NICOLA T. HANNA United States Attorney DAVID M. HARRIS ...

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NICOLA T. HANNA United States Attorney DAVID M. HARRIS, AUSA Chief, Civil Division DAVID K. BARRETT, AUSA Chief, Civil Fraud Section LISA A. PALOMBO, AUSA (SBN 169119)

Room 7516, Federal Building 300 North Los Angeles Street Los Angeles, California 90012 Telephone: (213) 894-4042 Facsimile: (213) 894-7189 E-mail: [email protected]

GUSTAV W. EYLER Acting Director Consumer Protection Branch RICHARD GOLDBERG Senior Counsel for Complex Litigation U.S. Department of Justice Consumer Protection Branch 450 Fifth Street, NW, Suite 6002S Washington, D.C., 20001 Telephone: (202) 307-2532 Facsimile: (202) 514-8742 Email: [email protected] Attorneys for Plaintiff United States of America

UNITED STATES DISTRICT COURT

FOR THE CENTRAL DISTRICT OF CALIFORNIA

WESTERN DIVISION

UNITED STATES OF AMERICA,

Plaintiff,

v.

DEEPAK GUPTA, individually,

Defendant.

No. COMPLAINT FOR PERMANENT INJUNCTION

Case 2:19-cv-01573 Document 1 Filed 03/04/19 of 5 Page ID #:1

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Plaintiff, the United States of America (“United States”), through its undersigned

counsel, hereby sues Defendant Deepak Gupta (“Defendant”) and alleges as follows:

I. INTRODUCTION

1. Starting as early as December 2016 and continuing to the present, Defendant has

assisted and facilitated a predatory wire fraud scheme that primarily victimizes senior

citizens of the United States. Defendant operates a phony or otherwise misrepresented

technical-support business that fraudulently induces U.S. consumers to pay for false or

unnecessary technical-support services related to computers and computer equipment.

2. The United States seeks to prevent continuing and substantial injury to consumers

victimized by this fraudulent scheme by bringing this action for a permanent injunction

and other equitable relief under 18 U.S.C. § 1345 to enjoin the ongoing commission of

wire fraud in violation of 18 U.S.C. § 1343.

II. JURISDICTION AND VENUE

3. The Court has subject matter jurisdiction over this action under 18 U.S.C. § 1345

and 28 U.S.C. §§ 1331 and 1345.

4. Venue is proper in this district under 28 U.S.C. § 1391(b)(3).

III. PARTIES

5. Plaintiff is the United States.

6. Defendant is a resident of Phoenix, Arizona. Defendant transacts or has transacted

business with consumers in the Central District of California. On information and belief,

Defendant knowingly has used a bank account to facilitate a fraudulent technical-support

scheme.

IV. DEFENDANT’S ONGOING FRAUDULENT SCHEME

7. Since at least as early as December 2016, Defendant has assisted and facilitated a

large-scale technical-support scheme by accepting consumer payments and forwarding

proceeds to perpetrators of the scheme. The scheme operates under the name GNI LLC

(GNI), and sometimes does business as “IT Care Guys.”


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8. Telemarketers in India working for the scheme contact consumers by using pop-

up computer advertisements disguised as security alerts to direct the consumers to

immediately call a telephone number, which the telemarketers answer. Other times,

consumers contact the telemarketers after performing an internet search for a computer

repair business.

9. Regardless of the initial method of contacting a consumer, the schemes proceed

similarly once a telemarketer working for the scheme has the consumer on the phone.

Emphasizing the need for immediate action and often claiming to work for or be

affiliated with well-known technology companies, the telemarketer falsely claims that

the consumer’s computer is at risk and that the telemarketer can assist the consumer but

first needs remote access to the consumer’s computer. Once remotely connected, the

telemarketer purports to confirm the existence of a serious computer virus or other threat

to the consumer’s computer, sometimes claiming that a hacker will soon be able to

access the consumer’s personal information, including financial account numbers, social

security numbers, and passwords. Imparting a sense of urgency, the telemarketer then

claims that he will install expensive and high-quality network security software to

resolve the threat in exchange for a substantial sum of money.

10. Since at least December 2016, numerous consumers have been victimized by the

fraudulent technical-support scheme facilitated by Defendant. Defendant plays a critical

role in accepting fraudulently-induced payments initiated by the telemarketers.

Defendant deposits the payments and then forwards the funds from consumers to the

scheme perpetrators.

V. DEFENDANT’S KNOWLEDGE OF FRAUD

11. Upon information and belief, the United States alleges that Defendant has

knowledge that his conduct facilitates the fraudulent scheme involving the purported

offer of technical-support services in exchange for consumer payments.

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VI. HARM TO CONSUMERS

12. Consumers suffer financial losses from the wire fraud scheme facilitated by

Defendant. Consumers victimized by the scheme reside throughout the United States,

including in the Central District of California.

13. The scheme disproportionately affects elderly consumers.

14. Absent injunctive relief by this Court, Defendant’s conduct will continue to

cause injury to consumers.

VII. THE COURT’S POWER TO GRANT RELIEF

(18 U.S.C. § 1345 – Injunctive Relief)

15. The United States re-alleges and incorporates by reference Paragraphs 1 through

14 of this Complaint as though fully set forth herein.

16. By reason of the conduct described herein, Defendant violated, is violating, and

is about to violate 18 U.S.C. § 1343 by executing a scheme and artifice to defraud for

obtaining money or property by means of false or fraudulent representations with the

intent to defraud, and, in so doing, using interstate or foreign wire communications.

17. Upon a showing that Defendant is committing or about to commit wire fraud, the

United States is entitled, under 18 U.S.C. § 1345, to seek a permanent injunction

restraining all future fraudulent conduct and any other action that this Court deems just

to prevent a continuing and substantial injury to consumers.

18. As a result of the foregoing, the Court should enjoin Defendant’s conduct under

18 U.S.C. § 1345.

VIII. PRAYER FOR RELIEF

WHEREFORE, the United States requests judgment against Defendant, as

follows:

a. A permanent injunction, pursuant to 18 U.S.C. § 1345, ordering that

Defendant is restrained from engaging, participating, or assisting in any

technical-support business or money transmitting business, and


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b. Such further relief, including but not limited to equitable relief under the

Court’s inherent powers, as the Court deems just.

DATED: March 4, 2019 Respectfully submitted,

FOR THE UNITED STATES OF AMERICA: NICOLA T. HANNA

United States Attorney DAVID M. HARRIS, AUSA

Chief, Civil Division DAVID K. BARRETT, AUSA Chief, Civil Fraud Section LISA A. PALOMBO, AUSA

GUSTAV W. EYLER Acting Director Consumer Protection Branch U.S. Department of Justice, Civil Division

__________/S/____________________ RICHARD GOLDBERG Senior Counsel for Complex Litigation United States Department of Justice Attorneys for Plaintiff United States of America


UNITED STATES DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA CIVIL COVER SHEET

(b) County of Residence of First Listed Plaintiff

(EXCEPT IN U.S. PLAINTIFF CASES)

County of Residence of First Listed Defendant Phoenix, Arizona ~~~~~~~~ (IN U.S. PLAINTIFF CASES ONLY)

DEFENDANTS Deepak Gupta

( Check box if you are representing yourself D ) l. (a) PLAINTIFFS ( Check box if you are representing yourself D ) United States of America

(c) Attorneys (Firm Name, Address and Telephone Number) If you are representing yourself, provide the same information.

Richard Goldberg, U.S. Dept. of Justice, 450 Sth Street, NW, Suite 6002, Washington, D.C. 20001, (202) 307-2532; Lisa Palombo, U.S. Attorney's Office for the Central District of California, 300 N. Los Angeles St., Los Angeles, CA, 90012, (213) 894-4042

Attorneys (Firm Name, Address and Telephone Number) If you are representing yourself, provide the same information. Pro se

[g] 1. U.S. Government Plaintiff

O 3. Federal Question (U.S. Government Not a Party)

Ill. CITIZENSHIP OF PRINCIPAL PARTIES-For Diversity Cases Only (Place an X in one box for plaintiff and one for defendant)

PD D~ PD Citizen ofîhis State O 1 O 1 Incorporated or Principal Place O 4

of Business in this State Citizen of Another State O 2 O 2 Incorporated and Principal Place O 5

of Business in Another State

DEF 0 4

o 5

li. BASIS OF JURISDICTION (Place an X in one box only.)

D 2. U.S. Government Defendant

D 4. Diversity (Indicate Citizenship of Parties in Item Ill)

Citizen or Subject of a Foreign Country O 3 O 3 Foreign Nation

IV. ORIGIN (Place an X in one box only.) 6. Multidistrict

[Zl 1. Original D 2. Removed from D 3. Remanded from D 4. Reinstated or D 5. Transferred from Another D Litigation - Proceeding State Court Appellate Court Reopened District (Specify) Transfer

8. Multidistrict O Litigation - Direct File

V. REQUESTED IN COMPLAINT: JURY DEMAND: 0 Yes [ZJ No (Check "Yes" only if demanded in complaint.)

CLASS ACTION under F.R.Cv.P. 23: 0 Yes [ZJ No O MONEY DEMANDED IN COMPLAINT: s VI. CAUSE OF ACTION (Cite the U.S. Civil Statute under which you are filing and write a brief statement of cause. Do not cite jurisdictional statutes unless diversity.) 18 U.S.C. § 1345. Civil injunctive case to prevent further technical-support fraud scheme.

VII. NATURE OF SUIT (Place an X in one box only).

I OTHER STATUTES CONTRACT REAL PROPJ:~TY CONT. IMMIGRATION PRISONER PETITIONS PROPERTY RIGHTS., I o 375 False Claims Act o 11 O Insurance o 240 Torts to Land o 462 Naturalization Habeas Corpus: O 820 Copyrights

Application 376Qui Tam O 120Marine o 245 Tort Product O 463 Alien Detainee O 830 Patent

0 (31 USC 3729(a)) Liability o 46S Other O 51 O Motions to Vacate O 835 Patent - Abbreviated O 130 Miller Act o 290 All Other Real Immigration Actions Sentence

O 400 State 140 Negotiable Property -v TORTS O 530 General New Drug Application Reapportionment o Instrument TORTS PERSONAL PROPERTY O 535 Death Penalty O 840 Trademark

O 410 Antitrust 1 SO Recovery of PERSO~AL INJURY <<: o 370 Other Fraud Other: SOCIAL SECURITY I O 430 Banks and Banking o Overpayment & O 31 O Airplane o 371 Truth in Lending o 540 Mandamus/Other 0 861 HIA (139Sff) Enforcement of 315 Airplane o 450 Commerce/ICC Judgment o Product Liability 380 Other Personal o 550 Civil Rights O 862 Black Lung (923)

Rates/Etc. o o 460 Deportation o 151 Medicare Act o 320 Assault, Libel & Property Damage o 555 Prison Condition 0 863 DIWC/DIWW (405 (g)) Slander

470 Racketeer lnflu- 152 Recovery of 330 Fed. Employers' o 385 Property Damage o 560 Civil Detainee 0 864 SSID Title XVI o enced & Corrupt Org. o Defaulted Student o Product Liability Conditions of Loan (Exel. Vet.) Liability

BANK~UPTCY Confinement 0 865 RSI (405 (g)) O 480 Consumer Credit o 340 Marine 422 Appeal 28 FO~Fl:ITURE/PENAI, TY FEDERAL TAX SUITS I O 490 Cable/Sat TV 1 53 Recovery of 345 Marine Product o O Overpayment of o USC 158 625 Drug Related

850 Securities/Com- Liability O Seizure of Property 21 o 870 Taxes (U.S. Plaintiff or o Vet. Benefits 423 Withdrawal 28 Defendant) modities/Exchange o 350 Motor Vehicle o USC 157 USC 881 o 160 Stockholders' O 6900ther o 871 IRS-Third Party 26 USC

~ 890 Other Statutory Suits o 355 Motor Vehicle CIVIL RIGHTS 7609 Actions Product Liability

o 190 Other o 440 Other Civil Rights LABOR o 891 Agricultural Acts o 360 Other Personal O 71 O Fair Labor Standards Contract Injury o 441 Voting 893 Environmental Act o Matters o 195 Contract o 362 Personal Injury- o 442 Employment Product Liability Med Malpratice O 720 Labor/Mgmt. O 895 Freedom of Info. O 196 Franchise 365 Personal Injury- o 443 Housing/ Relations Act o Product Liability Accommodations O 740 Railway Labor Act O 896 Arbitration REAL PROPERTY 367 Health Care/ 445 American with

O 210 Land o Pharmaceutical O Disabilities- O 751 Family and Medical 899 Admin. Procedures Condemnation Personal Injury Employment Leave Act

O Act/Review of Appeal of O 220 Foreclosure Product Liability O 446 American with O 790 Other Labor Agency Decision

368 Asbestos Disabilities-Other Litigation O 950 Constitutionality of O 230 Rent Lease & o Personal Injury O 448 Education O 791 Employee Ret. Inc.

State Statutes Ejectment Product Liabititv Security Act

FOR OFFICE USE ONLY: Case Number: CV-71 (05/17) CIVIL COVER SHEET Page 1 of3

Case 2:19-cv-01573 Document 1-1 Filed 03/04/19 Page 1 of 3 Page ID #:6


VIII. VENUE: Your answers to the questions below will determine the division of the Court to which this case will be initially assigned. This initial assignment is subject to change in accordance with the Court's General Orders upon review by the Court of your Complaint or Notice of Removal

QUESTION A: Was this case removed ., . ; öl "'.: ., STATE CASE WAS PENDING LN THE COUNTY Ofi:' " INITIAL DIVISION IN CACD IS: from state court?

D Yes ø No ø ' '" ·<i ,, -» r , -c ., "' do' ,.,

D Los Angeles, Ventura, Santa Barbara, or San Luis Obispo Western If "no," skip to Question B. If "yes," check the

D box to the right that applies, enter the Orange Southern corresponding division in response to

D Riverside or San Bernardino Eastern Question E, below, and continue from there.

'" .. '" ·.,• . ,,,, ,,f - -· ·º .. . ' '.H; ,, . ¡'.¡, . '¡j; ·' ./!' ,.,

" " ,. .; ·,~ ,.,. QUESTION B: Is the United States, or B.1. Do 50% or more of the defendants who reside in YES. Your case will initially be assigned to the Southern Division. one of its agencies or employees, a the district reside in Orange Co.? D Enter "Southern" in response to Question E, below, and continue PLAINTIFF in this action? .... from there . check one of the boxes to the right

ø Yes D No ø NO. Continue to Question B.2.

B.2. Do 50% or more of the defendants who reside in YES. Your case will initially be assigned to the Eastern Division. If "no," skip to Question C. If "yes," answer the district reside in Riverside and/or San Bernardino D Enter "Eastern" in response to Question E, below, and continue Question B.1, at right. Counties? (Consider the two counties together.) from there.

check one of the boxes to the right .... NO. Your case will initially be assigned to the Western Division . ø Enter "Western" in response to Question E, below, and continue

from there. .•. ;;, ;h !! 'r: 0, ·- QUESTION C: Is the United States, or C.1. Do 50% or more of the plaintiffs who reside in the YES. Your case will initially be assigned to the Southern Division. one of its agencies or employees, a district reside in Orange Co.? D Enter "Southern" in response to Question E, below, and continue

DEFENDANT in this action? .... from there . check one of the boxes to the right D Yes D No

D NO. Continue to Question C.2.

C.2. Do 50% or more of the plaintiffs who reside in the YES. Your case will initially be assigned to the Eastern Division. If "no," skip to Question D. If "yes," answer district reside in Riverside and/or San Bernardino D Enter "Eastern" in response to Question E, below, and continue Question C.1, at right. Counties? (Consider the two counties together.) from there .

check one of the boxes to the right .... NO. Your case will initially be assigned to the Western Division. D Enter "Western" in response to Question E, below, and continue

from there.

A. B. c. QUESTION D: Location of plaintiffs a!ld defendants? Riverside or San Los Angeles, Ventura,

· · Oränge County Bernardinp County Santa Barbara, or San . ,,., , .. ·. Luis Obispo County

Indicate the location(s) in which 50% or more of plaintiffs who reside in this district D D D reside. (Check up to two boxes, or leave blank if none of these choices apply.)

Indicate the location(s) in which 50% or more of defendants who reside in this D D D district reside. (Check up to two boxes, or leave blank if none of these choices

apply.) •,. •.

D.1. Is there at least one answer in Column A? D.2. Is there at least one answer in Column B? D Yes ~ No D Yes ~ No

If "yes," your case will initially be assigned to the If "yes," your case will initially be assigned to the SOUTHERN DIVISION. EASTERN DIVISION.

Enter "Southern" in response to Question E, below, and continue from there . Enter "Eastern" in response to Question E, below.

If "no," go to question D2 to the right. .... If "no," your case will be assigned to the WESTERN DIVISION.

i Enter "Western" in response to Question E, below.

QUESTION E: Initial Division? _,.. .,¡:

INIT[AL DIVISION IN'CACD '£ ~ . ' i, e: .. •.. . ',, .;; .. ,. Enter the initial division determined by Question A, B, C, or D above: .... WESTERN

. "' .• / - QUESTIO~ F:"Northern ,Çoµnties? ., •,; " ·,· . .. ,.,· "..

Do 50% or more of plaintiffs or defendants in this district reside in Ventura, Santa Barbara, or San Luis Obispo counties? D Yes ~ No CV-71 (05/17) CIVIL COVER SHEET Page 2 of 3



If yes, list case number(s):

IX(a). IDENTICAL CASES: Has this action been previously filed in this court? O YES ~ NO

IX(b). RELATED CASES: Is this case related (as defined below) to any civil or criminal case(s) previously filed in this court?

~ NO If yes, list case number(s):

O YES

Civil cases are related when they (check all that apply):

O A. Arise from the same or a closely related transaction, happening, or event;

O B. Call for determination of the same or substantially related or similar questions of law and fact; or

O C. For other reasons would entail substantial duplication of labor if heard by different judges.

Note: That cases may involve the same patent, trademark, or copyright is not, in itself, sufficient to deem cases related.

A civil forfeiture case and a criminal case are related when they (check all that apply):

o o o

A. Arise from the same or a closely related transaction, happening, or event;

B. Call for determination of the same or substantially related or similar questions of law and fact; or

C. Involve one or more defendants from the criminal case in common and would entail substantial duplication of labor if heard by different judges.

X. SIGNATURE OF ATTORNEY (OR SELF-REPRESENTED LITIGANT):

Notice to Counsel/Parties: The submissio this Civil Cover Sheet is required by Local Rule 3-1. This Form CV-71 and the information contained herein neither replaces nor supplements the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. For more detailed instructions, see separate instruction sheet (CV-071 A).

Key to Statistical codes relating to Social Security Cases:

Nature of Suit Code Abbreviation

861 HIA

862 BL

863 DIWC

863 DIWW

864 SSID

865 RSI

Substantive Statement of Cause of Action All claims for health insurance benefits (Medicare) under Title 18, Part A, of the Social Security Act, as amended. Also, include claims by hospitals, skilled nursing facilities, etc., for certification as providers of services under the program. (42 U.S.C. 1935FF(b))

All claims for "Black Lung" benefits under Title 4, Part B, of the Federal Coal Mine Health and Safety Act of 1969. (30 U.S.C. 923)

All claims filed by insured workers for disability insurance benefits under Title 2 of the Social Security Act, as amended; plus all claims filed for child's insurance benefits based on disability. (42 U.S.C. 405 (g))

All claims filed for widows or widowers insurance benefits based on disability under Title 2 of the Social Security Act, as amended. (42 U.S.C. 405 (g))

All claims for supplemental security income payments based upon disability filed under Title 16 of the Social Security Act, as amended.

All claims for retirement (old age) and survivors benefits under Title 2 of the Social Security Act, as amended. (42 u.s.c. 405 (g))

CV-71 (05/17) Page 3 of 3 CIVIL COVER SHEET


GUSTAV W. EYLER Acting Director, Consumer Protection Branch

2 RICHARD GOLDBERG Senior Counsel for Complex Litigation

3 U.S. Department of Justice4 Consumer Protection Branch

450 Filth Street, NW. Suite 6002S Washington, D.C. 20001 5 Tel: 202-307-2532

6 Fax: 202-5 I 4-8742

7 Email: [email protected]

8 Attorneys for Plaintiff

United States of America

UNITED STATES DISTRICT COURT 9

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FOR THE CENTRAL DISTRICT OF CALIFORNIA

WESTERN DIVISION

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UNITED ST ATES OF AMERICA,

Plaintiff,

V.

DEEPAK GUPTA, 17 individually,

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Defendant.

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No.:

[PROPOSED] STIPULATED

ORDER FOR PERMANENT

INJUNCTION AND FINAL

JUDGMENT

22 Plaintiff United States of America (the "United States") commenced this

23 action against defendant Deepak Gupta ("Defendant") by tiling a civil Complaint

24 seeking an injunction pursuant to 18 U .S.C. § 1345 and the Cou1t's equitable

25 powers. The United States and Defendant stipulate to the entry of a Stipulated

26 Order for Permanent Injunction ("Order"), lodged concurrently with this

27 Stipulation, with the terms and provisions below to resolve the claims in the

28 Complaint. Defendant, prose, enters into this Stipulation freely and without


coercion and acknowledges that Defendant has read the provisions of the Order,

2 understands them, and is prepared to abide by them. Defendant waives service of

3 the Complaint and Summons.

4 NOW, THEREFORE, it is ORDERED as follows:

5 I. FINDINGS

6

7 Plaintiff and Defendant stipulate to the following findings.

A.

I 8 U.S.C. § I 345 and 28 U.S.C. §§ I 331 and 1345. Venue is proper in this District

under 28 U.S.C. § 1391(6) and (c) because a substantial part of the events or IO

This Court has jurisdiction over this matter and the parties pursuant to

11 omissions giving rise to the claims alleged in the Complaint occurred in this

district. 12

B.

13 The United States seeks injunctive relief pursuant to 18 U.S.C.

14 § 1345.

C. 15

This Stipulation is neither an admission of liability by Defendant, nor

a concession by the United States that its claims are not well founded. Only for 16

purposes of this action, Defendant admits that the Court has jurisdiction as to 17

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Defendant and as to this action.

11. DEFINITIONS

For purposes of this Order, the following definitions apply:

A. "Defendant" means Deepak Gupta.21

8. "Person" means an individual, a corporation, a partnership. or any22

other entity. 23

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C. "Funds" include any currency, check, money order, stored value card,

stored value card numbers, bank wire transmission, or other monetary value.

D. "Tech support business" refers to any person that claims to provide

security or technical support for computer or mobile devices or computer or mobile

device-related equipment.

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VII. RETENTION OF JURISDICTION

2 IT IS FURTHER ORDERED that this Court retains exclusive jurisdiction

3 of this matter for purposes of construction, modification, and enforcement of this

4 Order.

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8 SO STIPULATED AND AGREED:

FOR PLAINTIFF UNITED STATES OF AMERICA 10

I I GUSTAV W. EYLER

12 Acting Director, Consumer Protection Branch

13 Date:

14 RICHARD GOLDBERG Senior Counsel for Complex Litigation

15 United States Department of Justice

16 450 Fifth Street, NW, Suite 6002 SouthWashington, D.C. 20001

17 Telephone: (202) 307-2532

18 Facsimile: (202) 514-8742Email: [email protected]

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24 FOR DEFENDANT DEEPAK GUPTA

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� Date: o-z�l\\_ \ 4\

28 DEEPA GUPTA

4

/s/ 3/4/19


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SO ORDERED:

Dated: ____________ _________________________________________ UNITED STATES DISTRICT JUDGE


NICOLA T. HANNA United States Attorney DAVID M. HARRIS ...

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