Feb 2, 2010
NEW YORK - A WOMAN accused of running a pyramid scheme that preyed on Filipino immigrants in New York has been arrested, prosecutors said on Monday.
Razel Canedo, 41, was arrested on Friday in Atlantic City, New Jersey, and was to be brought before a judge Monday on charges of defrauding the Filipino community of more than one million dollars.
Between January 2003 and July 2008, Canedo allegedly solicited funds that she said would be invested in two companies - Lady of Lourdes and K&K Nannies - that provided services to Filipino nurses and nannies looking to immigrate.
'In fact, Canedo did not invest the victims' money in Lady of Lourdes or K&K Nannies, but rather transferred the bulk of the money to overseas bank accounts, or deposited it into domestic accounts and withdrew it as cash,' the office for the US attorney in southern New York said. The accused, also known as Razel Torres and Razel Agravante, allegedly told her victims they would earn a return of three to 50 per cent a month. Some were paid what they were told was interest.
'In fact, these 'interest' payments were simply made from the funds Canedo received from other victims, to create the impression that the investments were generating returns,' the US attorney's office said. 'Canedo's fraudulent scheme cost dozens of victims a total of more than one million dollars.'
If found guilty of mail fraud and wire fraud, Canedo faces a maximum sentence of 40 years in prison. -- AFP
