Date: December 12, 2023 Contact: newsroom@ci.irs.gov SAN FRANCISCO — Nemr Hallak, a citizen of Canada and Lebanon charged with operating a telemarketing fraud and money laundering conspiracy, was extradited from Greece to the United States to face charges in the Northern District of California, announced United States Attorney Ismail J. Ramsey, U.S. Postal Inspector in Charge Rafael Nunez, and Internal Revenue Service – Criminal Investigation (IRS-CI) Acting Special Agent in Charge Mark Silva of the Oakland Field Office. Hallak was charged in a seven-count superseding indictment on April 21, 2016. The superseding indictment alleges that, between January 2010 and August 2014, Hallak and others operated a "business directory" telemarketing scam. Using a variety of means, including false and misleading cold calls and bogus invoices, Hallak and his co-defendants deceived churches, doctors' offices, non-profits, mom-and-pop stores, and small businesses into paying for business directory services they neither ordered nor received. As part of the scheme, Hallak and his co-defendants caused shell companies to be formed in Florida and Delaware in the names of nominees, who were paid in cash to be listed as officers and directors of the shell companies. Many of the shell companies used the term "Yellow Pages" to suggest their operations were legitimate. The superseding indictment further alleges that Hallak and the co-defendants caused others to cold call victims and tell them that they had a pre-existing business relationship with a "Yellow Pages" or other entity formed by the defendants; that they had previously purchased business directory services from the defendants; and that they owed the defendants for those services. Victims were told that they owed the defendants anywhere between $400 and $1800 for a previously purchased business directory listing. When such initial misrepresentations were not sufficient to induce payment, victims were harassed and threatened with legal action and sent additional bogus invoices with additional charges. The superseding indictment alleges that, as a result of the conspiracy, Hallak and others collected at least approximately $10.8 million. The superseding indictment also charges Hallak with conspiracy to launder the proceeds of a separate telemarketing fraud, from March 2011 through in or about May 2013. Hallak was arrested in Greece pursuant to an Interpol Red Notice and made his initial appearance in federal court in San Francisco on December 11, 2023. On the government's motion, Defendant was detained. The Court set a detention hearing for December 21, 2023, at 10:30 a.m. before U.S. Magistrate Judge Sallie Kim. The superseding indictment charges Hallak with one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h), one count of conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349, four counts of mail fraud, in violation of 18 U.S.C. § 1341, and one count of wire fraud, in violation of 18 U.S.C. § 1343. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Defendant faces a maximum sentence of 20 years in prison, a fine of $250,00 or twice the gross gain or loss, plus restitution if appropriate for each violation of 18 U.S.C. §§ 1341, 1343, and 1349. The maximum sentence for violation of 18 U.S.C. §1956(h) is 20 years in prison, plus a fine of $500,000, or twice the value of the monetary instrument or funds involved. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Assistant U.S. Attorney Robert S. Leach is prosecuting the case with the assistance of Megan Pagaduan. The prosecution is the result of an investigation by the IRS Criminal Investigation (CI) and the U.S. Postal Inspection Service. The Justice Department's Office of International Affairs provided critical assistance in securing the extradition of Hallak. The Justice Department thanks the Ministry of Justice of the Hellenic Republic and the Hellenic Police which provided excellent cooperation in the arrest and re-arrest of Hallak and his subsequent extradition. CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
