Wny Businesswoman Sentenced In Bingo Dabber Scam

Attorney General Spitzer announced that the founder of a firm that sold unregistered investments in bingo supplies was sentenced today to jail time. In addition, the Attorney General's office has obtained $200,000 from a board member of the firm to be distributed as refunds to some victims.

State Supreme Court Justice Nelson Cosgrove sentenced May O'Shei, 49, of Orchard Park to serve six months incarceration and five years probation and to pay $1 million in restitution after pleading guilty last year to Grand Larceny in the Third Degree and Scheme to Defraud in the First Degree, both felonies.

"Vigilant enforcement - both criminal and civil - is the cornerstone of investor protection," Spitzer said. "This case sends a strong message that investment fraud will not be tolerated by my office and that we will hold accountable those parties that have fiduciary responsibilities to protect against it."

In February of 2002, Spitzer's office commenced an investigation into International Global Inventions, Inc. (IGI), a company created by O'Shei, that promoted investments in its subsidiary companies, Tri-Crown Inc., D&D Enterprises, Inc., and The Fish Company of Erie County, Inc. which were purportedly manufacturing double-headed bingo dabbers.

The investigation revealed that three of the four members of the board of directors, O'Shei, Joseph Kalczynski and Kenneth Canzoneri, used false sales pitches to lure investors, including:

• Representing that the product was already manufactured and market-ready when, in fact, it was not;
  
  
  
• Stating that they had advance orders for millions of dabbers from major distributors of bingo products when, in fact, they had none; and
  
  
  
• Using deceptive projected financial statements to convince investors that they'd be reaping significant profits of as much as 300 percent a year within one year of investing.

Last October, Joseph Kalczynski and Kenneth Canzoneri pled guilty to one count each of First Degree Scheme to Defraud and are scheduled to be sentenced on June 3, 2003 by State Supreme Court Justice John F. O'Donnell.

In addition to the criminal prosecutions, Spitzer's office reached an agreement with the final member of the board of directors for IGI, Seymour H. Knox, IV of Buffalo. Knox agreed to fund a restitution pool of $200,000 for nearly 60 of the investors who lost over $300,000 in the scheme. Knox, who himself lost approximately $200,000, first became aware of the firm's improper financial record-keeping with respect to the general ledger, receipts, disbursements, and periodic financial statements in April 1999. He cooperated fully with the Attorney General's investigation and agreed to pay restitution to those victims who invested through IGI after that.

This case is being handled by Assistant Attorney General Dennis Rosen and Investigator Harold Frank, both of the Buffalo Regional Office, and Sondra Lavine, forensic auditor in the Investigations Bureau.