NEW YORK –
A member of “The Real Housewives of Salt Lake City” pleaded guilty Monday to a fraud conspiracy charge that could result in a prison sentence of more than 11 years.
Jennifer Shah, 48, of Park City, Utah, pleaded guilty to a single count of conspiracy to commit wire fraud in Manhattan federal court after signing a plea agreement with prosecutors a day earlier that carried a Recommended sentence range 11 to 14 years. bars.
He told a judge that beginning in 2012 he engaged in a massive telemarketing fraud for nearly a decade that prosecutors say deceived thousands of people across the country, including some over 55.
He said he knew he was teaming up with others to market products to people “who had little or no value.”
“I knew this was wrong and a lot of people were hurt and I’m so sorry,” Shah told Judge Sidney H. Stein.
Sentencing was set for November 28. Shah remained free on bail, but did not speak as he left the courthouse and walked a short distance to a waiting vehicle.
In a subsequent statement, US Attorney Damian Williams called Shah a “key player in a national scheme targeting older and vulnerable victims.”
He added: “These victims were sold false promises of financial security, but instead, Shah and his accomplices defrauded them of their savings and left them with nothing to show for it.”
Assistant US Attorney Kiersten Ann Fletcher said Shah acted as a “master agent,” directing what sellers said to their victims and sharing in the illegal proceeds, using some of the money to pay for the New York City apartment where living and other personal expenses. items.
As part of his plea deal, Shah agreed to forfeit $6.5 million and pay $9.5 million in restitution.
Fletcher said that Shah participated in a fraud from 2012 to March 2021 that sold bogus services that were promoted as being able to allow people to earn substantial amounts of money through online businesses.
Prosecutors said Shah and others gave lists of people to “Business Opportunity Scheme” buyers that actually consisted of other people who had previously paid to set up their own online businesses.
They said he lied about how much people could earn after buying the business services and the supposed success of others who had bought the services.
Shah began operating a Manhattan sales floor that sold the fraudulent products, Fletcher said.
From 2018 to 2020, Shah controlled the day-to-day operations of the Manhattan operation and moved some of its operations to Kosovo to avoid law enforcement and regulatory scrutiny, the prosecutor said.
Prosecutors said Shah took several steps to hide his role in the fraud, including incorporating his business entities using third-party names, instructing others to do the same, and directing others to use encrypted messaging apps to communicate with each other. They said she also made numerous structured cash withdrawals to avoid foreign exchange transaction reporting requirements.
Fletcher said Shah told a co-conspirator to lie under oath when questioned by the Federal Trade Commission and provided him with written talking points to follow up on during the deposition.
He added that tax returns showed Shah had understated the profits from the fraud by hundreds of thousands of dollars.
Shah also acknowledged during his guilty plea that he had undergone treatment two years ago for alcoholism and depression.