Philippines Call-Center Scam Sold Fake CDs to U.S. Seniors; Austin Etches Got 7 Years, Two Others Charged

Case from 2014–2015 (U.S. Attorney's Office latest release: Sept. 10, 2015). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

A Canadian man, Austin Etches, was sentenced in December 2014 to seven years in prison for a telemarketing scheme run from call centers near Manila that sold phony certificates of deposit and nonexistent real estate investments to American seniors, the U.S. Attorney's Office for the Northern District of Illinois announced [1]. In September 2015, a grand jury indicted two alleged co-schemers, Jonathan Papa and Methsiri "Lal" Palliyaguru, who prosecutors said were outside the United States [2].

Important: Papa and Palliyaguru are charged only and are presumed innocent. Both were considered fugitives in 2015. We found no later arrest, extradition or court outcome for either man in public sources.

How the scheme worked

According to the 2015 indictment and court documents described by prosecutors [1] [2]:

1. Targeting retirees: Potential investors were found through online research of American retirement communities, then called by workers at call centers in the Manila area.
2. Looking American: The companies, including one called Bradley Cooper Financial Services, set up "virtual offices" in or near major U.S. cities, including at 500 N. Michigan Ave. in Chicago, and used internet phone technology so calls appeared to come from U.S. numbers. No employees actually worked in those offices, the indictment says.
3. Famous names: Some calls and promotional materials falsely claimed Warren Buffett and Berkshire Hathaway were involved in the real estate investments, the indictment alleges.
4. Fake statements: Investors received account statements showing their money growing, when it had never been invested. Money deposited in U.S. accounts was moved to accounts in China, Hong Kong and the Philippines.

Prosecutors said Etches and two co-schemers raised more than $8 million from 2008 to 2012 [1]. The 2015 indictment alleges investors paid about $10 million from August 2008 to August 2013, nearly 200 people in all [2].

At Etches' sentencing, the son of one elderly victim told the court his parents, who had worked factory jobs their whole lives, lost all $161,000 they had saved, and that callers hounded his mother until he stepped in, according to the release [1].

The people involved

Austin Etches, 56, last of Toronto and Manila — sentenced.

• Traveled voluntarily from the Philippines to the U.S. in June 2013, cooperated, and pleaded guilty to mail fraud in June 2014 [1].
• Sentenced in December 2014 by U.S. District Judge Thomas Durkin to 84 months in prison and ordered to pay about $8 million in restitution. Durkin said Etches was "up to his eyeballs" in a "heinous" crime.

Jonathan Papa, 43 when indicted — charged; believed to be in the Philippines in 2015.

Methsiri "Lal" Palliyaguru, 57 when indicted — charged; formerly of the Philippines and believed to be in Canada in 2015.

• Each was charged with eight counts of mail fraud affecting 10 or more people over 55 [2].

Red flags

• Cold calls offering CDs or real estate with above-market returns.
• Name-dropping famous investors or companies to vouch for a deal.
• A U.S. office address that no one ever answers at, or a company you can't find in state or SEC records.
• Wiring money to accounts that move it overseas.

What to do if you're targeted

1. Hang up on unsolicited investment calls and check the firm on FINRA BrokerCheck and with your state securities regulator.
2. Report elder financial fraud to the National Elder Fraud Hotline at 1-833-372-8311 and to the FBI at ic3.gov.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Austin Etches	N.D. Ill. (Judge Durkin)	Pleaded guilty June 2014; sentenced December 2014 to 84 months; ~$8M restitution	[1]
Jonathan Papa	N.D. Ill.	Indicted Sept. 9, 2015; fugitive as of 2015; no later outcome found in public sources as of Oct. 16, 2026	[2]
Methsiri "Lal" Palliyaguru	N.D. Ill.	Indicted Sept. 9, 2015; fugitive as of 2015; no later outcome found in public sources as of Oct. 16, 2026	[2]

An indictment is an allegation, not proof of guilt.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Canadian Man Sentenced To Seven Years In Prison For Swindling Elderly Victims In $8 Million Telemarketing Scam From The Philippines," Dec. 22, 2014. https://www.justice.gov/usao-ndil/pr/canadian-man-sentenced-seven-years-prison-swindling-elderly-victims-8-million
2. U.S. Attorney's Office, Northern District of Illinois, "Two Foreign Nationals Indicted on Federal Fraud Charges for Swindling Senior Citizens in $10 Million Telemarketing Scam," Sept. 10, 2015. https://www.justice.gov/usao-ndil/pr/two-foreign-nationals-indicted-federal-fraud-charges-swindling-senior-citizens-10

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