A man in California’s San Fernando Valley has consented to enter a guilty plea to wire fraud after prosecutors charged him with operating a multimillion-dollar Ponzi scheme that targeted elderly churchgoers and other members of the local Filipino community.
The 48-year-old Sylvein William Maximilian D. Habsburg XVII is charged with embezzling over $5.9 million from victims over a number of years. Prosecutors stated in the guilty agreement that D Habsburg made a number of assertions, including that his technology could identify Covid-19 infection from video, and that it was all done under the pretense of investing in his two software companies.
Prosecutors stated in the plea agreement with the defendant that D Habsburg persuaded a victim to transfer $224,378.43 to his bank account in the name of BAI intelligence at one point in 2020. According to court documents, he subsequently used the funds to purchase rare antiques and exotic vehicles like a vintage Rolls Royce.
According to the bargain submitted last Friday for the federal felony fraud charge, D Habsburg, who is also of Filipino origin and changed his name from Sylvein Scalleone, may spend up to 20 years in jail.
Bryan Thomas, D Habsburg’s lawyer, told NBC News that his client strongly denies operating a Ponzi scheme.
Before mentioning D Habsburg’s company BAI Intelligence, which specializes in experimental Covid-19 testing, Bryan Thomas, D Habsburg’s lawyer, said in a statement that Mr. D Habsburg has acknowledged making false statements about the company’s financial situation and that is what he has accepted responsibility for. He has not entered a guilty plea to any crimes pertaining to the operations of his business, though, and BAI Technology is not a Ponzi scheme.
Given D. Habsburg’s common history with his victims, Licelle Cobrador, executive director of the Filipino American Legal Defense and Education Fund, described the accusations as mind-boggling.
For Filipinos, there is an innate kinship when you identify as another Filipino. Cobrador added that the accusations imply D Habsburg exploited that bond, saying they would simply be more trusting.
The plea deal states that the wire fraud began in January 2018 and lasted until at least June 2023. According to the Central District of California U.S. Attorney’s Office, D Habsburg seemed to target fellow Filipinos.
Prosecutors stated in the guilty agreement that D Habsburg advertised purported artificial intelligence technologies and employed recruiters to find community members who may invest in his company, Wild Rabbit Technologies, in addition to BAI Intelligence. D Habsburg then invited these prospective investors to see technological demonstrations, claiming that among other things, the system could diagnose Covid-19 infection based on video and anticipate the future.
According to the plea deal, D Habsburg would claim during the presentations that he had already received $500 million in investments from well-known figures including Joel Osteen, Michael Jordan, Kobe Bryant, and the Harvard University endowment. Furthermore, D. Habsburg would assert that he had discussed his AI technology with previous secretaries of state Hillary Clinton and Mike Pompeo.
Although he assured prospective investors that their money would be used to further his research, hire staff, and get patents, the plea deal claims that D Habsburg used the money for personal expenses.
According to the plea deal, D Habsburg also lavished money on a pair of Italian-carved Giltwood thrones from the 1800s, a Venetian baroque-style throne chair from approximately 1890, paired Italian marble columns from the 12th and 13th centuries, as well as expensive apparel and other valuables, in addition to the two vintage Rolls Royces.
Given the high level of trust that many Filipino Americans place in the people they worship with, Cobrador said that D. Habsburg’s alleged targeting of parishioners is alarming. According to Cobrador, the church holds a significant position, especially among immigrants. According to Cobrador, the church in the Philippines frequently assists in providing essential services that the government of the developing nation frequently is unable to offer.
People’s perceptions of churches as safe places to seek support, direction, and community are carried over when they immigrate to the United States. According to her, many immigrants typically look to their fellow parishioners for networking opportunities, employment, or lodging.
According to her, approaching members of the church is less scary for Filipino Americans than approaching those in the government or other charitable organizations. People are always willing to lend a hand. However, it’s easy to understand how dishonest people could exploit that atmosphere.
In the upcoming weeks, D. Habsburg is anticipated to formally enter his guilty plea.
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