Miami Inmate Ran $10 Million Prison Scam

MIAMI, FL — Crime may not pay for most people but 41-year-old James Sabatino came close to being the exception. While incarcerated at the Federal Detention Center in Miami, Sabatino operated a phony entertainment marketing business that collected more than $10 million in bags, wristwatches, apparel, jewelry and other valuables, according to federal prosecutors. The items were handed over by businesses that were led to believe their merchandise would be featured in Miami area productions of music videos and the like.

But none of it was real aside from the merchandise — and maybe the 20 years in jail that Sabatino was ordered to serve by U.S. District Judge Joan A. Lenard this week. Sabatino pleaded guilty to organizing and leading a prison-based criminal enterprise.

Prosecutors said Sabatino's phony business engaged in mail fraud, wire fraud, interstate transportation of stolen property and the sale and receipt of stolen goods.

The sentence was announced on Tuesday by Acting U.S. Attorney Benjamin G. Greenberg in Miami and area law enforcement officials, including Broward County Sheriff Scott Israel, Bal Harbour Police Chief Miguel De La Rosa, FBI Special Agent in Charge Robert F. Lasky in Miami and Department of Justice, Office of the Inspector General Special Agent in Charge Robert Bourbon in Miami.

"Between 2015 and 2017, Sabatino was incarcerated at the Federal Detention Center in Miami, Florida. While detained there, Sabatino obtained several cellular telephones, which he used to impersonate entertainment-industry employees and executives," federal prosecutors said.

"Using the contraband cellular telephones, Sabatino contacted retail and jewelry store employees and brand representatives through telephone calls, emails and text messages to request that the victims send handbags, wristwatches, apparel, jewelry and other valuable items to various locations in South Florida and elsewhere," prosecutors added.

Sabatino also recruited multiple co-conspirators in South Florida, New York and Georgia, who received shipments of retail items and jewelry from the companies.

The fraudulently obtained goods were valued at over $10 million. Investigators said they recovered $2,527,569 in stolen property and fraud proceeds at the time of sentencing. In addition to the jail sentence, Sabatino was also ordered to pay more than $10 million in restitution.

"Sabatino claimed that the retail items would be featured in music videos and promotional materials that were being filmed and produced in Miami, Florida," prosecutors explained.

Sabatino’s co-defendants — Jorge Duquen, Valerie Kay Hunt, and Denise Siksha Lewis — previously pleaded guilty to related charges and were sentenced to various prison terms, according to prosecutors.

The case is being prosecuted by Assistant U.S. Attorney Christopher B. Browne.

Federal Detention Center Miami courtesy Federal Bureau of Prisons