Prison waived for scam convict

A Las Vegas man was sentenced to five years’ probation yesterday for helping operate a telemarketing scam that defrauded a D.C. widow of $275,000.

U.S. District Judge James Robertson also ordered Willie Montgomery, 30, to pay $115,000 restitution to a fund set up for the 50 victims, of whom the 87-year old widow was most severely defrauded. The widow made 92 separate bank transactions in order to pay the sum.

“I’d like to apologize to the victims, the courts and my family,” Montgomery said before his sentencing.

The widow has since been declared legally incompetent and was not present in court or available for comment.

In April 2002, Montgomery pleaded guilty to one count of conspiracy to commit money laundering. Under federal sentencing guidelines, Montgomery could have served between 46 and 57 months in prison.

Judge Robertson said yesterday he waived prison time because Montgomery, unlike his fellow ringleaders, had cooperated with federal investigators and has been a model citizen since his arrest.

The judge said it made “no sense” to incarcerate Montgomery because he now is married with two children, has a steady job and would not be able to make restitution payments in jail.

“Mr. Montgomery, I’m not giving you this break,” Judge Robertson told Montgomery. “You earned it. Keep it.”

Montgomery appeared calm at the hearing and declined to comment afterward. He gave the judge an $800 restitution check and pledged to continue making payments.

“I’ve been to prison and I know that’s not the place I want to be,” Montgomery told the judge.

Alan Bayles, Montgomery’s attorney, said his client was not personally involved in defrauding the widow and will do his best to “atone for his sins.”

The widow is a retired nurse and had acquired her assets from savings and an inheritance from her only relative. Her income now comes primarily from Social Security and a small pension.

The U.S. Attorney’s Office is not disclosing the victims’ identities.

The other two ringleaders — Reginald A. Lowe, 36, and Montgomery’s brother, Travis, 26 — were sentenced Jan. 27 to more than 40 months in prison and ordered to pay $453,878.

According to Internal Revenue Service and FBI officials, the three men acted as “talkers” in the money-laundering scheme they operated from a Fresno, Calif., residence from 1997 through 1999.

A network of friends acted as “runners.” Three of them have been ordered to serve up to 46 months in prison.

Prosecutors said the three “talkers” obtained the names of potential victims from phony contest-entry forms. They then telephoned the victims to tell them they had won large amounts of cash or a new car.

The “talkers” convinced 50 persons in Maryland, Virginia and 16 other states to wire them money, usually $2,000 or $3,000, for taxes, “residual,” or processing fees. The money went to the “runners,” who were posing as “bonded agents.”

Although legitimate contests and prizes do not require winners to pay money before collection, prosecutors said the local widow in particular did not know any better.

The three men coerced the woman, who was unable to recall how much money she had withdrawn from her bank account on any given day, to walk several blocks to a Western Union or MoneyGram outlet near Georgia Avenue 92 times.

After first paying the 5 percent to 10 percent service charge for using the outlet, the woman would then wire the money to the “runners,” who took a 10 percent to 20 percent cut and gave the rest to the “talkers.”