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SALT LAKE CITY — A Las Vegas man bilked hundreds of investors, including many older and disabled people, out of $1.5 million through a direct mail fraud scam he ran out of mailbox in a Park City store, federal authorities say.
An indictment unsealed in U.S. District Court in Salt Lake City charges Daron Howell Fordham, 49, with six counts of mail fraud.
Fordham — also known as Southboy, Daron Destiny, Paul Park, James Parker, Daron Howell and Darren Fordham — set up a mailbox at a UPS Store in Park City using the name Park Publishers and Distributors, according to the indictment. He paid a printing service in California to send out hundreds of mailers soliciting people to invest in his direct mail program, which had several variations.
The mailers offered an opportunity to make money through a "direct partner program" called "Paul Park's Profit Program," listing a Park City address.
The indictment alleges Fordham's mailer induced individual investors to send money to the address with fraudulent claims and guarantees, including telling people they could make a 976 percent return or more in less than 90 days without doing any work.
The mailer read: "All you have to do is invest in the printing and mailing of our hot-selling FREE CRUISE FOR TWO VOUCHERS (like the one included with this letter) that are used by businesses all across the country. WE DO ALL THE WORK! You decide how many Mailing Spots you want now and you'll receive your Principal Check and PROFIT Check in less than 90 days. Trust me. You'll be upset if you miss this one."
Fordham allegedly told investors they could invest $500 and get a "whopping gross return of $5,570 with $5,070 of it being PURE PROFIT FOR You."
Between January and November 2014, Fordham negotiated or caused to be negotiated at least $1.5 million in checks and money orders related to eight fraudulent promotional schemes, including at least $203,866 through Park Publishers, according to the indictment.
Fordham allegedly told investors they could invest $500 and get a "whopping gross return of $5,570 with $5,070 of it being PURE PROFIT FOR You." - Indictment
When investors requested refunds or promised dividends, Fordham gave them a previously unmentioned gift card voucher equal to the investment, which could only be used toward an additional business venture by Park Publishers or partners. He also gave out full credit refund certificates, which investors could not redeem for money, goods or services, prosecutors say.
Fordham eventually closed the Park City mailbox so that letters requesting refunds or inquiring about dividends were returned as undeliverable. An 800-number was also disconnected, leaving victims unable to contact Fordham, the indictment alleges.
Fordham pleaded not guilty in federal court and a trial was scheduled for January. Each count of mail fraud carries a potential 20-year prison sentence.
