Arrest Warrant Issued For “Cash Grant Institute” Scammer Who Failed To Pay $20 Million Penalty

Nearly two years after the FTC hit the scammy robocallers at the “Cash Grant Institute” with a record $30 million penalty for violating federal Do Not Call regulations a few million times, a judge has issued an arrest warrant for one of the scheme’s operators after he failed to repay the lion’s share of what he’d agreed to hand over.

Paul Navestad aka Paul Richard aka Paul Richard Jones was one of two operators of the same that made more than 8 million robocalls, including at least 2.7 million calls to consumers on the National Do Not Call Registry.

Recipients of these calls were told they had qualified for “cash grants” worth up to $25,000 from federal, state, and local governments, private foundations, and “wealthy individuals.” They were then directed to requestagrant.com, where they were referred to sites that charged a fee for basic info on how to apply for grants, a process that is not exactly quick and easy.

As part of the $30 million deal in 2012, Navestad agreed to pay a $20 million penalty and fork over $1.1 million in money he’d received as part of the scam. Sucks for him, but better than going to jail, right?

Apparently not to Navestad/Richard/Jones, who was recently held in contempt of court by a federal judge who found that the scam artist had ignored his part of the FTC bargain.

Authorities believe he’s fled the U.S. and is living overseas. The court has ordered his arrest upon his return to the United States and his incarceration until he pays the money due.

Read Comments2

Edit Your Comment

  1. CommonC3nts says:

    Obviously the guy is a criminal, but how is the courts actions legal???
    They are going to throw him in jail over a debt. Debtor’s prison is supposed to be illegal.

    Instead the court should put him in jail for scamming people and then seize the companies assets and accounts to get the money. Throwing someone in jail just for owing money is wrong and not supposed to be legal in the US.

    • CzarChasm says:

      You seriously don’t see the benefit in having the courts be able to asses monetary fines?

      Or is it that you don’t think the court should have any ability to enforce fines?

      either way, I think you are waaaay out in left field on this one.