Minneapolis Review

Anthony Eugene Moulder and Abdou-Rahmane Diallo have been sentenced to 120 months and 90 months in prison, respectively, for their involvement in a $300 million nationwide telemarketing fraud scheme targeting elderly and vulnerable victims, announced U.S. Attorney Andrew M. Luger.

According to court documents, Moulder, 63, of Fort Myers, Florida, owned and operated several Florida-based companies involved in fraudulent magazine sales, including Gulf Coast Readers Inc., ARCO Media Inc., KMK Magazines Inc., and Leisure Time Resources Inc. From 2008 through 2020, Moulder purchased lists containing information on consumers—many elderly and vulnerable—already receiving magazines through other companies. He directed his sales teams to use deceptive sales scripts to induce victims into making large or repeat payments for unwanted magazine subscriptions. Over the course of the scheme, Moulder and his companies defrauded thousands of victims across the United States out of approximately $86,589,272.

Diallo, 36, of Montreal, Quebec, co-owned Readers Services, a Canadian-based company that carried out a telemarketing fraud scheme from 2011 through 2020. Diallo targeted individuals previously victimized by fraudulent magazine companies and currently being billed by one or more such companies. He pretended to be from the “magazine cancellation department” and offered to pay off the victims’ “outstanding balance” in exchange for a large lump-sum payment. In reality, Diallo had no power to cancel existing magazine subscriptions or outstanding balances. This "piggyback" fraud scheme defrauded more than 20,000 victims across the United States out of approximately $30 million.

On January 13, 2023, Moulder pleaded guilty to one count of conspiracy to commit mail fraud. On March 4, 2024, Diallo pleaded guilty to two counts of wire fraud. Both men were sentenced yesterday in U.S. District Court by Judge John R. Tunheim.

The case was investigated by the United States Postal Inspection Service and the FBI with additional assistance from Homeland Security Investigations, the Treasury Inspector General for Tax Administration (TIGTA), and the Minnesota Attorney General’s Office.

Assistant U.S. Attorneys Harry M. Jacobs and Garrett S. Fields prosecuted the cases.