United States Attorney
Southern District of New York
U.S. ATTORNEY’S OFFICE
NOVEMBER 2, 2010
PREET BHARARA, the United States Attorney for the
Southern District of New York, announced that NOEMI DODAKIAN,
a/k/a “Emi Dodakian,” and CHONG SHING WU were found guilty
yesterday afternoon by a federal jury of wire fraud conspiracy
based on their participation in a fraudulent advance-fee scheme
that spanned years and robbed victims across the country of more
than $7 million. U.S. District Judge LEONARD B. SAND presided
over the nine-day trial.
Manhattan U.S. Attorney PREET BHARARA said: “Noemi
Dodakian and Chong Shing Wu lured their victims with the promise
of outlandish returns into entrusting them with millions of
dollars, which the defendants used to pad their own lifestyle
while sending their victims into financial ruin. This verdict
sends a clear message that this Office, with its partners at the
FBI, will bring those who perpetrate advance fee schemes to
justice.”
According to the evidence introduced at trial and other
documents and proceedings in the case:
Beginning in at least 2005, DODAKIAN held herself out
as a “facilitator” for two separate fraudulent advance fee
schemes. In one scheme, DODAKIAN told victims that she was
helping to recruit investors to pay certain upfront fees to
secure the release of hundreds of millions of dollars held in an
account at the World Bank. DODAKIAN and her co-conspirators
raised millions of dollars from victims by promising them huge
returns on their investments within a matter of weeks, and by
giving victims worthless “promissory notes” that purportedly
guaranteed the returns. In reality, there was no World Bank
account, and DODAKIAN spent victims’ money and shared the money
with her co-conspirators.
In the other scheme, DODAKIAN told victims that she was
raising money for an investment program that would enable
investors to share in the proceeds of an alleged $23 billion
“note” underwritten by the Federal Reserve. WU held himself out
as an agent of the Federal Reserve and the proponent of the
alleged $23 billion note. Year after year, DODAKIAN, WU, and
their co-conspirators persuaded victims to give them money by
telling them that the funds would be used simply to pay the final
fees or expenses associated with gaining access to the proceeds
of the alleged note. In reality, the note did not exist, and
DODKAIAN and WU spent victims’ money and shared it with their coconspirators.
DODAKIAN alone received over $6 million from over 330
victims across the country. She and WU together spent hundreds
of thousands of dollars of the proceeds from their criminal acts
on personal purchases. Specifically, DODAKIAN used victims’
money for mortgage and college tuition payments, and WU bought
luxury goods and diamond jewelry worth $17,000. In addition,
DODAKIAN withdrew over $600,000 of victims’ money in cash, and WU
withdrew nearly $200,000. As a result of the fraudulent schemes
perpetrated by DODAKIAN and WU, some victims lost their life
savings and their homes, and two victims were unable to afford
healthcare expenses related to chronic illnesses.
Two other defendants charged in the Indictment in this
matter pled guilty and were sentenced on September 28, 2010:
ROBERT INGRAM was sentenced to 144 months in prison, and OLIVIA
JEANNE BOWEN was sentenced to 63 months in prison.
Another defendant, DAVID NORMAN, a/k/a “Jim Norman,” is
awaiting extradition from Canada. The charges contained in the
Indictment are merely accusations, and NORMAN is presumed
innocent unless and until proven guilty.
Mr. BHARARA praised the Federal Bureau of Investigation
for its outstanding work on the case.
This case is being prosecuted by the Office’s Complex
Frauds Unit. Assistant U.S. Attorneys NICOLE W. FRIEDLANDER and
HOWARD S. MASTER are in charge of the prosecution.
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