Another tech support fraudster who targeted Metro East area sentenced

Chronicle Media

Michael Cary Lawing (Facebook photo)

An American citizen who spent more than a year running the day-to-day operations of a fraudulent tech support call center in Costa Rica, which counted residents in St. Clair and Madison counties as victims, is heading to prison.

Michael Cary Lawing, 34, of Lincolnton, North Carolina, has been sentenced to 18 months behind bars for his role as CEO of ABC Repair Tech from 2015 to 2016. Lawing pleaded guilty in 2018 to a one-count felony information charging him with conspiracy to commit wire fraud.

According to court documents, Lawing’s company was affiliated with another fraudulent tech support
business in South Florida known as First Choice Tech Support, which later changed its name to
Client Care Experts. Both ABC and CCE purchased pop-up advertisements that would appear
suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and
falsely informed the victims that serious problems, such as viruses or malware, had been detected
on their computers. Often, the pop-ups caused the person’s Internet browser to freeze up and stop
responding. The pop-ups also typically warned the victims not to shut down their computers or else
they would lose all their data. Instead, the ads directed them to call a toll-free number, where
they were connected to sales representatives who continued the fraud.

The sales representatives at ABC and CCE would convince the victims to grant them remote access to
their computers, where normal computer functions and routine processes were highlighted as evidence of serious computer problems. Victims were never told that the pop-ups that had hijacked their computers were just advertisements purchased by the tech support company or that in most instances they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked at the steep prices, the sales representatives would offer them a discount for being a senior
citizen, military veteran or something else.

From 2013-16, the two companies — CCE and ABC — combined to defraud more than 40,000 people.
Victims were located in all 50 states, the District of Columbia, Puerto Rico, several U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other foreign countries. At least 57 victims of the scams were residents of the Southern District of Illinois, representing 22 of the district’s 38 counties, including St. Clair and Madison.

All told, the two companies took in more than $25 million.

In handing down the 18-month sentence to Lawing, Chief U.S. District Judge Nancy Rosenstengel
explained that the need to deter other would-be scammers was a “big factor” in her decision.

“The general public needs to see that this kind of crime is taken seriously,” she said.

As part of his sentence, Lawing was ordered to pay back more than $266,000 in restitution to ABC victims – a figure that represents 10 percent of the roughly $2.6 million in actual losses incurred by
more than 10,000 victims during Lawing’s tenure as the company’s top executive. Evidence presented in court showed that Lawing himself made only about $90,000 from the scam. The bulk of ABC’s
fraudulent earnings were reportedly reinvested in the company.

Lawing’s Oct. 16 sentencing came just a week after CCE’s vice president, Grand Clark Wasik, 36, of Oakland Park, Fla., was sentenced to 125 months in prison and ordered to pay more than $10 million in restitution. Wasik pleaded guilty to count one of a 14-count superseding indictment earlier this year.
Two former owners of CCE, Michael Austin Seward, 32, of Deerfield Beach, Fla., and Kevin James
McCormick, 46, of Delray Beach, Fla., also pleaded guilty to their role in the conspiracy and are due to be sentenced Nov. 18. Magistrate Joe Billy McDade from the Central District of
Illinois, who presided over Wasik’s case, will also conduct the sentencing hearings of Seward and
McCormick.

Since April 2017, 14 other employees of CCE and ABC have also pleaded guilty to federal fraud violations in the Southern District of Illinois and 10 of them have been sentenced:

  • Joseph Aievoli IV, 26, of Boynton Beach, Fla., a salesperson at CCE.
  • Cory Bachman, 26, of Boynton Beach, a salesperson at CCE, sentenced to 1 day and restitution of $156,806.
  • Andrew Broad, 27, of Boynton Beach, director of training at CCE, 12 months plus 1 day and restitution of $55,238.
  • Ryan Carr, 24, of Mount Laurel, N.J., team leader at CCE, 12 months plus 1 day and restitution of $20,384.
  • Joshua Cortez, 38, of Lake Worth, Fla., director of training at CCE, 18 months and restitution of $3,034.
  • Erica Crowell, 30, of Maple Shade, N.J., salesperson at CCE.
  • Nicholas Davidson, 27, of Boynton Beach, salesperson at CCE, 5 years’ probation and restitution of $181,808.
  • Patrick Dougherty, 36, of Boynton Beach, salesperson at CCE, 12 months plus 1 day and restitution of $240,966.
  • Tatum Espenshade, 27, of West Palm Beach, Fla., salesperson at CCE, 1 day plus 18 months’ home detention and restitution of $132,683.
  • Eric Iannaccone, 33, of Monroe Township, N.J., sales manager at CCE.
  • Anthony Ludena, 30, of Boca Raton, Fla., salesperson at CCE, 12 months plus 1 day and restitution of $176,692.
  • Timothy Miller II, 28, of Schwenksville, Penn., salesperson at CCE, 5 years’ probation plus 200 hours community service and restitution of $127,042.
  • Jonathan Richardson, 28, of Lake Worth, salesperson at CCE, 12 months plus 1 day and restitution of $78,638.
  • Kyle Swinson, 27, of Boynton Beach, team leader at ABC/CCE.

Because the crimes allegedly took place in connection with telemarketing and victimized 10 or more
people over the age of 55, the maximum punishment in each case is 30 years’ imprisonment.

The defendants could also be ordered to serve up to five years of supervised release and pay a fine of up to $250,000. Under federal law, restitution to identified victims is mandatory.

The cases are part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the U.S. Postal Inspection Service.

The Florida Attorney General’s Office raided CCE in 2016 and has been cooperating with the federal investigation, in addition to bringing its own civil enforcement action against CCE under Florida state law.

The Federal Trade Commission continues to work to shut down illegal tech support scams. For information about the FTC’s “2019 Tech Support Takedown,” visit
https://www.consumer.ftc.gov/blog/2019/03/ftcs-tech-support-takedown-2019.

Some consumers who were victimized by ABC or CCE / First Choice Tech Support have received additional fraudulent calls. The calls typically come from companies claiming either
(a) that the technical support the victims purchased has been transferred to them and additional funds are now needed; or (b) that they can help the victims obtain a refund.

Victims should be advised that no companies have been authorized to provide them with any tech support services on behalf of ABC or CCE / First Choice Tech Support, or to provide them with a refund for any previous purchases.