The scam, which involves black construction paper cut to the size of U.S. currency, involves telling the victim the "bills" have been drenched in black ink to clear U.S. Customs and that they can be' restored' with a special chemical cleansing.
Materials seized by the FBI in connection with a so-called "Black Money Scam" in Honolulu. SPRINGFIELD -- A former Maryland resident was held without the right to bail after a hearing in U.S. District Court on Friday in connection with a so-called "black money" scam leveled against two pizza shop owners in Indian Orchard, according to court records.
Cole Williams, 31, was arraigned in federal court as his defense lawyer requested a competency hearing, suggesting Williams did not understand the charges against him. They include conspiracy, wire fraud and possession of altered U.S. currency with intent to defraud.
A federal magistrate judge entered not guilty pleas on Williams' behalf.
A grand jury indictment handed up Aug. 9 states that Williams and a co-conspirator approached the owners of Village Pizza on Main Street in Indian Orchard. Williams and the unnamed co-conspirator offered to buy the pizza shop for $150,000 with "black money" smuggled in from Somalia, according to the charges.
Such schemes also are commonly known as "White Money Scams" or "Nigerian Money Washing schemes."
Through various means, investigators say scammers approach victims either via the Internet or personally with bundles of black paper cut in the shape of U.S. currency. The scammers contend the bills have been drenched in black ink to clear U.S. Customs, but can be restored with a special chemical cleansing, purported to be an expensive process the victims are asked to finance.
The charges in this case state Williams and another man approached the pizza shop owners in July of 2011 and presented a demonstration, "cleansing" $100 bills, before asking for $50,000 to obtain the $150,000 in "black money" they needed to buy the shop.
"We were in debt to the state, $50,000 in taxes," said VIllage Pizza co-owner Ramzi Gok, during an interview at the small shop on Friday afternoon, referring to a debt incurred when they opened a diner in Chicopee in 2008, just before the economic downturn. "These two guys approached us and came in a few times and said they were looking for a place to buy. We thought it would be great so we could pay off the debt."
Gok, a native of Turkey who owns the pizza shop wedged between a bar and a Zumba studio, said the men seemed sophisticated and spoke English well. He said he and his partner, Ahmet Citlak, bought the shop in 2010 and hoped to generate enough income to pay down their state debt.
"Late one evening, AC and RG again met at Village Pizza with the two men. The two men repeated the same process. They made stacks of bills by alternating the black money with AC's genuine $100 bills, wrapped the stacks in aluminum foil, and prepared a hot chemical bath," a complaint by a U.S. Secret Service Agent filed in connection with the case, which only identifies Citlak and Gok by their initials, reads. "Williams told AC and RG that the chemicals were poisonous and could kill them, so AC and RG stayed outside the bathroom."
The pizza shop owners were instructed not to open a black trash bag that contained the "cleansed" bills for 12 hours, and that Williams and the other man would return the next morning to finish the process and buy the business.
The following day, the two men never returned or called, according to the complaint.
"AC became suspicious and opened the black bag and discovered that it contained only black paper and none of their genuine currency," records state.
Gok said he and Citlak called local police who shepherded them to the Secret Service. When asked by a reporter about whether he had concerns that the men's alleged proposal was illegal, he said they were confused about the details.
"After it happened, we said: We are the stupid ones. But they were very professional. This has destroyed the lives of everyone involved," Gok said, adding that he and his partner had borrowed the $50,000 from friends and family. "But we were not the only ones. They have done this before."
Indeed, the complaint details other alleged attempts by Williams and a co-conspirator to scam other business owners in other states.
Gok said their state debt has triggered the suspension of their drivers' licenses, effective on Monday.
Federal agents tracked Williams through cell phone records the Indian Orchard men provided.
In court on Friday, Williams' court-appointed defense lawyer, Jeanne A. Liddy, did not contest the government's motion to detain Williams but asked that he be evaluated. She told U.S. Magistrate Judge Kenneth P. Neiman that Williams did not appear to understand the charges against him. He maintained a rather vacant look on his face throughout the proceeding.
Neiman noted that Williams had appeared before him earlier, after Williams' arrest in New York, and that Williams informed the judge he had only eaten two pieces of bread before his prior court appearance. But in fact, Williams had a full breakfast, two sandwiches, dessert and beverages on the government's dime while being held in the custody of U.S. Marshals that day.
"He may not be honest," but Williams appeared not to be mentally impaired thus far, Neiman said, inviting Liddy to file a written motion to request an evaluation before the defendant's next court appearance on Oct. 5.
Assistant U.S. Attorney Steven H. Breslow told Neiman that while prosecutors would not oppose a request for a mental evaluation, his impression was that Williams is "crazy like a fox," judging from accounts of the investigation.
Williams faces a maximum of up to 45 years in prison.
"I'm not interested in how much prison time he gets. We just want to get our money back and pay our debts," Gok said.