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twitterFormer Mrs. Nevada Juliette Kimoto accused in scam
Authorities say her husband also scammed nearly 300,000 people
Wednesday, Sept. 9, 2009 | 2 a.m.
mrsunitedstates.com
Juliette Kimoto’s photo from a pageant Web site.
Sun Archives
Beyond the Sun
Juliette Kimoto was crowned Mrs. Nevada in 2006. Her spouse, Kyle, also took home an award: Husband of the Year.
They were a happy, church-going couple with six kids, smiling on stage, accepting their beauty pageant awards.
They were also a couple in deep trouble with the law, and falling deeper by fathoms.
Federal authorities consider Kyle Kimoto the chief architect of an international telemarketing scam that duped roughly 300,000 Americans out of $43 million. When he won Husband of the Year, he owed the government $105 million in court judgments for the crime.
Three years later, Juliette Kimoto was sued by the Federal Trade Commission, the same agency that took down her husband, for large-scale fraud. In their July complaint, FTC attorneys alleged that Juliette was one of five Nevadans behind sham Web sites that promised consumers help getting government grants — sites that paraded stimulus funding like some kind of fiscal buffet: “With billions more on the way, it’s time to get your cut!”
Kyle Kimoto is serving a 29-year federal prison sentence. Juliette is awaiting her own trial. The couple have been convicted and accused, respectively, of different schemes that operate on the same principle: Tap into the fears of desperate people, or the needs of the naive, and you can sell anybody just about anything.
And there’s a lot of fear to tap into. The case against Juliette and her alleged co-conspirators is part of “Operation Short Change” — the FTC’s name for a crackdown on con artists using the bad economy against its victims: get-rich-quick schemes, bogus debt-reduction, phony jobs and, in Mrs. Nevada’s case, Web sites promising government grants alongside photos of President Barack Obama and rippling American flags.
“Scammers use current events to adapt their pitches, and scammers these days are exploiting a vague knowledge that there’s been this injection of stimulus funds into the economy,” said Karen Hobbs, an FTC staff attorney who coordinated Operation Short Change. “It’s very destructive. People struggling to make ends meet are more susceptible in a down economy.”
It’s unclear how many people may have been duped by the grant sites, though it’s believed the business generated millions in fraudulent revenue using a model that was pretty simple.
Visitors to the Web sites were asked to pay a small fee in exchange for assistance in obtaining grants. The fee was small compared with the money people claimed they made in breathless online testimonials: “It’s just so easy! I got my first grant for $330,000! All I have to do is search and click!”
But there are few, if any, federal grants for individuals or profit-making businesses. And getting government money is a complex process, not a point-and-click bonanza. So instead of help, people really got a “worthless computer program ... that does not actually help consumers obtain a grant,” according to the FTC.
More important, people who paid for grant help were also enrolled in additional programs, such as identity theft protection or legal services, all with recurring “membership” fees that could exceed $70 a month, according to court documents — the costly catch.
Because the additional programs and monthly charges were buried behind small-print online disclosures, people found out about the fees after they were deducted, the lawsuit alleges — after a tidy profit had been made.
It should be said that the case against Juliette Kimoto is hardly won. It should also be said that Juliette was one of five people with at least seven corporations among them accused of collectively running the scam — FTC lawyers are suing the lot.
Juliette Kimoto’s attorney declined to speak to the Sun.
And while Kimoto’s husband, her pageant title and her proclamations of religious piety make her stand out, she isn’t the only person with ties to prior scams.
One of her co-defendants, Steven Henriksen, is no stranger to the FTC. His brother, Michael Henriksen, was chief financial officer of Kyle Kimoto’s fraudulent telemarketing company. When the government started seizing Kyle’s assets in 2003, the court found Steven Henriksen was helping Kimoto move considerable sums of money. Moreover, the FTC believes Steven Henriksen is related to another defendant named in Juliette Kimoto’s case: Rachael Cook.
But the real overlap between each Kimoto case is the method: Both husband and wife are accused of using a fast-food approach to fraud — get lots of suckers to pay just a little bit. Instead of grants, however, Kyle made multiple millions hawking credit cards.
At his peak, Kyle Kimoto had telemarketers in call centers from Utah to India working for him. These telemarketers were calling people who had been denied credit cards, informing them they had suddenly been approved for a MasterCard, so long as they paid a pricey processing fee.
Preposterous as it sounds, federal prosecutors say 300,000 people paid and waited for their cards to arrive. Denied legitimate credit cards because of financial straits or histories of poor money management, they were soft targets.
Instead of getting credit cards, they got applications for a kind of debit card that had to be loaded with money to be used.
Kimoto’s telemarketers are estimated to have made more than 12 million calls. Five days before jurors convicted Kimoto, it appears his wife used a free online service to issue a kind of news release.
The release opens: “My name is Juliette Kimoto and I was recently crowned Mrs. Nevada.” It goes on to describe the pageant winner as an “ideal citizen” who owes her success to the Mormon church:
“Growing up in the church I learned the importance of serving others ... How blessed are we?”
Bank records show there were large cash transfers between Juliette Kimoto and grant case co-defendants starting in October 2008, one month after Kyle was found guilty. It’s not clear when the grant sites were launched, so it’s difficult to determine whether Kyle Kimoto helped build them or if they were created after he was sentenced.
Attorneys allege Juliette Kimoto used at least $30,000 in revenue from the grant scheme to pay for jury consulting in her husband’s case — the implication being that one fraud fed another.
Juliette Kimoto didn’t return the Sun’s calls for comment, and her attorney indicated she wouldn’t anytime soon.
The courts have shut down the grant Web sites until a still-unscheduled trial. Try to find them online, and you won’t get far. Search for Juliette, however, and you’ll find her 2006 pageant portrait floating around: sash, crown, evening gown.
Discussion: 83 comments so far…
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church going folks, just get it people, religion is a scam like what these 2 were doing.
mormons no less; imagine 300,000 stupid people falling for this scam. hey, 40,000 go to see the cubs at wrigley field every day. go figure.
Comment removed by staff.
as soon as they said "church-going" i had heard enough.
most people that REALLY believe there is a little man with a beard named "God" are morons...so they are easy prey for people like this.
Throw that thieving biotch in jail for the rest of her life.
She's no different than Bernie Madoff as far as I'm concerned.
Just another scam on naive people. We don't need people like this woman in our society. Put her in a cage.
Church going folks? Holier than thou.
CHurch going my ***. nice front to hide behind. Also BAD publicity for the Mormons; she owes her "success" to the MOrmon church. Is that a 'how to be Blessed while scamming thousands" doctrine?
Golly, it's so sad. A good republican, god-fearin angel is snatched up by the devil and forced to make money illegally in Vegas. How shocking and sad.
Looks like Mrs. Nevada is going to the slammer-sash, crown, evening gown & all.
Is she Neiman2's Daughter?
"The problem with Mormons, is that it is a Satanic based Cult."
mwh710 -- you based this on what exactly? Very interested to hear your response.
If she were of any other religion no one would care. The media ALWAYS picks on the Mormons!
Mormon's really try too hard to become rich. They want to flaunt their wealth. God only smiles on the rich. If you are poor, God must have been mad at you.
This kind of hypocricy is not unique to Mormons. The Samuel Johnson quote about patriotism being the "last refuge of a scoundrel" can be applied equally to religion.
Is this scam any worse than the one used by Gibbons, Reid, or Ensign?
Mormon's believe Satan is real, but they do not worship him as their God; they fear him just like all Christian based religions fear him...just like children fear the boogie man or the monster under the bed. Religion is a social disorder!
In a manner of speaking "they robbed Peter to Pay Paul", the Kimotos have a long history of these fraudulent activities. This is such a sad waste; greed and money do not equate happiness when gained through lies and deceit... karma maybe?
Question for you Juliette: what about your babies...
Someone who is LDS and falls to this level of deception not only betrays the community but betrays every Mormon who lives the LDS precepts honorably. Hypocrites are every where but it is still painful to see one of your own fall so low.
Nevada too embarrassed to pull the plug on her title ? How come no word on how much a fool they must feel like. Or are they hiding behind palm plant? Who ever said "church going "folk especially the Mormons...always walk a straight and narrow path all the time....get real !! They just love hiding behind religion.
Money is a powerful drug.
If a couple going through the actions of being good members of the LDS church makes the entire church bad, then there are a lot more bad churches and organizations in the world than just the LDS church. Any thinking individual should understand this, but people will believe what people want to believe, but before one casts judgement, why not look at the majority of LDS people and not judge them by the actions of a few?
If one wants to talk about scam artists, just listen to Christian TV and radio. These TV Evangelical ministers are the biggest scam artists in the world. In these cases, however, these are the ministers of the churches, not just some individuals claiming to be members of their particular faith. Before self righteous "Christians" start pointing fingers, they better take a good look at your own faith!
Opie,
A question I have is whether any religion really changes the percentage of people acting badly. We already know the Catholic church, as an institution, has helped to cover up child abuse by church leaders. The Mormon Church for years wrote off entire classes of human beings because they looked different. The list goes on for all other religions as well.
For me, all religions, christian and otherwise, are mythologies allowing their adherents to huddle around the fire while fearfully staring at the deep shadows filled with evil bogeymen. They replace a search for understanding with ignorance, fear, hate, and tyranny.
All the things you read about Julie online that are positive were posted and written by a group in the Philippines to suppress the negative information about her and Kyle.
I have been closely involved in this case and know that many of Ms. Goldman's "facts" are inaccurate. I won't go blow-by-blow. But the truth is Juliette Kimoto has not been CONVICTED of anything! She is only being implicated in a civil suit (not criminal) and was NEVER directly invloved in the operations of this business. She also never used any funds from the buisiness to pay for Kyle's defense. This so called "story" is a string of half- truths and guilt by association. A juicy story involving a pretty young wife, the religion angle, scandal... They couldn't help themselves. It's simply horse pucky! And a good sampling of the usual fare the Sun serves up.
Fine church going people. Did the church collect tidings from that money, and will they return it?The money is stained with corruption, but if it went to the curch it's OK? If you want to believe a particular religion, that's you're choice. Blind faith is another. To be so naive to believe people who go to church are any more moral than those who don't is absurd. Organized religion is a scam! The Mormons are no better or worse than any of them.
My question is, did the church get its mandatory 10% of the gross? If so, they certainly must pay it back.
BTW, it's not the fault of any church when its members hide behind them. Remember our dear president Clinton, after a morning session with Monica, marching off to church holding Hilary's hand and a Bible in the other? Churches try to lead people to do the right thing and people do whatever they wish.
And the poor kids............I feel so sorry for them.
Hey Stargazer. about those babies. I had to drive them all to school this a.m. they were sobbing because of the Sun article. These kind of articles serve no purpose other than to hurt people.
To Boomer 111. No she is not Neiman 2's daughter
Wow,
These folks could help Gibbons balance the budget.
She would be perfect for Ensign`s communication team.
To Babyboomer. The State of Nevada didn't give her the Mrs. Nevada tiltle you idiot! Like all beauty contests it is sponsored by a private, for profit corporation that goes around the the country holding these little pageants and giving the tiltle for whatever state.. Mrs. California, Mrs. New York etc.
Julie at the time, was a house wife with 6 kids and entered on a whim. there were only about ten contestants and besides it's ancient history, it was years ago.
wenrabo, are you mormon or moron
chooch -- what are "tidings"?
"After coming into contact with a religious man I always feel I must wash my hands." -- Friedrich Nietzsche, "Why I Am a Destiny" (1888)
A Mormon but not a moron.
Madoff victimized Jews, this guy Mormons.
These pageants are borderline scams to begin with in my opinion.
She should do a nude layout for a skin mag to earn some quick money for legal bills.
wenrabo:
The babies wouldn't be crying if the Kimotos had made honest and pure intentioned choices...they did not learn from past mistakes and they affected the livelihood of other Human beings as well as their children. "Oh what a tangled web we weave..."
Chooch, Mormons give 10 percent of all earnings to the Mormon church; the Mormon church is probably wallowing in dirty money. I love Nietzche, good quote!
The Mormon church actually gave back the money that Kyle gave them.
Kyle could not do this type of business anymore so the company was put in his wife's name. Julie rarely made an appearance at Vantex Group instead Kyle mainly dealt directly with Rachael Cook who is Steve Henriksen's sister and the person in charge at Vantex Group.
Stargazer5 - If you love Nietzche, that says it all.
Typical comments condemning the actions of 2 crooks and for associating them with the LDS church. How about Bernie Madoff? Will they blame the Tel Aviv synagogue for his shenanigans?
Will they blame the Seventh Day Adventist church for the actions of the Texas billionaire's scams?
Get real, people. Crooked people commit crimes, not institutions.
wenrabo - and isn't it telling that you don't...
afveteran - this is a forum based on the above article...not about Bernie Madoff. Nor is the article blaming that church on behalf of 2 members. We are all in charge of our own choices and the consequences that come from them.
Stargazer5- Abosutely.
"She should do a nude layout for a skin mag to earn some quick money for legal bills."
mred -- after 6 kids, what's worth seeing?? Unless you get off on stre
WOW,,, I HAD NO IDEA WE HAD THIS MANY BLIND PEOPLE,,, THESE COMMENTS ARE AMAZING,,, DO YOU ALL BELIEVE WHAT THE NEWS MEDIA SAYS,,, DO YOUR HOME WORK ON THE FTC AND FOLLOW THIS CASE TO THE END,,, THEN I WILL BE INTERESTED TO HEAR YOUR COMMENTS ( APOLOGY )
I almost fell for that one. I was looking for some stimulating stimulus cash to pay for repairs on my olds, so I could sell flood insurance. I Hope the husband meets a 6'7" transvestite in prison who calls out his name in the middle of the night. I go for the bad girls. I like to look at ankles. Her, I could forgive, I would even let her come over, & check out my power lines, after the divorce, & her parole ; I trust her completely, however, I retain the right to check to see if her electronic bracelet is still on.
Scanot I have done my homework on the FTC they are the Federal Trade Commission and they protect consumers against fraudulent companies, Kinda like the one Julie and the Henriksens operated. Julie owned Vantex Group through Pink LTD because Kyle was not allowed to be in that business anymore. Before he went to jail Kyle ran the day to day there. So even if Julie didn't have a clue to what was going on she still collected a monthly stipend from Vantex which she owned, so she is responsible for everything the company did regardless if she was involved or not.
If it looks like a duck and quacks like a duck... scandot...no apologies are necessary by the people posting on this site, we are all entitled to opinions based on what was reported...the history is telling. If a woman lets someone else use her name in dishonest dealings she is culpable as well
WELL I JUST HAPPEN TO KNOW HOW THE FTC OPERATES AND THEY WROTE THE ARTICLE FOR THE SUN,,, WE ARE NOT INNOCENT, TILL PROVEN GUILTY IN THIS COUNTRY WITH THE FTC AND THIS MEDIA TECHNOLOGY, WE ARE GUILTY AND IF WE HAVE ENOUGH MONEY WE CAN TRY,,,I WISH PEOPLE COULD DEFEND THEMSELVES IN THE NEWS, BUT THE MEDIA JUST TWIST EVERYTHING TO THERE ANGLE,,, AND WHAT WAS THE POINT OF BRINGING CHRISTIANITY IN TO THE STORY,,, SHE IS A MOTHER ALSO, SO WOULD IT BE FARE TO SLAM & BASH ALL MOTHERS ? ? ?
She needs to contact Mitt Romney and borrow some sacred underwear. Not sure if they have female sizes, but hey-any help in a pinch is appreciated. I wonder if there are some lawyers headed here from wacko SLC to assist her?
Actually this story was written by Abigail Goldman not the FTC and I think the Henriksens and Julie made plenty of money scamming people so if your right they should be able to buy their freedom. They can defend themselves in the news by commenting when asked and maybe sending out a press release not paying some Phillipino kid two dollars an hour to post fake writings of her and Kyle to suppress all the negative articles out about them. It's OK though I know you can't trust any media unless it's Fox News... oh and all caps is so lame, it doesn't make me read your worthless dribble in an angry voice.
Salesguy - I think I love you
OH, OK SALESGUY ( FTC GUY ) I'M NOT AN ATTORNEY BUT I KNOW YOU GUYS PUT SPIN ON ANYTHING THAT IS SAID,,,,SPIN THIS FOR ME,,, WHY IS EVERYONE GUILTY TILL PROVEN INNOCENT WITH YOU GUYS,,, AND YOU TOLD THE JUDGE THAT JULIE KIMOTO WAS INVOLVED IN THE DAILY OPERATIONS AND AFTER ALL YOUR INVESTIGATING YOU ABSOLUTELY KNOW THAT IS NOT TRUE, BUT THAT'S THE ONLY WAY YOU COULD GET THE JUDGE TO CLOSE HER DOWN,,, OH AND THE ARTICLE SAYS JULIE WAS CONVICTED (OPPS) MUST JUST BE A TYPE-O. SORRY, MY CAPS ARE STUCK ON, EVERYONE HAS BEEN THINKING I'M YELLING,,,
Comment removed by staff.
It doesn't say she was convicted it states Kyle has been convicted and she has been accused...
Even if she wasn't involved in the day-to-day operations, she is the owner, bottom line. It was all done in her name.
I am shocked at some of the comments on here and yet others don't surprise me at all.
Cynthialovesvegas---you really do give all christians/ church going/ mormons a bad rap. It's people like you that shock me the most. You wrote above that it is "painful to see one of your own fall" that tells me that you are a good mormon woman named Cynthia and that you belong to the LDS. I am suprised that such a good mormon woman is passing such judgement upon one of your own or any other. I am not a mormon but I am a mother and I am a Christian. I will let God judge her, I will let the justice system determine weather she is guilty or innocent and I will pray for her and her entire family during this very hard time. Please go take a look at the good book and rethink what you have said above as one of gods children.
Salesguy-- I am curious what your relationship is to Juliette and her business. The article only refers to her as Juliette but you seem to know her personally with all the "Julie" you are talkin up...again just curious are you an ex employee, with the FTC cmon whats your story??
Well to be perfectly honest no one is guilty or innocent here. This is actually a civil case so all they have to do is prove that Julie in fact did own Vantex Group. Which is on record with the city of Las Vegas and the State. It's called burden of proof. You said it yourself as long as they got the money they will get off so don't worry. By your standards I could start a company let some shady people run it and when they get busted I get nothing even though I made millions off it. Why has no one brought up the morgtage scheme Kyle and Julie were being investigated for a few years back.
Are you ready for my spin now. Julie Kimoto owns Vantex Group. Vantex Group was defrauding people. Therefore Julie Kimoto was defrauding people. Whether she knew it or not is her fault, she owns the company so she is just as responsible as everyone else.
Comment removed by staff.
The mortgage case was dropped because there was nothing there.
All Rise
The Mormans will save them!
Comment removed by staff.
Is this just a tease for the next season of HBO's Big Love?
These people also conned their employees who legitimately went to work doing what they expected and considered to be legal. How many innocent workers were dumped into unemployment?
oh yes. It must be the religion that drove them to it. Yes, I believe the Mormons teach "how to create a fraudulent pyramid scheme" as part of their Sunday School. But not only the Mormons, I hear that Bernie Madoff used to teach "How to build an effective ponzi scheme" at his Jewish temple and of course there are numerous pedophile classes at your local Catholic church. Yep, it must have been the religion that drove them to it.
I don't really think anyone is saying that their religion made them do it. Rather that they use their religion as a pawn to make people believe they are righteous people and can be trusted and would never do anything to hurt someone else. While I may not be a part of the Mormon religion I do respect the morals and values that it instills in the people who do follow it. If their is anyone to be mad at it's the Kimoto's for wrongfully using their piousness as a defense.
The religious slant is a cheap shot.
Anybody in their shoes with a plan to scam gobs of folks kinda needs a serious ars-kickin.
Whacking all the other tribe doesn't seem any more nearly fair than callin me a lizard because I warm myself in the sun.
So many with small minds bash the mormons because of this.
I bet you didn't bash judiasm when Madoff went to jail.
Scott, the small mindedness comes from those who seek to prey on people to make large sums of money with no thought to what they are really 'doing' to another human being/s... This really has nothing to do with Mormons or people of other faiths (other than to interject that they used it as a sounding board to gain trust)
If you really want to see corruption, check out what this church is doing.
http://www.calgarysun.com/news/alberta/2...
Opie - that is a truly horrible story and a prime example of the abuses of 'things done in the name of God'
I suppose when you live in a world of irrationality and fairy tales you make irrational choices...
Wow. The Sun really went out of their way to tie this story to them evil Mormons. A few subtly provocative phrases and - presto! - a welcoming forum to bash religion, draw out the bigots and hatemongers and increase hits on the old website. Cheers!
What about that Lesko guy that is always on TV wearing the question mark jacket?? He always claims you can get government grants, is he a crook?? why is he not in jail?
Neiman is related to her somehow. They think alike.
Comment removed by staff. This post contained hate speech.
WOW ,there was a comment that if it was any other religion no one would care. How absurb was that statement.Unfortunately greed does not see religion it is what it is Greed.Evil people have used other type religion based churches to scam people.Just saw how a scam ripped off serveral Southern Baptist churches for alot more than this scam.The mormon church was unfortunately mentioned in this scam.
About as "ABSURB" as your comment. I'm tella ya, if she were a Catholic, Buddhist, Presbyterian.. no would would care, or bother to mention it.
LDS = Cult !!
You cannot argue the Joseph Smith/prophet concept - without accepting that (in and by itself) makes this religion a cult.
The recruitment and/or banishment of former Mormons or non-Mormons also qualifies cult 101.
The list goes on...I'll spare adding on to it.
Been there, done her. Leave the Mormon's alone. Me? I worship The Scintas's - Las Vegas's greatest entertainer's!
Ravolini!
Rav-volting!
SPORT'S!!
SYSTEM OF RELIGIOUS WORSHIP, PURSUIT OF, OR DEVOTION TO,,,, THAT'S THE DEFINITION OF CULT,,, WOW, I GUESS ALL RELIGIONS ARE CULTS,,, BUT I LIKE THE CHRISTIAN CULTS THAT WORSHIP, PURSUE AND ARE DEVOTED TO CHRIST. OH,, AND PLEASE DON`T SHOW MORE IGNORANCE AND SAY THE MORMONS ARE NOT CHRISTIANS,, THEY ARE CALLED THE CHURCH OF JESUS CHRIST
Thank you scanot for dispelling the ignorance people have about The Church of Jesus Christ of Latter Day Saints. I guess If you want to call everyone who founds a Christian Sect a cultmaker, you would have to also include the likes of Peter and Paul, Martin Luther, John Knox, and Billy Graham just to name a few.. not to mention guys like L. Ron Hubbard.
Wow, I'm a Mormon. I'm proud to be. I don't know any of you and you don't know me. You don't know why I pray or whether I live up to the teachings of my church. When I was baptized in highschool my Grandma said "believe in the gospel and not in the people". I sin and so does everybody else. As Jesus said those who are without sin should throw the first stone. Believe what you want. It is your right, but don't throw stones at others because they believe differently. When I knew Julie she was a great person. I think anyone can get lost. Even you and I.
When you want to know what someone believes you should ask them. Check out mormon.org and see for yourself.