Two Men Sentenced for Magazine Fraud Scheme That Targeted Senior Citizens

(KNSI) – Two men have been sentenced for their roles in a massive $300 million telemarketing fraud targeting elderly and vulnerable victims across the U.S., including Minnesota.

U.S. Attorney Andrew M. Luger says 63-year-old Anthony Eugene Moulder of Fort Myers, Florida operated several fraudulent magazine sales companies, including Gulf Coast Readers Inc. and ARCO Media Inc., orchestrated the scheme. From 2008 to 2020, he purchased lists of consumers who were already subscribed to magazines. Moulder’s teams used deceptive scripts to convince victims to pay for unwanted subscriptions, ultimately defrauding thousands across the U.S. of approximately $86.5 million.

His accomplice, 36-year-old Abdou-Rahmane Diallo of Montreal, Quebec, was the co-owner of Readers Services, ran a similar scam from 2011 to 2020. His scheme targeted individuals already ensnared by fraudulent magazine companies. Posing as part of a “cancellation department,” Diallo falsely promised to settle outstanding balances and cancel subscriptions for large payments. This deceitful tactic affected over 20,000 victims, netting approximately $30 million.

Both Moulder and Diallo pleaded guilty to their respective charges in early 2023 and 2024. Moulder was sentenced to 120 months in prison, while Diallo from received a 90 month sentence.

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