Criminals In Our Midst?

I found this quote from a Level 1 Director who hosted one of the Founder's Tour events:

"The Founders Tour was a special event that allowed us to see the hearts of our leaders on a personal level. Coach, along with Level 7 Director Ron Head, opened the meeting with the steps they have taken to start this one of a kind business we all know as YTB! To experience first hand that our leaders would take the time to speak to us and share with us what motivates them to be the best is incredible! Thank you Coach and Ron for your tremendous leadership and vision." Christopher Paraldi - Level 1 Director.

I am not sure why it is "incredible" that the leaders of a company to talk to their "employees" but hey, I am still learning.

Now I did some checking and Christopher Paraldi has only been in YTB since December 2006 and he is already a Level 1 Director. This is impressive in and of itself, but what is more impressive is that Chris has just completed his federal sentence for running a $22 million dollar illegal gambling ring. I guess this does prove one thing. YTB really does believe in their unofficial motto: "Yale or Jail, anyone can join." I am sure anyone who has attended one of the recruiting seminars has heard this--or possibly the "sister slogan", "it doesn't matter if you come from Penn State or the State Pen, you are welcome at YTB." Well, they do say you are a reflection of the company you keep.

Below, you can read about the $22 million dollar illegal gambling ring he ran as well as the slap on the wrist he received in terms of a sentence.

TWO PLEAD GUILTY IN GAMBLING RING
Operation raked in more than $22 million
By MIKE HOYEM, mhoyem@news-press.com
Published by news-press.com on May 12, 2004

Two men who were part of sports gambling ring that raked in more than $22 million during a 10-year operation in Lee County pleaded guilty Tuesday in federal court.

Todd R. Meady and Christopher Paraldi, who are both 27 and from Cape Coral, went before U.S. Magistrate Judge Sheri Polster Chappell and admitted violating the federal Wire Wager Act. Each man faces up to two years in prison and has agreed to forfeit illegal profits from what Sheriff Rod Shoap has called “the biggest gambling ring in Lee County history.”

Each man also has agreed to cooperate with federal prosecutors. In exchange, prosecutors say they won’t oppose their requests for lenient sentences. The ring operated under the names Player’s Edge and National Sports Consultants and advertised nationwide that it could give gamblers “inside information” on sports events.

Gamblers from across the country would call a 1-800 number connecting them with ring members, who went by aliases such as Niko Turner and Dan “the Man” Wilson. The ring began selling bogus tips in September 1993 and raked in more than $22 million until it was broken up, according to federal court records.

The ring wasn’t discovered until December 2002, when a sheriff’s deputy responded to a fire alarm at a south Fort Myers office park. The sheriff’s office arrested 14 men April 8 after a 17-month investigation that was aided by five federal agencies. Officials also have seized more than $8 million in illegal profits, including $7 million in cash, several expensive cars, homes and about 200 pieces of sport memorabilia ranging from a set of Jake LaMotta boxing gloves to autographed photos of stars such as Joe Namath and Muhammad Ali.

A third ring member, John D. Tartaglione, 32, of Fort Myers, is to enter his guilty plea today. Assistant U.S. Attorney Robert P. Barclift said seven ring members have signed plea agreements and will enter pleas in the next week to 10 days. He said those who enter pleas may testify against seven others named in federal indictments. “These are some of the witnesses if there is to be a trial, in addition to the undercover officers and some of the gamblers,” Barclift said.

And to be honest, the sentence was a slap on the wrist--180 days of house arrest and a 3-year probation sentence

THREE GET PROBATION FOR ROLES IN GAMBLING RING
By KRISTEN ZAMBO, klzambo@naplesnews.com
August 10, 2004

The first of three Southwest Florida men accused of working for an illegal sports betting operation were sentenced Monday to probation for their roles in the ring.

Former Kansas City Royals baseball player Todd R. Meady, 27, of Cape Coral; his brother-in-law, Christopher Paraldi, 27, of Cape Coral; and Tampa resident John Dominick Tartaglione, 32, previously of Fort Myers, each received three years of probation from U.S. District Judge John E. Steele.

The men were accused in the spring of conspiracy to violate the Wire Wager Act by working for two south Fort Myers companies that doled out sports betting advice and illegally referred clients to offshore casinos to place their bets.

"I did something wrong," Meady told Steele in court Monday. "I accept responsibility for my actions."

The sports gambling ring is considered to be the largest of its kind in Lee County history. Prosecutors say staffs at Player's Edge Inc. and National Sports Consultants gave bettors tips on which bets to place and at which betting parlors, referring customers to offshore casinos in the West Antilles and Costa Rica.

The casinos reported back to the companies with detailed accountings of which teams their clients bet on and the wager amounts and provided the companies with customers' account balances, according to the federal indictment. Player's Edge and National Sports Consultants then received money back from these casinos ” about $70,000 a month in advertising costs ” after clients placed their bets with these casinos.

College-educated Tartaglione worked as a stock broker before joining the gambling operation, said his attorney, Scott Moorey. When the stock market took a dive, Tartaglione decided to try the more lucrative betting service. He worked there in telephone solicitations and gave sports betting advice. He owned a 2.5 percent share of National Sports Consultants, Assistant U.S. Attorney Robert Barclift said.

Moorey said he told Tartaglione when he joined National Sports Consultants what services he legally could provide, but Tartaglione was misled by his bosses who told him he wouldn't be breaking the law, Moorey said.

"I've always been an outstanding citizen," Tartaglione said in court. "Clearly, I made a decision that was disastrous. I want to apologize to my family, particularly my wife and my kids."

Tartaglione, who pleaded guilty in May, also was sentenced to 180 days of house arrest. He could have received between six months to one year in jail. Meady also was sentenced to 180 days of house arrest, but his punishment won't start for three weeks, Steele ruled, so Meady may finish doing rehabilitation work on his home. He also must complete 25 hours of community service.

Meady joined the Kansas City Royals as a pitcher in 1995 after he was a 12th-round draft pick selected from Milford Academy High School in Connecticut, according to Major League Baseball draft records. Meady joined National Sports Consultants about 20 months ago, after he injured his shoulder, said his attorney, Peter Aiken.

Paraldi, Meady's brother-in-law, was working for the company and helped Meady start as a phone solicitor. Meady worked his way up to a salesman and blew a $40,000 college scholarship, Aiken said, because he was making so much money selling insider betting tips that weren't based on insider information.

Paraldi, who now works as a loan officer, said he was assured by company owners that their attorneys said their actions were legal. However, staff lied to clients about the validity of their betting advice and he knew that was wrong, he told Steele.

He said he knew there "was too much money going on too easy," Paraldi's attorney, Lee Hollander, said. "He's a grown adult, judge. He knew what was up."

Paraldi, who owned 2.5 percent of the company, also was sentenced to 180 days of house arrest and must complete 25 hours of community service.

Of the 14 men charged this spring with conspiracy to violate the Wire Wager Act and operating an illegal sports gambling operation, all but three have agreed to plead guilty. Another co-defendant, Jai Pasquale, 28, of Fort Myers, agreed Monday to plead guilty in a deal with prosecutors. His plea hearing is scheduled for 1:30 p.m. today.

I began this post a week or so ago, and it has just now come to my attention that Chris is a regular reader and commenter of this blog. Welcome Chris. Maybe now you can shun the "anonymous" moniker and say hello?