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Thursday, September 8, 2005 - Page updated at 12:00 AM Moving-scam ringleader ordered to pay restitution Seattle Times staff reporter
A federal judge has ordered the ringleader of a crooked household moving company to pay $400,000 in restitution to dozens of consumers who were extorted by his now-defunct business. But whether those customers will ever see a dime is an open question, because it's not clear what assets, if any, the mastermind and his convicted co-defendants have. In a ruling issued Friday, U.S. District Judge Franklin Burgess of Tacoma ordered that Erik Deri pay $400,000; Yosef Nahum pay $200,000; and Yuval Derei pay $70,000 in restitution to dozens of victims across the country. The restitution represents the difference between the quotes the company gave consumers to move their possessions and what they were actually told they had to pay if they ever wanted to see their property again. The restitution amount Burgess authorized against Erik Deri is more than $155,000 less than prosecutors had sought. The judge declined to order restitution for the hundreds of victims whose stories were not specifically presented to jurors last year. He also rejected the government's request to order the defendants to pay more than $86,000 for household goods they lost or damaged. Nationwide Moving & Storage, also known as Nationwide Moving Systems, operated in Kirkland and Woodinville from May 2002 to July 2003, when federal agents shut down the business. Authorities credited a March 2003 Seattle Times article that described Nationwide's business practices with prompting their investigation. The story and trial testimony detailed cases in which customers complained that Nationwide held their goods hostage unless they agreed to pay inflated prices. The defense contended that customers routinely miscalculated the amount of property they had, and had signed contracts that gave the movers the right to bump up the charges if they underestimated. But two co-defendants who pleaded guilty and testified on behalf of the government told jurors that the company deliberately low-balled quotes to lure customers and then laughed among themselves when they raked in additional charges. The three men convicted at trial — all Israeli nationals — were sentenced earlier this year. Deri, the ringleader, was convicted of conspiracy to commit wire fraud and interfere with commerce by extortion, along with 27 counts of extortion. He was sentenced to seven years in prison. Nahum, a manager, was convicted of the same conspiracy charge and four counts of extortion, and received a five-year prison term. Derei, also a manager, received a 20-month term for conspiracy and one count of extortion.
Defense attorneys said the likelihood is that all three men will be deported to Israel after they finish serving their prison terms. The lawyers for Deri and Naham said their clients were without assets. Derei's lawyer did not return phone calls. Outside court, Gil Levy, Nahum's attorney, described the government's efforts to obtain restitution as a "useless" and "symbolic gesture under the circumstances" because there's no money to pay the victims. But assistant U.S. attorney Kathryn Warma, who prosecuted the case, defended seeking restitution because "it's recognizing the victims as victims. That's the point. It's at least offering them that respect and acknowledgment." Peter Lewis: 206-464-2217 or plewis@seattletimes.com Copyright © 2005 The Seattle Times Company
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