Tuesday, April 21, 1998 | 11:13 a.m.
Christopher Easley and Richard Secchiaroli, former owners of Pioneer Enterprises, each pleaded guilty to one count of racketeering and one count of conspiracy. The pleas were part of a settlement for 13 defendants in the case on the eve of trial Monday in federal court.
As part of the plea bargain, Easley and Secchiaroli each agreed to forfeit $7 million, the amount prosecutors claim they took in salary from the company.
David Bybee, a prosecutor with the Justice Department's fraud section, said the trial was expected to last at least three months. He said authorities consider this a significant case because the company had a large number of employees.
"They were well-known in the community," he said.
Authorities said the company once employed 800 people who made two million calls a year. Bybee said none of the known victims lived in Nevada.
Thomas Passanisi, a former manager at Pioneer Enterprises, also pleaded guilty Monday to racketeering and conspiracy. He admitted helping cause losses of about $20 million.
The other 10 defendants, all former salespeople, are scheduled to enter guilty pleas throughout the week before Senior U.S. District Judge Edward Reed.
A federal grand jury indicted 17 affiliates of the company in August 1996. Four defendants previously entered guilty pleas and were not part of the global settlement that led to the pleas.
According to plea agreements for Easley and Secchiaroli, the two men owned the company from 1983 to 1992. During that time, according to the documents, they participated in a scheme to defraud customers through the use of misrepresentations and false promises.
As part of their guilty pleas, the former owners admitted they and other Pioneer salespeople placed telephone calls to prospective customers throughout the country and promised them they would receive one of five awards - all worth at least $2,000.
Easley and Secchiaroli admitted they led these customers to believe they would profit by making the purchase. The customers believed they could pay off the purchase price by selling their award or exchanging it for cash.
As part of the scheme, victims were encouraged to purchase products such as vitamins, water filters, skin-care products and pens at inflated prices. In return, the victims received a prize of little value.
According to their plea agreements, Easley and Secchiaroli each received about $7 million in salary during their time as owners of the company, which went bankrupt in 1995. They have agreed to forfeit assets in that amount.
Bybee said both former owners face prison sentences in the range of 51 to 78 months. They will be sentenced in October.
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