Gail Howard and James Jedynak Sentenced for $30 Million Fake VoIP Telecom Investment Scheme

Case from 2015 (U.S. Attorney's Office release: Jan. 23, 2015). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Gail Howard and James Jedynak, who ran Unified Worldwide Transport LLC, a Santa Monica, California, company that claimed to route internet phone traffic, were sentenced on Jan. 23, 2015, for an investment scheme that took more than $30 million from more than 100 investors, the U.S. Attorney's Office for the Northern District of Illinois announced [1]. Howard received seven years and Jedynak 6½ years.

How the scheme worked

According to court records cited by prosecutors [1]:

1. Private placements: From 2003 to 2007, UWT sold equity shares and took loans through private placement offerings. Jedynak recruited investors, including some from the Chicago area.
2. Stated uses: Investors were told the money would buy telecom routes, build network infrastructure, provide working capital, repay debt and buy licenses and equipment.
3. Actual uses: About $6.2 million went to a swimming pool, a boat, jewelry, plastic surgery, home improvements, payments to friends and relatives, personal investments, real estate and outside businesses.
4. False claims: They said UWT had a contract with Illinois-based Caterpillar, which supposedly owed it a lot of money; there was no contract. Jedynak said he would take no pay until investors got their principal back. Howard claimed a law degree, an MBA and a past job as an Arkansas state prosecutor, none of which was true.

The people sentenced

Both were ordered by U.S. District Judge Robert M. Dow Jr. to pay $30.27 million in restitution [1].

• Gail Howard, 64, Springdale, Ark., formerly of California — UWT president and CEO. Pleaded guilty to wire fraud; sentenced to seven years.
• James Jedynak, 49, Hemlock, Mich., formerly of Northfield, Ill. — head of investor recruiting. Convicted of wire fraud at trial in June 2013; sentenced to 6½ years.

The FBI investigated with help from the Illinois Department of Securities.

Red flags

• Claims of big-name customers (here, Caterpillar) that you can't confirm.
• Executives with credentials you can't verify through bar, university or employer records.
• Private placements sold by a recruiter paid on what he brings in.

What to do if you're targeted

1. Verify claimed contracts and credentials independently, not through the company.
2. Check the offering for a Form D on the SEC's EDGAR and ask your state securities regulator.
3. Report investment fraud to the SEC at sec.gov/tcr.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Gail Howard	N.D. Ill. (Judge Dow)	Pleaded guilty to wire fraud; sentenced Jan. 23, 2015, to 7 years; $30.27M restitution	[1]
James Jedynak	N.D. Ill. (Judge Dow)	Convicted at trial June 2013; sentenced Jan. 23, 2015, to 6½ years; $30.27M restitution	[1]

The sentences were imposed in 2015; we have not found a source on either defendant's current custody status.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Pair Sentenced To Federal Prison Terms For Swindling $30 Million From More Than 100 Investors In Purported Telecom Business," Jan. 23, 2015. https://www.justice.gov/usao-ndil/pr/pair-sentenced-federal-prison-terms-swindling-30-million-more-100-investors-purported

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