There are two elements in mail fraud: (1) having devised or intending to devise a scheme to defraud (or to perform specified fraudulent acts), and (2) use of the mail for the purpose of executing or attempting to execute, the scheme (or specified fraudulent acts).
The statute of limitations for mail fraud and wire fraud prosecutions is five years (18 U.S.C. § 3282), except for mail and wire fraud schemes that affect a financial institution, in which case the statute is ten years (18 U.S.C. § 3293).
The below depositions of John Monarch indicate that Monarch created tools at Direct Outbound Services that appear to have helped keep the HNB negative option program operating. While thousands of consumers complained to their banks, the BBB, and State AGs that they were defrauded, Monarch’s company billed HNB heavily to respond on its behalf.
Additionally Direct Outbound Services handled HNB’s customer service, fulfillment, USPS shipping, contract manufacturing, and possibly assisted in its merchant processing procurement along with affiliate marketing advertising via Monarch’s affiliate marketing company, Stealth Media.
