NEW ORLEANS (WVUE) – A federal jury found prominent injury attorneys Vanessa Motta and Jason Giles guilty Friday on multiple charges in an alleged staged wreck scheme, and both were later remanded to federal custody as they await sentencing.
Federal prosecutors said the case centered on a scheme in which so-called slammers intentionally crashed into 18-wheelers, allowing participants to file lawsuits and seek insurance payouts. Prosecutors argued Motta and Giles helped profit from those wrecks through their law practices.
U.S. District Judge Wendy Vitter read the verdict after jurors deliberated for over five hours Friday.
Giles was found guilty of conspiracy to commit mail fraud and wire fraud, mail fraud, obstruction of justice and witness tampering. Motta was found guilty of conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, obstruction of justice and witness…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.