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A Las Vegas man who served in the U.S. Marine Corps was on Tuesday, July 19 sentenced to 25 years in federal prison Tuesday
for defrauding investors and the U.S. Veterans Affairs Department in a
large-scale multimillion dollar Nigerian oil investment scheme, the
Justice Department announced.
for defrauding investors and the U.S. Veterans Affairs Department in a
large-scale multimillion dollar Nigerian oil investment scheme, the
Justice Department announced.
Anton
Paul Drago, 65, formerly known as Evan Fogarty also was ordered to pay $2.3 million in restitution and
serve five years of supervised release after prison. Drago was
convicted by a jury in March of 10 felony counts โ including wire fraud,
submitting false government claims, theft of government funds, lying to
federal agents and failing to file a federal tax return.
Paul Drago, 65, formerly known as Evan Fogarty also was ordered to pay $2.3 million in restitution and
serve five years of supervised release after prison. Drago was
convicted by a jury in March of 10 felony counts โ including wire fraud,
submitting false government claims, theft of government funds, lying to
federal agents and failing to file a federal tax return.
“Todayโs
sentence reflects the serious nature of Mr. Dragoโs crimes and the
substantial harm he inflicted on his investors and the U.S. government,”
said Caroline D. Ciraolo, an assistant attorney general in the Justice
Departmentโs tax division in Washington, D.C.
sentence reflects the serious nature of Mr. Dragoโs crimes and the
substantial harm he inflicted on his investors and the U.S. government,”
said Caroline D. Ciraolo, an assistant attorney general in the Justice
Departmentโs tax division in Washington, D.C.
“When
confronted with his extensive fraudulent conduct by federal agents,
rather than come clean, Mr. Drago chose to double down on his lies and
continue the scheme that funded his extravagant lifestyle.”
confronted with his extensive fraudulent conduct by federal agents,
rather than come clean, Mr. Drago chose to double down on his lies and
continue the scheme that funded his extravagant lifestyle.”
The
evidence presented at trial showed that Drago orchestrated a
large-scale Nigerian oil investment fraud scheme from 2004 through 2012.
He
told investors that the money they invested would be used for legal
fees and business expenses to fund the production, refinement and
shipping of crude oil from Nigeria to the Bahamas and that the money
would fund the purchase of an oil refinery in the Bahamas.
Drago
lied to investors about his background and falsely claimed that he was
an engineer and expert in the oil industry with over 30 years of
experience working worldwide. He also falsely told investors that he was
the grandson of the Shell Oil founder and heir to a $500 million trust
that he had already spent on the Nigerian oil investment deal.
lied to investors about his background and falsely claimed that he was
an engineer and expert in the oil industry with over 30 years of
experience working worldwide. He also falsely told investors that he was
the grandson of the Shell Oil founder and heir to a $500 million trust
that he had already spent on the Nigerian oil investment deal.
Investors
gave Drago and his co-conspirator, Joseph Rizzuti, more than $2 million
that they had used on personal expenses such as rent, groceries,
membership at the Tournament Players Club Summerlin golf club, car
maintenance, jewelry and travel and luxury purchases at Louis Vuitton
among other stores. Drago also failed to file his 2007 federal income
tax return in a timely manner, according to the release.
gave Drago and his co-conspirator, Joseph Rizzuti, more than $2 million
that they had used on personal expenses such as rent, groceries,
membership at the Tournament Players Club Summerlin golf club, car
maintenance, jewelry and travel and luxury purchases at Louis Vuitton
among other stores. Drago also failed to file his 2007 federal income
tax return in a timely manner, according to the release.
Drago
attempted to negotiate a fictitious financial instrument purporting to
be an International Bill of Exchange worth $10 million at a Wells Fargo
branch in Las Vegas.
attempted to negotiate a fictitious financial instrument purporting to
be an International Bill of Exchange worth $10 million at a Wells Fargo
branch in Las Vegas.
Drago also lied to federal agents of the
Internal Revenue Service who were investigating him and told them that
all of the investor money went to Nigeria.
Internal Revenue Service who were investigating him and told them that
all of the investor money went to Nigeria.
At the same time Drago
was perpetrating the oil scheme, he falsely claimed individual
unemployability compensation benefits from the Veterans Affairs.
was perpetrating the oil scheme, he falsely claimed individual
unemployability compensation benefits from the Veterans Affairs.
Drago and a co-defendant promised investors a short-term
turnaround with a return of up to 400 percent, according to federal
prosecutors. But instead of investing the more than $2 million in the
oil deal, the two defendants used the money for personal expenses.
turnaround with a return of up to 400 percent, according to federal
prosecutors. But instead of investing the more than $2 million in the
oil deal, the two defendants used the money for personal expenses.
The
case was investigated by IRS-Criminal Investigation and the Office of
Inspector General for the U.S. Department of Veterans Affairs.
case was investigated by IRS-Criminal Investigation and the Office of
Inspector General for the U.S. Department of Veterans Affairs.
