” money to him, and promising to repay the amounts with substantial interest once he obtained money from the family trust or law enforcement agency. Smith admitted that he was not an heir to a large trust, or a law enforcement contractor, and that he used the money received from others to support his own lifestyle, the attorney’s office said in a press release Monday.
According to the court documents, Smith ran his scheme from 2006 through 2012 in Hawaii and elsewhere, and obtained more than $1.2 million in cash, Western Union or Moneygram wire transfers, and the “loading” of a prepaid debit card belonging to Smith. He admitted to receiving about $234,000 from his wire fraud scheme, and to failing to report a total income of more than $1 million between 2007 and 2012.