Opinion ID: 2833600
Heading Depth: 3
Heading Rank: 3

Heading: Barbara A. Blake

Text: Reyes’ expert Investigator Barbara Blake examined each scheme in detail and also stated that return rates over 10% were prima facie evidence of fraud. Blake Decl., JA 1614-15 ¶ 19. Investigator Blake looked at the operations of each entity and other evidence before concluding that the telemarketers operate “fundamentally fraudulent schemes[.]” Id., JA 1627-28 ¶ 85. She noted that the “[h]igh return rates are the plainest hallmark of mass-marketing fraud conducted through the banking system. This has been recognized in publications of the Comptroller of the Currency, FinCen, NACHA and the FDIC.” Id., JA 1614 ¶ 18. Investigator Blake concluded that “each of the schemes at issue was a totally fraudulent mass-marketing fraud” because each of them “uses purported ‘products’ and ‘services’ that are routinely used as part of mass-marketing fraud schemes.” Id., JA 1613 ¶ 15. “Th[e] strong presumption of fraud [evidenced by the high return rates] is confirmed by the nature of the schemes . . . , which, once they are understood, are plainly fraudulent on their face.” Id., JA 1615 ¶ 21. Investigator Blake’s conclusion was based on the telemarketers’ sales scripts, the worthless nature of the purported “products,” and the history of regulatory actions taken against the telemarketers and their principals. Id., JA 1613-27 ¶¶ 15-84.