A former Huntsville, Weber County, man who allegedly bilked hundreds of people in a mail-prize scheme has been sentenced to five years on probation and ordered to pay restitution.
U.S. District Judge David K. Winder Tuesday suspended a $10,000 fine for Alan Goldsmith and ordered him to pay nearly $17,000 to victims.Goldsmith, 40, who now lives in Paramount, Calif., and his wife, Sheri Goldsmith, were indicted on 16 counts of mail and wire fraud and aiding and abetting in the scheme to defraud prospective prize winners in a mail-order contest. Both pleaded innocent on Oct. 16. Charges against Sheri Goldsmith are expected to be dropped.
However, on March 3 Goldsmith pleaded guilty in a plea-bargain arrangement to one count of aiding and abetting mail fraud. In exchange for the guilty plea, prosecutors dropped 15 other charges.
Randy Goldsmith, the company's president and Alan Goldsmith's brother, was sentenced Oct. 21 to five years in prison with all but 30 days suspended. He also was ordered to pay $16,889 in restitution and placed on 59 months of probation on seven counts of mail fraud and nine counts of wire fraud.
Winder also ordered Alan Goldsmith to pay a $50 victim-assessment fee and said he must maintain a job, provide a financial report to his probation officer and not enter into any business agreement without first notifying his probation officer. Alan Goldsmith said he now is a cellular phone salesman.
Randy Goldsmith was arrested Jan. 6 when FBI agents and police officers made simultaneous raids on two buildings in Huntsville following a two-month investigation of the Rand Corp.
Authorities said about 300 people were bilked of between $300 to $800 each in a mail contest that promised the winner Caribbean cruises and cash if they responded by a certain date and ordered T-shirts and caps.
The prizes never were delivered and authorities found none of the contest's listed prizes when they raided the buildings.