Miami woman sentenced to prison for Internet kiosk scheme

A woman is sentenced to fraud-related charges connected to the sale of Internet kiosks.

A Miami woman has been sentenced to six and a half years in prison and ordered to pay US$18.2 million in restitution for a scheme to sell Internet kiosks that were promised to generate substantial income for buyers.

Lillian Glaubman, who served as administrator for Pantheon Holdings, also known as Internet Machine Company, was sentenced in US District Court for the Southern District of Florida Wednesday, the US Department of Justice said. She pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of mail fraud in July.

Glaubman is the 14th person to be sentenced to related crimes in the case. Pantheon Holdings told potential purchasers that the US$18,000 Internet kiosks would earn substantial profits from fees for Internet access and from advertising that would be placed on the kiosks, the DOJ said. Pantheon promised to perform all the legwork for the kiosk, including finding high-traffic areas for the kiosks, relocating underperforming kiosks and placing advertising.

Locations where the machines were located drew little business, and no advertising was placed on the kiosks, the DOJ said. There were more than 730 victims of the scheme, the DOJ said.

RipoffReport.com has more than 100 comments posted about Pantheon, with the latest ones coming in January. "I bought one machine, and my dad got three," one poster wrote. "They are large paperweights. They said [the machines] made $1,800 monthly. Well, the best i did was US$65, and it cost over $100 to run this tin can."

Glaubman was charged with another person in May 2007 on charges related to the Internet kiosk scheme. Jay Mayne, a Pantheon salesman, was indicted on nine related counts in February 2006, then Mayne and eight other people connected to Pantheon were named in a second indictment in May of that year.

Between October and December 2006, eight defendants were sentenced in the case, after most of them pleaded guilty. The lightest penalty was for 34 months in prison and US$1.9 million in restitution. Jeffrey Kuba, a Pantheon owner, salesman and head of customer service, was sentenced in November 2006 to 188 months in prison and $18.1 million in restitution.

Glaubman was the president and manager of Marketing Workforce Providers, a company located in the same office building as Pantheon that assisted with Pantheon operations. Glaubman shipped promotional brochures, processed customer purchases, managed Pantheon's books and issued payments to Pantheon employees and owners, the DOJ said.

Glaubman knew that Pantheon was misrepresenting the Internet kiosks to customers and knew that some customers did not receive the kiosks, the DOJ said. She also concealed the identities of Pantheon's operators, the DOJ said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?