A Quebecer who defrauded thousands of small American businesses will ultimately have to spend 30 months in prison in California and repay nearly $6 million… eight years after being accused since he was hiding in Greece.
Nemr Hallak, 43, pleaded guilty to conspiracy to defraud last September.
He was initially found in Greece in 2016. But he never surrendered to authorities and challenged his extradition all the way to the Greek Supreme Court. He was finally rearrested last year in this country, thanks to an Interpol red notice, and then quickly sent to the United States.
Between 2010 and 2014, Hallak and his co-conspirators created various shell companies in Florida and Delaware that often featured the name “Yellow Pages,” suggesting legitimate operations. Their operations, however, had no connection with the company.
Fake ads
Thousands of businesses were randomly called and told they owed between $400 and $1,800 for so-called phone directory placements. Victims, including churches, nonprofits and small businesses, then received false invoices.
Some victims who refused to pay were later threatened with legal retaliation or received new, higher bills.
Payments were sent to post office boxes in the United States and then diverted to Canadian bank accounts.
“The scheme was undeniably fraudulent, motivated by financial gain and corrosive to the American economy,” said federal prosecutor Ismail Ramsey.
Work ethic
Nemr Hallak, however, was portrayed by businessmen who knew him well as a man with “innovative projects” and who worked with “professionalism” and “integrity”.
“I am deeply sorry for what I did. People lost money, and I caused them great distress. […] I have always believed in respecting high standards of integrity and I have clearly failed,” Hallak said in his defense, as he hoped to receive 16 months in detention.
After serving his 30-month sentence in a US prison, Hallak will have to serve three years of probation. He will also have to pay a fine of US$5.8 million in restitution.
His co-defendants, Tolga Suatac, Michelina Perna and Roberto Mancini, were arrested in Montreal and extradited in 2018. The Suatac-Perna couple pleaded guilty last spring, while Roberto Mancini is still awaiting trial.
With Nicolas Brasseur, Investigation Office
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