A federal grand jury on Thursday in Phoenix returned a 38-count indictment against Paul David Angel of Gilbert and Chester Frank Bissett of Mesa on charges of conspiracy, mail fraud, wire fraud and transactional money laundering, claiming to have caused 3,000 victims to lose about $6 million.
Angel, 32, and Bissett, 54, will receive summons to make their initial appearance in federal court.
Among other things, the indictment announced by the U.S. Attorney's Office alleges that from April 2002 through September 2004, Angel and Bissett - operating as Net Direct Sites, Net Direct Marketing LLC, Direct-Track Marketing LLC and other business names - solicited victims into buying Web-based programs that purportedly enlisted the victims as distributors selling Global Positioning Systems to the public.
The pair are accused of grossly misrepresenting the financial benefits of owning and operating such a Web site.
A conviction for mail fraud carries a maximum penalty of 20 years in prison, a $250,000 fine or both; conspiracy carries a maximum penalty of five years and a $250,000 fine or both; wire fraud carries a maximum penalty of 20 years in prison, a fine of $250,000 fine or both; and a conviction for money laundering carries a maximum of 20 years in prison and a $500,000 fine or both for each count.