A multi-million dollar investment scheme has landed two men and their associated corporate entities in hot water, with charges ranging from wire fraud to conspiracy to obstruct a grand jury investigation, according to a press release by the Acting U.S. Attorney's Office in the Eastern District of Louisiana. Josiah David, who used the alias “Dennis Lee,” and James Michael Kafes, along with four LLCs — Provision Corporation, The Premier Healthcare Solution, Out Of Pocket Relief For Americans, and The Supporters Of Opra — face an eight-count indictment lodged by federal prosecutors.
The indictment outlines a complex fraud involving the Classic 105 program originally developed by Total Financial Group (TTFG), a Louisiana-based company that ceased operations in 2017 after federal search warrants were executed. Despite the shutdown and criminal charges against TTFG's Denis Joachim, who later pleaded guilty, David and Kafes allegedly pledged to create a successor to the Classic 105 plan. They subsequently solicited over $4 million from investors under the guise that the "New 105 Plan" was on the brink of launch, and its infrastructure was virtually patent-protected. Acting U.S. Attorney Michael M. Simpson, in a statement obtained by the Justice Department, emphasized that an indictment is simply an accusation, insisting on the principle that the defendant’s guilt must be established in a court of law.
According to law enforcement officials, David and Kafes's promises included already secured funding from financial institutions and legal vetting that declared their venture legitimate. However, the indictment alleges a litany of falsehoods to investors, such as obscure ties to Joachim and the nondisclosure of David's checkered legal past, which encompassed multiple felony convictions, securities violations, state regulator warnings, and even a Federal Trade Commission injunction.
Further still, both men are accused of engaging in a conspiracy to obstruct justice by influencing witnesses and withholding documents from a federal grand jury investigation. Kafes is additionally charged with perjury for allegedly giving false testimony under oath before the grand jury on March 27. If convicted of these charges, both David and Kafes could face significant prison time, substantial fines, and mandatory supervised release, while the corporate entities may incur fines of up to $500,000 per count they're charged with, according to the Justice Department's press release.
The investigation has received accolades from the Acting U.S. Attorney, who praised the United States Department of Labor – Employee Benefits Security Administration and Office of Inspector General for their diligent efforts, and acknowledged contributions from the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is assigned to lead the prosecution, fortifying the government’s resolve to combat white-collar crime that jeopardizes the integrity of public trust and financial marketplaces.
