A Colorado man has been sentenced to prison after being convicted of running a large-scale telemarketing fraud scheme.
Henry Aragon, 54, from Golden, was found guilty of defrauding hundreds of thousands of people over a span of more than ten years.
The scheme tricked victims into paying for magazine subscriptions they never ordered, and the total financial damage exceeded $20 million.
Henry Aragon's Role in Nationwide Telemarketing Scheme
Henry Aragon played a central role in one of the biggest telemarketing fraud schemes in the United States.
Over the course of a decade, he and his co-conspirators targeted more than 150,000 victims.
Many of these victims were older adults or otherwise vulnerable individuals who were easily tricked into making payments.
The fraud was carried out by a network of fake magazine sales companies operating across the U.S. and Canada.
Aragon and his associates made deceptive phone calls to consumers, convincing them they were renewing existing magazine subscriptions when, in fact, they were signing up for entirely new and costly subscriptions.
The Fraudulent Telemarketing Tactics Used
The criminals behind the scheme used a variety of deceitful tactics to trick victims into parting with their money.
Callers would tell victims that their current subscription was being discounted, but in reality, they were being signed up for expensive new magazine packages.
This network of fraudulent companies operated call centers, where employees used carefully crafted scripts to manipulate consumers.
Many victims ended up being charged for multiple subscriptions, some unaware they had signed up for more than one.
The calls came from all over North America, making it difficult for victims to realize they were being scammed.
Financial Impact and Restitution Orders
More than $19 million was stolen from his victims as a consequence of Aragon's actions.
Over many years, misleading methods were used to gather the money.
Aragon was also required to pay almost $1.4 million for tax evasion in addition to the victims' compensation.
The investigation revealed that Aragon not only defrauded consumers but also failed to report and pay taxes on the money his companies made from these fraudulent activities.
The IRS uncovered more than $2 billion in related tax fraud during its investigation into Aragon’s operations.
Legal Outcome and Investigation
Aragon pled guilty to charges of conspiracy to commit mail and wire fraud, as well as tax evasion.
On November 7, 2024, he was sentenced to five years in federal prison, followed by two years of supervised release.
The case was thoroughly investigated by several law enforcement agencies, including the IRS, FBI, and U.S. Postal Inspection Service.
Their collaboration led to Aragon’s conviction and sent a clear message that financial fraud will not go unpunished.
