Jamaican national convicted of mail fraud

CEDAR RAPIDS - A Jamaican national pleaded guilty Monday in federal court to bilking an elderly couple out of their savings.

Ricardo F. Smith, 39, who has lived in Cedar Rapids since coming to the United States in 2015, pleaded guilty to one count of mail fraud in U.S. District Court.

Smith admitted to participating in a scheme with two others to defraud a couple in Bushnell, Ill. Smith said his girlfriend, Tea Ware, 36, told the 74-year-old wife of the couple that she won a lottery or sweepstakes and was going to receive large sums of money, but could only collect her winnings if she first mailed Ware the taxes or fees for payment.

The indictment shows the scheme started in September and continued through November 2015. Ware pleaded guilty in June to two counts of mail fraud and one count of using a fictitious name in mail fraud.

Smith admitted recruiting Ware for the scam and then introduced her to 'Chubby,” another Jamaican national who remained in Jamaica and who introduced Ware to the victim. Court documents show this victim had been victimized in the past.

As part of the scheme, Smith told Ware to communicate with him and Chubby through 'WhatsApp,” an encrypted instant messaging service, to avoid detection by authorities, the indictment shows. For example, Chubby would direct Ware about where she should send money she received from the victim.

During phone conversations with the victim, Chubby would direct her to mail cash and checks, drawn from the couple's joint account, to a post office box in Cedar Rapids, according to the indictment. Smith and Ware opened the post office boxes for the scheme.

On Oct. 13, 2015, Smith opened a 'shadow checking account” at Hills Bank and Trust, which was used for the scheme, court documents show. He also had a personal checking account at the bank.

The indictment listed a $13,000 check from the victim's account that was sent to Ware's post office box. Later, Ware and Smith deposited the check into the shadow account.

There were also smaller withdrawals at different times taken from that account. The indictment lists $3,500 in cash withdrawn on Oct. 30 and Nov. 2, 2015, and $5,995 withdrawn on Nov. 9, 2015, from the account.

Smith, during the hearing, admitted to receiving a $13,000 check sent from the victim to Ware's post office box, but during Ware's plea hearing last June, she admitted to also receiving a $16,000 check.

Prosecutors don't typically include all transactions in an indictment or criminal complaint. Prosecutors said the victims lost $40,000 through the scheme.

According to court records, the female victim has short-term memory problems and her husband is a U.S. Navy veteran suffering from dementia who lives in a long-term care facility.

U.S. Magistrate C.J. Williams said Smith faces up to 20 years in prison and up to $250,000 in fines. Because Smith isn't a U.S. citizen, he also faces deportation after serving his prison time.

l Comments: (319) 398-8318; trish.mehaffey@thegazette.com